Honeywell International Inc (HON)

“we also now expect to close the divestitures of both Productivity Solutions and Services and Warehouse and Workflow Solutions business by early August.”

“So '26, we are very focused to retire our debt. We have committed that, and we will absolutely execute on it.”

“Importantly, consistent with our messaging at the Investor Day, we expect a sharp inflection in growth in Process Automation Technology beginning in the third quarter, led by Process Technology and driven by backlog conversion and much stronger catalyst shipments.”

“I would just maybe add that we're sold out LNG for the next 3 years.”

“As we stand today, I see the team is driving operationally 100, 120 bps of margin expansion.”

“And I'm confident that Pete will deliver a 22% margin rate in the fourth quarter.”

“I also think there is more room as we're going to go into the third quarter and fourth quarter to beat even the raised guidance.”

“This, combined with our focus on increasing exposure on higher-growth verticals, driving annual recurring revenue growth from outcome-based services and software and maintaining our innovation engine will enable us to achieve double-digit annual adjusted EPS growth at greater than 90% free cash flow conversion.”

“Finally, Industrial Automation growth will continue in the second half, driven by resilient short-cycle demand for industrial measurement and sensing, continued growth in Europe and China and strengthening Americas demand.”

“we expect to improve our conversion to over 90% and have line of sight already in the second half of this year to hitting 95%.”

“we are confident that the 24% target is achievable and provides meaningful upside as we execute our strategy.”

“We're also raising our adjusted EPS outlook by $0.10 at the midpoint, which reflects the second quarter outperformance and improved second half outlook that is more than offsetting the loss of income from the earlier-than-anticipated close of the 2 divestitures.”

“I think that's what you should see. We -- that repositioning helped us to get some benefits in the second half and next year as far as depreciation and other things as far as how we absorb the footprint from an ISC standpoint. So net-net, I think it will be positive.”

“We're estimating repositioning right now for the year around that $100 million, $110 million.”

“We do expect our ARR growth to be in the -- about 15% for 2026.”

“So you should think about the core IA business growing sort of in the low single-digit range, call it 2% or so exiting as a kind of a start path for post divestiture world.”

“So essentially, we're able to cover inflation with price, but inflation is stubborn.”

“I think looking at the second half, it will be around 4%, and that's where we see inflation to be.”

“This is about $20 million better right now. So we should enter 2027 with about $60 million, $65 million of stranded costs that we'll proceed to eliminate early next year.”

“we expect the improvement trend will continue from no growth to low single-digit growth to, at some point, we'll turn the business into a mid-single-digit grower.”

“We do expect continued strength in our orders rate in the segment for the second half of the year.”

“We still expect the revenue in Middle East to be about high single digits this year and orders should be about 40%.”

“Finally, we continue to expect free cash flow of roughly $2 billion in 2026, with the majority of this coming in during the second half and approximately 95% conversion rate.”

“We now expect full year adjusted earnings per share of $8.20 at the midpoint or up approximately 27% versus prior year and up from our previous midpoint of $8.10.”

“Importantly, we expect Honeywell Technologies will exit the year above 22% segment margin.”

“We now expect full year segment margin expansion of 250 to 290 basis points, up 25 basis points at the midpoint from the previous guidance.”

“we're increasing our full year organic growth expectations for both businesses from roughly flat to up low single digits for the full year, a meaningful improvement from our original expectations coming into the year.”

“We expect Process Automation technology growth to accelerate to high single digits in the second half as global energy projects resume, backlog conversion ramps and catalyst shipment volumes increase significantly.”

“Building Automation continues to execute well, leading to a mid-single-digit plus organic growth outlook, supported by incredibly strong orders growth in the second quarter, particularly in our focus verticals, including health care, hospitality and data centers.”

“Today, we're increasing our organic sales growth outlook to 3% to 4% for the year, up from previous guidance of 2% to 3% and now expect the second half to grow 4% to 6% versus 3% to 5% previously.”

“This and continued momentum we see in all segments supports 4% to 6% growth outlook in the second half and over medium term.”

“Collectively, this will drive approximately $12 of adjusted EPS, representing more than 10% growth annually.”

“we expect to drive 60 basis points a year of operational margin expansion through price, improving mix, new product introduction and productivity.”

“On Quantinuum, we expect to provide more color on our plans of our 47% ownership stake by early next year.”

