Honeywell International Inc. (NASDAQ:HON)

Segment Profit

The segment profit displayed a positive growth trend from 2022 to 2024. In 2022, the profit stood at 3247 million US dollars, increasing to 3760 million in 2023. The upward trajectory continued in 2024, reaching 3988 million US dollars. This indicates consistent profitability and effective cost management or revenue growth within the segment, contributing to higher earnings over the observed periods.

Net Sales

Net sales showed a steady increase over the three years for which data is available. Beginning at 11827 million US dollars in 2022, net sales rose to 13624 million in 2023 and further to 15458 million in 2024. This growth reflects an expanding market presence or successful sales efforts, which likely support the rising segment profit figures.

Segment Profit Margin

The segment profit margin remained relatively stable, with a slight improvement from 27.45% in 2022 to 27.6% in 2023. However, in 2024 a decrease to 25.8% was observed. This suggests that while the overall profitability increased in absolute terms, there may have been increased costs or pricing pressures impacting the profit margin percentage by the end of 2024.

The analysis of the Industrial Automation segment over the reported years reveals several key financial trends. Net sales have shown a declining trajectory, decreasing from $11,638 million in 2022 to $10,051 million in 2024. This reflects a reduction in revenue generated by the segment across the three most recent years.

Conversely, segment profit exhibited a slight increase from $2,152 million in 2022 to $2,209 million in 2023, before declining to $1,962 million in 2024. This pattern indicates some volatility in profitability, which may be influenced by changes in costs, operational efficiency, or market conditions affecting the segment.

Examining segment profit margin, it increased from 18.49% in 2022 to 20.54% in 2023, suggesting improved efficiency or favorable business conditions that allowed a higher proportion of revenue to be converted into profit. However, by 2024, the margin declined to 19.52%, indicating a slight decrease in profitability relative to sales despite the margin remaining higher than the 2022 level.

Overall, the data indicate that while sales revenue in the segment has been on a downward trend, profitability margins have experienced some improvement and subsequent moderation. The segment appears to have faced challenges in maintaining both sales volume and profit levels simultaneously in recent years.

Net Sales

Declined steadily from $11,638 million in 2022 to $10,051 million in 2024.

Segment Profit

Increased moderately in 2023, followed by a decline in 2024, ending below 2023 but close to the 2022 level.

Segment Profit Margin

Improved from 18.49% in 2022 to 20.54% in 2023, then slightly decreased to 19.52% in 2024, remaining above the initial 2022 level.

Net Sales

Net sales within the Building Automation segment exhibited a moderate upward trend from 2023 to 2024. In 2023, net sales were recorded at $6,031 million, increasing to $6,540 million in 2024. This reflects a growth of approximately 8.5%, indicating an expansion in revenue generation for the segment over the period analyzed.

Segment Profit

Segment profit demonstrated a consistent increase over the two-year span. In 2023, the profit was $1,529 million, which rose to $1,681 million in 2024, representing an increase of roughly 10%. This rise in profit outpaced the growth in net sales, suggesting improvements in operating efficiency or cost management within the segment.

Segment Profit Margin

The segment profit margin displayed a gradual upward trend, increasing from 25.35% in 2023 to 25.7% in 2024. This incremental improvement indicates that the segment was able to enhance its profitability relative to its sales base, reinforcing the positive trend observed in profit growth.

Overall Trends and Insights

The data from 2023 to 2024 reflect a favorable performance trajectory for the Building Automation segment. Both revenue and profitability metrics improved, with profit margins slightly increasing, suggesting effective management of costs and operational efficiency. The simultaneous growth in net sales and segment profit points to strengthening market demand or enhanced product offerings during this period. The absence of data for prior years limits a longer-term trend analysis; however, the available figures indicate a positive trend of growth and improved profitability in the most recent years observed.

Net Sales

The net sales for the segment exhibited a consistent upward trend from 2022 through 2024. Starting at $5,996 million in 2022, sales increased to $6,239 million in 2023, followed by a further rise to $6,425 million in 2024. This indicates a steady growth in revenue over the three-year period.

Segment Profit

Segment profit showed a slight decline over the same period. In 2022, profit was $1,555 million, which decreased to $1,487 million in 2023. A modest recovery occurred in 2024, with profit increasing to $1,522 million, though it remained below the 2022 peak. Overall, this suggests some pressure on profitability despite revenue growth.

Segment Profit Margin

The segment profit margin declined gradually from 25.93% in 2022 to 23.83% in 2023, and further to 23.69% in 2024. This downward trend in margin percentage indicates that the segment's efficiency or pricing power may be under pressure, as profitability is not keeping pace with the growth in net sales.

