Honeywell to Split into Three Publicly Traded Companies by 2026

Honeywell

The Move Will Create Three Distinct Entities Focused on Aerospace, Automation, and Advanced Materials

US-based engineering giant Honeywell announced plans to split into three independent publicly traded companies by the end of 2026. The decision marks a major shift in the company’s structure, with each new entity focusing on a different industry segment, including automation, aerospace, and advanced materials.

Honeywell Automation: The Largest Entity Focused on Industrial Automation

Honeywell Automation will be the largest of the three new companies, expected to generate $18 billion in revenue in 2024. This segment will continue its emphasis on automating industrial processes, with a focus on technological innovations that streamline operations across various sectors.

The company aims to expand its reach in the automation space, which is seeing rapid growth due to increasing demands for efficiency in industrial production. Honeywell Automation's size and revenue projections underline its dominant role in this evolving market.

Honeywell Aerospace: A Pure-Play Aerospace Technology Provider

The second company, Honeywell Aerospace, will operate as a pure-play aerospace technology and components supplier. It is expected to generate $15 billion in revenue in 2024. Honeywell Aerospace has a rich history, having delivered 72,000 engines since 1959. The division is currently focused on providing software and components for business jets, which is a growing market segment.

The aerospace sector remains a critical pillar of Honeywell’s portfolio, and the company’s emphasis on innovation in aerospace technology will likely continue to drive revenue growth. This division will now operate independently, allowing for more targeted investments and strategic growth in the aerospace field.

Honeywell Advanced Materials: A Focus on Sustainability and Innovation

The third company, Honeywell Advanced Materials, will focus on manufacturing chemicals and materials, including metals and composites, with a sustainability-driven approach. The division earned $4 billion in revenue in 2024 and will continue to drive advancements in materials science.

Honeywell plans to spin off Advanced Materials by the end of 2025 or early 2026, creating an entity that is dedicated to meeting growing global demand for sustainable materials, particularly in the fields of energy, construction, and manufacturing. This move will allow the division to focus solely on creating and supplying innovative materials for industries aiming to reduce their environmental footprint.

Financial Outlook and Industry Response

Honeywell forecasts revenues of $39.6 billion to $40.6 billion for 2025, reflecting a potential 5% increase from its 2024 results. The company’s total sales reached $38.5 billion in 2024, up from $36.7 billion in 2023. Aerospace sales rose by 13% to $15.46 billion in 2024, while building automation grew by 8% to $6.54 billion. However, industrial automation saw a 7% decline, with total sales falling to $10.05 billion.

Despite fluctuations in its industrial automation sector, Honeywell’s overall performance reflects growth in key areas, particularly in aerospace and building automation. The upcoming restructuring is expected to allow each division to target its core markets more effectively, potentially driving further growth.

Honeywell Defense Manufacturing Investment Boosts US Munitions Supply Chain

Honeywell

Honeywell defense manufacturing investment will expand US production capacity for components used in munitions platforms. Honeywell Aerospace Technologies plans to invest $500 million under a multiyear framework supply agreement with the US Department of Defense.

The investment will modernize and expand Honeywell’s manufacturing capabilities for navigation systems and actuators used in missiles. It will also support production of components linked to the company’s electronic warfare technology.

Honeywell defense manufacturing investment reflects a broader push to strengthen the US defense industrial base. The Pentagon is trying to secure faster, more reliable access to critical systems as munitions demand rises across the military supply chain.

Pentagon Supply Strategy Targets Faster Defense Production

The agreement forms part of the Department of Defense’s “Arsenal of Freedom” initiative. The program aims to streamline procurement and accelerate product acquisition by working more closely with private defense equipment and systems suppliers.

This approach matters because defense supply chains depend on specialized components with long qualification cycles. Navigation systems, actuators, missile components, and electronic warfare hardware require precision manufacturing, secure sourcing, and stable production capacity.

Honeywell’s investment therefore supports more than one product category. It strengthens the industrial infrastructure behind missiles, guided systems, and electronic warfare platforms at a time when defense readiness is becoming a manufacturing capacity issue.

Critical Minerals Demand Rises With Munitions Expansion

Honeywell defense manufacturing investment also has direct implications for critical minerals demand. Higher output of missiles, sensors, guidance systems, and electronic warfare components can increase demand for rare earths, germanium, tungsten, and other strategic materials.

Rare earths support high-performance magnets, sensors, and electronic systems. Germanium is important for infrared optics, semiconductors, and defense electronics, while tungsten is used in high-density, heat-resistant, and armor-related applications.