“we now expect to grow 4% to 6% organically in second half of the year, in line with our long-term targets.”

“We continue to expect a sharp growth inflection in Process Automation and Technology and continued momentum in Industrial Automation in the second half of 2026.”

“This is a very solid backlog that's going to start converting in the third quarter.”

“Output improved considerably in March, our highest revenue month for the quarter, making us confident that our supply chain efforts will produce better results moving forward.”

“On a normalized tax basis, EPS in the second quarter would be roughly $2.55 at the midpoint of our guidance, driven by higher segment profit and higher expected pension income.”

“Adjusted EPS is expected to be $2.40 at the midpoint, reflecting a higher effective tax rate in the quarter, amounting to about $0.16 headwind.”

“On the segment level, we expect strongest margin expansion in Building Automation, while Aerospace margin will be roughly flat.”

“We expect segment margin to be in the range of 22.2% to 22.5%, down 10 to up 20 basis points, led by pricing and productivity actions that we expect will largely offset rising inflation and unfavorable mix in Process Automation and Technology due to timing of high-margin catalyst shipments and the impact from the Middle East.”

“Both Building Automation and Industrial expect to be roughly in line with their full year outlook for these businesses.”

“Aerospace should improve sequentially from first quarter, driven by ramping OE production rates and higher defense spend, supported by incremental improvements in the supply chain, while Process Automation Technology will be slightly weaker than first quarter due to incremental pressure stemming from the Middle East conflict.”

“That's why if you see our confidence factor on high single-digit growth for the overall Process segment is very high.”

“So all things being equal, we remain very confident of the second half performance for Process Automation Technology business due to a combination of backlog and catalyst demand coming ahead.”

“As you saw, I just mentioned in our earlier conversation that we remain very, very convicted on the fact that we'll have PA&T Process Automation Technology, second half at high single digits.”

“What we feel very strongly about is our backlog in the business continues to grow. Not only we had a strong booking in Q3, Q4 of second half of last year, but also printed a very strong orders number in Q1 of this year, and trends remain very, very robust for Q2, which gives us a very high confidence of second half ramp of the revenue of high-single or PA&T segment.”

“In fact, I feel more confident that we'll deliver that 20 bps to 60 bps.”

“There is also no change to our free cash flow guidance for the year.”

“And we are, therefore, maintaining our full year segment margin guidance of 22.7% to 23.1%.”

“Finally, in Aerospace, as I mentioned earlier, our full year guide of high single-digit growth remains intact, driven by improvement in our supply chain observed in March.”

“We're maintaining our organic growth outlook of 3% to 6% despite the temporary headwinds we encountered in the first quarter.”

“Collections have improved meaningfully in April, and we remain confident in our full year outlook.”

“Given the progress exiting Q1, our history of recovering from supply chain constraints and continued positive demand trends, we are maintaining our Aerospace guidance of high single-digit organic sales growth for the year.”

“We remain on track on expected second half ramp as LNG and large modular equipment deals convert to sales in the back half of the year, which will be followed by new catalyst demand in 2027.”

“We remain confident in our ability to drive accelerating growth in the second half as our backlog supports a pickup in growth in Process Automation and Technology.”

“what I would say is, on an annualized basis, you will see us being modestly up on margin expansion... but on a full year basis, we'll be modestly up for Aero margins.”

“We think that the quarter 1 and quarter 2 were the bottom, and we should see more sequential improvement in the second half of the year in the business.”

“I expect that we continue to ramp up our volumes in building automation and data center”

“We signaled the pricing between 3% to 4%, and it's more trending towards upper end, more towards 4% versus 3% and how inflation is shaping up I expect that trend to persist, which is going to help us continue to expand margin expansion as we have guided.”

“I think IA is going to be a margin expansion driver for us for the next year or so.”

“I do expect that second half gets slightly better, and we remain very optimistic on the performance for 2027.”

“We believe that our organic growth engine, new product and innovation [indiscernible], including Forge is working extremely well. And the quarters are shaping quite well ahead. The near-term demand remains strong. So we do expect that the trend what you have observed over the last 4 to 5 quarters should remain intact in the times ahead.”

“I do expect that business to start performing more like low single-digit growth.”

“The only to just add that the margins will improve as well in the second half for the business, given better mix, more volume leverage and strong pricing.”

“But the focus area I would apply is full year... on a full year, we expect modest expansion for Honeywell Aerospace.”

