Honeywell International: FLRAA Helicopter Engine Potentially Wins One of HON’s Biggest Awards

Hello,

I recently joined Honeywell to lead our investor relations efforts and look forward to sharing with you the vision and value of Honeywell’s transformation, strategy and process over the coming quarters. Along with our new investor relations information, we are working to provide you with additional updates on Honeywell topics across our portfolio of companies that we believe will be of interest to our shareholders.

In our inaugural edition, we highlight an important win for Honeywell’s aerospace segment, Lockheed Martin (LMT) Sikorsky-Boeing selected Honeywell’s HTS7500 engine last week to power the US Army’s Future Long-Range Assault Aircraft (FLRAA) DEFIANT X helicopter.

Below we have compiled answers to some Investor Frequently Asked Questions (FAIQ) on price as well as Honeywell’s leading engine and power systems business within our aerospace portfolio. Thank you for your interest in Honeywell. Your questions and comments are welcome!

Sean

Sean C. Meakim, CFA
Vice President, Investor Relations
Honeywell International

What does LMT Sikorsky-Boeing’s selection of the HTS7500 engine mean to Honeywell?
The U.S. Army’s Future Long-Range Assault Aircraft (FLRAA) helicopter program is set to replace the long-standing Black Hawk assault helicopter, with two competing models, one from LMT Sikorsky-Boeing and the other from Bell (Textron). Last week, LMT Sikorsky-Boeing announced it had selected Honeywell’s 7,500 horsepower HTS7500 engine to power the DEFIANT X, their coaxial rigid-rotor compound helicopter design for the FLRAA program. The helicopter can fly twice as fast and farther than the Black Hawk.

If the U.S. military selects the DEFIANT X, “the program has a total potential lifetime revenue for Honeywell over $25 billionmaking it potentially one of our biggest wins yet,” said Aerospace President Mike Madsen. “The FLRAA program would secure our position as the leading supplier of gas turbine engines for the next 25 years. Notably, the military has not funded an engine development program for FLRAA. The HTS7500 engine also has potential for other platforms beyond FLRAA.

What is the FLRAA?
The Future Long-Range Assault Aircraft (FLRAA) was launched by the US military in 2019 to develop a new utility helicopter that will replace the Sikorsky UH-60 Black Hawk from 2030. The Black Hawk was developed in the 1960s and 1970 and was selected by the U.S. Army in 1976. FLRAA will provide the next generation of capability for decades to come for the U.S. Army, and the HTS7500 was built to provide world-class reliability and flight time for this next generation of aircraft. The Army is expected to select the winning FLRAA design in mid-2022, with the first prototype to fly in 2025 and full delivery by 2030.

How important are engines to Honeywell’s aerospace segment?
In 2021, our Engines business accounted for approximately 20% of our Aerospace segment, split fairly evenly between commercial (business and general aviation) and defense applications. The HTS7500 engine is the newest and most technologically advanced model in Honeywell’s military engine family, building on a rich tradition dating back decades. Our engine fleet includes the iconic T55 engine, which has powered the Boeing CH-47 Chinook fleet for over 60 years. To date, Honeywell has delivered more than 80,000 turbine engines on commercial and military platforms.

How differentiated is the HTS7500 engine design?
Honeywell’s HTS7500 engine is based on the architecture of our proven T55 turboshaft engine (the CH-47 Chinook) “but you can think of this as a new core engine for us,” says Dave Marinick, president of our engines and systems business. ‘food. The HTS7500 will deliver 42% more power than the current T55-714A on the Chinook with 18% lower specific fuel consumption.

The HTS7500 engine architecture is intentionally designed to optimize the performance of DEFIANT-X. The HTS7500 meets all FLRAA requirements while simultaneously offering a streamlined and efficient design, rugged construction, and low parts count, using proven, low-cost materials. The engine’s low turbine temperatures increase reliability and reduce costs, while its tolerance to sand minimizes cooling and “sanding” (at high temperatures, sand can be turned into glass and create performance hazards for helicopter engines). Critically, all field maintenance can be done with a single manager and requiring only 19 of the 104 tools in the Army Power Plant toolbox.

What are Honeywell’s expectations for the Aerospace segment in 2022?
In 2022, we expect aerospace to benefit from the continued recovery in flight hours, driving robust growth in commercial aftermarket revenue. Commercial construction rates will also continue to improve, particularly in air transport, leading to growth in original equipment sales but also creating an adverse effect on margins. Defense and space sales are expected to see a gradual improvement in performance as supply chain challenges ease in the second half, returning to growth and ending the year roughly flat. We expect Aerospace revenues to grow in the mid-single digits for 2022. Despite some mix pressure and increased R&D spending on key long-term programs, margins are expected to increase as the Honeywell business Quantum Solutions is now hosted in Corporate and is no longer accounted for. for in Aero.

What’s the latest in UAM/UAS development from Aerospace?
We believe that we are helping our customers start a revolution in air transport and logistics through innovative technology that “futures” our aerospace business. Honeywell has established itself as a leader in the UAM (Urban Air Mobility) and UAS (Unmanned Aerial Systems) spaces with its technology for electric flight, avionics and simplified vehicle operations. We also develop aerospace-grade engines that can be built to automotive scale.

To date, we have secured over $3.5 billion in content wins from multiple clients and anticipate a pipeline of approximately $7 billion over the next five years. We expect further awards in 2022. Some of the customers we work most closely with are planning first flights in 2022, demonstrating the validity of the most advanced vehicles in development. Honeywell Aerospace plans to unveil a new Technology Center for UAS/UAM in 2022; Stay tuned for more. Meanwhile, Aerospace continues to make great strides in its technology development; click here to learn more about Honeywell’s smart drone radar technology, including an interesting demonstration video.

About Honeywell

Honeywell (www.honeywell.com) is a Fortune 100 technology company providing industry-specific solutions including aerospace products and services; control technologies for buildings and industry; and performance materials globally. Our technologies help everything from planes, buildings, manufacturing plants, supply chains and workers become more connected to make our world smarter, safer and more sustainable. For more news and information about Honeywell, visit www.honeywell.com/newsroom.

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