Honeywell International Inc (NYSE:HON, ETR:ALD) announced that it has initiated a broad strategic review as part of a planned separation into three independent companies by the end of 2026.
The move is aimed at simplifying the company’s structure and narrowing its operational focus.
The planned split will create separate businesses centered on automation, aerospace, and advanced materials.
Honeywell said the automation segment, covering building, process, and industrial automation, will retain the Honeywell name. The other two units, Solstice Advanced Materials and Aerospace, are expected to be separated in early and late 2026, respectively.
As part of the portfolio review, Honeywell is evaluating strategic alternatives for two business units, Productivity Solutions and Services (PSS) and Warehouse and Workflow Solutions (WWS), which fall outside its core automation focus.
WWS operates under the Intelligrated and Transnorm brands and provides warehouse automation systems, robotics, and related services. PSS focuses on technologies such as barcode scanners, mobile computing devices, and label printing for the logistics sector.
Together, the two businesses generated about $2 billion in revenue in 2024.
Options under consideration include a sale, spin-off, or other forms of separation. Honeywell said there is no guarantee any transaction will take place.
The company said it is also continuing to assess the future of its Aerospace division. That review remains ongoing, and Honeywell previously indicated an update would be provided with its fourth quarter 2024 earnings.
"Today's announcement marks an important milestone in positioning Honeywell for success as a pure-play automation business following our planned Honeywell Aerospace separation next year," Honeywell CEO Vimal Kapur said in a statement.
"With a simpler and more cohesive portfolio that serves the end markets of buildings, process and industrials, Honeywell will focus on our core areas of automation expertise, each of which is exposed to long-term secular growth drivers that position us as a powerful, global automation leader."