“there is also just continues to be more pent-up demand for the second half. We're seeing a lot of requests from customers in the Middle East.”

“In Aerospace, we talked about roughly being for the year at 26%, and that's kind of where it's going to be for the year.”

“Our margin expansion framework for the year remains the same. So we talk about [ 20% to 60% ] for the year. 50 bps to 90 bps expansion operationally.”

“We expect strength to continue in Building Automation, while Industrial Automation will continue to recover in Europe and China.”

“Nevertheless, we still expect our full year tax rate to be approximately 19%.”

“we are encouraged by the resiliency of orders growth and backlog, which will generate a strong runway as we progress through 2026 and into 2027.”

“We anticipate aerospace margins to be down slightly from the prior quarter on seasonally lower volumes.”

“is committed in the 2027 time frame.”

“So for 2026, really, to me, it's a margin expansion question. It's really just a question of how much...But 2026, I fully expect margin expansion in aerospace.”

“So we are very confident in delivering our margin expansion rubric for 2026.”

“The backlog growth gives us confidence in an expected second-half ramp, especially when measured against our historical backlog conversion rates.”

“However, orders momentum in EOB continued, with over 40% orders growth in refining and petrochemicals projects, which supports our confidence in a gradual 2026 recovery.”

“Pillar four, it's about a $150 million. In in CapEx increase next year.”

“we spend a lot of time to make sure that the price cost doesn't become a headwind for us. And we do maximum to preserve our volume while we are preserving our margins.”

“Yeah. So vis a vis our our guide of 20 to 60 and what are we driving operationally, we have industrial automation at close to a 100 bps.”

“Looking at the growth rates by end market, we'd say defense and space is likely to lead, so high single digits maybe creeping in a low double depending on supply chain progress. We then expect OE to be high single digit growth and then still strong performance in aftermarket but continue on that path towards normalization. So call it mid to high single digit growth is the range and all that should blend to high single digit performance for 2026.”

“Yeah. I would say modest. Do you think, like, low thirties incrementals?”

“Think low end, would say, Steve, volume growth in the low end of the guide three to six to zero. High end, it is about three.”

“We do expect, as Mike mentioned, our operational margins to expand, you know, to 90 basis points and invest some money back in Continuum.”

“In the first quarter, we also have our taxes at the highest, and we're paying our interest expense for the year at the highest. So that's easing. So I think what you'll see from us is 20 to 20 bps in the first quarter, and then sequentially improving. The second half looks much better than the first half.”

“We expect the tax rate to remain roughly 19% and average shares outstanding to decline approximately 1%, adding $0.08 to earnings per share.”

“Below the line, expenses should be roughly flat year over year as higher pension income of approximately $660 million is offset by increased repositioning expenses as we prepare for separation, while net interest expense remains in line with 2025 levels.”

“We expect to benefit from higher volumes, enhanced productivity, and favorable price cost offset by higher investment in Quantinuum, as I noted.”

“Capital expenditures are anticipated to increase by roughly $250 million to support growth investment attached to orders we already have in build backlog.”

“Moving to cash, we expect free cash flow of $5.3 to $5.6 billion, up 4% to 10%, which represents an approximately 14% cash flow margin and 83% conversion at the high end, or 90% excluding noncash pension income.”

“Expect a combination of strong top-line growth coupled with fixed cost reduction will drive adjusted earnings per share of $10.35 to $10.65, up 6% to 9%.”

“Aerospace margin should expand modestly as volume leverage is partially dampened by mix pressures.”

“Industrial automation will lead for the year driven by targeted fixed cost takeout followed by building automation as higher volumes continue to drive margin expansion.”

“Segment margins are expected to be up 20 to 60 basis points to 22.7% to 23.1% as the benefits from price execution and productivity actions more than offset cost inflation and a roughly 30 basis points headwind from increased investments in Quanti.”

“For the full year 2026, we anticipate sales of $38.8 to $39.8 billion, up 3% to 6% organically.”

“On a segment basis, we expect improved volume leverage principally in our building automation and aerospace technology businesses, which will drive solid incremental margins, while P&T margins will be roughly flat in 2026 due to the impact of stronger projects growth in the second half.”

“In 2026, we anticipate the demand for our differentiated high-value solutions and continued pricing that is outpacing inflation will drive further margin expansion.”

“we're encouraged by orders growth and backlog as well as pent-up catalyst demand that should eventually fuel strong growth as we progress through 2026 and into 2027.”

