MW Honeywell confirms plan to split into three companies, but stock turns lower

By Barbara Kollmeyer and Tomi Kilgore

CEO says separation should unlock 'significant' shareholder value, but stock falls after a downbeat profit outlook

Shares of Honeywell International Inc. turned lower Thursday, after the multinational conglomerate confirmed a plan to split itself into three independent companies but also provided a disappointing earnings outlook.

Honeywell said it will pursue a full separation of its automation and aerospace technologies businesses, and will continue with its previously announced plan to spin off its advanced-material arm. The separations are expected to be completed in the second half of 2026.

"The formation of three independent, industry-leading companies builds on the powerful foundation we have created, positioning each to pursue tailored growth strategies, and unlock significant value for shareholders and customers," said Chief Executive Vimal Kapur.

The stock initially rose, as much as 6.5% in the premarket, after the Wall Street Journal reported the plan. But at the same time the company confirmed the separation plan, it also reported fourth-quarter results, which included a 2025 profit outlook that was below expectations.

Honeywell's stock $(HON)$ dropped 5.6% toward a three-month low in recent premarket trading.

Honeywell announced plans to spin off the advanced-materials business last October. In November, activist investor Elliott Investment Management disclosed a $5 billion stake in the company, urging Honeywell to turn its aerospace and automation businesses into separate companies. Weeks later, the company said it was looking at spinning off the aerospace unit.

Separately, the company said it expects 2025 adjusted earnings per share of $10.10 to $10.50, while analysts surveyed by FactSet were expecting $10.92, on average.

The company also expects 2025 sales of $39.6 billion to $40.6 billion, which was below the FactSet sales consensus of $41.3 billion.

Meanwhile, adjusted EPS and sales for the fourth quarter both exceeded analyst expectations.

-Barbara Kollmeyer -Tomi Kilgore

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February 06, 2025 06:40 ET (11:40 GMT)

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