Well, I think we'll get underway. Thanks very much everyone for attending. My name is Julian Mitchell, and thank you for coming to the fortieth Barclays Industrial Select Conference here in Miami. It's my pleasure to open the event formally with Greg Lewis, Chief Financial Officer, of Honeywell. I'm sure many of you know Greg, and we're looking forward to a good discussion this morning. Welcome, Greg.
Yeah, thanks.
Um-
Thanks for having me.
Absolutely. Maybe, Greg, just, you know, first off, I guess, you know, looking at the operating system at Honeywell, yeah, that's always been kind of at the forefront of how the company kind of runs itself and talks to The Street for the past couple of decades. There have been some improvements to it, upgrades, it's discussed more as a sort of Honeywell Accelerator now.
Yeah.
You've also talked about Honeywell Digital.
Yeah.
You know, maybe give us some insights as to what's changed?
Sure.
in that respect.
Sure. Yeah, I mean, maybe just to open it again, thanks for having me. I can't believe it's been, you know, so much has happened in the years since I was here last with you. You know, the conflict in Ukraine wasn't really underway just yet. Who knows what the world is still a bit of a crazy place, and who knows what curve ball will get thrown at us this year, but I'm sure there'll be one. We just don't know it yet. You know, I feel great about where Honeywell is, you know, broadly speaking, the macro trends for, you know, the end markets that we support, are all pointing in a really good direction.
Obviously, the interest rates, you know, inflation environment remains a little bit choppy. We'll see how the broader economy, you know, holds up. You know, the long term for Honeywell is great. I mean, we continue to perform. You know, you talked about our Accelerator operating system, which really underpins our ability to execute and frankly, out execute in most every environment. You know, we did that again in 2022 with a year of hyperinflation where we really executed around price cost for us. You know, the next thing for us is capital deployment. You know, we're gonna keep executing on the organic side operationally, now, you know, pivot to more from a capital deployment standpoint. We promised $25 billion over three years. We did $8 billion of that last year.
Half of that went into, you know, share repurchase, and we hope to push more of that into M&A. you know, what's different with Honeywell Accelerator, it's evolutionary, right? When I stood up, you know, Enterprise Information Management in 2017, that was the precursor to Honeywell Digital. you know, we're now six years in. We've talked about the great integration of Honeywell and we're on to the next phase. you know, our operating system has moved into a place now where we're thinking about it across business models. you know, we've got four predominant business models in the company: projects, services, products and SaaS. Now we're designing all of our operating rhythms for each of those four things and making sure that they get permeated across the company and digitized.
Again, using that Honeywell Digital capability that we've now created, and we're really, you know, harnessing that across all of our enterprise with those four business models, you know, in mind. It's really inculcating that in a way that's going to make things less human dependent. I don't mean that we're gonna have robots, but the point is, you know, if you think about acquiring a company and then plugging it into Honeywell, you know, if we've got these instantiated processes that are digitized, way simpler to do that with a new acquisition and ensure that it happens properly.
If you think about bringing people on board and training them as to what we want them to do, you know, coming into any business in Honeywell and knowing exactly what it means to run a projects business, what that operating system looks like, what KPIs we would want them to monitor and manage, and have them all digitally available, you know, in their own cockpit, as a matter of course. It just takes a lot of the, you know, creativity out where it doesn't belong, right? There's, there's room for creativity, and that's called new product introductions and, you know, working with customers on creative solutions to their problems. We don't need a lot of creativity in reimagining how to, you know, run the business operating systems and, you know, the muscles that it takes to do that.
I would think about it as really, you know, an evolution to continue to inculcate that into the business and make it even more sustainable, which, you know, I think is adding a lot to our, again, ability to execute in basically any environment.
Understood. When you think about the, you know, the guidance for this year, I think there was a view that last year when you set the guidance, it was fairly conservative and subsequent events may have proved that correct.
We won't talk about that public.
Fair enough. If you think about the, you know, the construct behind the guide for this year, maybe give us some flavor as to some of the main.
Yeah.
macro assumptions in that.
Yeah. I mean, the way I would characterize our guidance is prudent because when you think about it, we've got a couple of engines that we can count on in terms of, you know, Aerospace with, you know, more demand than we know what to do with and a supply chain that's gonna take multiple years to actually recover. We're gonna be on this growth path now for 2-3 years that I can pretty much etch into the books. You know, PMT similarly, you know, very strong macro trends around the energy transition. You know, there, a lot of confidence in their ability to grow. When you think about, you know, SPS, we know we're gonna be declining this year. You know, that's a matter of fact.
