Honeywell Net Worth: Strategic Growth Through Aggressive Acquisitions

As a multinational engineering and technology giant, Honeywell has transformed a broad range of industries with its innovative products and solutions. As of October 2024, Honeywell has a net worth or market capitalization of $132.76 billion, reflecting its position as a leading conglomerate.

At Business2Community, we’ve pulled on multiple sources to provide a comprehensive overview of Honeywell’s net worth and history. Keep reading to discover the company’s key milestones, revenue, controversies, and more.

What is Honeywell’s Net Worth?

As of September 2024, Honeywell had a net worth, otherwise known as market capitalization or market cap, of $132.76 billion. This is based on a share price of $203.88 and 650.2 million outstanding shares.

The company is listed on the NASDAQ exchange under the ticker symbol HON where it has traded its shares since 2021. The company was first listed on the New York Stock Exchange in January 1970. However, it moved its listing to the NASDAQ in 2021, aiming to be perceived as a tech company, which are traditionally listed on this exchange.

Honeywell’s fiscal year ends on 31 December and the company typically releases its annual financial results in March or April of the following year.

Since going public in 1970, Honeywell’s net worth has increased. Between 1998 and 2024 alone, the company’s market cap increased by close to 450% to $24.64 billion.

Honeywell International stock (HON) has also appreciated significantly over the decades. From 2002 to 2017, shares rose by 282%, more than double the S&P 500’s growth in that period. The upward momentum continued, with shares hitting a peak of $219.57 in August 2021. Since then, share prices have stayed within the $180 to $210 range.

As of early October 2024, the Honeywell International Inc. stock price was $203.88, up from a 52-week low of $ 174.88 and down from a 52-week high of $220.79.

Honeywell Revenue

Over the decades, Honeywell’s revenue has increased, reflecting the company’s growth in key markets. From $16 million in 1937, Honeywell’s revenues crossed the $1 billion mark in 1967.

Between 1990 and the start of the 2000s, Honeywell’s revenue more than doubled from $12.3 billion in 1990 to $25 billion. Despite turbulence in the early 2000s and 2008’s global recession, Honeywell’s revenue hit a high of $41 billion in 2018.

However, with decreased demand in some core industries, annual revenue trended downwards, dipping to $32 billion in 2020 at the height of the pandemic. Due to the company’s focus on high-growth sectors, Honeywell’s revenue made a strong recovery in 2021, steadily increasing from $34.4 billion to $36.7 billion in 2023.

Honeywell’s net profit has fluctuated, ranging from a staggering net loss of $2.3 billion in 2002, $1.5 billion during 2009’s recession, and $6.7 billion in 2018. Losses in 2002 were attributed to large write-downs due to asbestos-related payments, its acquisition by AlliedSignal, various earlier acquisitions, and other write-downs.

While profits fell from $6.1 billion to $4.7 billion or by 23% in 2020 due to the pandemic, the company’s net income has since recovered with the markets and trended upwards since 2021.

Overall, despite operating in highly cyclical industries, the company has maintained a positive net profit for two decades. The table below shows Honeywell’s annual revenue and profitability over the last 10 years:

Honeywell Dividend History

Honeywell has paid quarterly dividends since 1976. As of September 2024, Honeywell (HON) reported a trailing twelve-month (TTM) dividend payout of $4.32 and a dividend yield of 2.08%.

Since 1984, Honeywell has had 6 stock splits. According to SEC filings, most recently, Honeywell’s board of directors authorized the repurchase of up to $10 billion of its common stock in April 2023.

In the first half of 2024, the company paid out dividends of $1.4 billion and repurchased shares worth $1.2 billion. On September 27, 2024, the company announced an increase in the company’s regular annual cash dividend from $4.32 to $4.52 per share, marking the 15th time in 14 consecutive years that Honeywell has increased its dividend.

Who Owns Honeywell?

As a publicly traded company, Honeywell is owned by various shareholders. The largest shareholder as of June 30, 2024, was the Vanguard Group with an ownership stake of 8.76%. This was followed by BlackRock Inc. (5.89%) and State Street Corporation (4.45%).

