Honeywell Contemplates Aerospace Business Separation

(Reuters) – Honeywell International announced on Monday that its board is contemplating a potential separation of its aerospace business as part of an ongoing review of its business portfolio. This news led to a nearly 3% increase in the conglomerate's shares during premarket trading.

Since assuming leadership last year, Honeywell's CEO Vimal Kapur has been focused on aligning the company’s portfolio with significant trends in automation, aviation, and energy transition.

The board has made notable progress so far and plans to provide further updates when it releases its fourth-quarter results.

This review was prompted by activist investor Elliott Investment Management, which, after acquiring a stake worth over $5 billion in November, called for the separation of Honeywell's aerospace and automation units.

Elliott expressed confidence in the portfolio transformation led by Vimal and his team, stating it reflects the right strategy for Honeywell.

Additionally, in November, Honeywell announced it would sell its personal protective equipment business to Protective Industrial Products for approximately $1.33 billion in cash. The company also acquired Carrier's security business for $4.95 billion and aerospace and defense firm CAES Systems for $1.9 billion as part of its broader strategic shifts.