Honeywell is divided into three public companies spinning automation and aerospace

Honeywell International (HON, Financials) advertised plans to separate In three independent, listed companies with the aim of improving strategic focus and unlocking shareholder value.

The action will divide the company’s most important divisions: advanced materials, aerospace and automation.

Scheduled to be tax-free for shareholders, automation and aerospace companies are scheduled for a split of the second half of 2026. Expected to end by the end of 2025 or early 2026, this follows the previously stated spin-off of the advanced materials department.

When you have a worldwide scope and a large installed base, Honeywell Automation becomes a pure-play leader in automation. This section recorded $ 18 billion in sales in 2024. To increase production, sustainability and security across multiple sectors, the company intends to use process technology, software and AI-activated solutions.

With $ 15 billion in sales in 2024, Honeywell Aerospace will rise to be a top technology and system supplier that helps aviation everywhere bloom. Business, serving key customers such as Boeing and Airbus, provides flights, cockpit and navigation systems and auxiliary substances.

Generation of about $ 4 billion by 2024, the advanced material business will concentrate on specialized chemicals and materials with a view to sustainability.

Under pressure from activist investor Elliott Investment Management, which owns a significant share in Honeywell, this strategic adaptation occurs. The company has argued for this kind of divide to improve operational concentration and shareholder returns.

Vimal Kapur, CEO of Honeywell, said the founding of three different companies strengthens the company’s basis and each helps follow customized development plans and release greater value for consumers and investors.

This action helps Honeywell fit a greater trend with industrial giants that simplify processes to improve the competitiveness of the market. General Electric recently went through a similar divide that benefits its newly created companies.

Usual requirements apply to the intended separations, including state approvals and the board’s final support from Honeywell. Throughout 2025, the company is still dedicated to spending at least $ 25 billion on capital projects, dividends, repurchases of shares and acquisitions.

This article first appeared Gurufocus.