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Honeywell Partners With LS ELECTRIC to Boost Data Center Efficiency

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Key Takeaways

  • Honeywell teams up with LS ELECTRIC to develop power and automation solutions for key industries.
  • The partnership combines Honeywell's building automation with LS ELECTRIC's power system expertise.
  • Both firms plan AI-enabled power monitoring and battery storage systems to boost energy reliability.

Honeywell International Inc. (HON - Free Report) recently partnered with LS ELECTRIC to advance and offer hardware and software solutions. The collaboration will involve both companies to develop advanced power and control solutions designed for data centers as well as commercial and industrial buildings.

Based in South Korea, LS ELECTRIC is engaged in providing devices and systems required to transmit and deliver electricity generated by power plants. The company also offers various automation solutions ranging from individual devices to complete process control systems, which helps industries operate efficiently.

Inside the Headlines

The Honeywell–LS ELECTRIC partnership will focus on making power supply and management easier for critical industries. This collaboration will combine Honeywell’s expertise in building automation and controls with LS ELECTRIC’s proficiency in power systems. This will help data center operators to manage power distribution while balancing load with capacity.

The companies with come up with advanced products, including switchgear and power management systems that will enable data centers to manage operations without any power outage. They also plan to introduce Artificial Intelligence (AI)-enabled power monitoring systems using Honeywell Forge and LS ELECTRIC’s software capabilities. These power monitoring solutions will automatically regulate energy use and detect potential problems instantly, reducing downtime and improving power quality.

In addition, both companies will work together on a battery energy storage system (BESS) for commercial and industrial facilities. This system will help to cater the growing electricity demand and create microgrids that improve energy stability in commercial and industrial buildings. The BESS will combine Honeywell’s dynamic energy control software with LS ELECTRIC’s energy storage capabilities to select the optimum and most cost-effective power sources based on weather conditions and utility data.

With data centers currently using only 1-2% of global electricity, the partnership will position HON as an all-in-one provider of automation, energy and power management solutions. The integrated offerings will help Honeywell’s customers to use energy more efficiently and reliably.

HON’s Zacks Rank

Strength in the defense business and growth in air transport flight hours augur well for Honeywell. Solid demand for building products also bodes well for the company. In the quarters ahead, HON expects to benefit from strong demand in commercial aviation, growth in air transport flight hours, higher shipset deliveries and strong defense spend volumes.

In the past six months, this Zacks Rank #2 (Buy) company’s shares have risen 8.5%, in line with the industry.

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Other Stocks to Consider

Some other top-ranked companies are discussed below.

3M Company (MMM - Free Report) currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

MMM delivered a trailing four-quarter average earnings surprise of 6%. In the past 60 days, the Zacks Consensus Estimate for 3M’s 2025 earnings has increased 0.3%.

ITT Inc. (ITT - Free Report) presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 1.5%.

The Zacks Consensus Estimate for ITT’s 2025 earnings has increased 0.3% in the past 60 days.

Parker-Hannifin Corporation (PH - Free Report) presently carries a Zacks Rank of 2. PH delivered a trailing four-quarter average earnings surprise of 4.5%.

In the past 60 days, the consensus estimate for Parker-Hannifin’s fiscal 2026 earnings has increased 0.1%.

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