Part of that is the whole warehouse automation, you know, constraints, if you will. HBT is a little bit of a wait and see. We've got a good backlog that carry us through the first half of the year, but then how the back half will shake out remains to be seen. That's really what... when we think about it, you know, people want us to be more aggressive and certainly we could have made a more aggressive guide and maybe that will come true. But, you know, Honeywell, you know, where we are, we don't promise things we're not convicted about. We view our guidance as a promise. We're gonna make those numbers. Could it be better?
It depends on how the economy shapes up and whether, you know, order patterns, you know, stabilize or re-accelerate in the products related businesses. You know, when that becomes, you know, visible to us, we'll either confirm where we are because it worked out the way we thought or we'll, you know, change and upgrade if we see things improving.
That's helpful. When you think about the order trends, you know, what's the sort of the broad assumption? Is it sort of, you know, some growth first half and then second half you'll see?
It's likely gonna be, you know, still good growth in Aerospace and PMT.
Yeah.
probably softer in PMT and SPS.
Yeah.
In the second half, again.
If-
things accelerate on the product side in H-PMT and SPS, then things may be, you know, to the high end or better.
You know, when you take a step back on the top line and think about volume growth at Honeywell, you know, maybe that's something that investors have found, you know, a little bit below maybe what they might have hoped the last year or two. You know, maybe give us your perspective on that and maybe the trade-off of that.
Sure.
versus cash. When you look out beyond this year, you know, do you think we can see factors that maybe drive that volume growth higher?
Sure.
than the last couple?
Yeah, sure. Listen, when the world becomes normal and there's no such thing as supply constraints in, you know, because of a skilled labor shortage in our biggest business, and when there's not a semiconductor shortage that's stopping, you know, two-thirds of the rest of the business from being able to deliver product, and when there's not a war that knocks out 1% of our revenue, and when there's not a pandemic that causes us to invest...
Mm-hmm.
In a mask business that then we have to bring back down again, then we'll be normal, and then we'll not talk about, you know, some of these weird things, and we'll talk about what the, you know, the strength and the pace of the business is. I think, you know, again, I'm not a, you know, clairvoyant, so.
Mm-hmm.
you know, I don't know what 2023 will bring as far as those things are concerned, If things normalize, I would expect that 2024 should be really good, because I don't see the PMT and Aerospace changing anytime soon. If you get, you know, general economic, you know, recovery on the remainder of the business, you can imagine, you know, a really strong volume story going into 2024. you know, again, we'll see. We also thought that there was gonna be a rate tightening cycle that was gonna stop and come down in the back half of this year, that's starting to look like maybe not so true. I think that
Yeah.
you know, we just finished a 20 or so year run of almost no inflation. We're entering into an economic zone that none of us in our career have seen before. Last time, you know, interest rates have been anywhere even close to something like this was back in when I was 10.
Mm-hmm.
I wasn't watching CNN at that time. I don't know what that was like. I just remember the gas lines in the back of my mom's car.
Yeah.
I think, you know, it's a bit unpredictable as to how this cycle will end. Will there be a soft landing? You know, it's going to be different. By the way, when people ask the question around the economy, I think they oversimplify 'cause it's not one thing.
Yeah.
You know, if you're in the U.K., you're in recession.
Mm-hmm.
If you're in Western Europe, you know, maybe not. In the U.S., not yet. I think you're gonna see, you know, different growth trajectories in different parts of the world. That's a little bit of the beauty of Honeywell is, we've got a broad portfolio with broad exposure, you know, we will power through, you know, that all in. Yeah.
You know, when you look at the company, you know, the Connected Enterprise is one element that's been important for a number of years.
Yeah.
Kind of where do we stand on that?
Yeah.
When you talk about some of the business models of the four main ones.
Yeah.
of the company, you know, how is that software or recurring push, you know, the fast element?
Yeah.
coming along?
