Honeywell International (HON) Investor presentation summary

Market environment and growth drivers

• North American power demand is rising, with significant growth in U.S. data center and AI infrastructure needs, driving a projected 17% CAGR in U.S. data center power demand from 2025 to 2030.

• Natural gas is positioned as the most cost-effective and fastest-to-market technology for incremental firm capacity, with expansion and uprate projects offering shorter completion times and lower costs compared to nuclear.

• Power generation growth is strongest in renewables and storage, but natural gas remains a key contributor, with ~5% CAGR in natural gas generation.

Strategic platform and portfolio

• The platform has an enterprise value of $17B and a market capitalization of $10B, with a diverse 12 GW fleet, ~90% natural gas and ~60% U.S.-based.

• Portfolio diversification spans five key North American markets, with 28% capacity in AESO, 20% in WECC, 18% in PJM, and 11% in IESO.

• Approximately 40% of the portfolio is merchant, 40% long-term contracted, and 20% medium-term contracted, providing flexibility and stability.

Execution and financial performance

• Strategic priorities include acquiring and optimizing natural gas capacity, contract optimization, and advancing renewables, with 2.2 GW contracted through PJM acquisition and 385 MW in uprates and expansions in 2025.

• $1 billion incremental adjusted EBITDA opportunity identified, with $350–650M potential from merchant operations and $275–350M from contracted assets.

• Long-term growth is demonstrated by a 13% CAGR in adjusted EBITDA and a 7% CAGR in dividends per share from 2016 to 2025, with 12 consecutive years of dividend increases.