Honeywell details company restructuring

CHARLOTTE, N.C.—Honeywell’s Q4 and full-year 2024 results met or exceeded updated guidance, but during a recent conference call, that performance took a back seat to the announcement of a companywide restructuring.  

During the call on Feb. 6, the company announced it intends to separate its Automation and Aerospace Technologies business units as part of a comprehensive portfolio evaluation that was launched a year ago by Chairman and CEO Vimal Kapur and was recently completed. The separation, coupled with the previously announced plan to spin off Advanced Materials, will result in three publicly listed companies with distinct strategies and growth drivers.  

“We believe the results of our strategic assessment provide clear direction for the future of Honeywell,” Kapur told investors. “We remain very focused on delivering on our commitment and we'll continue to identify ways to further shape our portfolio and create shareholder value.”  

Honeywell intends to complete the separation in the second half of 2026.   

Kaupr noted the separation builds on the “operational and digital foundation” Honeywell has created over the past two decades and the series of strategic actions it has taken over the past year to dramatically simplify the company.  

“This is the logical next step to bring the portfolio to the next phase of transformation and unlock incremental value,” he explained. “We believe the planned separation of Automation, Aerospace and Advanced Materials will benefit all stakeholders and position all three stand-alone companies for long-term profitable growth. The path will enable three pure-play companies to pursue simplified go-forward strategies that are clearly aligned to the unique purpose of each business and to address the specific needs of their end markets.” 

Kapur discussed the value proposition of Honeywell Automation, in particular, noting that cutting-edge controls in automation technology have been the foundation for Honeywell for a century.  

“As a stand-alone, $18 billion business, Honeywell Automation's global scale, deep domain expertise and long-lasting technology leadership positions can tackle the world's most complex problems and power digital transformation on a global level,” he stated. “The rapid advancement in automation technologies is enabling the manufacturing sector to unlock valuable new sources of efficiency through cloud, connectivity, and advanced analytics.”  

Looking ahead, Honeywell expects 2025 sales of $39.6 billion to $40.6 billion, with organic sales growth in the range of 2% to 5% and adjusted earnings per share of $10.10-$10.50, up 2%-6%.  

"We delivered a strong end to a successful year, exceeding the high end of our guidance for fourth quarter sales and adjusted earnings per share while navigating a dynamic operating environment," Kapur said. "As we look toward 2025, I am confident that our revitalized portfolio optimization strategy, established history of operational excellence, and robust installed base will unlock further value creation for our shareholders, customers, and employees."