Shares of Honeywell International Inc. (HON) plunged 5.66% in pre-market trading on Thursday, February 6, 2025, following the industrial conglomerate's announcement of plans to split into three independent publicly-traded companies.

Honeywell revealed that it will separate its aerospace technologies division from its automation business and spin off its advanced materials unit. The separation is expected to be completed by the second half of 2026, subject to regulatory approval. This move comes after pressure from activist investor Elliott Investment Management.

While the breakup aims to optimize Honeywell's portfolio and unlock shareholder value, the company's guidance for 2025 disappointed investors. Honeywell expects adjusted earnings per share (EPS) to be in the range of $10.10 to $10.50, below the consensus estimate of $10.92. The company also projected sales of $39.6 billion to $40.6 billion, lower than the expected $41.26 billion.

The weaker-than-expected guidance, coupled with the uncertainty surrounding the planned split, appears to have driven Honeywell's stock down sharply in pre-market trading. Investors may be concerned about the potential near-term challenges and complexities associated with the breakup process, despite the potential long-term benefits.