Honeywell's Triple Play: Spinning Off Automation and Aerospace

Honeywell International Inc. (HON) has announced a significant strategic move, planning to split into three independent, publicly listed companies. The Charlotte, North Carolina-based conglomerate will separate its Automation and Aerospace Technologies businesses, in addition to the previously announced spin-off of its Advanced Materials division. This strategic shift aims to unlock value for shareholders and customers by creating three industry-leading companies with distinct growth drivers and strategic focus.

The planned separation is expected to be completed in the second half of 2026, with the spinoff of the Advanced Materials business anticipated to be finalized by the end of this year or early next year. Honeywell's Chairman and CEO, Vimal Kapur, stated that the formation of these three independent companies builds on the powerful foundation created by the conglomerate, positioning each entity to pursue tailored growth strategies and unlock significant value for shareholders and customers.



Honeywell Automation, the global leader in the industrial world's transition from automation to autonomy, will maintain global scale with 2024 revenue of $18 billion. This entity will connect assets, people, and processes to power digital transformation, building on decades-long technology leadership positions, deep domain experience, and a vast installed base to serve a variety of high-growth verticals.

Honeywell Aerospace, with $15 billion in annual revenue in 2024 and a large, global installed base, will be one of the largest publicly traded, pure-play aerospace suppliers. This entity will have leading positions in technology and systems, continuing to deliver the future of aviation through increasing electrification and autonomy of flight.

The Advanced Materials business will be a sustainability-focused specialty chemicals and materials pure play, with leading positions across fluorine products, electronic materials, and other high-growth segments.

The separation of Honeywell's Automation and Aerospace businesses is expected to create value for all stakeholders by providing each entity with a simplified strategic focus, greater financial flexibility, improved capital allocation priorities, focused boards of directors and management teams, and distinct investment profiles. This strategic move will enable each company to better capitalize on global megatrends and unlock greater long-term value for shareholders.

In conclusion, Honeywell's decision to split into three independent companies, spinning off its Automation and Aerospace businesses, is a strategic move that aims to unlock value for shareholders and customers. The creation of these three industry-leading entities will enable each company to better compete in their respective markets, adapt to changing customer needs, and create greater value for investors. As the separation process unfolds, investors should closely monitor the progress of these new entities and their ability to execute on their respective growth strategies.