Honeywell’s origins date back to 1906 when Mark Honeywell founded the Honeywell Heating Specialty Company. Through mergers and innovations, the company evolved, officially becoming Honeywell Inc. in 1963. In 1985, Honeywell was incorporated in Delaware, and in 1999, the company merged with AlliedSignal to form Honeywell International Inc.

Who is the Honeywell CEO?

The chief executive officer (CEO) of Honeywell is Vimal Kapur. He assumed the position in 2023, succeeding Darius Adamczyk. With 34 years of expertise and deep company knowledge, Kapur has focused on aligning the company’s portfolio to three megatrends: automation, the future of aviation, and the energy transition.

In 2023, Kapur’s total yearly compensation was $14.4 million, comprising 8.5% salary and 91.5% in various forms of bonuses, including stock awards and options. Additionally, he directly owned 0.004% of the company’s shares, worth $5.61 million.

Honeywell’s Company History

Honeywell HQ or headquarters is in Charlotte, North Carolina. The company operates across four primary business areas:

• Aerospace segment: Provides aircraft engines, integrated avionics, systems and service solutions, and related products and services for aircraft manufacturers
• Building technologies segment: Provides products, software, solutions, and technologies for safe, energy-efficient, sustainable, and productive building control.
• Performance materials and technologies segment: Develops and manufactures high-quality performance chemicals and materials, process technologies, and automation solutions.
• Safety and productivity solutions segment: Provides products and software that improve productivity, workplace safety, and asset performance.

Below, we explore Honeywell’s rise to prominence:

1906 – 1969: Honeywell Emerges and Transforms Industries

In 1906, Mark Honeywell founded Honeywell Heating Specialty Co. Incorporated, to sell hot water heat generators.

By 1927, Honeywell Heating Specialty Co. and Minneapolis Heat Regulator Company had merged to form the Minneapolis-Honeywell Regulator Co., ensuring stability and growth for both firms during economic uncertainty.

The company became the largest producer of high-quality jeweled clocks and other offerings such as industrial controls and indicators.

At the height of the great depression in 1934, Honeywell began its expansion into new markets such as Canada, London, and Japan through the strategic acquisition of Brown Instrument Co. By 1937, Honeywell’s annual revenue had grown to $16 million.

Throughout the 1940s, the company leveraged its scientific and engineering talent to adapt to changing times, adding various defense and aerospace products to its growing portfolio.

In 1946, Honeywell officially formed its aerospace division, with notable inventions like the C-1 autopilot (crucial to the US war effort) and the first US nuclear submarine.

In the 1950s, Honeywell pioneered fire detection and alarm systems and introduced the iconic T-86 “Round” thermostat. It also entered the computer industry through a partnership with Raytheon. By 1960, Honeywell had achieved revenues of over $719 million and profits of $50 million.

The next decade saw the company transform industries through inventions like unleaded gasoline, biodegradable detergents, and GPWS collision avoidance systems.

In 1969, Honeywell played a vital role in the Apollo 11 mission, supplying 16,000 parts for the 14 electronic devices that made up the spacecraft’s Stabilization and Control Systems (SCS).

1970-1999: Honeywell Expands Strategically

In the 1970s, Honeywell bought General Electric‘s computer business to form the Honeywell Information Systems Division (HIS).

However, due to fierce competition in the computer industry, the company eventually divested its interests, shifting its focus to thermostats, automation, defense, and aerospace.

Honeywell took another strategic leap in 1986, acquiring Sperry Aerospace and becoming the world’s leading integrator of avionics systems. That year, as the personal computer emerged, the company formed Honeywell Bull, a global joint venture with Compagnie des Machines Bull of France and NEC Corporation of Japan.

By 1989, defense contracts and aerospace made up roughly 50% of Honeywell’s sales, significantly boosting the company’s financial performance. In 1991, Honeywell fully exited the computer business by selling its Information Systems division to Bull.

In 1999, Honeywell was acquired by AlliedSignal. The combined company kept the Honeywell name due to its brand recognition and the headquarters moved to AlliedSignal’s offices in Morristown, New Jersey.

Together, the companies shared substantial interests in aerospace, chemical products, automotive parts, and building controls.

2000-2009: Honeywell Unifies its Operations

In 2000, Honeywell acquired Pittway, strengthening its position in the fire protection and security systems market. That same year, the company reported a net income of $1.7 billion on $25 billion in net sales.