“Wins in LNG, a number of large module equipment deals are expected to convert to sales in the back half of the year.”

“We expect IA to lead margin expansion across all segments in 2026 through meaningful productivity options and fixed cost reduction.”

“We anticipate BA margin to expand over 50 basis points, driven by volume leverage, pricing, and productivity actions.”

“For building automation, we expect full-year sales growth above mid-single digits, highlighted by strength in growing data center and healthcare end markets.”

“Segment margin should expand modestly as volume leverage, better pricing alignment with tariff costs, and tapering acquisition integration costs more than offset mix pressure from stronger growth in defense and space and commercial OE.”

“Steady increases in flight hours in air transport and business jet underpin ongoing commercial aftermarket strength, though we expect modest normalization in growth rates from the prior year.”

“Defense and space should maintain its momentum as higher global spending drives substantial orders growth and record backlog.”

“Commercial OE growth should accelerate in 2026 as we move past customer destocking and ramp our shipments alongside increasing production rates, particularly in commercial air transport.”

“In aerospace, we expect top-line growth in the high single-digit range organically.”

“This is a direct result of our meaningful step up in R&D in 2025, which continues at these levels in 2026, as well as management's focus on growth through new products.”

“The strong organic growth coupled with productivity and an aggressive reduction in stranded costs related to the spins will enable us to deliver 6% to 9% earnings growth in 2026, along with accelerating cash generation.”

“I would say short-cycle trends were actually better in 3Q versus 4Q. And we do expect similar trends.”

“from a demand standpoint going into fourth quarter, this business should grow high single digits on a normalized basis.”

“BA team still has a lot of runway... sequentially, BA will continue to expand margins.”

“We now expect our full year effective tax rate to be 19% compared to 20% previously, adding $0.13 to adjusted earnings per share.”

“We anticipate reduced year-over-year below-the-line headwinds of $0.39 per share as repositioning will be at the low end of our prior range.”

“On segment margin, we anticipate a meaningful fourth quarter contraction, resulting in a roughly 1 point reduction for the full year.”

“We are maintaining our full year ESS sales growth guidance of flat to up slightly and anticipate fourth quarter sales to be down low single digits year-over-year.”

“We anticipate a fifth consecutive quarter of organic growth for products to be broad-based across fire, BMS and Security.”

“For the fourth quarter, we expect sales to be up mid-single digits with momentum from strong orders across both products and solutions.”

“we continue to anticipate full year organic sales growth in the mid-single-digit to high single-digit range, supported by strength in the U.S., Middle East and India and highlighted by robust demand in data centers, health care and hospitality.”

“As a result of these mix dynamics and a more challenging prior year comparison, we expect fourth quarter sales to be down low single digits.”

“third quarter outperformance is compelling us to raise our full year top line expectations for a second consecutive quarter from down low to mid-single digits to down only low single digits.”

“For the full year, margins are expected to be approximately 26% as volume leverage is more than offset by transitory integration headwinds from the CAES acquisition and cost inflation from tariff pressures temporarily outpacing pricing.”

“We anticipate the second quarter marked the low point of Aerospace margins and fourth quarter margins will be comparable to the third.”

“Commercial aftermarket growth should moderate from third quarter levels towards the longer-term trend.”

“Commercial aftermarket sales should expand at a healthy rate with air transport growth outpacing business aviation.”

“We expect robust Defense and Space growth to continue as our supply chain is improving and our global demand is benefiting from ramping national defense budgets.”

“We now anticipate full year earnings per share of $10.60 to $10.70, up 7% to 8% or up 5% to 6%, excluding the impact of both the 2024 Bombardier agreement and the impending Solstice spin-off.”

“Full year sales are now projected to be $40.7 billion to $40.9 billion.”

“The spin is expected to reduce 2025 sales by $700 million, adjusted earnings per share by approximately $0.21 and free cash flow by $200 million.”

“the confidence that we bottomed out in 25% margins in quarter 2, and then we are lapping towards 26% and higher.”

“the CAES acquisition, which was acting as a headwind for our margins in 2025 would not be a factor. In fact, it will be a tailwind.”

“I'm really positive on price being better incrementally next year versus this year.”

“if you just look at segments, Aero was behind on price this year. It's going to be a tailwind for them next year.”

