Honeywell International Inc.

Overview Key strengths Key risks Diverse business mix, with a roughly 60%-40% split between short- and long-cycle orders across aerospace and defense, building technologies, safety, automation, and performance materials. Exposure to cyclical and competitive industries, with the multiyear potential of slow growth or contraction in some markets. Strong leadership positions (generally No. 1 or No. 2) in its addressable markets. Appetite for acquisitions and aggressive capital deployment policies that could lead to weaker-than-expected credit measures. Good geographic diversity with an increasing exposure to high-growth regions such as India, China, and the Middle East. Trade tensions that could affect performance in high-growth regions, partly mitigated by largely in-country and for-country supply chains. Solid track record of effective execution and ongoing operational

... should be favorable for the remainder of 2024 and 2025. We expect growth in the high-single-digit percentage area, approaching $40 billion in revenue, particularly driven by momentum in the aerospace business. We believe the aerospace sector will be largely favorable on stable momentum in the commercial aircraft market higher demand for new aircraft because of increased air traffic. We expect this industrywide growth to increase original manufacturer production rates and benefit companies that provide parts used in repairs and maintenance. We also believe, generally stable international demand in defense and space, healthy flight hours, and relatively unhindered supply chains will push revenue upward. Furthermore, we believe Honeywell's recent acquisitions, including Global Access Solutions and Compressor Controls Corp., will also contribute to the overall revenue base. We also anticipate that global conflicts will increase defense budgets...

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