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Honeywell announced that it intends to pursue a full separation of its Automation and Aerospace Technologies business units. The planned separation, coupled with the previously announced plan to spin off Advanced Materials, will result in three publicly listed companies with distinct strategies and growth drivers. The separation is intended to be completed in the second half of 2026.
The planned separations of Automation, Aerospace, and Advanced Materials is intended to create value for all stakeholders as each will benefit from:
Simplified strategic focus.
Greater financial flexibility to pursue distinct organic growth opportunities.
Improved ability to tailor capital allocation priorities in alignment with strategic focus.
Focused boards of directors and management teams with deep domain expertise.
Distinct investment profiles.
Three Focused Companies
Honeywell Automation: Honeywell Automation, which reported $18 billion in revenue for 2024, integrates assets, people, and processes to drive digital transformation.
Honeywell Aerospace: Honeywell Aerospace, with $15 billion in revenue in 2024, provides technology and solutions for aircraft propulsion, cockpit and navigation systems, and auxiliary power systems.
Advanced Materials: With nearly $4 billion in revenue last year, the Advanced Materials business will focus on sustainability-driven specialty chemicals and materials, holding leading positions in fluorine products, electronic materials, industrial-grade fibers, and healthcare packaging solutions.
Honeywell's Continued Simplification and Portfolio Optimization
Honeywell remains on pace to exceed its commitment to deploy at least $25 billion toward high-return capital expenditures, dividends, opportunistic share purchases, and accretive acquisitions through 2025. The company intends to continue its portfolio transformation efforts during the separation planning process to enhance the value proposition of each business.
Since December 2023, Honeywell announced a number of strategic actions to drive organic growth and simplify its portfolio. This includes approximately $9 billion of accretive acquisitions: the Access Solutions business from Carrier Global, Civitanavi Systems, CAES Systems, and the liquefied natural gas (LNG) business from Air Products. Additionally, the company entered into an agreement to divest its Personal Protective Equipment business which is expected to close in the first half of 2025.
Transaction Details
The planned separation of Automation and Aerospace is expected to be achieved in a manner that is tax-free to Honeywell shareholders and targeted for completion in the second half of 2026, subject to certain customary conditions.
The company is continuing to execute on its previously announced spin-off of its Advanced Materials business, which is expected to be completed by the end of 2025 or early in 2026.
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