Honeywell restructures business segments ahead of aerospace spinoff

Honeywell International Inc. (NASDAQ: HON) announced an updated business segment structure as it prepares to spin off its Aerospace Technologies business in the second half of 2026.

The new segmentation will take effect January 1, 2026, with quarterly earnings results beginning in the first quarter. The company will report four segments until the aerospace separation: Aerospace Technologies, Building Automation, Industrial Automation, and Process Automation and Technology.

Following the aerospace spinoff, Honeywell will operate with three reportable segments. Building Automation will focus on fire prevention, controls, access and security solutions for buildings worldwide. Industrial Automation will provide sensor technologies and smart edge devices for industrial applications. Process Automation and Technology will offer automation solutions and process technology for energy and industrial applications.

The aerospace business separation, announced in February 2025, is expected to create what Honeywell describes as one of the largest publicly traded aerospace suppliers. The spinoff is planned to be tax-free to shareholders for U.S. federal income tax purposes.

"Building on its legacy of shaping the future of aviation, Honeywell Aerospace is poised to further solidify its position as a leader in commercial aerospace, defense and space markets," said Vimal Kapur, chairman and CEO of Honeywell.

The restructuring follows Honeywell's earlier announcement to spin off its Advanced Materials business, now called Solstice Advanced Materials, with completion expected October 30, 2025.

After the aerospace separation, the remaining businesses will be led by Billal Hammoud as president and CEO of Building Automation, Peter Lau as president and CEO of Industrial Automation, Jim Masso as president and CEO of Process Automation, and Ken West as president and CEO of Process Technology.

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