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Honeywell Announces New Business Segment Structure

On October 22, 2025, Honeywell (NASDAQ: HON) shared a significant update regarding its business organization as it prepares for the anticipated separation of its Aerospace Technologies division set for the second half of 2026. This move is aimed at enhancing operational efficiency and value creation across its core segments.

Strategic Evolution Ahead of Spin-Off

The restructuring signifies a pivotal moment for Honeywell as it gears up to spin off its Aerospace unit, forecasting it to become one of the largest publicly traded aircraft suppliers. This independent entity intends to harness advanced technologies and maintain robust positions in aviation technology and systems, delivering future-focused solutions that enhance electrification and flight autonomy. Currently, Honeywell's Aerospace products and services are integrated into virtually every commercial and defense aircraft worldwide, encompassing an array of offerings from aircraft propulsion systems to navigation devices.

This new business segmentation will come into effect starting January 1, 2026, marking a strategic shift where Honeywell will report four key segments: Aerospace Technologies, Building Automation, Industrial Automation, and Process Automation and Technology. Such reorganization is designed to streamline operations and position Honeywell for long-term growth and profitability.

Focused Segments for Long-Term Growth

Post-spin-off, Honeywell’s adjusted segments reflect its commitment to innovation and client service in essential areas:

1. Building Automation (BA)

Honeywell is at the forefront of transforming how buildings operate through innovative solutions in fire prevention, controls, and security systems. Its integrated building automation solutions utilize advanced hardware, software, and sensor analytics, converting buildings into safe, connected, and sustainable infrastructures.

2. Industrial Automation (IA)

With a broad spectrum of critical offerings, Honeywell's IA segment is fundamental to the industrial automation landscape. This includes high-performance sensor technologies and edge devices that provide reliable connectivity across diverse applications, fostering operational excellence.

3. Process Automation and Technology (PAT)

Honeywell leads the market with comprehensive automation solutions that streamline production lifecycles. Its PAT portfolio is geared toward enhancing the efficiency and reliability of industrial processes, promoting sustainable practices and emissions reduction.

Following the separation, key executives will continue to lead their respective segments: Billal Hammoud for Building Automation, Peter Lau for Industrial Automation, Jim Masso for Process Automation, and Ken West for Process Technology, all under the leadership of Vimal Kapur as Chairman and CEO.

Outlook and Future Vision

Honeywell's decision to spin off its Aerospace business aligns with a broader strategy to focus on automation and connect various sectors with digitized solutions. Kapur emphasized that this realignment is crucial as Honeywell maximizes its vast data and technology leverage developed over decades. He stated, “The wealth of data we now have access to from our massive global installed base is unprecedented in the industrial sector – and today, we are evolving to unlock the power of that data.”

In addition to setting the stage for Honeywell Aerospace’s emergence in a thriving market, this structured approach underscores Honeywell's commitment to lead in industrial automation, connecting people and processes to drive the future of work. Through its advanced technologies, Honeywell aspires to address complex challenges faced by customers while contributing to a connected future, setting industry standards in safety, security, and sustainability.

As these transformative plans unfold, stakeholders can look forward to a significant evolution in Honeywell's business strategy aimed at enhancing market responsiveness and fostering innovation across its service offerings, thereby reinforcing its status as a key player in the global industrial narrative.

For more details about Honeywell's ongoing developments, visit Honeywell's official newsroom.