However, financial performance lagged, and the integration of Honeywell, AlliedSignal, and Pittway — each with their own distinct cultures — proved difficult, hindering the company’s overall efficiency.

As a result, in 2002, Honeywell undertook a significant restructuring, focusing on a clear strategy of Great Positions in Good Industries, One Honeywell, and Five Initiatives — Growth, Productivity, Cash, People, and The Enablers.

By 2003, 30% of Honeywell’s revenue came from outside the US and its global footprint spanned the Asia-Pacific, Europe, the Middle East, Africa, and Latin America, with operations in manufacturing, aerospace, control technologies, turbocharging systems, chemicals, power generation, and electronics.

By 2005 Honeywell had truly turned a corner. Its businesses were more competitive than ever and its economic outlook was strong. Sales grew by 8%, reaching $27.7 billion, with 5% organic growth. Earnings surged by 30% to $1.94 per share, while net cash flow rose 8% to $1.8 billion, representing an impressive 106% conversion of net income.

The company also acquired Universal Oil Products (UOP), a major milestone in transforming its specialty materials division. Additionally, the acquisition of Zellweger Analytics enhanced Honeywell’s capabilities in the rapidly expanding gas detection market.

As of 2007, Honeywell employed 122,000 people across 100 countries and was the top performer in the Dow Jones Industrial Average (DJIA).

While the DJIA rose by 6% and the S&P 500 by 4%, Honeywell’s stock surged by an impressive 36%. The company increased its dividend for the fourth consecutive year by 10%, marking a 47% increase over four years.

By 2008, Honeywell had acquired 58 companies ($7.5 billion in sales) and divested 32 companies ($4.3 billion in sales) to strengthen its portfolio.

Notably, Honeywell acquired Metrologic Instruments, a leader in laser, mobile imaging, and remote scanners, as well as Norcross Safety Products (NSP), a manufacturer of protective gear for industrial workers and firefighters, for $1.2 billion.

Although faced with the worst recession in 80 years, Honeywell’s performance held strong, generating $2.2 billion in income and $3.3 billion in free cash flow in 2009.

2010-2019: Honeywell Makes a Turnaround

In 2010, Honeywell acquired Sperian Protection, a leading manufacturer of personal protective equipment used across industries such as construction, fire services, and electrical safety, for $1.4 billion. With a rapidly growing presence in emerging markets, over 50% of Honeywell’s sales came from outside the US.

The next year, Honeywell strengthened its position in the global scanning and mobility market by acquiring EMS Technologies for $491 million. It also expanded its customer base by purchasing King’s Safetywear, a Singapore-based company with operations in high-growth regions, for $331 million.

By 2012, the company’s efforts over the past decade had paid off, adding about $10 billion in sales through acquisitions.That year, sales were up 3% to $37.7 billion, with earnings per share increasing by 11% to $4.48. The segment profit margin improved by 90 basis points to 15.6%, and the company generated $3.7 billion in free cash flow, with a 103% conversion rate.

Other key acquisitions that followed in 2013 included the $600 million acquisition of Intermec which brought innovation, engineering expertise, a global distribution channel, and AIDC technology to the company. This was followed by RAE Systems, a privately held manufacturer of gas and radiation detection systems for $340 million.

In 2014, Honeywell set strategic goals for the 5 year period between 2014 and 2018. This included allocating $10 billion towards mergers and acquisitions.

2015 saw Honeywell make its largest acquisition: $5 billion for Elster Group. It also purchased Intelligrated for $1.5 billion, with other notable acquisitions being:

• ComDev ($300 million)
• Satcom ($100 million)
• Datamax ($200 million)
• Sigma ($100 million)
• Aviaso (undisclosed)

By 2016, Honeywell had transitioned into innovative fields like automation software and smart buildings and experienced outstanding growth from annual revenues of around $20 billion in the early 2000s to $40 billion.

That year, the company also acquired Xtralis, a leader in aspirating smoke detection and security video analytics, for $480 million.

In 2018, Honeywell executed two spinoffs: its transportation business became Garrett Motion Inc., and its homes business became Resideo.