Segment Profit

The segment profit has demonstrated a positive growth trajectory over the three most recent available years. Starting at 3,247 million USD, profit increased to 3,760 million USD the following year, representing a significant rise. The upward trend continued into the subsequent year, reaching 3,988 million USD. This consistent increase suggests improved profitability and operational efficiency within the segment during this period.

Total Assets

Total assets showed steady growth initially, rising from 12,189 million USD to 12,976 million USD between the two earlier years reported. However, in the most recent year, there was a marked increase to 16,966 million USD. This sharp growth in asset base may indicate substantial investments or acquisitions aimed at expanding segment capacity or capabilities, although it could also imply elevated capital requirements.

Segment Return on Assets (ROA)

The segment ROA indicates a generally strong performance but reveals some variability. It increased from 26.64% to 28.98% between the first two measured years, reflecting enhanced asset utilization and profitability. In the last year, however, ROA declined to 23.51%. Despite remaining at a relatively high level, this decrease suggests that the efficiency of generating profit from assets weakened somewhat, potentially influenced by the rapid asset growth observed.

Summary

Overall, the segment exhibits robust profit growth and a significantly expanding asset base. While profitability in absolute terms has increased, the decrease in the ROA in the latest year signals a potential dilution of asset efficiency. The combination of increased assets with a declining return ratio suggests that the segment may be in a phase of investment or expansion, where returns have yet to fully catch up with the increased asset base.

Segment Profit

The segment profit for the Industrial Automation segment increased from 2152 million US dollars in 2022 to 2209 million US dollars in 2023, showing a positive growth trend. However, in 2024, the segment profit declined to 1962 million US dollars, indicating a reversal of the previous growth and a decrease in profitability during the last reported period.

Total Assets

Total assets in the segment expanded significantly from 17887 million US dollars in 2022 to 22026 million US dollars in 2023. This was followed by a slight decrease to 21035 million US dollars in 2024. Overall, the assets showed an upward trend with a minor correction in the last year.

Segment Return on Assets (ROA)

The segment ROA declined steadily over the three reported years, starting at 12.03% in 2022, dropping to 10.03% in 2023, and further decreasing to 9.33% in 2024. This trend indicates a diminishing efficiency in using assets to generate profits within the segment across the period, despite fluctuations in the absolute profit values.

Summary

In summary, the Industrial Automation segment experienced initial growth in profit and assets through 2023, followed by a decline in profitability and total assets in 2024. The segment's ROA consistently decreased over the period, highlighting reduced asset utilization effectiveness. This combination of trends suggests potential challenges in maintaining profitability margins despite a generally larger asset base.

Segment Profit

The segment profit showed consistent growth over the reported periods, increasing from 1464 million US dollars in 2021 to 1681 million US dollars in 2024. This upward trend indicates improving profitability within the segment.

Total Assets

Total assets within the segment also exhibited a rising trend, growing from 6599 million US dollars in 2021 to 11438 million US dollars in 2024. This substantial increase suggests expansion or asset acquisition contributing to the segment's capacity or value base.

Segment Return on Assets (ROA)

The segment ROA remained relatively stable between 2021 and 2022, with values around 22.19% and 22.74%, respectively. However, there was a notable decline to 14.7% in 2024, indicating that although profits increased, asset efficiency decreased over the latest period.

Segment Profit

The segment profit showed a slight fluctuation over the observed period. It reached a peak of 1,555 million US dollars at the end of 2022, followed by a decrease to 1,487 million in 2023. However, in 2024, the segment profit rebounded slightly to 1,522 million, indicating a relatively stable profit trajectory with minor variations.

Total Assets

Total assets within the segment displayed a significant decline from 10,892 million US dollars in 2022 to 8,048 million in 2023. This was subsequently followed by a substantial recovery to 10,337 million by the end of 2024. The data suggests a major asset adjustment or divestment in 2023, with partial restoration or acquisition activity occurring in 2024.

Segment Return on Assets (ROA)

The segment ROA improved markedly from 14.28% in 2022 to 18.48% in 2023, indicating enhanced efficiency or profitability relative to the assets employed during that year. However, the ROA declined to 14.72% in 2024, aligning more closely with the level observed in 2022. This pattern implies a peak in asset utilization efficiency in 2023 that was not fully sustained into 2024.

