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Where Will Honeywell Be in 1 Year?
HONHoneywell(HON) The Motley Fool·2025-03-02 10:14

Core Insights - Honeywell is a 130billionmarketcapindustrialconglomerateoperatinginvarioussectorsincludingautomation,aerospace,andadvancedmaterials[1]−Thecompanyisplanningtobreakitselfupintothreeseparateentities,followingatrendseeninotherindustrialconglomerateslikeGeneralElectric[3][4]−Thebreakupisexpectedtobecompletedinthesecondhalfof2026,resultinginthreedistinctcompaniesfocusingontheircorebusinesses[4][10]CompanyOverview−Honeywellisclassifiedasanindustrialcompanybutfunctionsmoreasanindustrialconglomeratewithdiversebusinessoperations[2]−Thecurrentmarkettrendfavorsbreakingupconglomeratesintospecializedcompaniesratherthanmaintaininglarge,diversifiedentities[3]BreakupDetails−ThebreakupplanincludestheseparationofHoneywell′sadvancedmaterials,aerospace,andautomationbusinesses[4]−HoneywellAutomationisprojectedtogenerate130 billion market cap industrial conglomerate operating in various sectors including automation, aerospace, and advanced materials [1] - The company is planning to break itself up into three separate entities, following a trend seen in other industrial conglomerates like General Electric [3][4] - The breakup is expected to be completed in the second half of 2026, resulting in three distinct companies focusing on their core businesses [4][10] Company Overview - Honeywell is classified as an industrial company but functions more as an industrial conglomerate with diverse business operations [2] - The current market trend favors breaking up conglomerates into specialized companies rather than maintaining large, diversified entities [3] Breakup Details - The breakup plan includes the separation of Honeywell's advanced materials, aerospace, and automation businesses [4] - Honeywell Automation is projected to generate 18 billion in revenue in 2024, focusing on productivity-enhancing technologies [6] - Honeywell Aerospace is expected to generate 15billioninrevenuein2024,providingtechnologyandsolutionsforcommercialtravelanddefense[7]−TheAdvancedMaterialsspinoffisthesmallest,withprojectedrevenueof15 billion in revenue in 2024, providing technology and solutions for commercial travel and defense [7] - The Advanced Materials spinoff is the smallest, with projected revenue of 4 billion in 2024, specializing in specialty chemicals and materials [8] Strategic Goals - The primary goal of the breakup is to allow each new company to concentrate on its core business, potentially improving performance by reducing competition for capital and management attention [9] - The outcome of the breakup remains uncertain, as the success of each new entity will depend on various factors post-separation [10]