Honeywell Reports 5% Net Sales Increase to $38.5 Billion for Fiscal Year 2024

Honeywell International Inc. reported a net sales increase of 5% for the fiscal year ending December 31, 2024, reaching $38.5 billion compared to $36.7 billion in 2023. The growth was attributed to incremental sales from recent acquisitions, price adjustments to counter inflation, and higher sales volumes across its business segments. The company's gross margin improved by approximately $1 billion, resulting in a gross margin percentage of 38.1%, up from 37.3% in the previous year.

The company's operating expenses also saw significant changes, with total costs rising to $31.3 billion from $29.5 billion in 2023. This increase was driven by higher material and labor costs, which rose by approximately $800 million and $500 million, respectively. However, productivity improvements offset some of these costs, contributing to a net increase in profitability. Honeywell's net income attributable to the company was $5.7 billion, or $8.71 per diluted share, compared to $5.7 billion, or $8.47 per diluted share, in 2023.

Strategically, Honeywell made several acquisitions in 2024, including Access Solutions for $4.9 billion, CAES Systems Holdings for $1.9 billion, and LNG for $1.8 billion, which bolstered its capabilities in building automation and energy solutions. The company also announced plans to spin off its Advanced Materials business and separate its Automation and Aerospace Technologies businesses into independent publicly traded companies, targeting completion by the end of 2025 or early 2026.

Operationally, Honeywell's workforce was reduced by approximately 3,486 positions as part of its ongoing productivity initiatives, resulting in a total employee headcount of around 103,000. The company reported a slight decline in its Industrial Automation segment, with net sales decreasing by 7% to $10.1 billion, primarily due to lower demand for personal protective equipment. In contrast, the Aerospace Technologies segment experienced a 13% increase in sales, driven by higher volumes in commercial aviation and defense.

Looking ahead, Honeywell anticipates continued growth driven by its strategic acquisitions and operational efficiencies. The company expects to maintain its focus on innovation and sustainability, with planned capital expenditures of approximately $1.3 billion in 2025. Additionally, Honeywell aims to enhance its market position through ongoing investments in research and development, which totaled $2.6 billion in 2024, reflecting a commitment to advancing its technology offerings across various sectors.