Yeah. Yeah. I'm, I'm happy with where we are. You know, Que was the incubator of that in 2018, you know, she's taken a great opportunity to go to Medtronic last year. Now we've got Kevin Dehoff running that business. It's a little bit of, you know, like a VC mentality. We're going from one owner to the next owner, Kevin is really bringing a lot of rigor around new product launches and introductions. For any of you who joined us in November at the Honeywell Connect event, you know, we announced 15 new product launches during that event. That's really Kevin's focus is, you know, Que kind of built the foundation, now we've got to get, you know, these new products out into the market, and he's doing that.
you know, we're growing our recurring business over 20%. you know
Mm-hmm.
we are growing the SaaS business, and that's really, you know, what he's after, is to convert, what he had into more cloud-based, recurring SaaS offerings, as well as invent new ones on the Honeywell Forge platform. That business has been growing, you know, around about 15%, plus or minus for the last four years. It's, you know, $1.3 billion. Inside of big $35 billion Honeywell, it's. You know, I guess you could call that relatively small, but you know, a path to $2 billion is not out of sight at all.
Yeah.
By the way, a $2 billion software business in a space like ours is actually quite large, you know.
Mm-hmm.
If you think about it in the, in the multi-industrial context. You know, it's, it still is an important part of our overall transformation journey. Part of that is what underpins our confidence in margin rate expansion.
Yeah.
You know, if you've got a software business at, you know, above line average margins growing at, 3 times the rate of the overall business, you know, good things will happen.
Mm-hmm.
-a margin rate standpoint. It's one of the arrows in our quiver that, you know, keeps us confident that, you know, we've got a long way to go on our path towards continuing to improve our margin rate overall. It's, it's good progress. You know, it's not, it's not exactly where we want it just yet, but it's good progress.
Perfect. You know, if we think about ESG for a second, you know, if you think specifically about Honeywell, there's a lot of interesting areas around.
Yeah.
emissions reduction
Yeah.
technology, energy transition sort of underway within PMT certainly.
Yeah.
as a segment. you know, maybe explain how satisfied you are with Honeywell's progress?
Yeah.
in that transition.
Yeah, I guess I would call it excited. I don't know whether I'm satisfied or unsatisfied, but I'm excited about the opportunity because the more even I learn about it, the more clear it becomes to me that, you know, what we can do, not too many others can, and it's gonna be instrumental for any company. When I went to the Honeywell Connect event, I got the opportunity to speak there. After the event, I told Kevin, you know, "Hey, next time you do this, have some CFOs come in the audience too," because, you know, I'm watching some of the things that we're offering. I mean, he's offering, you know, emissions monitoring solutions that anybody who's gonna have to sign a set of, you know, disclosed, statements around-
Mm-hmm.
their ESG numbers is gonna wanna make sure that that thing is super tight, and there's gonna be, you know, a use case for that. Not to mention some of the solutions that he and the PMT team have to reduce greenhouse gas emissions. If you think about the SPS business, it's, you know, it's over $200 million. It's on a path to $700 million. You know, carbon capture, you know, battery electricity storage.
Mm-hmm.
-we're doing things. You know, we announced a partnership with Nexceris. Actually, that's in the SPS business around sensing for EV batteries because, you know, in the electric cars, the lithium-ion battery can be dangerous if it overheats. We've got sensing technologies that we're partnering with people there. You know, we announced our partnership with Johnson Matthey in December. You know, they've got some hydrogen technology they're using, you know, our carbon capture technology along with it. I think you're gonna see a lot more momentum towards these solutions. You know, we have some tremendous technologies to bring to bear. You're probably gonna see more partnerships.
Mm-hmm.
You know, I think that will be, you know, no one company necessarily has the, you know, the full suite of things that are needed. You'll probably see more partnerships along the way, which is not bad. I'm excited about it. That's why we think that business can grow to $700 million over the next few years, just because the, you know, the need is so large and, you know, our solution is differentiated. Again, we're playing across our whole energy transition. One thing we can all agree on is it's gonna happen, right? The energy transition is not going away. Importantly, it's an and, right? It's an all of the above.
In the meantime, energy usage is gonna increase, and traditional energy sources are going to be needed, so there will be investment in traditional energy and the energy transition. This isn't like a one or three-year thing. We're talking about decades, right? You know, you gotta keep in mind that it's not like, you know, the core of Honeywell's businesses is doesn't have a long runway. It does. We're gonna be adding this along too.
Perfect. Then capital deployment, you know, you touched on, at the beginning.
Yeah.
You always get that question.
Yep.
M&A and, you know, are you and Darius spending more time on it now?
Yeah.
with the COO role being resurrected.
Yeah.
from last year? Also though, you know, we've heard, you know, from Honeywell at times, you know, big software M&A is tough because it doesn't move the needle so much for the scale...
Yeah.
of the company.
Yeah.
