Honeywell to Split Up Aerospace, Automation Businesses

The firm on Thursday said it will fully separate its aerospace and automation units in the second half of 2026, following previously announced plans to spin off its advanced materials business later this year. The result will be three independent companies, each dedicated to a different sector. The aerospace business, which generated $15 billion in revenue for Honeywell last year, will remain headquartered in Phoenix.

“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 Vimal Kapur, chairman and CEO of Honeywell, in a news release.

Kapur said the move is intended to simplify each business and accelerate growth. He added that Honeywell has a “rich pipeline of strategic bolt-on acquisition targets” for all three businesses.

Honeywell had said in December that it was contemplating an aerospace spinoff partially due to pressure from activist investor Elliot Investment Management, which bought a $5 billion stake in the firm.

The aerospace business provides components, systems, and services for commercial and general aviation, defense, helicopters, and business aircraft. It even serves spacecraft and advanced air mobility (AAM) aircraft such as electric vertical takeoff and landing (eVTOL) air taxis. In 2023, Honeywell said its AAM business had racked up more than $10 billion in contracts.

"From a supply chain angle, the decision lets each business focus on what it does best without getting bogged down by the demands of unrelated segments," Ivan Kudrenko, senior supply chain analyst at Boeing, told FLYING. "For instance, the aerospace unit can now craft a supply strategy that meets its unique standards and requirements."

Among Honeywell Aerospace’s customers are Boeing, Airbus, Textron Aviation, Lockheed Martin, and other industry titans. The unit has secured billions of dollars in U.S. Department of Defense contracts. It is also aiding the development of potentially groundbreaking designs from Boom Supersonic, Pipistrel, Heart Aerospace, Archer Aviation, and other manufacturers building electric or autonomous aircraft.

“This next step will further enable the business to continue to lead the future of aviation,” Kapur said.

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