“I do remain confident that our model of getting our margin expansion through pricing while we're protecting our volume is really working... we're going to see strong impact in our margin expansion into 2026.”

“We are not going to face that event in 2026.”

“if I look ahead in 2026, pricing will become a good enabler for 2026 margin expansion.”

“like Vimal said, I think majority of these deals starting actually fourth quarter and going into next year is becoming organic for us from a growth standpoint. And like Vimal said, they continue to be accretive and TBAs are ahead of plan, both on revenue synergies and on cost synergies.”

“So we do expect 2026 to follow the trend line you have observed in BA in 2025.”

“I think you will see more good news from Aero team as we go to fourth quarter and next year.”

“the team is positioned to expand margins in 2026 as well. So we have good visibility to margin expansion in IA going to 2026.”

“In 2026, as pricing aligns with tariff costs, OE shipments of electronic solutions recouple with build rates and integration costs from the CAES acquisition subside, Aerospace margins are well positioned to increase from 2025 levels.”

“we do expect it to recover during course of 2026.”

“I do expect us to do more additions, which are bolt-on to our portfolio, which fits into the core of buildings, process and industrial.”

“We expect to maintain that momentum in 2026.”

“we definitely see the OE mix becoming less intense compared to how we started the year. So that certainly a benefit to us. The tariff-related pressure, which came into the cost under the margin rates of Aero would be less of a factor in 2026.”

“in 2026, they have a really good -- I would say, really good setup and plan to continue to expand those margins.”

“I would say, from a margin standpoint, 2Q '25 was probably the bottom, and you should continue to see sequential improvements on margins going to 2026.”

“we expect ESS margin to expand in 2026.”

“From a catalyst standpoint, based on how customers order and ordering pattern, we see that improving next year as well, but don't see that volume in the fourth quarter.”

“generally, I would say that ESS will normalize as we progress through 2026, back to its historical margins.”

“we have already begun taking action to position our aerospace and automation businesses to return to underlying margin expansion in 2026.”

“we're taking meaningful steps to address ESS cost structure and expect to return to margin expansion in 2026.”

“And like I said, I'm quite confident about the high single-digit growth on revenue for the rest of the year.”

“CAES, by the way, is growing revenue this year at high double digits, so it's ahead of our pro forma.”

“And because of our systemic approach, we are in a position to deliver strong sales profit and cash flow growth in 2025.”

“I think you should -- the range they receive in the second quarter, that's kind of the range we were expecting in the second half. We see -- as we're catching up with demand, et cetera, we see this as a kind of more normal go-forward rate for us.”

“We also expect, Scott, to unveil the plans of Quantinuum in the Q4 time frame.”

“And I think that's going -- at least based on everything I know today, it's going to normalize some in the third quarter, and then we should be back to normal in the fourth quarter.”

“But overall, we have a meaningful acceleration of R&D spend for the right projects. And this is going to set up a new baseline for Honeywell for the future.”

“So I think in the second half, margin profile for Aero will be better than what you've seen this quarter.”

“On the back of this operational momentum, we are raising our organic sales growth and adjusted earnings per share guide for the year, while being mindful that we may not yet have felt the full impact of escalation of global tariff rates in recent months.”

“However, we anticipate more spending in the second half of the year and a return to a normalized level post separation.”

“Acquisitions are now expected to add roughly $0.40 per share to 2025 EPS with Sundyne being added into the mix.”

“We anticipate full year ESS margin to remain roughly flat as commercial excellence and uplift from the LNG acquisition are offset by less favorable mix from reduced high-margin project and catalyst sale and cost inflation.”

“We now expect full year sales to be flat to up slightly.”

“We expect Building Automation to expand margins meaningfully for the third quarter and for the year, supported by volume leverage and productivity actions.”

“As a result, we now expect mid-single- digit to high single-digit organic sales growth.”

“For the full year, margins are expected to approach 26% as volume leverage is more than offset by the impact of acquisitions and the tariff-driven cost inflation temporarily outpaces pricing.”

“We still expect Commercial OE sales to recover and grow in the back half of the year as customers work down existing inventories, allowing our sales to better align with OE build rates.”

“Supported by supply chain unlock and elevated global demand amid geopolitical complex, our Defense and Space business should lead segment growth for the year.”

“In Aerospace Technologies, we continue to anticipate full year sales growth in the high single-digit range or mid-single digit to high single digit when excluding the impact of the 2024 Bombardier agreement.”

