Honeywell International, Inc. Chicago Industrials Summit

Sure. First, thank you for having us here today. I’m super excited to be here. The year’s progressing extremely well. Strong factors about orders in July are looking good. That’s why we raised the guidance and feel good about the second half. As far as your question, we just laid out, obviously, this is our first month out as a new company. We laid out our three-year growth targets, so 4%-6% top-line growth, doubled EPS growth, trying to get to the $12 in 2029, and strong margin expansion as well as 90% plus free capital conversion. We’re off to a good start, feel really good about the second half, and based on how the orders are coming in, next year looks very quite strong as well.

As you know, we put a lot more emphasis on higher growth verticals within our portfolio as far as FTI, commercial, how we focus commercially. We reorganized a lot of our teams within industrial automation, process automation, and building automation as far as being closer to the customers, the agents. We see broad-based growth across all of our regions. Historically, the last few years, Europe was a headwind for us. That's no longer the case. China’s doing okay. It’s obviously pressure, but doing okay. Middle East is surprisingly, for me, strong for us. Other parts of Asia. North America is real strong. That’s progressing well, and that’s where really the short cycle and strong growth. We’re seeing growth in our traditional verticals, but also obviously outsized growth in the high-growth verticals. That’s progressing well, and on top of that, we have a long cycle demand.

We talked a lot about our process business getting a lot of orders, building backlog. That backlog is starting to convert. On top of that, we have incremental demand coming.

The conflict in Iran stimulated demand in Middle East as far as rebuilds, but also in Middle East as far as just security. A lot what is in the input as well as people are reassessing the new world order, if you will, and how they’re going to manage their supply chain. Those are things. I would say generally very good backdrop for us going into the second half of this year.

I think what you’re noticing is that we are much more focused. Much more focused at our core, very methodical in terms of how we execute. What’s maybe where we are pivoting and where you see different is much more commercial focus. Co-innovation with our customers, a lot more focus on innovation. We’ve been doing some M&A. We’ll continue to do M&A, and our team is committed to continue to do thoughtful M&A to supplement our portfolio. At the core, it’s really, I would say for us, it’s Accelerator. Accelerator has been our backbone as far as how we run operations, how we leverage Accelerator to expand margins, and we’ll continue to do that. Last few years, Accelerator program focused on us in terms of our revenue models and driving persistently across the company as far as how we deploy our revenue models.

Last few years now, we were shifting towards Six Sigma supply chain excellence.

Now we’re pivoting again into artificial intelligence and how we leverage Accelerator there. So it’s ever evolving, but the management operating systems that we had are at the core of everything we’re doing.

It’s really Forge. Okay. And Forge offering.

Last year we connected more assets last year than the five years prior. If you think about the investment we’ve done in Forge over the last five years, it’s starting to pay back in a very meaningful way. Over the next two and a half years, we’ll connect. Today, we have about, I think, 5 million assets that are connected. We'll probably connect about in total 9 million assets. Why is it important? The connection really gives you a gateway then to try to innovate with customers and provide solutions, et cetera, and build the data that we need. They've got a lot of plans from those connections. Really excited about that, and that's where that 15% annual revenue growth comes in on software spend.