Honeywell International, one of the last remaining U.S. industrial conglomerates, has announced plans to split into three independent companies.
This decision follows pressure from activist investor Elliott Management, which recently took a $5 billion stake in the company.
Honeywell International Business Segments Separation
The announcement comes after Honeywell’s shares underperformed the market, prompting Elliott Management to push for the split.
The company’s CEO, Vimal Kapur, stated that the formation of three independent companies will allow each to pursue tailored growth strategies.
This move will unlock significant value for shareholders and customers.
Honeywell will separate its automation and aerospace businesses into distinct entities.
This separation is in addition to the previously announced spin-off of the advanced materials unit.
The aerospace unit, Honeywell’s biggest revenue generator, accounts for about 40% of the company’s total revenue and counts Boeing and Airbus among its customers.
The separation is expected to be completed in the second half of 2026 and will be tax-free to Honeywell shareholders.
The spin-off of the advanced materials business is anticipated to be completed by the end of this year or early next year.
Market Reaction and Industry Trends
Honeywell’s shares initially rose by 5.3% in premarket trading. However, they fell nearly 5% after the company forecasted downbeat sales and profit for 2025.
Analysts have estimated that Honeywell’s high-margin aerospace business could be worth between $90 billion and $120 billion, including debt.
The decision to split follows similar moves by other industrial giants like General Electric and United Technologies.
These companies have also spun off major divisions to simplify their structures and focus on core businesses.
Honeywell’s move is seen as a response to the growing trend of breaking up conglomerates to create more agile and focused companies.
Note: We are also on WhatsApp, LinkedIn, Google News, and YouTube, to get the latest news updates, Subscribe to our Channels. WhatsApp– Click Here, Google News– Click Here, YouTube – Click Here, and LinkedIn– Click Here.
