“When coupled with 1% to 2% of EPS accretion from both share buyback and consistent M&A execution, we are confident we'll deliver double-digit adjusted EPS growth at the midpoint on a [true] cycle basis.”

In context

“2024. So with that, let me turn it back to Vimal on Slide 9. Vimal Kapur: Thank you, Greg. Let's take a minute to zoom out from the near-term dynamics and talk about how our financial algorithm translates into value through EPS growth. Last May, we unveiled our updated long-term financial growth algorithm. One of the strengths of that framework is that we have demonstrated that we can balance between the levers we have to deliver what matters, consistent, compelling EPS growth. Let me unpack this for a moment. Our annual 4% to 7% organic sales growth and 40 basis point to 60 basis point of margin expansion alone will deliver 6% to 10% of organic EPS growth. Some years, one or other of these elements move. But as you have seen, 6% to 10% delivery has been consistent hallmark of Honeywell. When coupled with 1% to 2% of EPS accretion from both share buyback and consistent M&A execution, we are confident we'll deliver double-digit adjusted EPS growth at the midpoint on a [true] (ph) cycle basis. The strength of our dividend currently yielding about 2% also adds further value to our shareholder returns. Although there has been some noise in the results, mostly related to below the line, we have delivered 8% segment profit growth and 2% adjusted EPS accretion from the share repurchases on an average during the past few years, in line with the long-term financial framework. Now, we are ramping our M&A lever, which should drive incremental benefits. With that, let's go to the next page to discuss our recent progress on this long-term growth algorithm. As you can see on Slide 10, our 2023 results represent another year of strong financial performance consistent with our framework, following meaningful progress since 2016, inorganic growth, gross margin, segment margin expansion,”