Honeywell International (HON, Financial) saw its shares slip more than 5% after revealing its three-way company split into Honeywell Automation, Honeywell Aerospace, and Advanced Materials on Thursday. Honeywell International announced its restructuring right after Elliott Investment Management invested more than $5 billion to pressure Honeywell for enhanced shareholder value.
The new CEO, Vimal Kapur, announced that three autonomous divisions would emerge following the company split, which would implement distinct growth approaches to enhance operational performance and market valuation. The company delivered a 6.9% growth in Q4 yearly revenue to hit $10.1 billion, yet EPS decreased 8.2% to $2.46 below market predictions. Honeywell's projected financial data of $39.6 billion to $40.6 billion in annual revenue and $10.10 to $10.50 in earnings per share for fiscal 2025 does not reach the targets estimated by Wall Street analysts who predicted $41.3 billion in revenue and $10.91 per share earnings.
CFRA Research said that they supported their “Buy” rating but that such emerging uncertainties regarding tariffs as well as rising interest rates could continue to harm the stock's performance. Investors, meanwhile, have to take into account the current market turmoil when taking a look at the second half of 2026 planned separation between Honeywell Aerospace and Honeywell Safety and Productivity, whose clearance is required.
