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Honeywell recently announced its intention to pursue a full separation of Automation and Aerospace Technologies following the completion of the company’s comprehensive business portfolio evaluation.
Slated to be completed in the second half of 2026, the separation, paired with the previously announced plan to spin off Advanced Materials, will result in three publicly listed companies, each with distinct growth drivers and strategies.
“The formation of three independent, industry-leading companies builds on the powerful foundation we have created, positioning each to pursue tailored growth strategies and unlock significant value for shareholders and customers,” says Vimal Kapur, chairman and CEO of Honeywell. “Our simplification of Honeywell has rapidly advanced over the past year and we will continue to shape our portfolio to create further shareholder value. We have a rich pipeline of strategic bolt-on acquisition targets and we plan to continue deploying capital to further enhance each business as we prepare them to become leading, independent public companies.”
The planned separations of Automation, Aerospace and Advanced materials will bring a simplified strategic focus, greater financial flexibility and distinct investment profiles for stakeholders, Honeywell claims.
Honeywell remains on track to surpass its commitment to allocate at least $25 billion toward high-return capital expenditures, dividends, opportunistic share purchases and accretive acquisitions throughout 2025. During the separation planning process, the company intends to continue its portfolio transformation efforts to improve the value proposition of each business.
In the second half of next year, the separation is planned to be tax-free for stakeholders. The previously announced spin-off of the Advanced Materials business is expected to be completed by the end of 2025.
“The enhanced focus, alignment and strategic agility enabled by this separation will allow Honeywell to realize the opportunity for operational improvement and valuation upside,” say Marc Steinberg, Elliott partner and Jesse Cohn, managing partner of Honeywell. “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.”
