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Honeywell to Split into Three Independent Companies in Major Restructuring

18 Mar 2025

Honeywell is embarking on a significant restructuring plan. In February 2025, Honeywell announced plans to separate its Automation and Aerospace businesses into two independent enterprises to foster growth and enhance value creation.

This separation, along with the spin-off of Advanced Materials announced previously, will split the conglomerate into three independent entities: Honeywell Automation, Honeywell Aerospace, and Honeywell Advanced Materials. The separation is expected to be completed in the second half of 2026.

The Three New Companies

Honeywell Automation: Tapping on its long-standing technology leadership positions, deep domain experience, and a large established base to serve a variety of high-growth industries, Honeywell Automation will leverage its global scale to connect assets, people and processes to power digital transformation.

Honeywell Aerospace: Honeywell Aerospace provides technology and solutions for nearly all commercial and defence aircraft, this includes aircraft propulsion, cockpit and navigation systems, and auxiliary power systems. With a large global base, Honeywell Aerospace will become one of the largest publicly traded aerospace suppliers, leading in technology and systems that drive the future of aviation through increased electrification and flight autonomy.

Advanced Materials: The Advanced Materials business will be a sustainability-driven specialty chemicals and materials company, focusing on fluorine products, electronic materials, industrial grade fibers, and healthcare packaging solutions.

The separation of Automation, Aerospace, and Advanced Materials will enhance value for stakeholders by providing benefits like a clearer and simplified strategic focus, greater financial flexibility, better-aligned capital allocation, focused boards and management with deep industry expertise, and distinct investment profiles to drive long-term shareholder value.

Vimal Kapur, Chairman and CEO of Honeywell, said “As Aerospace prepares for unprecedented demand in the years ahead across both commercial and defence markets, now is the right time for the business to begin its own journey as a standalone, public company.”

“This next step will further enable the business to continue to lead the future of aviation,” Kapur added.

Elliott Partner Marc Steinberg and Managing Partner Jesse Cohn said, “The enhanced focus, alignment, and strategic agility enabled by this separation will allow Honeywell to realise the opportunity for operational improvement and valuation upside. We look forward to continuing to support Vimal and the management team as they execute on the separation and deliver significant long-term value to Honeywell’s shareholders.”