Honeywell is to spin-out its aerospace unit as a stand-alone listed business on the back of a strategic review into the future of the industrial conglomerate.
The plan will see the creation of “three publicly listed industry leaders” in aerospace, automation, and advanced materials.
Honeywell says the split will be completed in the second half of 2026. It follows similar moves from United Technologies and General Electric, which split out their aerospace business units to form Raytheon Technologies and GE Aerospace, respectively, as part of wider corporate break-ups.
“The formation of three independent, industry-leading companies builds on the powerful foundation we have created, positioning each to pursue tailored growth strategies, and unlock significant value for shareholders and customers,” says Vimal Kapur, Honeywell chief executive.
Kapur says the company has a “rich pipeline of strategic bolt-on acquisition targets” and will look to “further enhance each business” prior to the spin-outs.
“As aerospace prepares for unprecedented demand in the years ahead across both commercial and defence markets, now is the right time for the business to begin its own journey as a stand-alone, public company,” he adds.
Honeywell’s decision to split into three follows pressure from activist shareholder Elliott Investment Management.
In 2024, Honeywell Aerospace generated $15.4 billion in revenue, up 13% on the $13.6 billion it recorded a year earlier. Profit stood at $3.9 billion, against $3.7 billion in 2023.
Honeywell Aerospace manufactures a range of products, from the T55 turboshaft engines that power the Boeing CH-47 Chinook to advanced avionics and other on-board systems. In recent years, the company has also branched out as a provider of connectivity and flight services solutions.