There's sort of an administration with tougher, you know, antitrust...
Yeah.
Regulatory backdrop. Sort of when you put all that together, you know, what should people expect?
Yeah.
on M&A?
Yeah. Well, M&A is always hard. I mean, that's, unless you're willing to pay anything, right? If you're willing to pay anything, you can do all the deals you want. You know that's not us, right? We're not gonna lose our discipline just because we feel we need to deploy capital or others, you know, want us to. Our discipline will remain intact no matter what it is that we're doing because it's our shareholders' money that we're working with and that we never forget that. I guess that's one. I mean, we absolutely want to deploy more capital.
One of the things that I learned, and, you know, I've highlighted this in a couple of different forums with our sort of act one, act two, you know, characterization of, you know, the last 6 years of our transformation, which really has been the great integration of Honeywell. One of the unintended consequences of that is it took up a lot of leadership bandwidth.
Yeah.
you know, our business leaders, et cetera. Now we've kind of gotten to the top of that mountain, and we're on the other side coming down. Doesn't mean we're done with transformation, it's not gonna be as intrusive as it would've been to so much of the organization, which, you know, our expectation is it's gonna free up capacity for even the business leaders to go do the things that need to get done because they have to go learn the markets, make the relationships. You know, we're not the hostile takeover guys, we wanna make sure-
Yeah.
that, you know, we're getting to know the, you know, the people and the businesses that we would like to bring under the Honeywell banner. As you mentioned, with Vimal becoming the CEO of the company, you know, Darius now has more time to spend on other things. He said M&A talent strategy, like those are his three things, and he's doing that. I can guarantee you he's doing that. You know, our pipeline is active. You know, it's... You know, what we'd like to do, I'd love to be able to do, you know, two or three reasonably sized deals every year, you know, $1 billion-$5 billion, you know, range, if you will. Software deals are great.
I mean, the, you know, the Sparta deal that we did, $100 million business, $3 billion-ish, you know, in terms of the check that we wrote. If we can find more things like that, I'll do that all day long. That's been a great business. It grew 45% this year.
Okay.
You know, it's, we like software, but it's gotta be, you know, it's gotta be the right company. You know this as well as anybody else. I mean, M&A is, you gotta take a lot of the bats, you know, you close 5% of deals that you start with? Is it 7? Is it 10? It's not more than that, you know.
Mm-hmm.
You know, the key is you gotta really work at it and make sure you have a pipeline that's, you know, consistently evolving, that you're taking swings at things. It is getting harder. I mean, there's no doubt about it. The regulatory environment is more difficult than it was, you know, two years ago or five years ago.
Yeah.
That's true for everyone. I do think that it's a bit of a Honeywell advantage environment now for just with the capital markets where they are, money is not free anymore, right? That makes it a little bit more difficult for some other players. Hopefully that will, you know, that will help. So, we'll see. I mean, our hope and expectation is that we'll be able to deploy some capital into M&A this year, but we're not gonna do it just to say we did it.
Yeah. Perfect. Maybe diving into some of the segments and the trends they're in. You know, start off with Aerospace, the biggest one.
Yeah.
You know, defense and space has, you know, for a business that's sort of long cycle, it's kind of gone in waves.
Yeah.
Which I think has surprised people.
Yeah, we had three years of 10%, 10%, and 8% growth, and then the last two years have been negative.
Right. How, you know, how are you thinking about sort of that bottoming process-
Yeah.
and then recovery path. On the commercial side of the house, you know, the questions around, you know, mixed headwinds.
Yeah.
from OE rearing back up.
Yeah. Well, maybe let me hit that one first 'cause that's gotten a lot of play. I mean, This is one of those things where try to be transparent and share some information so people aren't surprised later. It seems to have taken on a bit of a life of its own. Just to be super clear, there's a dislocation with, you know, the grounding of, you know, the 737 MAX. Therefore almost no deliveries were going out. Production is happening. Our business model accounts for things, called selection credits to the airlines when planes get delivered. We've just had a dislocation in, you know, the delivery versus production.
Yeah.
That's gonna go through a two-year, you know, period. I think it's gonna take 2023 and 2024, where deliveries are gonna ramp. You guys can, you know, read that news and Boeing in their announcements.
Yeah.
it's mainly with this, with this that we're talking about. That is going... It doesn't change the economics and the...
Mm-hmm.