“We continue to expect free cash flow for the year between $5.4 billion to $5.8 billion, down 2% to up 5% ex Bombardier, which remains approximately in line with adjusted earnings per share growth.”

“We expect year-over-year organic sales improvement to be similar in both the third and fourth quarter when excluding the impact of the Bombardier agreement in the fourth quarter of last year.”

“We have increasingly seen large energy projects and catalyst spend, which can carry attractive incremental margins in our UOP and Process Solutions business pushed out into 2026 because of macroeconomic and legislative uncertainty.”

“We are raising the lower end of our full year organic sales growth guidance range by 200 basis points.”

“In May, we completed the sale of the PPE business, which will be accretive to organic growth and margins in the second half of the year.”

“And the way I see time line today is end of '27 is, I would say, the outline at the most.”

“And I would just add that just looking at the OB3 and the IRA, that's mostly preserved for us. So it's not really a headwind for us into next year.”

“We don't expect that to repeat in the year ahead at the same level.”

“Yes. Both statement are true, and then the OE destocking issue also goes away because the rates will convert to the normal baseline.”

“Now things have got cleared up in last 10 days. So we do believe that should bring up the positive momentum.”

“So confidence to execute, you know, mitigating this $500 million tariff is very high.”

“Year to date, we have already bought back $3 billion worth of our stock, including $1 billion in April, putting us on the path to reduce our net share count for the year by 2%, far exceeding our 1% annual commitment.”

“certainly, that's helping... if things don't change, the business will continue to deliver the numbers you've seen over the last few quarters.”

“I don't see any, I would say, large impression right now incremental to everything that we saw in the first quarter. Second quarter to me looks benign in terms of any new information.”

“As the year progresses, we do expect these numbers to improve.”

“Lastly, other below-the-line expenses are anticipated to be modestly higher at $1.35 billion to $1.4 billion, increasing from 2024 on account of higher interest expense from last year's acquisitions and the first quarter's accelerating share repurchase.”

“Pension income for the year is still expected to be $550 million, $50 million less than 2024 because of a one-time item in Europe.”

“The sale of our PPE business, for which we now model an early May close, will drag down earnings by $0.07 for the year.”

“Contributions from our 2024 acquisitions are still expected to add approximately $0.33 per share to 2025 EPS.”

“We see organic segment profit growth adding $0.13 per share to 2025 earnings down from our prior guide.”

“In the second quarter, we expect sales to be up low mid-single digits with sequential and year-over-year growth in both solutions and products.”

“we are holding our 2025 full-year outlook for organic sales growth in the high single-digit range or mid-single-digit to high single-digit when excluding the impact of last year's Bombardier agreement.”

“we are assuming an impact to organic sales for the remainder of the year approaching 1%, the segment profit of about 2%, and to EPS of about $0.18 compared to the guidance we laid out in February.”

“Based on tariffs in place today, our approximate 2025 exposure is about $500 million before taking any mitigation measures.”

“Yes. I think short answer is yes, Andy... those products which are being lodged in '24 or early '25 are going to be a larger number compared to what we had in '24 run rate. So that does give me a confidence that that's going to act as an enabler for us to deliver our growth in 2025.”

“By no dimension, our outlook has changed. Our outlook for Aero for the year is still low-double-digit, what it was earlier, too, so it's not really changed.”

“The net punchline of that is, thankfully, there is no impact of that into our revenue in Q4.”

“we do expect all four segments to have organic growth in 2025.”

“By continuing to focus our effort on these key strategies, we are confident that we will be able to deliver organic growth at upper end of our long-range in the future.”

“I would say we have crossed the trough in Europe, and we are on a moderate recovery there.”

“Our near-term mix of defense is going to go up and growth rates are going to be at I would say, relatively elevated rate compared to the core aerospace business.”

“we're carrying forward that backlog next year, which will help us to have very similar profile of growth in 2025 as we are experiencing in Q4 this year.”

“The good news is we saw slight sequential growth in that business in Q3, and we expect that trend to continue in Q4.”

“I do expect this is going to help us support our organic growth profile in the years ahead.”

“We expect to launch first-half one of them in early 2025.”

“We do expect all four businesses to grow and we expect margin expansion broadly across the portfolio with Aero probably being the one that's going to remain, I would say, you know, around its current levels organically with -- that's the one area where it will get headline pressure from the acquisitions, though all those acquisitions and particularly in the Aero, you know, and sensors are going to be very strong growth rates, so very healthy segment profit growth overall.”

