Honeywell to split business amid growing demands for aerospace, defense products

US conglomerate Honeywell announced plans to split into three independent companies, separating its automation and aerospace divisions alongside the previously disclosed spinoff of its advanced materials unit.

CEO Vimal Kapur cited “unprecedented demand” in both commercial and defense aerospace as the key reason for making its aerospace business a standalone public company, Breaking Defense reported. The company expects to finalize the separation of its automation and aerospace divisions in the latter half of 2026, pending regulatory approvals, while the advanced materials spinoff is set for late 2025 or 2026.

Honeywell's operations span over a diversified portfolio, with the company classifying their activities into these segments: industrial automation, aerospace technologies and energy transition solutions.

“The creation of three independent, industry-leading companies builds on our strong foundation, allowing each to implement tailored growth strategies and unlock value for shareholders and customers,” Kapur stated. He also emphasized Honeywell’s commitment to portfolio simplification and strategic acquisitions to strengthen each new entity ahead of their public launches.

Honeywell’s aerospace division, which includes its defense operations, will become Honeywell Aerospace, generating $15 billion in revenue in 2024. The unit specializes in aviation technologies such as engines, avionics, and cockpit and navigation systems.

The decision follows a strategic portfolio review by Honeywell’s board and mirrors General Electric’s recent split into three separate businesses, including GE Aerospace, which now houses its defense engine operations.

Honeywell’s aerospace division saw a 14 percent increase in defense and space sales in Q4 2024, driven by strong global demand and supply chain improvements. The company reported $4.9 billion in defense-related revenue in 2023, accounting for approximately 14 percent of its total revenue, according to Defense News’ 2024 ranking of the top 100 defense firms.

By Nazrin Sadigova