Honeywell at Baird Conference: Aerospace Spinoff Plans Unveiled

On Tuesday, 11 November 2025, Honeywell International Inc. (NASDAQ:HON) participated in the Baird 55th Annual Global Industrial Conference, shedding light on its strategic plans for the upcoming spinoff of Honeywell Aerospace. The discussion, led by Honeywell Aerospace President and CEO Jim Currier, revealed both opportunities and challenges as the company aims to enhance focus and control over its aerospace operations.

Key Takeaways

• Honeywell Aerospace’s spinoff is scheduled for the second half of 2026, aiming to focus solely on aerospace.
• The company boasts a record-high backlog of $39 billion and a strong book-to-bill ratio of 1.2.
• Honeywell Aerospace is investing heavily in supply chain improvements and advanced air mobility technologies.
• The business jet market is expected to see low single-digit growth, while commercial air transport and defense markets present robust opportunities.

Financial Results

• Cost Reduction: Honeywell Aerospace continues to lead in cost reduction, focusing on productivity and efficiency without sacrificing innovation.
• R&D Investment: Investments in research and development remain competitive, supporting a decade-long growth strategy.
• Margin Expansion: The company anticipates ongoing margin expansion, driven by volume leverage and pricing strategies.
• Backlog and Book-to-Bill: With a backlog of $39 billion and a book-to-bill ratio of 1.2, Honeywell Aerospace is well-positioned for future growth.

Operational Updates

• Supply Chain Investments: Over $1 billion has been invested since 2021 to address capacity constraints, enhancing supply chain visibility and factory output.
• Factory Performance: Honeywell Aerospace has achieved 13 consecutive quarters of double-digit volume output.
• RMUs Growth: Revenue from Retrofit, Mods, and Updates (RMUs) has grown by 20% over three years, now comprising 10% of the portfolio.

Future Outlook

• Market Trends: The air transport market is poised for growth, particularly in Europe, the Middle East, India, and Asia-Pacific. The defense sector, split 60% commercial and 40% defense, is focusing on non-ITAR technologies.
• Advanced Air Mobility: Certification is projected for 2028, with significant market adoption expected by the mid-2030s.

Q&A Highlights

• Spinoff Benefits: The spinoff will enable Honeywell Aerospace to concentrate on its core business, with full control over capital allocation.
• Mergers and Acquisitions: Recent acquisitions, including CAES and Civitanovi, have exceeded expectations, and the company is exploring further opportunities.

For a detailed account of the conference call, please refer to the full transcript below.

Full transcript - Baird 55th Annual Global Industrial Conference:

Peter Armbruster, Senior Aerospace Defense Analyst, Baird: Good morning, everyone. My name is Peter Armbruster, Senior Aerospace Defense Analyst here at Baird. Thanks for joining us. Thanks to anybody with Honeywell International. And with us from Honeywell, we have Jim Currier, who’s the President and CEO of Honeywell Aerospace. Jim has served as President and CEO of Honeywell Aerospace Technologies since August of 2023. Previously, he spent two decades in a ton of senior roles across the globe with Honeywell, President of Electronic Solutions business, President of the company’s aftermarket organization across Europe, Middle East, Africa, and India, Vice President of the Airlines North America. Last week, Honeywell announced that he will lead Honeywell Aerospace as President and CEO, following the planned spinoff as an independent publicly traded company in the second half of 2026. Congrats on that. That’s fantastic. Welcome, Jim. Maybe we’ll just start with that spinoff.

You’ve announced that that’s on track for the second half of 2026, and it’s going to be positioned as one of the largest pure-play aerospace suppliers out there, which is very exciting. Maybe can you share just kind of your vision, how you view it as a standalone company, and any strategic advantage you expect to unlock with that spinoff?