Overall Trends and Insights

The data demonstrates that the segment experienced a year of asset contraction in 2023 coinciding with its highest ROA level, which may reflect strategic asset optimization. Segment profit remained generally robust despite asset fluctuations, suggesting stable earnings quality. The subsequent recovery in total assets and slight decrease in ROA in 2024 could indicate asset base expansion that has yet to translate fully into improved profitability metrics. These dynamics highlight a period of operational adjustments likely aimed at balancing asset structure with earnings performance.

Net Sales

Net sales demonstrated a consistent upward trajectory over the three-year period, increasing from $11,827 million in 2022 to $13,624 million in 2023, and further to $15,458 million in 2024. This represents a steady growth rate, indicating expanding revenue generation within the segment.

Total Assets

Total assets also increased substantially over the same timeframe, rising from $12,189 million in 2022 to $12,976 million in 2023, and then to $16,966 million in 2024. The significant jump in 2024 suggests increased investment or acquisition of assets during that year.

Segment Asset Turnover

The segment asset turnover ratio showed some variation over the period. It increased from 0.97 in 2022 to 1.05 in 2023, indicating improved efficiency in utilizing assets to generate sales in that year. However, in 2024, the ratio declined to 0.91, implying a relative decrease in asset utilization efficiency despite growth in net sales. This drop could be attributed to the larger asset base not being fully leveraged to increase sales proportionately.

Net Sales

Net sales in the Industrial Automation segment exhibit a declining trend over the three reported years. Starting at 11,638 million US dollars in 2022, net sales decreased to 10,756 million US dollars in 2023, followed by a further reduction to 10,051 million US dollars in 2024. This downward trajectory indicates a contraction in the segment's revenue generation during this period.

Total Assets

Total assets in the segment increased significantly from 17,887 million US dollars in 2022 to 22,026 million US dollars in 2023, representing substantial asset growth. However, in 2024, total assets decreased slightly to 21,035 million US dollars. Despite the minor decline, the overall asset base remains considerably higher in 2024 compared to 2022.

Segment Asset Turnover

The segment asset turnover ratio demonstrates a consistent decline over the years reported, decreasing from 0.65 in 2022 to 0.49 in 2023, and further to 0.48 in 2024. This indicates a reduction in the efficiency with which the segment utilizes its assets to generate sales. The declining turnover suggests that assets have grown at a faster pace relative to sales, impacting operational efficiency adversely.

The financial data for the Building Automation segment over the period from 2022 to 2024 reveals several notable trends. Net sales exhibited a steady increase, rising from $6,000 million in 2022 to $6,540 million in 2024. This upward trajectory indicates sustained growth in revenue within the segment.

Total assets also increased, from $6,599 million in 2022 to a substantially higher $11,438 million in 2024. The marked jump in total assets by 73% between 2023 and 2024 suggests significant investment or asset acquisition activity during that period.

Segment asset turnover ratio

The asset turnover ratio decreased from 0.91 in 2022 to 0.57 in 2024. This declining ratio indicates that asset efficiency in generating sales has diminished despite the growth in net sales. The substantial increase in assets was not matched by a commensurate increase in sales, causing a reduction in asset productivity.

In summary, the segment experienced revenue growth alongside considerable asset expansion. However, the efficiency of asset utilization to generate sales declined, signaling potential changes in asset management or shifts in business operations requiring further examination.

The segment data for "Energy and Sustainability Solutions" reflects several notable trends over the period from December 31, 2020, to December 31, 2024. The available data begins from 2022, with no figures reported for 2020 and 2021, which limits the analysis to recent years.

Net Sales

During the three-year span from 2022 to 2024, net sales showed a steady increase. Starting at $5,996 million in 2022, net sales rose to $6,239 million in 2023 and further increased to $6,425 million by 2024. This indicates a consistent upward trend in revenue generation within the segment.

Total Assets

Total assets within the segment demonstrated a fluctuating pattern. Assets peaked at $10,892 million in 2022, followed by a significant decline to $8,048 million in 2023. Thereafter, assets recovered somewhat to $10,337 million in 2024 but remained slightly below the 2022 peak. This variability may suggest asset reallocation, disposals, or other strategic changes affecting the asset base.

Segment Asset Turnover

The asset turnover ratio, a measure of how efficiently the segment uses its assets to generate sales, also fluctuated during the analyzed period. The ratio increased from 0.55 in 2022 to 0.78 in 2023, indicating improved asset utilization. However, in 2024, the ratio declined to 0.62, suggesting a decrease in efficiency relative to the prior year but still above the 2022 level. This pattern aligns with the changes observed in total assets and net sales.

