Honeywell has announced plans to separate its automation and aerospace technologies businesses into two standalone public entities as the multinational conglomerate continues to simplify its operating structure and optimize its portfolio to drive growth.
The move came four months after Honeywell announced plans to spin off its advanced materials business into an independent, publicly traded company.
The technology company said Thursday the planned separation of automation and aerospace businesses is expected to be tax-free to Honeywell shareholders and completed by the second half of 2026, subject to regulatory approvals and other customary closing conditions. The previously announced spinoff of advanced materials is set to conclude by the end of 2025 or early 2026.
“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,” said Vimal Kapur, chairman and CEO of Honeywell.
“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,” added Kapur.
Honeywell Automation
As an independent company, Honeywell Automation will build on its installed base to serve high-growth verticals and link people, assets and processes to support digital transformation efforts.
“Building on decades of innovation as its heritage, Honeywell Automation will create the buildings and industrial infrastructure of the future, leveraging process technology, software, and AI-enabled, autonomous solutions to drive the next generation of productivity, sustainability and safety for our customers,” Kapur noted.
“As a standalone company with a simplified operating structure and enhanced focus, Honeywell Automation will be better able to capitalize on the global megatrends underpinning its business, from energy security and sustainability to digitalization and artificial intelligence,” the chief executive added.
The automation business generated $18 billion in 2024 revenue.
Honeywell Aerospace
The business, which recorded $15 billion in 2024 revenue, offers aircraft propulsion, auxiliary power systems and cockpit and navigation systems for defense and commercial aircraft and will continue to deliver aviation platforms through electrification and autonomy of flight.
“As Aerospace prepares for unprecedented demand in the years ahead across both commercial and defense markets, now is the right time for the business to begin its own journey as a standalone, public company,” Kapur said.
“Today’s announcement is the culmination of more than a century of innovation and investment in leading technologies from Honeywell Aerospace that have revolutionized the aviation industry several times over. This next step will further enable the business to continue to lead the future of aviation,” the Honeywell executive added.
Advanced Materials
As previously announced, the advanced materials segment will operate as a pure-play specialty chemicals and materials business, with leading positions in fluorine products, industrial-grade fibers, electronic materials and healthcare packaging products.
The advanced materials business, which reported $4 billion in annual revenue, offers the Solstice hydrofluoro-olefin technology.
Goldman Sachs & Co. served as Honeywell’s lead financial adviser in the strategic portfolio review. Centerview Partners provided financial advice to Honeywell and Skadden, Arps, Slate, Meagher & Flom acted as the tech company’s external legal counsel.
