Honeywell CEO Vimal Kapur on Q4 Earnings, Aerospace Spin-off, and Quantum Business

Strong Q4 Performance and Aerospace Spin-off

• 🎯 Honeywell finished the quarter with a strong exit rate, achieving 6% growth and seeing orders increase by 23% in Q4.
• 📈 The company's backlog is up nearly 15%, positioning them well for the future.
• 🚀 The aerospace business is on track for its spin-off in Q3, with a leadership team already announced.

Portfolio Transformation and Automation Business

• 🧩 Honeywell is rebuilding its automation portfolio, deciding to hold two businesses for sale to complete transactions before the aerospace spin-off.
• 🏢 The automation business is being set up for mid-single-digit organic growth with high-single-digit earnings growth annually.
• 🌍 This business serves multiple end markets including buildings, process, and industrial, indicating a secular growth story.

Quantum Business Progress and Future

• 💡 The quantum business, spun off as a separate entity, is making significant progress with its latest machine, Helios, offering higher computing power.
• ⚛️ Honeywell expects to launch another quantum machine in about 18 months and is seeing excitement from customers in banking, pharmaceuticals, and government.
• 💰 The company is working to establish this business as an independent entity within a couple of years, with potential for significant valuation given its client list.

Commitment to Shareholder Value

• ✅ Honeywell is committed to delivering high single-digit earnings growth to its shareholders in the future.