Aiming for streamlined growth, Honeywell is splitting its aerospace and automation divisions into independent companies by 2026.
US-based manufacturer Honeywell International revealed last week that it will streamline its business portfolio by separating its aerospace and automation divisions into independent publicly traded entities, by the second half of next year.
Honeywell Automation will focus on delivering industrial technologies, software, and solutions to enhance productivity for its customers. Meanwhile, Honeywell Aerospace will continue supplying commercial and defence aircraft customers with key products such as propulsion systems and cockpit navigation technology.
This announcement follows Honeywell’s previous decision to spin off its advanced materials business, which is anticipated to conclude by the end of this year or early 2026.
According to the company, this is a broader strategy initiated by CEO Vimal Kapur, who took the helm in 2023. The aim is to simplify the company’s portfolio, as Kapur explained on a LinkedIn post.
“This is the result of a year-long, comprehensive portfolio evaluation that I initiated and our Board has been working through, and I am incredibly proud of all we have done to make this a reality,” he explained.
During a recent earnings call, Kapur noted that the separation would create three distinct companies, each positioned to achieve sustainable growth by focusing on their specific market needs.
Since Vimal Kapur became CEO, Honeywell has refocused on automation, aviation technologies, and clean energy. In November 2024, it announced the sale of its PPE business to Protective Industrial Products for $1.3 billion, expected to close this year.
The company has also made acquisitions in cloud services, navigation technology, electronics, and LNG. In December, Honeywell partnered with Bombardier on a $17 billion R&D deal for jet engines and satellite communications. Additionally, its quantum computing subsidiary, Quantinuum, has expanded through a partnership with SoftBank. Kapur remains confident that strategic acquisitions will boost Honeywell’s financial performance and appeal to investors.
