Honeywell plans split into three companies amid aerospace demand

Honeywell International Inc. announced its plan to split into three independent companies focused on automation, aerospace, and advanced materials, driven by a strategic review and pressure from activist investor Elliott Management. CEO Vimal Kapur highlighted unprecedented demand in both commercial and defense aerospace as a key factor for creating a standalone aerospace entity, which is expected to generate $15 billion in revenue in 2024. The separation aims to enhance shareholder value and allow each new entity to implement tailored growth strategies. The restructuring mirrors recent moves by other industry giants, such as General Electric, and is anticipated to be completed by late 2025 or 2026. Bombardier CEO Eric Martel endorsed the split, suggesting that increased focus is beneficial for the companies involved. This decision reflects a broader trend of disaggregation among conglomerates in the aerospace sector, aiming for clearer performance transparency and management focus.