Honeywell International (HON) Bank of America Global Industrials Conference 2026 summary

Macro environment and guidance

• Organic growth is guided at 3%-6% for the year, with Q1 trending well and strong demand in aerospace and automation segments.

• Middle East disruptions are causing temporary shipping delays, but the annual outlook remains intact.

• Defense production is ramping up, with tailwinds expected from increased demand and recent acquisitions.

• International defense business is growing rapidly, especially in Europe, Japan, Australia, and Korea.

• Margin expansion is expected for the full year, with some conservatism in H1 due to shipment timing and customer mix.

Segment performance and growth drivers

• Process technology business has strong order momentum and a firm backlog, supporting higher revenue growth in the second half.

• Building automation has grown high single digits for five quarters, driven by integration of Access Solutions and focus on security and software.

• Data centers now represent about 5% of building automation revenue, with growing share and new sensor development for liquid cooling.

• Biopharma reshoring in the U.S. is progressing, with long-cycle demand and positive CapEx trends, though revenue impact will be gradual.

• Industrial automation is being streamlined to focus on sensing and measurement, aiming for category leadership in critical sensing.

Strategic priorities and innovation

• Software offerings, especially Honeywell Forge, are driving rapid growth in building management systems through predictive maintenance and energy efficiency.

• Energy storage is a key area of focus, with unique control solutions for both front and behind the meter applications.

• Growth priorities in building automation include data centers, hotels, hospitals, and battery manufacturing plants.

• Acquisitions such as Access Solutions, Civitanavi, Sundyne, and Li-ion Tamer are performing above expectations and contributing to top-line growth.

• AI is seen as an opportunity to enhance automation and autonomy, with minimal risk of replacement due to the mission-critical nature of offerings.