Jim Currier, President and CEO of Honeywell Aerospace, Honeywell International: Yeah, absolutely. I think a couple of things I would say is, first and foremost, I truly feel Honeywell Aerospace is exceptionally well prepared for all the new opportunities that are going to be presented to us that will host and say that the pure-play standalone. We have an exceptionally talented and experienced leadership team. We’re going to have an investment-grade balance sheet, as well as going to afford us a lot of opportunities going forward. I think as well as the announcement that came out last week about me, we also announced that Craig Marwell was going to be our Chairman for Honeywell Aerospace, and that could not be a greater leader to be partnered up with me to be able to drive the business into the next decade and beyond going forward.

When I think about the benefits afforded to us by the separation, I think of two parallels. One, first and foremost, is just being able to be exceptionally focused, laser-focused on just the business itself, strategically and from a tactical perspective. We’re going to be able to not worry about any other activities occurring outside of aerospace as being a part of Honeywell. Everything we do, every decision we make, will be foundationally rooted in driving the aerospace business for Honeywell going forward. There is a second element, which is financial flexibility. We’ll have all the decisions around capital allocation will reside within Honeywell Aerospace and the leadership team. There’ll be no more sort of competing for capital across the rest of Honeywell, whether that’s capital for allocation purposes and factories, capacity expansion, or whether that’s capital for M&A activity as well.

All that flexibility driven by a complete element of being laser-focused on the business, I think, is a great benefit afforded to us by the separation and by the spin. That ultimately underlies the underpinnings that allows us to actually accelerate and become more amplified as a pure-play and really driving the most technologically advanced innovative solutions for our industry, solving exceptionally complex problems that exist today, which is where we currently play. The investments that we can make on new technologies, new products, and new services, again, all of that underpinned by the benefits afforded to us by the separation.

Peter Armbruster, Senior Aerospace Defense Analyst, Baird: Got it. Yeah, it’s terrific. Maybe let’s start with a little bit of a high level for the audience. Maybe describe how you view kind of the portfolio when you think about it’s so diversified, whether it’s by product or by market, and you’ve been able to, and that has allowed you to really manage the cycles, but also take advantage of some opportunities. Maybe describe for the audience the portfolio.

Jim Currier, President and CEO of Honeywell Aerospace, Honeywell International: It is a broad portfolio, to your point, as you mentioned, among products and end markets that we serve. I’ll touch on the end markets for a moment. Certainly today, we provide products, technologies, and solutions that support either commercial air transport, business aviation, or defense and space. That ability to service multiple end markets typically provides you the results. Currently, today, all end markets. We are essentially nose to tail on an aircraft. We’re divided out amongst three strategic business units: Electronic Solutions, Engines and Power Systems, and our Control Systems business. Within each of those, Electronic Solutions as an example, you can think of anything that you would imagine inside of the cockpit and behind the cockpit wall. Avionics, flight management systems, flight control systems, surveillance, radar systems, flight controls.

Moving to the Engines and Power Systems business, you have business jet engines, military engines, APUs across multiple end market segments, electric power distribution systems as well, electric power generation. You move into the control systems portion of the portfolio. Anything around environmental control, cabin pressurization, thermal control, friction control with our wheels and brake systems, fuel control systems on commercial engine aircraft going forward. When you think about the breadth of that portfolio, it is nose to tail on the aircraft. It is multiple end markets that we serve as a result. I think that provides a really interesting backdrop to enable us to be very resilient and also very broad to be able to drive the growth of the system for the company.

Peter Armbruster, Senior Aerospace Defense Analyst, Baird: Yeah. It is incredibly diversified and obviously provides a lot of visibility too, frankly. Honeywell’s also, I think, Honeywell Aerospace is also considered kind of industry-leading cost reduction when we think about your portfolio. What are some of the key investments that have enabled this, and how do you think about that?

Jim Currier, President and CEO of Honeywell Aerospace, Honeywell International: I think the underpinning of our market performance that we have seen over the years is really foundationally rooted upon our operating system that we have. It is a cohesive, fully integrated operating system, not only within the businesses, but within the functions as well. That operating system is underpinned around productivity, efficiency, resilience, and margin expansion. That has been an enabler for us to drive the margin performance that we’ve seen over the years. One point of clarification is we’ve done that not at the expense of underinvesting in new products and new technologies. If you look at this % of revenue of what we invest in new products and new technologies, it is at or above where a Peerset is today in the aerospace industry.

