Honeywell Explores Spinoff of Aerospace Division

The company is assessing the separation of its largest and most profitable unit following pressure from activist investor Elliott Investment Management.

Honeywell's board is conducting a strategic review of its business portfolio, considering a spinoff of its aerospace division into a standalone entity.
Elliott Investment Management, which holds a $5 billion stake in Honeywell, has advocated for the breakup to streamline operations and unlock shareholder value.
The aerospace segment accounts for over one-third of Honeywell's net sales and 45% of its profits, serving major clients like Boeing, Airbus, and Lockheed Martin.
Honeywell plans to provide a detailed update on the potential spinoff during its fourth-quarter earnings report in late January 2025.
Shares of Honeywell rose by over 3% following the announcement, reflecting investor optimism about the proposed restructuring.

Investor's Business Daily