A Honeywell office in Atlanta, Georgia, US, on Wednesday, Oct. 25, 2023. Honeywell International Inc. released earnings figures on October 26. Photographer: Elijah Nouvelage/Bloomberg via Getty Images

WASHINGTON — Honeywell will split itself into three separate companies, the company said today as it announced a plan to break up its automation and aerospace businesses in addition to a previously-announced spin off of its advanced materials unit.

“Unprecedented demand” in both commercial and defense aerospace sectors led to the company’s decision to break off that division as a standalone, public company, Honeywell CEO Vimal Kapur said in a statement.

The company plans to complete the separation of its the automation and aerospace businesses in the back half of 2026, pending regulatory approvals. The spin off of its advanced materials business, announced in October, is slated to occur in late 2025 or 2026, the company said.

“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,” Kapur said.

“Our simplification of Honeywell has rapidly advanced over the past year, and we will continue to shape our portfolio to create further shareholder value,” he added. “We have a rich pipeline of strategic bolt-on acquisition targets, and we plan to continue deploying capital to further enhance each business as we prepare them to become leading, independent public companies.”

Honeywell’s defense activities are concentrated inside its aerospace unit, which will be spun off into the standalone Honeywell Aerospace. The business logged $15 billion in revenue in 2024 and produces a laundry list of aviation technologies such as engines, avionics, and cockpit and navigation systems.

The separation plan, which was announced following the completion of a portfolio evaluation led by Honeywell’s board of directors, mirrors the recent breakup of industrial heavyweight General Electric. The legacy GE completed the three-way split of its aerospace, energy and health care businesses last April, with the company’s defense engine business now residing inside GE Aerospace.

The Honeywell split also occurs amid pressure from an activist investor, Elliott Investment Management, which called for the breakup last year, reported The Wall Street Journal.

Elliott Partner Marc Steinberg and Managing Partner Jesse Cohn praised the decision in Honeywell’s statement announcing the move, saying that “the enhanced focus, alignment, and strategic agility enabled by this separation will allow Honeywell to realize the opportunity for operational improvement and valuation upside.”

Defense and space sales in Honeywell’s aerospace unit grew by 14 percent in fourth-quarter 2024 due to “ongoing global demand and further supply chain improvements,” the company said in earnings today.

In 2023, Honeywell made about $4.9 billion in defense-related revenue, or about 14 percent of its overall revenue, according to Defense News 2024 ranking of the top 100 defense companies by revenue.