You know, the fullness of time of the delivery of an airplane for us, but it has kind of separated the, you know, the recognition of cost and revenue over a longer time horizon. We'll go through this in 23 and 24. That pinch will come back down in 25.
Yeah.
Everything will be back to balance at that point, and we'll stop talking about it.
Mm-hmm.
You know, I think the important thing to know, though, is, you know, the business is running at 27 points of margin. Our long-term target's 29%, and we still have every level of confidence that we're on a nice path to that long-term margin target. You know, we're gonna continue to get some nice volume leverage. Again, as I mentioned, I think this business, broadly speaking, is on a very, you know, high probability growth curve.
Mm-hmm.
You know, part of that's because of the labor constraints in the supply chain that aren't allowing, you know, the supply to meet the demand that's out there. It's gonna take a couple of years, I think, for that to solidify. We're, we're very confident in that business and our ability to grow it, to grow its margins, and to make space for R&D as well, right? Because, as you said, it's a long cycle business. You've always got to be working on, you know, development programs for the future, and we're gonna continue to do that.
Perfect. Then if we look at defense and space, kind of is that, you know, bottoming and growing as well?
Yeah. I mean, I, you know, this kind of goes back to the past due backlog situation, right?
Yeah.
We were down 3% in fourth quarter. If we were, you know, like, if we just could magically release the past due backlogs, we would have grown. It's. We're past the point of, hey, demand is down, and we're now just at the trying to catch up to, you know, being able to output enough to get to print a growth number. I expect we'll do that in Q1.
Yeah.
You know, again, from there, just like the rest of Aerospace, it's gonna be modest progression quarter to quarter to quarter, you know?
Yeah.
We had a lot of discussion about the supply chain yesterday. It is getting better. It's not getting better enough for anyone in the industry to be happy. You know?
Mm-hmm.
Everyone wants more. We want more too.
Yeah.
You know, like, our output year-over-year in the fourth quarter went up 15%. That's good.
Mm-hmm.
You know, it sequentially from Q3 to Q4, it went up. Our suppliers' decommit rate has gone from, you know, around about 22% to around about 19% on larger volumes. They're committing more stuff and decommitting, you know, less as a percentage. Things are getting better, but it's not like a semiconductor industry where you put some, you know, capacity in the ground and it's magically done the day after that. This is going to be, you know, a bit of a slower ramp than anyone would like. You know, if we're surprised to the upside and somehow that goes faster, you know, great. We're gonna plan for a modest improvement as we go.
Yeah. Great. Then, you know, if we look at, HBT and SPS, those two divisions.
Yeah.
where you've had the orders under a bit more
Yeah.
pressure than the other two divisions. Sales-wise, it looks like you're assuming HBT kind of slows down.
Yeah.
later in the year. SPS, maybe the declines narrow.
Yeah.
Sort of divergent trends.
Yeah.
Maybe help us understand.
Yeah.
sort of the outlook.
Yeah, no, I think you, I think you have it about right. I think, you know, if you take SPS, we've talked about warehouse automation and the Intelligrated...
Yeah.
-story for quite some time now. I mean, that business grew from $800 million to, you know, $2.5 billion, since we bought it. You know, with a 50% growth rate in the middle of a pandemic, unfortunately.
Yeah.
You know, that has come down, fairly substantially, particularly on the project side. By the way.
Mm-hmm.
just keep in mind, the whole point of the Intelligrated model is to capture and build a service business and a software business. That thing is now about $400 million growing at 20%+. In terms of the economic thesis as to why we like, you know, this business and the market that it's in and, you know, the capturing of install base to create value with the recurring service and software business, it's working.
Mm-hmm.
You're seeing that, by the way, in the margin improvement in SPS. A big chunk of that is due to, you know, the mix change in the growth and in the software business and the service business. That's really good. You know, on the other side, in the products businesses inside of SPS, the sensing business is doing fantastic and continues to do so. It's about $2 billion of the portfolio. Sarah Martin runs that. She's doing a great job.
Mm-hmm.
You know, again, sensing is, you know, relevant everywhere. When you think about anything connected, when you think about, you know, sensing for, you know, things like sustainability measurements and so on, I love that business and she's doing a great job with it. You know, she's got a lot of both organic and inorganic ideas to help make that thing better. You know, PSS, that they had a huge volume, you know.
