Honeywell considers spinning off aerospace business with potential value of $90-$120 billion

From Investing.com: 2024-12-16 08:05:39

Honeywell is considering separating its aerospace business, backed by activist investor Elliott. The company, under CEO Vimal Kapur, has focused on automation, aviation, and energy. Despite underperforming, shares rose by 3.2% in pre-market trading. Analysts predict the aerospace unit could be valued between $90-$120 billion.

Elliott welcomed Honeywell’s announcement, supporting the portfolio transformation. Honeywell’s aerospace unit, with clients like Boeing and Airbus, reported revenue of $13.62 billion in 2023. A potential spinoff would follow GE’s move in 2021. Honeywell sold its protective equipment business and acquired other firms as part of its shift.

In the first nine months of 2024, Honeywell’s aerospace business generated $11.47 billion in revenue, comprising 40% of total sales. The company’s strategic review progress will be updated with Q4 results. The aerospace business has thrived amid jet production increases, with a rising demand for repairs expected due to a shortage of planes.



Read more at Investing.com: Honeywell considers spinning off its aerospace business amid Elliott’s breakup push By Reuters