Now, what I will tell you, though, is that over the last couple of years, under my tenure here from the last two plus years or so, I have been very, very dedicated and diligent around investments to set the company up and sustain a ten-year-plus growth profile. That could have been investments that we were making on the supply chain, investments that we’re making in new products and new technologies, as I mentioned a moment ago. That really is the setup for the complete ten-year sustained growth trajectory. With that, over the last couple of years, the margins have been a little bumpy as a result of those investments that I’m making. I would tell you, I think we really kind of hit the floor in Q2 as a result of that.

You saw from our performance in Q3 some margin expansion, larger triple to volume leverage that we’re getting as well, and through the investments that we’ve been able to make to drive the volume output out of the factories. It is also going to be a tailwind for us going forward through these investments. We’ve got integration activities and costs that will be falling off the books going forward. The volume leverage that I described a moment ago as well, the continued efficiencies on the operating system that we have across Honeywell Aerospace. Also, as you think midterm horizon, as we have a lot of our long-term agreements that we have in place, there will be pricing opportunities that will present themselves. I think you’ll continue to see this margin progression increasing throughout Q4 through 2026 and beyond.

Peter Armbruster, Senior Aerospace Defense Analyst, Baird: Yeah. Was there any structural cost takeouts kind of with COVID or anything along those lines that you kind of were able to address?

Jim Currier, President and CEO of Honeywell Aerospace, Honeywell International: We did adjust the business as a result of the COVID impact that happened. We took areas whereby customer interactions, customer facing, supply chain challenges that we had or supply chain anemic activity was occurring. There was some cost takeout that was made as a result of doing that. We reinvested back into all of that ultimately to give us the supply chain resilience that we need going forward.

Peter Armbruster, Senior Aerospace Defense Analyst, Baird: Yeah. Okay. That’s helpful. Let’s switch topic a little bit about the aircraft market. I think you guys, again, have a very good insight into both air transport and business aviation. What’s your view of where we are? I think we all kind of accept that maybe we should be entering a more normalized environment because we’ve had such a snapback post-COVID. How are you viewing the kind of the market?

Jim Currier, President and CEO of Honeywell Aerospace, Honeywell International: I look at it from two different end markets that we serve, business jet and then commercial air transport. If I focus on the business jet aspect just for a moment here, clearly coming out of COVID, there was a massive snapback in terms of flight hour growth in the business jet market. It got to a point where it was about 20% above what it was pre-pandemic levels. You saw a little bit of a regression to that more where normalized going forward. I think that’s going to be a steady state going forward, low single digits in business jet going forward. Again, consistently with what we’ve seen recently and consistently going forward. I’ll tell you on the air transport market in the equation, I still think there’s opportunities for continued growth there.

I think it’s stronger than what we’re seeing in business jet as an example. The point there being is that in the U.S., we’ve largely recovered to pre-pandemic levels, but we are still continuing to see a lot of growth in Europe, Middle East, India, the Asia-Pacific region, and air transport. Those will continue to be growth drivers for us as an enablement for our growth going forward. The one thing that I would say about flight hours and coupling flight hours to revenue, that’s a direct, almost a one-to-one correlation. The more you fly, the more you repair, the more you overhaul. You can see a growth calculation associated with that. We’ve been very fortuitous in that we’ve actually been able to outgrow what the aftermarket is doing in terms of flight hours.

What we’ve done there is through a substantial amount of investment that we’ve made in what we call Retrofit Mods and Updates. These are products and services for where we upgrade aircraft.

Latest features, latest functions, latest capabilities, safety enhancements as an example. That becomes what we call decoupled growth. It is not tied to the flight hours. It is just providing value-added offerings, value that is perceived by operators of aircraft to drive this additional growth. That has become a huge growth enabler for us that allows us to outgrow the aftermarket. The revenue associated with that is about 10% of the total portfolio. We have been on this trajectory for quite some time. The growth that we have seen there over the last three years has been about 20%. 10% year on year is what we have been seeing going forward. That is truly that enabler that you have your coupled growth that happens in the aftermarket tied to flight hours.

