Honeywell's Strategic Evaluation of Business Segments
Honeywell, a prominent player in the automation industry, announced its intent to evaluate strategic alternatives for its Productivity Solutions and Services (PSS) and Warehouse and Workflow Solutions (WWS) units. This move is part of a broader effort to streamline operations and maximize shareholder value ahead of the planned separation of its business into three independent entities, expected to occur in the latter half of 2026.
The Rationale Behind the Move
The decision to assess alternatives for PSS and WWS signifies Honeywell's commitment to simplifying its business portfolio. According to Vimal Kapur, Honeywell's Chairman and CEO, this step represents a critical milestone in positioning the company as a pure-play automation entity. The focus will shift towards areas including building automation, process automation, and related technologies, aligning with long-term growth trends in the sector.
PSS, which generated over $1 billion in revenue in 2024, is recognized for providing advanced mobile computing solutions, barcode scanners, and printing systems primarily for the warehouse and logistics markets. On the other hand, WWS, with nearly $1 billion in 2024 revenue, excels in supply chain automation and warehouse optimization, offering solutions such as automated sortation systems and robotics, operating under well-known brands like Intelligrated and Transnorm.
Kapur emphasized the strengths of both PSS and WWS, noting their extensive customer relationships and innovative technologies. Honeywell aims to build on these strengths during this evaluation, seeking pathways that maximize value for stakeholders.
New Leadership Appointments
Concurrently, Honeywell is restructuring its leadership to enhance operational focus. Jim Masso, an industry veteran with two decades of expertise in project management and energy services, has been appointed as the President and CEO of Honeywell Process Automation, effective July 14, 2025. Masso’s experience, particularly his previous roles at General Electric, positions him well to drive growth and innovation within this key segment of Honeywell's business.
Strategic Alternatives and Future Prospects
The evaluation for strategic alternatives will occur alongside ongoing efforts to reshape Honeywell's portfolio. Currently, the company has also initiated several impactful strategic actions aimed at driving organic growth and reducing complexity. This includes a series of strategic acquisitions totaling $14 billion, which encompass various sectors and enhance its operational capabilities.
Despite the positive outlook, the company cautions that the review of strategic alternatives does not guarantee a specific outcome or transaction. Honeywell has engaged Centerview Partners as its financial advisor to assist in this evaluation process.
Conclusion
With a clear focus on automation and innovation, Honeywell is positioning itself for a future where it can operate with increased precision and market agility. As the company looks to finalize its separation into distinct entities, stakeholders can anticipate a more focused strategy that embraces technological advancements and operational excellence within the automation landscape. Honeywell continues to reaffirm its commitment to solving some of the world's most complex challenges through its integrated operating model, ensuring a smarter and safer world.
To keep updated on Honeywell’s moves and their effects on the automation and technology sectors, visit
Honeywell Newsroom.