Honeywell to spin off Automation and Aerospace units, creating three independent companies

Honeywell has released that its Board of Directors has completed a comprehensive evaluation of its business portfolio, a process initiated by Chairman and CEO Vimal Kapur a year ago. As a result, the company plans to pursue a full separation of its Automation and Aerospace Technologies divisions. This move, combined with the previously disclosed plan to spin off its Advanced Materials business, will result in three publicly listed companies, each with distinct strategies and growth drivers. The separation is expected to be finalised in the second half of 2026 and will be structured to be tax-free for Honeywell’s shareholders.

Vimal Kapur stated, “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.” He emphasised that this simplification of Honeywell is progressing rapidly and will continue, with an eye towards creating even more shareholder value. Kapur also pointed to a strong pipeline of strategic acquisition opportunities, underscoring the company’s commitment to enhancing each of its businesses ahead of their transition to independent entities.

Kapur further highlighted Honeywell Automation’s plans to lead in the development of future buildings and industrial infrastructure. By leveraging process technology, software, and AI-driven autonomous solutions, the division aims to drive the next wave of productivity, sustainability and safety. As a standalone company, Honeywell Automation will be better positioned to capitalise on global trends such as energy security, sustainability, digitalisation and artificial intelligence.

The separation also marks a significant milestone for Honeywell Aerospace, which is preparing for unprecedented demand in both commercial and defence markets. Kapur remarked, “This next step will further enable the business to continue to lead the future of aviation.”

Elliott Partners, who are advising on the process, believe this strategic move will provide the necessary focus and agility to achieve sustained growth and value creation for Honeywell’s shareholders in the long term.