Who Optimizes SG&A Costs Better? Honeywell International Inc. or L3Harris Technologies, Inc.

Optimizing SG&A Costs: A Tale of Two Giants

In the competitive landscape of industrial giants, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Honeywell International Inc. and L3Harris Technologies, Inc. have been at the forefront of this financial balancing act over the past decade.

From 2014 to 2023, Honeywell's SG&A expenses have seen a decline of approximately 16%, from $5.5 billion to $4.7 billion. This reflects a strategic focus on cost optimization, despite fluctuations in the global market. In contrast, L3Harris Technologies experienced a significant increase in SG&A expenses, peaking at $3.3 billion in 2020, before reducing to $1.9 billion in 2023. This 42% reduction from their peak suggests a recent shift towards more efficient cost management.

These trends highlight the dynamic strategies employed by these companies to navigate economic challenges and optimize operational efficiency.