February 7, 2025 – According to a report by the Wall Street Journal on the 6th, informed sources revealed that Honeywell, an American industrial conglomerate, is planning to split into three separate companies, with an official announcement expected as early as Thursday local time.
The aerospace department will be spun off from the automation business, while advances are also being made in the plan to separate the advanced materials division. This decision marks the culmination of nearly a year of business reorganization evaluation by Honeywell’s board and CEO Vimal Kapur.
Meanwhile, pressure is also mounting from activist investor Elliott Investment Management, who is urging Honeywell to follow in the footsteps of General Electric and split its business to boost market value.
It is understood that after General Electric completed its split in 2024, the combined market value of its aerospace, energy, and healthcare businesses has reached four times that of 2022. The aerospace segment alone is now worth up to $215 billion, far exceeding the overall valuation before the split.
Honeywell, a 119-year-old company with a market capitalization of nearly $150 billion, has been facing market pressure due to its long-term poor stock performance. Since taking over as CEO in 2023, Kapur has been reorganizing the business into three major segments: aviation, automation, and energy transition, while expanding the business scope through mergers and acquisitions.
Honeywell plans to complete the split of its automation and aerospace businesses by the second half of 2026, aiming to endow the new companies with greater financial flexibility and more focused management. Currently, aerospace accounts for 40% of Honeywell’s annual revenue, and after the split, this segment is expected to become one of the world’s largest aviation suppliers. Honeywell also intends to continue its mergers and acquisitions, maintaining the investment pace of $10 billion over the past two years to enhance the competitiveness of its core business.
