Honeywell Embarks on Strategic Transformation to Enhance Growth
Davos, Switzerland - Honeywell International (HON) is undergoing a comprehensive strategic overhaul to position itself as a growth-oriented company. CEO Vimal Kapur, who assumed leadership in 2023, is driving this transformation to align the company's portfolio with growth-oriented end markets and innovate its new product development capabilities.
Following the spin-off of its advanced material business in 2025, Honeywell is now reportedly planning to further divide into two separate publicly traded entities, one focused on automation and the other on aerospace. This move comes amid pressure from activist investor Elliott Management, which holds a significant stake in the company.
"Our processes and operating system work, but there's an opportunity to relook at things," said Kapur. "We're committed to evaluating all value creation options and acting accordingly."
Honeywell's stock has risen 8% since October, but Elliott believes it lags behind the market due to overlapping businesses. Industry analyst Stephen Tusa estimates the company could be worth $330 per share if split up, compared to its current trading price of $223.
The company is expected to provide an update on its plans during its upcoming earnings call on February 6th.