“While we think volume growth could remain subdued by muted short-cycle growth early in the year, we expect to see organic growth across all four businesses next year.”

“We continue to expect 1% to 2% EPS accretion in 2025 from these deals.”

“We now expect that the year-over-year impact to 2024 adjusted EPS from the four acquisitions closed this year will be approximately neutral.”

“This guidance includes repositioning spend between $150 million and $190 million for the year and between $60 million and $100 million for the fourth quarter as we invest in high return projects to support future growth and productivity.”

“Moving to other key guided metrics, net below the line is now expected to be between negative $650 million and negative $700 million for the full-year.”

“For energy and sustainability solutions, the organic growth outlook for the year is still low-single-digits with typical strong sequential improvement in the fourth quarter, driven by catalyst shipment seasonality.”

“Margins should hit their high point for the year in the fourth quarter as improvement in fire and the impact of access solutions support positive mix.”

“Fourth quarter sales will be up year-over-year and flat to up sequentially as we see volume improvement led by fire products.”

“In Building Automation, we still expect full-year organic growth in the low-single-digit range, led by continued strength in Building Solutions and high growth regions, particularly in India and Saudi Arabia.”

“Margins will be down overall this year for industrial automation, but up when excluding the impact of the license and settlement payments that ended in the first quarter.”

“For the fourth quarter, we expect sales down low-single-digits with modest growth in projects and aftermarket services offset primarily by softness and sensing and safety technologies and smart energy.”

“Moving to Industrial Automation, we're lowering our 2024 outlook for year-over-year organic sales to a decline in the high-single-digit range, as slower-than-expected short-cycle demand recovery alongside project pushouts and process solutions dampen our outlook for full-year organic growth.”

“we still see modest year-over-year segment margin contraction as discrete supply chain disruptions from the third quarter are resolved and we see a corresponding recovery and commercial original equipment volumes.”

“In the fourth quarter, we expect sales growth of mid to high-single-digits, with particular strength in commercial aftermarket.”

“Looking ahead for Aerospace Technologies, we still expect low-double-digit growth in 2024 organic sales with double-digit growth in both commercial aviation and defense and space.”

“Sales should increase sequentially across the portfolio, led by Aerospace as we experienced additional supply chain unlock, as well as continued growth in flight hours and shipset deliveries.”

“We do expect, again, as we go into next year, we're going to still work the acceleration on working capital reduction effort and hopefully the environment will participate in a way that's going to be more conducive to that.”

“So net-net, with the strength in traditional energy, strength in renewable technologies and catalysts, we are going to have a strong year for UOP, both in orders and revenue.”

“So I think the headline is that H2 will be stronger than H1, and that's built upon our order spacing.”

“We are on track to accelerate capital deployment in 2024 and exceed our commitment to deploy at least $25 billion of capital in 2023 through 2025.”

“Our annual 4% to 7% organic sales growth rate and 40 to 60 basis points of margin expansion, coupled with 1% to 2% of EPS accretion from both share buyback and consistent M&A execution, is a powerful combination that will allow us to generate double-digit adjusted EPS growth on through a cycle basis.”

“We remain keenly focused on delivering our long-term growth algorithm and remain confident in our ability to accelerate growth, achieve 25%-plus segment margins, expand gross margins to above 40% and generate free cash flow margins to mid-teens plus.”

“Two consecutive quarters of orders growth in our Productivity solutions and services business provide confidence in a back half ramp, excluding the impact from the absence of additional Zebra payments.”

“Increased build rates and shipset deliveries will carry on throughout the year, leading commercial OE to be our strongest growth business in 2024.”

“So net-net, we do expect to finish the year strong, not only in the revenue side but equally strong on the order side on the defense.”

“Yes. Just that I would expect them to be down sequentially from Q1, that Q1 is going to be the high point.”

“We do expect commercial OE to grow double digits, both on the -- the commercial OE to grow double digits and aftermarket.”

“So we're going to have a ramp from 2Q to 3Q as opposed to flat, and then the ramp from 3Q to 4Q will be greater than 2Q to 3Q.”

“Margins should improve throughout the year from a 1Q bottom, driven by a combination of commercial excellence and productivity actions.”

“a key component to achieving our unchanged top line expectation of flat to up low single digits for the year.”