Yeah.
increase in the back end of 2021 and the early part of 2022. They were one of the most constrained for, from a, from a chips perspective. They're now working that backlog down and, you know, we're hoping for a re-acceleration of orders in the later part of the year, but that's one of the wait-and-see things. Yeah, we'll see how that goes. You know, the PPE business, that's where we had the masks and, you know-
Sure.
we know that whole story. Ramped, ramped it way up, ramped it way back down. You know, hopefully that will, you know, start ticking back upwards with, you know, a little bit more solid economic growth overall. Then HBT, you know, had some similar had some similar aspects to it in terms of pretty substantial orders and revenue growth outsized in the back half of 21, the early part of 22. They've got a very nice backlog to work themselves, you know, off of. You know, part of it depends on how, you know, how does the economy go, you know, in Europe, in the U.S. The good news is, though, again, back to the sustainability aspects.
Yeah.
You know, there's a lot of sustainability themes there too. A lot of incentive programs in place that while they may not, you know, matriculate in like immediately this quarter, those things are gonna work their way into the business over time. We feel very good about that business overall. By the way, that, you know, buildings is the biggest part of HCE. You know, when you think about the connectives.
Yeah.
The connected buildings part is the biggest part of that. That business overall, I think, is gonna have, you know, as it, as it relates to the total, probably the biggest software opportunity, you know, of the four in relation to its total. That's. I'm really excited about what Doug and that team are doing.
Yeah.
You know, I love the business. It's turned into a bit of a star for us.
Mm-hmm.
It was our fastest grower last year.
Yeah.
It's, it's almost at its long-term margin target now.
Mm-hmm.
Still, we've got, you know, we've got upside in front of us, but I think we've surprised ourselves to the upside with what they've been able to do from a margin perspective. Yeah, I mean, back to the beginning. That's why I feel great about where we are from a portfolio standpoint. You know, we'll see what the economy, you know, throws at us. I guess what you should be is confident that you know that, you know, we know how to out-execute in any situation.
Yeah.
When it was the pandemic, we were the cost management gurus. You know, when it was hyperinflation, we were the.
Mm-hmm.
you know, experts. We'll see what happens, you know, with this next phase. You know that we're going to run at the problems as they make themselves known. You know, one of the things you'll always hear in Honeywell is problems don't get better with age. You know.
Yeah.
we're gonna tackle them head on. you know, you take that, outstanding execution and then we add on some capital deployment, it should be a really attractive and compelling growth algorithm.
Fantastic. Well, now please, if we could switch quickly to the audience response survey. I promise it's very quick and painless. I think there's half a dozen questions. You know, in the interest of time, we'll just run through these quickly, and then I'll collate them at the end of the day. Do you currently own this stock? If you could just push that gray box, the buttons on it's obviously all anonymous. So this is the first question. Do you currently own the stock? You know, and you can see 1, 2, 3, 4 there.
Do I get the answers to this afterwards too?
Yes, sure. Yeah.
Okay.
Yeah. We will send it round.
All the fours can come and talk to me outside.
Well, there's a lot, Okay. Next question, please. What is your general bias towards the stock today? Positive, negative or neutral? You can see you've got sort of 5 seconds per question to hit the buttons, and then you'll see the results fairly quickly. 1/3 positive. The next question is around what will the sort of through cycle or medium term EPS CAGR for Honeywell be?
The peer set depend on the individual, but versus sort of broad industrials or multi-industry, whichever.
Okay, basically in line with peers. The next question, what should Honeywell do with excess cash? There's obviously a lot of different options there, you know, understood that most companies do a mix of all six.
People seem very happy with more M&A, which I think is consistent with what you've been saying. The next question would be on what multiple. This one is maybe showing its age a little bit, the question. For the sake of consistency, we don't wanna move the ranges around year-to-year. The answer today is six. Right?
Yes. This one we haven't seen 1, 2, 3, or 4 in a very long time.
For quite a long time. Most people think sort of 20 times. Then I think maybe the penultimate question now, what do you see as the most significant kind of headwind for the stock right now?
You know, the reason maybe people don't own it, you know, the reason people are not positively biased towards it.
That's the spirit of the question. The answer is, core growth, which I think goes back to that. Yeah. That volume point.
Yeah. Then this may be the last question on ESG. Last but not least, Does it play an active role in your decision-making, relating to Honeywell specifically?
Again, there is option three, where you could say, No, it has no impact at all. Yeah. Which is the most common.
Common, yeah. I think that's it. All right. We're out of time. Great. Thank you, Greg, for a very illuminating discussion.
Good to see you. Thank you.
Thanks so much.