Honeywell to divide business into three parts separating the aerospace unit

A Honeywell office in Atlanta, Georgia, USA, Wednesday, October 25, 2023. Honeywell International Inc. Released earnings figures on October 26. Photographer: Elijah Nouvelage/Bloomberg via Getty Images

Washington-Honeywell will divide into three separate companies, the company said today as it announced a plan to break down its automation and aviation companies in addition to a previously announced spin from its advanced material device.

“Unprecedented Unprecedented Demand” in both commercial and defense air sectors led to the company’s decision to break this department as an independent public company, Honeywell CEO Vimal Kapur said in a statement.

The company plans to complete the separation of its automation and space companies in the back half of 2026, pending regulatory approvals. Spin from its advanced material business announced in October is intended to occur at the end of 2025 or 2026, the company says.

“The formation of three independent, industry-leading companies is based on the powerful foundation we have created, places each to pursue tailor-made growth strategies and lock a significant value for shareholders and customers,” Kapur said.

“Our simplification of Honeywell is quickly advanced in the past year, and we will continue to shape our portfolio to create additional shareholder value,” he added. “We have a rich pipeline of strategic bolt-on acquisition goals, and we plan to continue to deploy capital to further improve each business as we prepare them to become a leading, independent public business.”

Honeywell’s defense activities are concentrated within its aerospace, which will be spun out into the independent Honeywell Aerospace. The company logged $ 15 billion in revenue in 2024 and produces a laundry list of aviation technologies such as engines, Avionik and Cockpit and navigation systems.

The separation plan, which was announced after the end of a portfolio evaluation led by Honeywell’s board, reflects the recent collapse of industrial heavy weight General Electric. Legacy GE completed the three-way division of its aviation, energy and health care companies last April, with the company’s defense engine business, which now lives inside GE Aerospace.

Honeywell -Split also occurs in the midst of pressure from an activist investor, Elliott Investment Management, who called for the break -up last year, reported Wall Street Journal.

Elliott -Partner Marc Steinberg and CEO Jesse Cohn praised the decision in Honeywell’s statement announcing the move, saying that “the improved focus, adaptation and strategic agility enabled this separation will allow Honeywell to realize the possibility of operational improvement and valuation . ”

Defense and space sales in Honeywell’s Aerospace device grew by 14 percent in the fourth quarter of 2024 due to “ongoing global demand and further improvements to the supply chain,” the company said in earnings today.

In 2023, Honeywell earned about $ 4.9 billion in defense -related revenue, or approx. 14 percent of its total revenue, according to Defense news 2024 Ranking of the 100 best defense companies by revenue.