Honeywell announces three-way company split

The industrial conglomerate plans to establish the new companies by separating its automation sector from its aerospace technologies department, after spinning off a different enterprise. The reorganization builds on a preexisting plan to separate its advanced materials division, according to a Thursday news release. Executives expect the shift to be finalized by the end of 2026 in a way that’s tax-free for shareholders, according to the release.

Why a three-way split? The schism will create three industry-leading companies with the power to grow separately and expand the company portfolio, increasing shareholder value, Honeywell CEO Vimal Kapur said. The split will simplify each group’s focus and allow for greater financial flexibility, according to the release.

• Honeywell Automation will use software and artificial intelligence solutions to create industrial infrastructure for the future to drive productivity and safety for customers. The stand-alone company is expected to maintain at least the $18 billion in revenue recorded in 2024, Honeywell said.

• Honeywell Aerospace technology is already used in nearly every commercial and defense aircraft system, according to the company. Honeywell’s aerospace division made $15 billion in 2024 revenue and is expected to continue developing futuristic aviation technology, specifically by increasing electrification and autonomy of flight, the release said.

• Honeywell Advanced Materials will focus on sustainability with specialty chemicals/materials like fluorine, industrial-grade fibers, and healthcare packaging solutions. The sector made $4 billion in revenue last year, according to the company.