Honeywell to Separate Into Three Companies: Here’s Why!

Honeywell plans to split into three companies to enhance growth in automation, aerospace, and advanced materials, aiming for a more focused structure by 2026.

honeywells big breakup three new companies to launch by 2026 following general electric and alcoa

Honeywell International Inc., a big industrial company in the U.S., has decided to separate into three different companies. This choice comes after other large companies, like General Electric and Alcoa, made similar moves. So, why is Honeywell splitting up?

The goal is to make each new company more flexible and focused. By dividing its businesses—automation, aerospace, and advanced materials—Honeywell thinks each can work better and grow in a more tailored way. CEO Vimal Kapur says this change will help make more value for shareholders and customers.

In November 2024, a company called Elliott Investment Management invested over $5 billion in Honeywell. They suggested that Honeywell should simplify its structure, which helped influence this decision. Honeywell plans to finish the split of its automation and aerospace businesses by the second half of 2026, while the advanced materials business will spin off by the end of this year or early next year.

After making the announcement, Honeywell’s stock (shares) dropped by almost 3% before the market opened. This move reflects a growing trend among U.S. companies to streamline operations and focus more on specific markets.

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