Honeywell Explores Strategic Alternatives for 2 Units Ahead of Split

Honeywell (HON) on Tuesday said it is evaluating “strategic alternatives” for a pair of its businesses ahead of its plan to split into three separate public companies by the end of next year.

The conglomerate said it is exploring a sale or other alternative for its Productivity Solutions and Services (PSS) and Warehouse and Workflow Solutions (WWS) segments. The PSS division sells barcode scanners and other warehouse technology, while the WWS business provides software and other products for warehouse and supply chain automation. Each unit had around $1 billion in sales in 2024.

The new evaluation of alternatives “will run in parallel with ongoing portfolio workstreams and will not impact previously announced timelines” to spin off its advanced materials and aerospace businesses. The advanced materials business is expected to become its own company by early next year, with the aerospace spin-off set for the second half of 2026.

“With a simpler and more cohesive portfolio that serves the end markets of buildings, process and industrials, Honeywell will focus on our core areas of automation expertise, each of which is exposed to long-term secular growth drivers that position us as a powerful, global automation leader,” Honeywell CEO Vimal Kapur said.

Also on Tuesday, Honeywell said it has hired Jim Masso as CEO of Honeywell Process Automation, effective next Monday. Masso has previously served as CEO of Allied Power Group, and in other executive roles at General Electric.

In May, Honeywell said it had made a deal with Elliott Investment Management after the activist investor built a stake in the company, with an Elliott partner joining Honeywell’s board.

Honeywell shares were little changed in premarket trading Tuesday. They entered the day up about 6% since the start of this year.