Honeywell Aims for Faster Growth with Automation Focus

Honeywell Technologies has outlined its new chapter after completing the spin-off of its aerospace and advanced materials units. The company is now focused on building, process, and industrial automation.

Management said Honeywell is targeting 4% to 6% organic growth, with expectations to be near the top end of that range in the near term. The company has also set a $12-a-share earnings target for 2029, which it considers a floor, not a ceiling.

Honeywell Forge, the company's software and AI platform, is expected to reach about $1 billion in annual recurring revenue by the end of 2026, growing at around 15% a year. The software strategy aims to pull through the broader portfolio by making Honeywell's products more attractive to customers.

The company has two advantages: its data is held in controlled systems and is not available on the public internet, and its engineers and specialists know how to interpret that data in real operating environments. Physical AI is especially important in data centers and process automation, where customers want software that can translate operational data into action.