Overall, net sales have shown a positive growth trend, while asset levels and utilization efficiency have experienced volatility. The improvements in asset turnover in 2023 may have been influenced by the reduction in asset base, but this efficiency diminished somewhat in 2024 despite asset recovery. These dynamics imply active management of assets alongside gradual growth in sales within the Energy and Sustainability Solutions segment.

The data reveals a progressive increase in capital expenditures for the Aerospace Technologies segment over the observed periods. Starting from an initial value of 246 million US dollars, capital spending rose to 310 million in the subsequent period and further increased to 371 million, indicating a sustained investment trend in assets or technology.

Depreciation and amortization expenses exhibited a different pattern. After recording 285 million US dollars, these expenses declined to 267 million in the next period, before increasing again to 299 million. This fluctuation may reflect the nature of asset base changes and the timing of acquisition or disposal of assets.

The ratio of segment capital expenditures to depreciation progressively increased across the intervals, from 0.86 to 1.16 and further to 1.24. This rising ratio suggests that capital investments are outpacing the consumption or amortization of existing assets, potentially indicating growth or modernization within the segment.

Capital expenditures

Steadily increased from 246 million to 371 million over the periods observed.

Depreciation and amortization

Initially decreased from 285 million to 267 million, then rose to 299 million.

Segment capital expenditures to depreciation ratio

Displayed a consistent upward trend from 0.86 to 1.24, indicating more significant investment relative to asset depreciation.

The data for the Industrial Automation segment reveals distinct trends in capital expenditures, depreciation and amortization, and the ratio of capital expenditures to depreciation over the period from December 31, 2020, to December 31, 2024.

Capital Expenditures

Capital expenditures data begins from 2022, showing a significant increase over the subsequent two years. The amount surged from $77 million in 2022 to $194 million in 2023, representing a substantial investment growth. This upward trend continued into 2024, with capital expenditures reaching $214 million, indicating ongoing or expanding investment activities within the segment.

Depreciation and Amortization

Depreciation and amortization figures are available from 2022 onwards and display a declining trend over the three-year span. In 2022, these expenses were recorded at $422 million, decreasing to $386 million in 2023, and further dropping to $362 million in 2024. This pattern suggests a reduction in the depreciable asset base or changes in depreciation methodology affecting expense recognition.

Segment Capital Expenditures to Depreciation Ratio

The ratio of capital expenditures to depreciation data starts in 2022 and demonstrates a pronounced upward trajectory. Initially, the ratio was 0.18 in 2022, indicating capital expenditures were a relatively small proportion of depreciation expenses. However, this ratio more than doubled to 0.5 in 2023 and increased further to 0.59 in 2024. This trend signifies an increasing reinvestment rate into the segment’s asset base relative to the depreciation charges incurred, potentially reflecting strategic investment initiatives or asset base expansion.

Capital Expenditures

Capital expenditures in the segment were reported starting from 2023, with values of $74 million, $79 million in 2024, and a slight decrease to $78 million in 2025. This reflects a generally stable investment in capital assets over the observed periods.

Depreciation and Amortization

Depreciation and amortization expenses showed an increasing trend from $92 million in 2023 to $107 million in 2024, followed by a substantial rise to $198 million in 2025. This sharp increase may indicate a significant increase in asset base or changes in amortization policies during the latest period.

Segment Capital Expenditures to Depreciation Ratio

The ratio of capital expenditures to depreciation decreased steadily from 0.8 in 2023 to 0.74 in 2024, and further down to 0.39 in 2025. This suggests that capital investment is growing at a slower pace compared to the rate of depreciation, which could imply an aging asset base or reduced reinvestment relative to asset consumption.

Capital expenditures

The capital expenditures demonstrate a significant upward trend from 291 million US dollars in 2022 to 374 million in 2023, followed by a slight decrease to 373 million in 2024. This indicates an increase in investments during 2023, with levels stabilizing but remaining elevated in 2024 compared to 2022.

Depreciation and amortization

Depreciation and amortization expenses show a steady increase over the observed period, rising from 247 million US dollars in 2022 to 253 million in 2023 and then further to 285 million in 2024. This pattern suggests ongoing asset base growth or accelerated amortization policies.

Segment capital expenditures to depreciation ratio

The ratio of capital expenditures to depreciation increased sharply from 1.18 in 2022 to 1.48 in 2023, indicating a substantial rise in capital investments relative to the depreciation expense during that year. However, in 2024, the ratio decreased to 1.31, reflecting a relative moderation of capital expenditures compared to the depreciation expense, though still above the 2022 level. This suggests investment activity outpaced asset write-downs particularly in 2023, with some normalization in the following year.