What lessons can be drawn from HON's 2024 earnings?

Honeywell International Inc.'s (HON) 2024 earnings report reveals several key takeaways for investors and stakeholders: 1. **Strategic Portfolio Moves Pay Off**: Honeywell's fourth quarter sales exceeded expectations, growing by 7% year-over-year to $10.1 billion. This growth was driven by strong performances in defense and space, building solutions, and commercial aviation, underscoring the effectiveness of the company's strategic portfolio review and recent acquisitions. 2. **Financial Performance Highlights Resilience**: Despite macroeconomic challenges, Honeywell's operating income increased by 10%, with an operating margin of 17.3%. The company's segment profit decreased by 8%, but segment margin held steady at 20.9%, indicating efficient management of business segments. 3. **Cash Flow and Capital Deployment Strength**: Honeywell's operating cash flow reached $6.1 billion and free cash flow was $4.9 billion, both at the high end of previous guidance. The company deployed a record $14.6 billion of capital in 2024, including $8.9 billion for acquisitions, reflecting its commitment to strategic growth. 4. **Earnings Per Share and Adjusted Earnings**: The company reported earnings per share (EPS) of $1.96, up 3% year-over-year. Adjusted EPS was $2.47, down 8% year-over-year but exceeding previous guidance. 5. **2025 Outlook and Guidance**: Honeywell provided guidance for 2025, expecting adjusted EPS of $10.10 - $10.50, up 2% - 6%. This outlook reflects confidence in continued growth, despite the challenges posed by the previous year. In conclusion, Honeywell's 2024 earnings demonstrate the company's ability to navigate complex market conditions through strategic acquisitions and portfolio management, while maintaining strong financial performance and cash flow. The company's outlook for 2025 suggests a continued focus on growth and innovation.