Honeywell CEO: Driving Growth Through A New Business Launch

Global manufacturing company Honeywell has completed the spin off of its Advanced Materials business, which is now operating as Solstice Advanced Materials.

Honeywell says this a significant step forward in its strategy to create three independent businesses and pursue growth in automation, aerospace and advanced materials.

Discussing the evolution, Vimal Kapur, Chairman and CEO of Honeywell, says: “The completion of this spin off marks a major advancement in Honeywell’s transformation to become three independent, industry-leading companies with distinct strategies and growth drivers.

“It reflects disciplined execution and reinforces our belief that a more focused portfolio will position Honeywell to deliver greater long-term value for shareowners, and seize new opportunities to address modern challenges for our customers.”

The spin off was completed on 30 October through the distribution of all the issued and outstanding shares of Solstice common stock to Honeywell shareowners.

According to the company, this is on the basis of one share of Solstice common stock for every four shares of Honeywell common stock held as of the close of the business on 17 October 2025.

In a post on LinkedIn, Vimal shared the news of Solstice Advanced Materials operating as an independent, publicly traded company: “Their passion, innovation and dedication have played a vital role in Honeywell’s success and their legacy will always be a part of our story.

“Congratulations to David Sewell and the Solstice team, we look forward to watching all that you achieve in this exciting new chapter.”

Creating three independent companies

Vimal added: “This transition is a key step in Honeywell’s transformation into three independent, industry-leading companies, each with distinct strategies, growth drivers and customer focus.

“It reflects our disciplined execution and reinforces our belief that a more focused portfolio will unlock greater long-term value for shareowners and better position us to meet the evolving needs of our customers.”

This decision-making process began in October 2024, when Honeywell communicated its intention to spin off its Advanced Materials business.

Fast-forward to February 2025 and the company announced the completion of a one-year comprehensive portfolio review launched by Vimal, which also resulted in the decision to separate its Automation and Aerospace businesses.

The idea, according to the company, is that Honeywell Automation will be an automation leader “solving the world’s most complex problem and powering digital transformation globally”.

Honeywell describes Honeywell Aerospace, one of the largest aerospace providers, as a “premier technology and systems provider” for all forms of aircraft. 

Honeywell Automation reported annual revenue in 2024 of US$18bn and Honeywell Aerospace reported US$15bn.

Enhancing shareholder benefit 

Honeywell outlines the value that stakeholders will benefit from with the company separation, including:

• Simplified strategy focus
• Greater financial flexibility for distinct organic growth opportunities throughout investment cycles
• Improved ability to tailor capital allocation priorities in alignment with strategic focus 
• Focused Board of Directors and management teams for each sector with deep expertise
• Distinct investment profiles that position each company, unlocking greater long-term value

At the time of the February 2025 announcement, Elliott Management Partner Marc Steinberg and Managing Partner Jesse Cohn said: “Honeywell will be separating its Automation and Aerospace businesses into market-leading enterprises poised for sustained growth and value creation.

“The enhanced focus, alignment and strategic agility enabled by this separation will allow Honeywell to realise the opportunity for operational improvement and valuation upside.”