Through our investments in new products and new technologies and value-added offerings, we are able to sell those products and create a decoupled revenue profile or a decoupled revenue stream that allows us then to outgrow the aftermarket.

Peter Armbruster, Senior Aerospace Defense Analyst, Baird: When thinking about aftermarket, I remember years ago that you guys always kind of highlighted how many software engineers that you have and how that allows you to kind of address there’s additional services that can be done. Have you seen any pickup there regarding when you think about software and impacting your business?

Jim Currier, President and CEO of Honeywell Aerospace, Honeywell International: We have. I mean, we have roughly across our organization about 11,000 engineers. The majority of them are software engineers. That is really where a lot of the value-added offerings come, particularly when you think about integrated cockpits. The thing to remember is that when you introduce a product for the first time onto a platform, that aircraft is going to fly for 20-30 years or more. It is constantly going to be evolving and needing new technologies, new safety standards, new mandates that are coming in. Having that footprint or that real estate on the aircraft with the breadth of the portfolio that we have, nose to tail, 90% of the aircraft flying in the free world today have Honeywell content on board.

It’s a very fertile ground for these RMUs, and many of them are software upgrades to bring those features and functions into the cockpit driven by reliability, safety, and other value-added features.

Peter Armbruster, Senior Aerospace Defense Analyst, Baird: Yeah. I was going to ask about it later, but the supply chain is kind of a critical focus. It is related to this business because we’ve seen a lot of there’s going to be a lot of pressure on the OE production ramp going forward just because of where both OEMs, Boeing, and Airbus want to go. How are you thinking about the supply chain health and your ability to kind of support what’s going on?

Jim Currier, President and CEO of Honeywell Aerospace, Honeywell International: When I look at the supply chain, given the breadth of the portfolio that we have, I tend to bifurcate it. I look at the electronics portion of the industrial supply base and the mechanical portion of the industrial supply base. The reason why I do that is that the underlying issues that existed across our industry in terms of capacity or the lack thereof to supply or to support the demand that is necessary is very different between both of those industrial supply chain segments. The electronics portion has recovered very well across our portfolio. I would indicate that it’s fully recovered, to be honest with you. The mechanical side, although it has progressively gotten much better, there are still pockets of continued constraint that exist.

You can kind of think about forgings, castings, complex machining operations, outside special processing that is required of these parts for our aerospace industry. A big difference in the mechanical space is that it is a very fragmented industrial supply base. You have a lot of small family-owned businesses that are in that sector doing the machining that came under a lot of financial pressure during COVID and coming out of COVID. What we have done, it has gotten much better. We have seen now 13 quarters for Honeywell Aerospace of double-digit volume output from our factories. It is largely attributable to a lot of the investment that we have been making. Since 2021, we have invested over $1 billion into the supply base.

Now, that could be from workforce needs, an expansion required, capacity expansion, test equipment, capital equipment, insourcing to provide additional capacity, outsourcing or finding alternate sources, I should say, to find additional capacity to support the demand coming into the industry. A lot of that, quite frankly, was done directly into those fragmented suppliers. They did not have the ability to buy capital. They did not have the ability to buy the necessary test equipment or the equipment to manufacture parts at scale that is necessary. We went in and bought those on their behalf to be able to, again, drive capacity to be able to supply what we need in terms of the demand that is required.

Peter Armbruster, Senior Aerospace Defense Analyst, Baird: Can you talk a little bit about your visibility into that supply base? Because it seems like you guys really have stepped up and made a lot of investments there so that you can see down into those levels. Can you talk a little bit about that?

