Honeywell International Inc at Bank of America Corp Industrials, Transportation & Airlines Key Leaders Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Andrew Obin - BofA Global Research - Analyst : <_ALACRA_META_ABSTRACT>Good to see you. So yeah, so maybe to kick off, thank you for joining us today. There's a lot going on at Honeywell, just to start, can you just give us an update on the business performance and separations?

Question: Andrew Obin - BofA Global Research - Analyst : And Mike, you sort of highlighted you brought up that you're seeing strength in April and May. Any verticals that you want to call out having the strength, it is May 13, anything what are you seeing in May?

Question: Andrew Obin - BofA Global Research - Analyst : Terrific. So you know maybe we can talk a little bit about, one thing that we've noted, the company has changed. I think it's planning philosophy. So you've been in the CFO seat for about four months now. He seems to be guiding more conservatively and also consistently in the past couple of earnings seasons. What changes have you made in your approach to guide and what changes have you made in managing the different business segments?

Question: Andrew Obin - BofA Global Research - Analyst : And just to go back to the initial guide, as long as we're going to go talk about other things you have sort of talked about slowdown. It doesn't sound like. Have you seen any slowdown so far in April, May? Anything slowing?

Question: Andrew Obin - BofA Global Research - Analyst : Excellent. Thank you. Maybe we can talk about the spin. So the company is breaking up in three. And now what's interesting if you do just sum of the parts, I think it does suggest that you're trading relatively in line and you know, there are a lot of puts and takes here, but how do you think about the benefits of breaking up the company just beyond the sum of the parts math?

Question: Andrew Obin - BofA Global Research - Analyst : Excellent, thank you. So maybe we can dive into aerospace first. Can you just explain the dynamic that drove Honeywell aerospace organic growth of 9%, but at the same time you have commercial OE organic growth of 7% in the first quarter '25. And what gives you conviction that commercial OE growth turns positive from here?

Question: Andrew Obin - BofA Global Research - Analyst : Maybe we can talk about biz jets a little bit. We would have thought that biz jets would be the most economically. A cyclical part of the business, we sort of estimated roughly 20% of commercial aviation. Is that the correct way to think about the portfolio and talking about concerns about slowdown, are you seeing anything slow there? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 12:00PM, HON.OQ - Honeywell International Inc at Bank of America Corp Industrials, Transportation & Airlines Key Leaders Conference

Question: Andrew Obin - BofA Global Research - Analyst : Maybe we can talk a little bit about defense and space. What are the key trends programs and noteworthy things in the latest present budget as far as Honeywell is concerned?

Question: Andrew Obin - BofA Global Research - Analyst : And one of the milestones we should watch or sort of the evolution of international sales is just -- I guess the world is not getting safer anytime soon, but any big competitions? Any specific programs you would highlight?

Question: Andrew Obin - BofA Global Research - Analyst : Right. Because there's content --

Question: Andrew Obin - BofA Global Research - Analyst : And how should we think about just DoD versus international business? Which one should we expect to outgrow? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 12:00PM, HON.OQ - Honeywell International Inc at Bank of America Corp Industrials, Transportation & Airlines Key Leaders Conference

Question: Andrew Obin - BofA Global Research - Analyst : And the impact of DOGE?

Question: Andrew Obin - BofA Global Research - Analyst : All right. So maybe we could go to Building Automation. So building products, and you've highlighted, it has been performing better than expected in the past couple of quarters, 4Q '24, first quarter '25. What has been driving the upside relative to expectations? And maybe what is building products? Just for folks, just --

Question: Andrew Obin - BofA Global Research - Analyst : And just on fire, maybe it's -- like it's actually a serious question. It seems that incidence of fires in the US are actually going up because of the lithium batteries. Is it related to that? Or is it just related to structural business model changes? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 12:00PM, HON.OQ - Honeywell International Inc at Bank of America Corp Industrials, Transportation & Airlines Key Leaders Conference

Question: Andrew Obin - BofA Global Research - Analyst : Right. So for commercial buildings, lithium fires are just not an issue.

Question: Andrew Obin - BofA Global Research - Analyst : Okay. So it's more -- so it is your business model?

Question: Andrew Obin - BofA Global Research - Analyst : Because we've definitely seen it on the residential side. But I mean building code, I don't think you have lithium batteries --

Question: Andrew Obin - BofA Global Research - Analyst : I don't think we're allowed to have like these scooters in the building for that fair reason. So maybe we can talk about it, just to build on that. So how is cross-sell and putting access solutions, Honeywell International channel going? Is it contributing to growth? And when do you expect this to contribute to accelerating growth?

Question: Andrew Obin - BofA Global Research - Analyst : Excellent. So maybe shift to Industrial Automation. And why don't we start was called process solutions, because you have some capabilities in LNG, we addressed it. But what's the competitive landscape right now for -- who do you consider your key competitors?

Question: Andrew Obin - BofA Global Research - Analyst : And if we go sort of to legacy, so we think sort of downstream, we sort of were thinking about sort of this three-way competition between Emerson and Honeywell and maybe Kagawa. And this is BofA's view, I think other players have a very nice installed base business. But I think for greenfield and brownfield, it's really been a three-horse race. In our view, clearly, your competitors are not asleep. And we're at -- when we were at Hanover, clearly, there are Chinese competitors coming out. So how is the competitive landscape evolving, I think, over the next three to five years?

