Honeywell International Inc., one of the last remaining U.S. industrial conglomerates, is considering a strategic shift that could reshape its future.

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Honeywell Aerospace develops advanced technologies for a wide range of applications, including jet engines, flight control systems, and avionics. Its clientele features some of the biggest names in aviation, like Boeing and Airbus, along with defense and space industries like Lockheed Martin and SpaceX. The company is exploring a spinoff of its aerospace division, its largest segment by revenue, accounting for 40% of total sales in 2024.

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This valuation and potential impact of the spinoff were noted by analysts cited in Reuters and Barclays, who estimate Honeywell Aerospace as a standalone business could be valued between $90 billion and $120 billion, reflecting its strategic importance and market potential. The improved operational focus and management benefits were also highlighted by Elliott Investment Management in their call for the separation, making it an attractive proposition for investors.

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