Jim Currier, President and CEO of Honeywell Aerospace, Honeywell International: Yeah. I mean, the visibility has greatly amplified over the last couple of years and largely as a result of the direct investments. The other part that I would say where we’ve invested is that we have embedded hundreds of people from our organization within Honeywell Aero into suppliers. You do get that direct visibility. One of the things that we had noticed as going through that process is that due to some of these smaller shops that had been a little cash-strapped, they were not placing orders for the material. They were managing their cash flow. Unless you had boots on ground in those factories, in those offices, and with the leadership and owners of those factories, you would not have had that visibility. Now we’ve had that. We’ve been actually now driving cash and buying the castings, buying the forgings.

That visibility has greatly increased for us across the board. Again, there’s still some of those pockets. I mean, there’s still much in the way of opportunity for improvement going forward. Again, that’s sort of a Pan-Aero industry-wide issue that I think collectively we’ve all been addressing.

Peter Armbruster, Senior Aerospace Defense Analyst, Baird: Got it. Yeah, that’s helpful. Because I mean, I think that’s been the, we all kind of understand where the OE volumes are going, but it’s been the supply chain hiccups that I think have surprised people. Let’s switch over to defense a little bit. It’s a huge end market for you. Maybe you could talk about how you’re viewing defense in the short and maybe medium term.

Jim Currier, President and CEO of Honeywell Aerospace, Honeywell International: Yeah. I mean, when we talked about the breadth of that portfolio, one thing I did mention was how our revenue was split between commercial and defense. Sixty percent of our business is commercial, 40% of our business is defense. If you think about the defense portion of our portfolio, 75% of the revenue within defense itself in that end market segment is domestic defense, and 25% of it is international defense. To clarify, because I get asked this question a lot.

Peter Armbruster, Senior Aerospace Defense Analyst, Baird: You’re going to get it.

Jim Currier, President and CEO of Honeywell Aerospace, Honeywell International: When I get asked about international defense, people assume that it’s foreign military sales, FMS sales that we’re doing. That is not the case when I talk about Honeywell Aerospace’s international defense business. We treat FMS sales as a domestic sale because the end use of said product is unknown necessarily. We treat that as a domestic sale. When I think of 25% pure international as part of our defense portfolio, that is direct sales to governments, ministries of defense, and international primes. That is the high growth area for us. When you think about the domestic and the international market segments, you’re seeing a lot of investment happening here with this administration and the opportunities that it’s going to present to us and where we’re well positioned on the platforms where the investments are occurring.

Golden Dome would be one example amongst many. The second element is internationally. You see continued emphasis and focus on increasing budgets within NATO, increasing budgets within the Indo-Pacific region as well, for which we’re well positioned with our products and our technologies. We will capitalize on that going forward for us. We see that as a substantial growth driver for our business. The thing that I would say is how we’re capitalizing in on, particularly in the international market segments where there’s a substantial amount of investment that’s coming forth through governments and through NATO and the like, is out of those 11,000 engineers that I mentioned a moment ago, about 1,000 of them are based in Europe. They’re doing nothing but developing non-ITAR technologies to support the international defense industry.

Not just for Europe, it’s to be able to take those products internationally and abroad. We saw that shift that was happening years ago in the international defense market and domestic. We have kind of shifted our strategy and our approach to make sure that we were developing non-ITAR technologies and capability in the region. One of the underpinnings of what we did relative to that was an acquisition of a company called Civitanovi in Italy. It provides inertial navigation units for us, high-performing, low-cost, non-ITAR, smaller company. We provide them the scale to bring those products onto the international stage that is necessary, as well as they have a manufacturing capability there in Italy as well.

No longer are we just designing products in Europe for European defense application, but now we’re going to be manufacturing products as well in region to support the growth that’s happening there.

Peter Armbruster, Senior Aerospace Defense Analyst, Baird: Yeah. You’re seeing that the NATO uplift in spending or the planned uplift in spending, they’re kind of looking for that indigenous capability. And you guys seem like well positioned there.

Jim Currier, President and CEO of Honeywell Aerospace, Honeywell International: Correct. We’ve been investing and focusing on that area for that indigenous capability.

