Honeywell’s board of directors today revealed the results of a business portfolio evaluation that began a year ago and plans for a full separation of Automation and Aerospace Technologies. This follows a previously announced plan to spin off Advanced Materials. The three companies will be separate and publicly listed, and the separation is expected to take place in the second half of 2026.

Although the evaluation started a year ago, the breakup of Honeywell is believed to have accelerated following a $5 billion investment last year by Elliott Investment Management funds and a letter sent Nov. 12, 2024, to the Honeywell board “calling for a simplification of Honeywell’s conglomerate structure.”

Aerospace Technologies will continue to build on the division’s propulsion, cockpit and navigation systems, and auxiliary power systems products. Aerospace had revenues of $15 billion in 2024 and “will be one of the largest publicly traded, pure-play aerospace suppliers, with leading positions in technology and systems that will continue to deliver the future of aviation through increasing electrification and autonomy of flight,” according to Honeywell.

Splitting into three companies will simplify strategic focus; add greater financial flexibility, enabling pursuit of growth opportunities; improve tailoring of capital allocation priorities; enable focused boards and management teams with deep domain expertise; and result in distinct investment profiles for each company that will unlock long-term shareholder value, the company said.

“As Aerospace prepares for unprecedented demand in the years ahead across both commercial and defense markets, now is the right time for the business to begin its own journey as a standalone public company,” said Honeywell chairman and CEO Vimal Kapur. “Today’s announcement is the culmination of more than a century of innovation and investment in leading technologies from Honeywell Aerospace that have revolutionized the aviation industry several times over. This next step will further enable the business to continue to lead the future of aviation.”