Forms Independent Aerospace, Automation, and Advanced Materials Companies

Taking inspiration from another mega manufacturer, General Electric (GE), Honeywell has decided to split into three independent companies. The breakup removes one more major industrial conglomerate from the US’s already limited list.

"The formation of three independent, industry-leading companies builds on the powerful foundation we have created, positioning each to pursue tailored growth strategies, and unlock significant value for shareholders and customers,” stated Honeywell Chairman and CEO Vimal Kapur. The company’s three new entities are aerospace, automation, and advanced materials.

Talks of the split have been on the table since Kapur took the lead of Honeywell with an ambition to make the company more spry. The company announced plans to separate its advanced materials spinoff around a year and a half ago, then shared considerations of an individual aerospace facility in December 2024.

This decision, while on-trend for Kapur’s series of business moves, stemmed from intense pressure from Elliot Investment Management. Elliot revealed an over $5 billion stake in Honeywell in late 2024, taking the throne as the largest single investment.

Honeywell’s advanced materials business will be the first to go, slated for completion by the end of 2025. The automation and aerospace businesses will follow in the second half of 2026.

Reactions to Honeywell’s breakup have been mixed. Shares quickly fell by almost 2.5% in premarket trade, which was a sudden backtrack from the rise earlier in the year. However, Honeywell remains a crucial provider of aftermarket services and parts for older jets. This is especially significant as the airline industry faces a shortage of new airliners that are needed to move out outdated fleets.

Three-way company splits are not new to the aerospace industry. In April 2024, GE broke apart its 132-year-old conglomerate into independent entities: GE Vernova, GE Aerospace, and GE Healthcare. This transition, however, had been in the works for more than three years before it was finalized.

FMI: www.honeywell.com