Peter Armbruster, Senior Aerospace Defense Analyst, Baird: You mentioned Iron Dome. Could you just highlight how you think about Iron Dome for Honeywell?

Jim Currier, President and CEO of Honeywell Aerospace, Honeywell International: Golden Dome, for me, is just a constellation of products and technologies and services that all must interact with one another to provide the protections that are necessary and as dictated by the Golden Dome. You can think about missile technology and the like as being a part of that. Most of our navigational products that we provide, electromechanical actuation systems to steer many of these missile systems, is where we have a strong, strong presence as a result of Golden Dome and the continued investments that are happening there and elsewhere around the world for that matter. Most of these systems have our inertial navigation systems on board. Most of them have all the resilient navigation systems on board as well.

If you think about another company that we acquired last year, which was CAES, they have tremendous technologies and capabilities in terms of electronic warfare, so anti-jamming of systems on board either our aircraft or on board our missile systems. Now you have got anti-jamming capabilities that we provide on the missile systems in support of Iron Dome, our navigational products on these missile systems to support activities on Iron Dome, and electromechanical actuation systems as well for steering capabilities on these systems.

Peter Armbruster, Senior Aerospace Defense Analyst, Baird: When we think about international, you mentioned the 25%. We should think of that as more of a direct commercial sale versus kind of how we’re thinking about kind of a margin opportunity.

Jim Currier, President and CEO of Honeywell Aerospace, Honeywell International: Yes. Yeah, exactly. It is a good point that you bring that up. It is a direct commercial sale. With that, it brings margins that are very accretive compared to our typical defense portion of our portfolio. Again, that is part of what we also do, even within our industrial needs here in the U.S. We develop commercial, and we sell commercial pricing as a result of developing on our own dime. That helps us to drive additional margin capability within our defense and space business.

Peter Armbruster, Senior Aerospace Defense Analyst, Baird: You’ve mentioned the M&A that you did in the last year or so. That was new for a while. We hadn’t seen Honeywell Aerospace kind of lean in on the M&A front. Maybe just can you talk about, you mentioned the attractiveness of those businesses, but how the integration has gone and then how you’re thinking about M&A going forward?

Jim Currier, President and CEO of Honeywell Aerospace, Honeywell International: Yeah. I mean, so the integrations have gone exceptionally well. We’ve just passed the one-year mark on both of those companies that we acquired. I could not be any more pleased with how the integration has progressed. In fact, the performance out of those businesses, as expected and through the synergies that we were bringing as part of combining those businesses within Honeywell Aerospace, have actually exceeded our expectations from a TVA perspective. We are very pleased with how that has progressed. You’re right. We hadn’t done much M&A, at least not to that scale historically over the years. It kind of goes back to one of my earlier points that I made, which is there’s a lot of competition for capital within Honeywell International.

There’s a lot of competition for dollars to do M&A activity as well, which now, as I mentioned, is one of the benefits of the separation that we can kind of control that. We’re not competing in that regard. It is foundational to our growth strategy going forward, I will tell you. I look at a business, and I look at growing a business in three ways. You can do it organically, inorganically, partnerships, or JVs. Those really are the three principles to be able to drive the growth of the organization. We’ve done an incredible job on the organic side. We’re now dipping our toe back into the water on the M&A side. I think we’ve been able to prove that we have a right to acquire companies because that integration has gone well and the financial performance is exceeding expectations.

We have a very deep pipeline of other properties that we are very interested in as we go forward. It will be a critical third leg of the stool, so to speak, in terms of our growth strategy to continue doing and exercising the M&A muscle.

Peter Armbruster, Senior Aerospace Defense Analyst, Baird: That’s great. That’s great to hear. Backlog, I think it’s a massive backlog, $39 billion, I think, last time. You had a strong book to bill. How are you thinking about just kind of the overall visibility, how that rolls off as we think about kind of the environment with the backlog?

