Honeywell to Split Into Three Independent Companies by 2026

Honeywell, one of the last major U.S. industrial conglomerates, announced plans to split into three separate companies in a move aimed at increasing agility and shareholder value. The company will separate its automation, aerospace, and advanced materials divisions, mirroring similar strategic moves made by General Electric and Alcoa in recent years.

CEO Vimal Kapur stated that the breakup will allow each entity to pursue tailored growth strategies and unlock new opportunities. The decision follows pressure from Elliott Investment Management, which holds a significant stake in Honeywell and had advocated for the split.

The spinoff of the advanced materials business is expected to be completed by early 2026, while the automation and aerospace separations will follow in the second half of 2026.

This move reflects a broader trend of breaking up large conglomerates to provide clearer business focus and improved market adaptability. While Honeywell’s stock fell nearly 3% after the announcement, investors anticipate long-term gains from the restructuring.

Source: AP News