The company also completed two significant technology-oriented acquisitions — Transnorm and Ortloff Engineers, Ltd. — totaling more than $500 million. That year, Honeywell’s revenue peaked at $41.8 billion, with a net profit of $6.8 billion.

As the decade came to an end, Honeywell closed two strategic bolt-on acquisitions: TruTrak Flight Systems, a leader in autopilots for light aircraft, and Rebellion Photonics, a provider of innovative gas monitoring solutions for oil, gas, petrochemical, and power industries.

2020-Present: Honeywell Eyes Three Megatrends

In 2020, Honeywell swiftly responded to the challenges posed by the pandemic, focusing on cost control and launching critical solutions.

Notably, the company ramped up respirator production, increased PPE output, and developed Aclar Edge, a glass alternative for COVID-19 vaccine vials.

That same year, Honeywell formed its Sustainable Technology Solutions (STS) business to help customers navigate the energy transition. It also became the first aerospace participant to enter the advanced air mobility (AAM) market.

Against the backdrop of major supply chain issues, Honeywell formed the world’s leading quantum computing hardware and software company in 2021.

The company bolstered its life sciences strategy with key acquisitions, including Sparta Systems for $1.3 billion and Performix Inc., to enhance its integrated software platform. It also acquired US Digital Designs for $180 million, integrating it into its Fire and Connected Life Safety business.

In October 2022, Honeywell announced that it was streamlining its operations to focus on three megatrends: automation, the future of aviation, and the energy transition.

The company also forged ahead with the expansion of its operating system “Accelerator”, to standardize design models across various business types.

Throughout 2023, Honeywell maintained its disciplined approach, prioritizing bolt-on acquisitions aligned with its long-term strategy.

To create a scalable security technology business alongside its leading fire and building management systems franchises, the company acquired Carrier’s Global Access Solutions business for $4.95 billion.

In total, the company deployed $8.3 billion to capital expenditures, dividends, share repurchases, and mergers and acquisitions.

Despite a challenging operating environment, Honeywell exceeded its commitments to the market. Full-year sales increased by 3% to $36.7 billion, while segment profit grew by 8%, the company also generated $5.3 billion in operating cash flow.

In the first quarter of 2024, Honeywell delivered strong earnings growth led by double-digit gains in its commercial aviation, defense, and space segments. This continued into the second quarter where three out of four segments exceeded growth expectations.

Honeywell further expanded its portfolio with the $5 billion acquisition of Access Solutions along with Air Products’ liquefied natural gas process technology and equipment business for $1.8 billion and CAES Systems for $1.9 billion.

Honeywell Controversies

While Honeywell has been recognized as a seven-time honoree of Ethisphere’s World’s Most Ethical Companies awards since 2019, the company has several controversies and legacy legal issues linked to its history.

Notably, since 2000, Honeywell has incurred over $440 million in penalties for competition, environment, employment-related offenses.

More recently, in December 2022, Honeywell agreed to pay $202.7 million to settle charges of bribery involving Brazil’s state-owned oil company Petrobras and Algerian state-owned oil company Sonatrach.

In 2021, Honeywell reached a $13 million settlement with the US State Department for exporting technical drawings of parts for F-35 fighters and other weapons platforms to China and other foreign countries.

Although the violations were seen as a national security risk, Honeywell avoided debarment due to its voluntary disclosure under the Arms Export Control Act and International Traffic in Arms Regulations.

What Can We Learn From Honeywell?

Honeywell’s significant growth and its journey to becoming one of the world’s largest conglomerates reflects the power of innovation and strategic growth.

By creating innovative products, engaging in strategic acquisitions, and establishing dominance in key markets such as aerospace, defense, and more, Honeywell has established itself as a market leader.

Honeywell’s approach of conquering new industries and markets has proven vital for long-term growth and resilience. Its diverse portfolio has helped the company weather recessions and other economic challenges, highlighting the value of diversification.

The company’s successful business model, driven primarily by hundreds of strategic acquisitions, underscores how mergers and acquisitions can accelerate growth and facilitate entry into new markets.

As Honeywell moves into emerging markets such as quantum computing and sustainable energy, it must continue to focus on ethical and responsible practices, adhering to regulations and balancing strategic growth with strong financial performance.

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