Jim Currier, President and CEO of Honeywell Aerospace, Honeywell International: Yeah. I mean, so you’re right. I mean, the backlog is at an all-time high for us at Honeywell Aerospace. Book to bill of about 1.2. We’ve had consecutive quarters of double-digit order growth as a result as well. There is a very, very strong underpinning that’s driving our growth going forward as long as we continue to unlock the supply chain to enable that to materialize, which we will continue to do and continue to invest because that is foundational things we’re going to be doing. What I will tell you is on the longer-term horizon, we have very good visibility in what’s happening on the OEM front for commercial air transport. We also have tremendous visibility of what’s happening in the business aviation side of the equation as well with the partners that we work with at the OEMs.

We’re getting that visibility much deeper through the funding that is occurring both domestically and internationally for our defense programs. We will start to continue to see that. Now, eventually, at some point in time, things do need to normalize. I mean, like I mentioned earlier, I’ve never seen in almost three decades in the aerospace industry, I’ve never seen where all three of the end markets that we serve have been doing so well and growing. You’re starting to see a little bit of a normalization on BGA. I think there’s still tremendous opportunity in ATR in the air transport sector. Again, with the ongoing conflicts, the need to restockpile the munitions that have been used and/or have not been invested in over the last decade, I continue to see defense being a strong growth driver for us.

Peter Armbruster, Senior Aerospace Defense Analyst, Baird: Yeah. You guys are incredibly well positioned across the board. One last, just in our last minute or so, and it’s not volume yet, but there’s investment going on in air mobility and electrification and things are going on there. How are you seeing that evolve? Obviously, I think that we all know the critical hurdle is always certification, and those always kind of move to the right. Particularly with the FAA today, there’s obviously a go slow approach. How are you viewing how Honeywell is supporting that market?

Jim Currier, President and CEO of Honeywell Aerospace, Honeywell International: Yeah. I think I have to start at the root of when we really got actively engaged in this a little bit because it’ll kind of explain where we see the industry today. About five years ago, we stood up a standalone business within Honeywell Aerospace that was only focused on the advanced air mobility market segment. We recognized that there were many nuances associated with that segment, non-traditional players, a lot of entrants, a lot of disruptors, a lot of entrepreneurial ideation going on, and a need to move at speed. We created this business isolated. We called it a greenhouse. All they did was focus on that aspect of the portfolio. I think we’ve been highly successful in that regard. We’ve secured many positions on multiple platforms. We also knew very, very much in the onset that there’s too many players.

There will be a consolidation that will happen across the industry, and some will rise to the top as a result of that. We knew that. What we did is from an investment profile, we took advantage of the fact that there was so much investment that was occurring in that space that we actually ended up using a lot of those investment dollars that were coming in from customer funding to actually accelerate development of some of our franchise portfolio. Think about our Honeywell Anthem integrated cockpit. Think about our Honeywell Assure electromechanical actuation systems and Attune for vapor cycle cooling systems. All of those, by and large, were funded coming out of that because what we do from an R&D and E standpoint is we do not develop anything that is bespoke for a platform or for an end market.

Even though we were tip of the spear in those developments with customer funding on those products that I mentioned a moment ago, we have secured positions with those products across traditional end market segments, whether it is commercial air transport, business, and defense. That has been a great enabler for us to maximize the efficiency of our R&D and E dollars. Now, going back to the market for a segment, I mean, that market will certify. Those products will certify LA 2028 as sort of a stake in the ground that our administration has put in in terms of wanting to demonstrate the capability on a global stage in terms of U.S. technology and the like around this specific end market segment. It will happen. These products will get certified, which is good.

I would say that the question really becomes the adoption, the ramp of said adoption. We would expect that to happen sometime within the mid-2030s timeframe where you start to see things at volume that then become meaningful to the business portfolio.

Peter Armbruster, Senior Aerospace Defense Analyst, Baird: Terrific. Let’s wrap there. We’re out of time. Jim, thank you so much. Again, appreciate the support of the conference. Thank you.

Jim Currier, President and CEO of Honeywell Aerospace, Honeywell International: Just really appreciate it. Thank you.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.