Honeywell(HON) Investopedia·2025-02-06 13:46Core Viewpoint - Honeywell International plans to split into three independent companies to enhance strategic focus and financial flexibility, following a trend among conglomerates and pressure from activist investors [2][3][4]. Company Strategy - The separation will involve splitting the aerospace division from the automation business and spinning off the advanced-materials arm, with completion expected by the second half of 2026 [3][4]. - CEO Vimal Kapur emphasized that the breakup aims to create industry-leading companies with tailored growth strategies and significant value for shareholders and customers [4]. Financial Performance - Honeywell reported fourth-quarter revenue of 2.47, which exceeded Visible Alpha estimates [4]. - However, the reported EPS of 10.10 and $10.50, representing a growth of 2% to 6% [4]. Market Context - The breakup announcement follows General Electric's successful three-way split last year, which significantly increased the market value of its separated units [5]. - Honeywell shares have increased by 15% over the past year, indicating positive market sentiment despite the recent volatility in premarket trading [2][5].