With Solstice’s market debut, Honeywell accelerates its three-way split, unlocking independent growth paths for advanced materials, automation, and aerospace in its biggest portfolio reshaping yet.
Honeywell has completed the demerger of its Solstice Advanced Materials division, marking the first step in its plan to restructure into three separate, focused companies. According to a report by the Manufacturing Dive, the move aims to streamline operations and unlock growth opportunities across its specialised business segments.
Solstice Advanced Materials, now an independent, publicly listed company trading under the ticker SOLS, produces refrigerants, building materials, and speciality chemicals for industries including HVAC, automotive, energy, construction, and semiconductors. In 2024, the business recorded $3.8 billion in net sales, growing at a 4.4% compound annual rate, and employed nearly 4000 people worldwide.
David Sewell, who joined Honeywell less than a year ago, will lead Solstice as CEO. Sewell brings over 30 years of experience from roles at WestRock, Sherwin-Williams, and GE Plastics, and officially opened trading by ringing the market’s opening bell on Thursday.
Honeywell CEO Vimal Kapur said the separation supports the company’s goal of becoming a ‘pure-play automation leader’, providing greater strategic clarity and flexibility. The spinoff was completed ahead of schedule, following board approval earlier this month.
According to Solstice’s recent investor presentation, operating independently will allow it to refine its business model and capital allocation. Its refrigerants and applied solutions segment contributes 72% of total sales, driven by demand from data centres and electric vehicles. In comparison, electronic and speciality materials make up the remaining 28%, supported by semiconductor growth.
The separation is expected to reduce Honeywell’s 2025 revenue by approximately $700 million and free cash flow by $200 million, according to its third-quarter earnings report. Honeywell now expects net sales between $40.7 billion and $40.9 billion for the year.
Following Solstice, Honeywell plans to spin off its Aerospace Technologies business in 2026.
