Who Is Defying the Chemical Industry Winter? Honeywell’s Explosive Performance Makes It the Only “Vibrant Bull” Among Global Giants!

While BASF and Dow's earnings reports have been increasingly "bleak," Honeywell's latest performance release has been like a bombshell, directly igniting the market atmosphere in the chemical industry.

In this "darkest hour" for the global chemical industry, Honeywell has not only managed to stay ahead, but has continued to rise, becoming the industry's only "dynamic bull."

BASF and Dow join forces to weather the storm, while Honeywell is forging ahead vigorously.

Do you remember the two recent financial reports? BASF's net income plummeted by more than 80%, and Dow incurred a loss of over $800 million. Everyone is talking about "the bottom of the cycle" and "giants enduring winter," as if the entire chemical market is bracing for the next snowstorm.

Just when everyone thought no one could come out unscathed, Honeywell revealed its report card — second-quarter sales reached $10.4 billion, approximately 74.5 billion RMB, marking an 8% year-over-year surge. You read that right, not a slight increase, but a solid positive growth. More importantly, both operating income and segment profits rose, with profits hitting $2.4 billion, up 8% year-over-year.

The operating profit margin remains strong at 20.4%. Adjusted earnings per share reached $2.75, a year-over-year increase of a full 10%. Among the major companies experiencing "negative growth" and "plummeting" performance, these figures are simply outstanding.

Spin-offs, Acquisitions, and Selling Bullets: Honeywell's "Capital Maneuver Show"

Honeywell’s strength doesn’t just come from its core business; it also relies on a set of sophisticated capital maneuvers. You think they’re just sticking to their traditional field? Wrong! This February, Honeywell directly announced a “super spin-off” plan—splitting the company into three major segments: automation, aerospace, and advanced materials, each to be independently listed. Their determination to transform is at its peak.

The splitting has not yet ended, and acquisitions are happening one after another. In May, they sold off their personal protective equipment business, and by July, they were preparing to sell part of their productivity and warehouse solutions. Meanwhile, they are making significant acquisitions: acquiring Johnson Matthey's catalyst business for 1.8 billion pounds, acquiring Sundyne for 2.2 billion USD, and even acquiring new energy safety technology like Li-ion Tamer.

Since the end of last year until now, Honeywell's acquisition amount has reached as high as $13.5 billion, not only far exceeding its own investment targets but also sending a clear message to the market—"We're not afraid of the downturn; armed and loaded, who can compete with us?"

Building Automation, UOP, Aerospace: Three Horses Driving at Full Speed

Don't think Honeywell only excels at capital operations; its main business is equally strong. This quarter, sales in the building automation segment increased by 8% year-on-year, driving total revenue up to $2.11 billion. Fire safety, security, and building management systems all saw comprehensive growth, with building solutions performing particularly well in the Middle East market.

Aerospace technology also experienced a boom, with organic growth in defense and space businesses at 13%, and the commercial aftermarket rising by 7%. With the global demand recovering and supply chains being restored, Honeywell's aircraft components and aerospace projects have almost become the "hot cakes" for downstream factories.

The Energy and Sustainable Solutions division also kept pace, with UOP business growing by 16%, mainly driven by strong performance in petrochemical catalysts and natural gas processing licensing sales. Even in the much-maligned chemical materials sector, Honeywell’s advanced materials sales continued to grow, with specialty chemicals playing a major supporting role.

Cash flow is also under pressure? The capital market provides ample confidence.

Of course, Honeywell is not without its troubles. Operating cash flow declined by 4% year-on-year, and free cash flow also dropped by 9%. However, in the current market environment, such fluctuations are hardly worth mentioning. Moreover, they continue to buy back shares and pay dividends, and the capital markets remain highly confident in this established giant.

The full-year sales forecast has been directly raised to $40.8 billion to $41.3 billion, and the department's profit margin is expected to be higher than last year's. In short, Honeywell not only intends to "resist the cycle" but also to "transcend the cycle."

The new playbook of the giant, who can keep up with Honeywell's pace?

While peers are still laying off employees, closing factories, and cutting business lines, Honeywell has already started paving the way for the future through spin-offs and acquisitions. Among distributors, purchasing managers, and upstream and downstream industry chains, who will be able to catch the "Honeywell express" this time?

Some people in the market have already sighed in the group: "If we hadn’t bet on Honeywell’s products this year, our inventory would have already become a liability!" Others are asking, "If there’s a spin-off and listing in the future, will there be a major reshuffle of channels and agency rights?"

The industry cycle remains unpredictable, but Honeywell's approach is clear: instead of waiting for the market to recover, they create their own opportunities. In the chemical industry's "winter," those who can master this combination strategy have a better chance of surviving longer and thriving.