“In sustainable technology solutions, robust demand will lead to another strong year of growth.”

“We anticipate BA will be the segment with the largest margin expansion, primarily driven by productivity actions and commercial excellence net of inflation.”

“encouraging signals from regions like India and the Middle East support our full year sales forecast, which remains low single-digit growth for the year.”

“As a result of these dynamics, we continue to see flattish sales growth in 2024 for IA.”

“Lifecycle solutions and services orders grew sequentially and year-over-year in the first quarter, and we expect that strength to continue throughout the rest of the year.”

“Warehouse and workflow solutions will improve as we move through the trough of warehouse automation spending, while also benefiting from easing comps throughout the year.”

“For the year, we still expect Aerospace Technologies to lead organic growth for total Honeywell with sales in the low double-digit range.”

“Ongoing supply chain improvements will continue to support double-digit output growth in AT throughout 2024.”

“Sales should grow sequentially in the second quarter, particularly in commercial original equipment as shipset deliveries continue to increase.”

“We anticipate the closing of the deal by the end of the third quarter, and we'll update our guidance accordingly at that time.”

“In fact, I wouldn't be surprised if the growth in OE actually accelerates in the next couple of quarters, not dramatically so, but in terms of its relative mix inside of the overall portfolio.”

“We remain confident that we're going to have a meaningful progress in the year, both on growth and margin expansion.”

“We have taken meaningful action on our cost base, specifically on supply chain. And when we put those actions together, which is in our control, we see margin expansion in this business. And in spite of top line pressure, it will not be a source of EPS solution. It will be a source of EPS accretion.”

“The pricing will remain of the order of 3%. Our price cost will not be a headwind. We remain very confident on our pricing execution.”

“Recent record backlog levels, ongoing strength in our biggest end markets, aerospace and energy, as well as impending recovery in our short-cycle business will support strong result as we progress through 2024.”

“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.”

“With the recent portfolio announcement we are on a track to accelerate capital deployment and exceed our commitment to deploy at least $25 billion of capital in 2023 through 2025 with a bias towards high value accretive M&A.”

“You can expect the business almost cupping a half project and half aftermarket in this year.”

“We expect double digit growth in aftermarket in 2024.”

“We expect the overall low double-digit guide includes the continued high growth rate of OE, as we saw in 2023. That will repeat itself in 2024. Also expect double-digit growth in aftermarket.”

“The more balanced view of price versus volume in our model for 2024 is really 3% pricing. And that's going to be, to Vimal's point, I think price cost neutral to maybe slightly positive for the year.”

“So all-in-all, advanced material should have a better year in 2024 compared to what we had in 2023.”

“Yes, we do see recovery in semis modestly increasing. Every month is becoming modestly better. So that's part of our forecast for 2024.”

“All in all, I expect high-growth regions to grow double-digit, which will be a source of organic growth, about a percent, and overall Honeywell algorithm of organic growth.”

“I grew about 7% in 2023. I don't expect a material shift between 2024 to 2023. We have weathered a tough year in 2023, China's economic cycle. And I expect 2024 to be a shade better, but it's no more going to be a source of high growth, what it used to be five or seven years back.”

“You should expect that this exit rate diminishes as the year progresses, and as we get into the back half of the year, that turns to be something that is likely positive on productivity solutions and services and will be flattish on warehouse and workflow solutions.”

“I think the EPS will follow along with that. I mean, the last two years, our EPS has been more back-end weighted in third and fourth quarter than our prior history. I think it's going to look fairly similar this year.”

“Overall, we expect [VSS] sales to be flat-to-up low-single digits for the year compared to 2023.”

“In the first-quarter we expect sales growth to be similar to the fourth quarter as destocking reaches its late stages.”

“For Building Automation, we forecast full-year sales growth to be low-single digit year-on year.”

“For overall Aerospace, we expect organic growth in the low-double-digit range in 2024.”

“In Aerospace Technologies, we expect that robust demand will remain throughout 2024 as our record level backlog provides a catalyst for growth.”

“We also expect the Aero supply-chain to continue to improve gradually sequentially throughout the year as it did in 2023.”

“Honeywell's overall security portfolio will be more than $1 billion in sales.”

“Our plans to have sustainable technology business of $1 billion in next few years haven't changed. And my confidence of that absolutely has only grown higher over the last few months.”

“I expect the PMT business, as currently constructed, we expect accretion next year as well.”