Honeywell CEO: ‘We are creating a flywheel of themes’

CHARLOTTE, N.C. — Honeywell’s Aerospace segment saw the largest growth in the second quarter, and the company’s recent acquisition of CAES Systems will only accelerate that. 

Honeywell acquired the company in June for $1.9 billion in cash, adding 2,200 employees to its workforce.  

“We are excited that this is the second aerospace-focused transaction we have announced this year, underscoring our alignment to the future of aviation,” said Vimal Kapur, CEO and chairman, who considers aviation, automation and energy transition the three megatrends the company is focused on. 

Honeywell’s Aerospace segment saw growth of 16% on an organic basis year over year. 

At a glance  

Overall, Honeywell posted sales of $9.6 billion for the second quarter, with reported sales up 5% and organic sales up 4%, which achieved the high end of its previous guidance. 

"Honeywell delivered a strong second quarter, once again meeting or exceeding guidance across all metrics, while maneuvering through a dynamic operating environment," Kapur told investors. "While Aerospace continues to lead our growth, we are seeing broader participation across our portfolio, with three of our four segments contributing positive growth for the quarter. All four segments grew sequentially in the quarter, as well, giving us further confidence in our expectation of a second half organic growth acceleration." 

Access control gains 

Among the segments that helped define Honeywell's quarter was Building Automation, which benefitted greatly from the company’s earlier acquisition of the Global Access Solutions business of Carrier Global Corp., showing an increase of 1% on an organic basis year over year and 10% sequentially. Added to that: One month’s worth of RMR, for a total of 14% organic growth in the quarter. 

Kapur said that Honeywell was demonstrating its commitment to growing its portfolio with its pursuit of “bolt-on” acquisitions, which he said upgrades the quality of the business and its financial profile. 

“We are creating a flywheel of themes that strategically add to our technological capabilities, enhance our alignment to our three compelling megatrends and provide accretive growth that supports Honeywell’s overall, long-term financial framework,” Kapur said. 

The full press release can be found online at www.honeywell.com.