Honeywell International Considers Divesting Aerospace Business

Business Transformation Strategy - The company is actively following a business transformation strategy aimed at unlocking value for shareholders, with significant progress on the possible spinoff of its Aerospace business [1] - The company plans to realign its business segments to three megatrends: automation, the future of aviation, and energy transition, which is expected to optimize its business portfolio and deliver sustained growth [2] Strategic Acquisitions - The company acquired Civitanavi Systems S p A for about €200 million ($217 million) to boost its aerospace navigation solutions portfolio [3] - The company acquired CAES Systems Holdings to augment its defense technology offerings across land, sea, air, and space domains [3] - The company acquired Air Products' liquefied natural gas (LNG) process technology and equipment business for$1 81 billion to enhance its energy transition portfolio [4] - The company acquired Carrier's Global Access Solutions business for $4 95 billion to expand its security products portfolio and boost its building automation segment [4] Divestitures and Spin-offs - The company plans to divest its Advanced Materials business and has entered into a deal to spin off its Personal Protective Equipment unit as part of its business portfolio transformation strategy [5] Financial Performance - The company's stock has gained 15% in the past year, outperforming the industry's 9% decline [7] - The company is benefiting from strength in its commercial aviation aftermarket business, driven by solid demand in the air transport and business aviation markets [6] - The company has been witnessing weakness in the warehouse and workflow solutions businesses due to lower demand for projects, affecting the Industrial Automation segment's performance [7] Industry Comparison - Federal Signal Corporation (FSS) carries a Zacks Rank 2 (Buy) and delivered a trailing four-quarter average earnings surprise of 11 8%, with a 3 1% increase in the Zacks Consensus Estimate for 2024 earnings in the past 60 days [8] - Zurn Elkay Water Solutions Corporation (ZWS) carries a Zacks Rank of 2 and delivered a trailing four-quarter average earnings surprise of 8 5%, with a 2 5% increase in the consensus estimate for 2024 earnings in the past 60 days [9][10] - RBC Bearings Incorporated (RBC) carries a Zacks Rank of 2 and delivered a trailing four-quarter average earnings surprise of 2 5%, with a 0 5% increase in the consensus estimate for fiscal 2025 earnings in the past 60 days [10][11]