Honeywell is planning on separating its aerospace unit from its automation businesses and will move forward with its earlier announcement to spin off the advanced materials business|Wasiul Bahar|CC BY-SA 4.0
Honeywell International, one of the last and longstanding US industrial conglomerates, is splitting in three following pressure from activist Elliott Investment Management, citing General Electric’s successful breakup as a model.
Honeywell plans to separate its aerospace unit from its automation businesses and will move forward with its earlier announcement to spin off the advanced materials business.
In 2024, the company’s aerospace business generated 40% of its revenue. It generated around $15 billion supplying Boeing and other aircraft makers. The automation business made $18 billion in revenue, while the advanced materials segment did about $4 billion.
CEO Vimal Kapur said aerospace had “diverged” from Honeywell’s other divisions amid rapid growth and industry headwinds, making separation the best path forward.
The breakup aims to give each Honeywell business greater financial flexibility and focused management. The company is currently valued at $150 billion.