Following a yearlong business-portfolio evaluation, Honeywell reported Feb. 6 that it’s dividing its automation and aerospace divisions into two separate companies. Coupled with the previously announced spinoff of its advanced materials division, this plan will result in three public companies. Their separation is expected in the second half of 2026 and be tax-free to Honeywell’s shareholders.
"Forming three independent companies builds on the foundation we created; positions each to pursue tailored-growth strategies; and unlocks value for shareholders and customers," says Vimal Kapur, chairman and CEO of Honeywell. "Our simplification of Honeywell rapidly advanced over the past year, and we’ll continue to shape our portfolio to create further shareholder value. We have a rich pipeline of strategic, bolt-on acquisition targets, and we plan to continue deploying capital to further enhance each business as we prepare them to become leading, independent public companies.”
Honeywell Automation
Honeywell Automation will maintain its global scale with 2024 revenue of $18 billion. It will connect assets, people and processes to power digital transformation, and build on its technologies, domain experience, and an installed base serving vertical markets.
"Building on decades of innovation, Honeywell Automation will create the buildings and industrial infrastructure of the future, leveraging process technology, software and AI-enabled, autonomous solutions to drive the next generation of productivity, sustainability and safety for our customers. As a standalone company with a simplified operating structure and enhanced focus, Honeywell Automation will be better able to capitalize on the global megatrends underpinning its business, from energy security and sustainability to digitalization and AI."
Honeywell has driven organic growth and simplified its portfolio since December 2023. This includes approximately $9 billion in accretive acquisitions, such as Access Solutions business from Carrier Global, Civitanavi Systems, CAES Systems, and the liquefied natural gas (LNG) business from Air Products. It also agreed to divest its personal protective equipment (PPE) business, and is scheduled to close that deal in the first half of 2025.
Honeywell Aerospace
Honeywell Aerospace’s technology and solutions are used on virtually every commercial and defense aircraft platform worldwide and include aircraft propulsion, cockpit and navigation systems, and auxiliary power systems. With $15 billion in annual revenue in 2024 and a large, global installed base, Honeywell Aerospace will be one of the largest, publicly traded, pure-play aerospace suppliers, and will continue to increase electrification and autonomy of flight.
"As Honeywell Aerospace prepares for unprecedented demand in the years ahead across both commercial and defense markets, now is the right time for it to begin its own journey as a standalone, public company,” adds Kapur. “Today's announcement is the culmination of more than a century of innovation and investment in leading technologies from Honeywell Aerospace that revolutionized the aviation industry several times over. This next step will further enable the business to continue to lead the future of aviation."
Honeywell Advanced Materials
Honeywell Advanced Materials will be a sustainability-focused, specialty-chemicals and materials manufacturers of fluorine products, electronic materials, industrial-grade fibers, and healthcare packaging. With nearly $4 billion in revenue last year, its brands include Solstice hydrofluoro-olefin (HFO) low-global-warming technology. As a standalone company with a large-scale, domestic manufacturing base, it’s expected to benefit from its investment profile and a more flexible and optimized capital allocation strategy.