Question: Andrew Obin - BofA Global Research - Analyst : And does the spec in China for -- does it look differently for you? Because historically, what happened, right, people have to -- and Western technology, brought it through China, and now the Chinese are evolving their own. So as that evolves, this Chinese standard sort of decoupled from the rest of the world? Did they start dictating their own terms, right, because they're doing some projects in the Middle East? What does it remain fairly the same and you have this global standard and everybody performance to the global standards. What is the evolution of Chinese competition for what sort of product looks like? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 12:00PM, HON.OQ - Honeywell International Inc at Bank of America Corp Industrials, Transportation & Airlines Key Leaders Conference

Question: Andrew Obin - BofA Global Research - Analyst : So like this refiners?

Question: Andrew Obin - BofA Global Research - Analyst : Right, right, right. And maybe just before we go, Intelligrated signs of life. I think some of your competition sort of also is talking about that it's looking better. How sustainable it is? How hopeful should we be? And I know your guide is actually quite conservative. Thank you. So I appreciate that. But what are we seeing in Intelligrated?

Question: Andrew Obin - BofA Global Research - Analyst : So maybe we can talk about sort of energy and sustainability solutions. So you targeted mid- to high single-digit served addressable market growth through the cycle for UOP. But UOP grew 8% in '23 and zero in '24, and the framework suggests low to single digits in '25. So how do sort of these internal expectations fit within the framework for UOP?

Question: Andrew Obin - BofA Global Research - Analyst : Can we talk maybe about -- maybe we can talk about sort of UOP's exposure to UOP has these dominant market shares in a lot of key markets just due to its history. I know you guys have invested to increase your presence in the LNG Sundyne acquisition. Maybe you can talk how are you pivoting UOP, which is clearly one of the company's crown jewel, for sort of where the world is going and the administration?

Question: Andrew Obin - BofA Global Research - Analyst : Can you talk about the Sundyne? Like why did you buy it? It's a very interesting deal. Can you just talk a little bit more what did you buy? Why did you buy it, right? Because clearly, this is where the company is putting capital.

Question: Andrew Obin - BofA Global Research - Analyst : And once again, we're on ESS. Can we talk about advanced materials? Just I know it's going to get spun out. But what are the latest trends? I mean, I think folks who cover HVAC space are obsessed with was happening with the availability of the refrigerant. Can you just talk about what's happening there? Hey, just explain to us, because people -- and I think I had this conversation with Sean, that refrigerant for HVAC is like the biggest part of the business. Just maybe explain to us what's inside the business and what are the key drivers for the business? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 12:00PM, HON.OQ - Honeywell International Inc at Bank of America Corp Industrials, Transportation & Airlines Key Leaders Conference

Question: Andrew Obin - BofA Global Research - Analyst : Excellent. So maybe we can talk a little bit about Quantinuum. So back in October of '23, Honeywell announced that it would not monetize Quantinuum in the next -- it sounds like IPO is going to be the method to monetize it. Just any update on how you're thinking about monetizing this business and where the IPO is still the right method?

Question: Andrew Obin - BofA Global Research - Analyst : But the key here is you want to see some stability in the market?

Question: Andrew Obin - BofA Global Research - Analyst : And is IPO still the right framework, thinking about it?

Question: Andrew Obin - BofA Global Research - Analyst : Interesting. So we do have a couple of questions that the management has asked to address every company on stage allows. And then I have -- so first one, do you expect to shift incrementally more production to the US or to source more from the US because of tariff policy? And do you expect your customers to source more from the US because of these trade policies?

Question: Andrew Obin - BofA Global Research - Analyst : And the other question, the tax bill yet to pass is expected by many to include bonus appreciation incentives for domestic manufacturing as well as some individual tax relief. Do you expect this to have a significant impact on your company? And which are the potential tax changes that could have the most impact?

Question: Andrew Obin - BofA Global Research - Analyst : Excellent. You've been very efficient in answering the question. So a couple from me then. So structurally, how do you think about your pricing strategy across the different business units? Where do you get the most pricing power? And what's sort of an area of caution for you?

Question: Andrew Obin - BofA Global Research - Analyst : And are you guys doing more pricing? So far, have you done more pricing or surcharges? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 12:00PM, HON.OQ - Honeywell International Inc at Bank of America Corp Industrials, Transportation & Airlines Key Leaders Conference

Question: Andrew Obin - BofA Global Research - Analyst : Got you. So if the tariffs go back, you'll --

Question: Andrew Obin - BofA Global Research - Analyst : Okay. Excellent. Maybe the last question. How -- you bought back more stocks this quarter. So how have the company's view on buybacks have evolved over the past maybe 12 to 18 months?

Question: Andrew Obin - BofA Global Research - Analyst : Okay. Would you say you are more open to buybacks than in the past? Or any change or --

Question: Andrew Obin - BofA Global Research - Analyst : Well, ultimately, the stock is attractively priced. Mike, thanks so much. Right on time. Everybody, thanks so much for attending.