Elliott Investment Management calls for breakup at Honeywell

WEST PALM BEACH, Fla. — Activist investor group Elliott Investment Management has built a $5 billion dollar investment in Honeywell International inc. and is calling for the company to simplify its conglomerate structure.

In a letter addressed to the Honeywell board of directors, Elliott outlined that while the company has been an “…iconic pillar of the American industrial complex,” it has recently shown signs of inconsistent financial performance and uneven execution leading to a diminished value for Honeywell.

“The conglomerate structure that once suited Honeywell no longer does, and the time has come to embrace simplification,” it read. “Our letter today outlines why we believe Honeywell should separate into two standalone companies – Honeywell Aerospace and Honeywell Automation – to create two sector leaders better positioned to thrive operationally, serve customers and employees, and create long-term value for shareholders.”

The investment group believes that Aerospace and Automation as separation entities would be sector leaders and better positioned to thrive operationally.

In its recent third quarter financial report Honeywell revealed that segment profit increased year over year by 6% owing to the performance of Aerospace Technologies and Access Solutions acquisition. Both aerospace and automation are two of three megatrends that Honeywell said it was reorganizing to focus on more than a year ago.

“As we continue to simply our portfolio, and shape it around these compelling megatrends, we have made several significant additions in the last year, committing about $9 billion toward high-growth acquisitions,” CEO Vimal Kapur wrote in October 2024 when the company spun off its advanced material business. Honeywell has pledged over $25 billion towards toward high-return capital expenditures, dividends, opportunistic share purchases and accretive acquisitions.

Elliott has requested a meeting with Honeywell.