Honeywell to Separate Automation and Aerospace, Creating Three Industry Leaders
Honeywell has announced its intent to separate its Automation and Aerospace businesses into independent, publicly traded companies. This move, alongside the previously announced spin-off of Advanced Materials, will result in three distinct industry leaders with focused strategies and growth opportunities. The separation is expected to be completed in the second half of 2026, structured as a tax-free transaction for shareholders.
Strategic Vision Behind the Separation
According to Chairman and CEO Vimal Kapur, the split aims to simplify Honeywell’s portfolio, allowing each business to pursue tailored growth strategies and unlock significant shareholder value. The three independent entities will benefit from:
- Simplified strategic focus
- Greater financial flexibility for growth investments
- Tailored capital allocation priorities
- Specialized management teams with deep industry expertise
- Distinct investment profiles for long-term value creation
Overview of the New Independent Companies
Honeywell Automation
Honeywell Automation will focus on industrial automation and digital transformation, leading the shift from automation to AI-driven autonomy. With projected 2024 revenue of $18 billion, the company will leverage its vast installed base and expertise in process technology, AI, and software to enhance productivity and sustainability.
Honeywell Aerospace
With $15 billion in projected revenue, Honeywell Aerospace will become a pure-play aerospace supplier, providing propulsion systems, navigation solutions, and aircraft electrification technologies. The company is poised to capitalize on growing demand in both commercial and defense aviation.
Advanced Materials
As a specialty chemicals and materials leader, Advanced Materials will focus on sustainability-driven innovations, including electronic materials, fluorine products, and healthcare packaging. The company’s Solstice® HFO technology exemplifies its commitment to reducing environmental impact.
Financial and Transaction Details
Honeywell remains on track to deploy over $25 billion in strategic acquisitions, dividends, and capital investments through 2025. The company has already executed $9 billion in acquisitions, including Access Solutions from Carrier Global and the LNG business from Air Products.
The Automation and Aerospace separation is expected to be completed tax-free for shareholders, subject to regulatory approvals. Honeywell also expects its Advanced Materials spin-off to be finalized by late 2025 or early 2026. Each of the three companies is projected to maintain a strong investment-grade credit rating.
Looking Ahead
By creating three independent industry leaders, Honeywell aims to accelerate growth, enhance operational agility, and unlock significant shareholder value. With specialized focus areas and strategic flexibility, the separated companies are poised to lead the future of automation, aerospace, and sustainable materials.