US engineering company Honeywell will divide into three distinct, publicly traded entities by the end of 2026. This strategic restructuring aims to streamline operations and enhance focus on core business areas.
Three New Companies to Emerge
Honeywell Automation, the largest of the three, will concentrate on industrial process automation, representing $18 billion in 2024 revenue. Honeywell Aerospace will operate as a pure-play aerospace technology and components supplier, with $15 billion in 2024 revenue, specializing in business jet software and components. Advanced Materials will focus on sustainable chemicals and materials manufacturing, including metals and composites, generating $4 billion in 2024 revenue.
Spin-off Timeline and Financial Outlook
Honeywell plans to spin off Advanced Materials by the end of 2025 or early 2026. The company will separate the other two companies in the second half of 2026. Honeywell forecasts revenues between $39.6 billion and $40.6 billion for full-year 2025, reflecting up to a 5% increase from 2024 results. Total sales reached $38.5 billion in 2024, up from $36.7 billion in 2023.
Segment Sales Performance
In 2024, Aerospace sales increased by 13% to $15.46 billion, while building automation sales rose by 8% to $6.54 billion. Industrial automation sales, however, declined by 7% to $10.05 billion. Quarterly Aerospace sales increased by 9%, with higher aftermarket and defense sales offsetting a 62% drop in commercial aviation equipment sales. This restructuring will influence the supply and demand for various metals and advanced materials used across these sectors. SuperMetalPrice will closely monitor how this split affects market dynamics.
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