Insider Brief
- Honeywell has unveiled plans to fully separate its Aerospace, Advanced Materials, and Automation divisions by 2026, forming three independent companies.
- The standalone Aerospace company will be better equipped to leverage its long-standing technology leadership and maintain its role as a major supplier of innovative solutions.
- Honeywell has outlined that the separation will be completed in the second half of 2026, with each new entity benefiting from tailored capital allocation strategies and enhanced strategic agility.
Honeywell has unveiled plans to fully separate its Aerospace, Advanced Materials, and Automation divisions by 2026, forming three independent companies. The move aims to sharpen focus and create growth opportunities for each business, particularly in aerospace, which is seeing increased demand across both commercial and defense sectors.
The aerospace division, with a projected $15 billion in revenue for 2024, will continue to drive advancements in aircraft systems, including propulsion, navigation, and cockpit technologies. The company remains a key player in the aerospace industry, with its technology featured in virtually every commercial and defense aircraft worldwide, and the company having been “part of every NASA crewed space mission for almost 60 years and is onboard 950 satellites and counting” according to its website. Honeywell’s Aerospace division is poised to take advantage of the growing trend of electrification and autonomy in aviation.
Honeywell’s decision to separate its aerospace business comes at a time when the industry is expected to face unprecedented demand. The standalone Aerospace company will be better equipped to leverage its long-standing technology leadership and maintain its role as a major supplier of innovative solutions for the aviation sector.
In a statement, Honeywell CEO Vimal Kapur noted, “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 further emphasized that the simplification of the company will help each unit pursue its specific growth strategy, unlocking significant value for shareholders and customers.
Honeywell’s broader strategy involves the separation of its automation and aerospace businesses, as well as its materials sector, which will focus on sustainability-driven products. The planned separations are intended to provide each company with greater financial flexibility and the ability to align resources with distinct industry needs, especially as both aerospace and automation look to capitalize on advancing technologies like AI and autonomous systems.
Honeywell has outlined that the separation will be completed in the second half of 2026, with each new entity benefiting from tailored capital allocation strategies and enhanced strategic agility.
Image credit: Honeywell
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