As the US expands munitions production, supply security for these materials will become increasingly important. Defense manufacturing growth will therefore reinforce the link between industrial policy, critical mineral access, and domestic processing capability.

The Metalnomist Commentary

Honeywell’s $500 million investment shows that defense production is becoming a critical minerals story as much as a manufacturing story. The US can accelerate munitions output only if component capacity and strategic material supply move together.

EASA Certification of Comac C919 Could Take Up to Six Years, Delaying Global Expansion

Comac C919

European Approval for China’s Flagship Jet Hinges on Extended Evaluation Timeline

The EASA certification of Comac C919 will require between three and six years, according to the European Union Aviation Safety Agency. The announcement underscores the regulatory hurdles facing China’s flagship single-aisle jet, which is currently certified only by the Civil Aviation Administration of China (CAAC). Without EASA approval, Comac’s C919 remains restricted to domestic operations, limiting its global commercial ambitions.

International Components, Domestic Ambitions

The C919 incorporates key systems from global suppliers, including CFM International’s LEAP-1C engine, avionics from Honeywell, GE Aerospace, and Collins Aerospace, and structural parts from various European and American firms. Despite this reliance on international technologies, EASA insists that it must independently verify the aircraft’s integration and design before granting certification. Comac has been commended for its transparency and proactive engagement with regulators.

Certification Timeline Reflects Political and Technical Complexities

The extended timeline for EASA certification of Comac C919 reflects both technical scrutiny and geopolitical realities. Comac’s absence from the FAA certification process indicates a strategic focus on Europe as its primary overseas market. However, in a protectionist trade environment, market access remains uncertain. As Comac seeks to challenge Airbus and Boeing in international markets, regulatory acceptance becomes a critical barrier.

The Metalnomist Commentary

The EASA certification of Comac C919 will be a litmus test for China’s global aerospace ambitions. While technical hurdles are expected, geopolitical headwinds may ultimately shape how far Comac can go in Western markets.

Titanium Exempt from New US Reciprocal Tariffs Amid Broader Aerospace Uncertainty

Titanium Ingot

Titanium Scrap and Alloys Dodge Latest Tariff Wave, but Market Unease Persists

Titanium and its derivatives, including scrap and ferro-titanium, were notably exempted from the latest round of US reciprocal tariffs announced on April 2. Annex II of President Donald Trump’s executive order outlined the list of exemptions, sparing various nonferrous metals, including titanium, from additional duties.

However, existing tariffs on titanium products remain unchanged. These include a 60% duty on Chinese titanium sponge and a 15% duty on unwrought titanium from Japan, Kazakhstan, and Saudi Arabia. While titanium scrap imports from the EU and UK are also exempt, pre-existing duties—such as the 20% tariff on Chinese titanium added in March—still apply.

Meanwhile, concerns linger about supply disruptions, particularly in vacuum-grade titanium scrap. The US depends heavily on EU and UK sources to meet demand for ingot melting in aerospace-grade production.

Aerospace Industry Caught in the Crossfire of Uncertain Trade Measures

The aerospace supply chain could still face ripple effects, especially concerning finished parts, components, and jet engines. Major OEMs such as Airbus, Boeing, and Rolls-Royce remain cautious, stating that they are assessing the impact of the new tariffs.

Jet engines like CFM’s Leap-1A and 1B, which power the Airbus A320neo and Boeing 737 Max, span a US-French supply chain, raising questions about the impact of cross-border tariffs on subcomponents. Landing gear systems produced by Safran for the Boeing 787 and turbine modules from GE in the US to France further complicate the situation.

While titanium producers currently report no impact on OEMs for titanium-based parts, the ambiguity surrounding composite materials and mixed-alloy components could lead to future disruptions.

China's Tariff Retaliation Raises Stakes for US Aerospace Exports

In response, China has imposed a 34% tariff on all US imports, with no exemptions, escalating the trade conflict. This will impact US titanium exports to China—totaling 1,300t in 2024—mainly in bars, rods, and wire, as well as aerospace components vital to Comac’s C919 jet program.

China’s C919 relies on US-sourced Leap-1C engines, avionics from Honeywell Aerospace, GE Aerospace, and Collins Aerospace, making it vulnerable to retaliatory tariffs.

Although China sources the majority of its titanium domestically, these duties highlight the fragile interdependence of global aerospace production.

The Metalnomist Commentary

Titanium’s tariff exemption provides momentary relief to US aerospace and scrap processors, but the real uncertainty lies in composite supply chains. As the US and China entrench their trade defenses, aerospace firms must prepare for further regulatory fragmentation. Strategic stockpiling, diversified sourcing, and diplomatic engagement will define resilience in the next phase of industrial policy shifts.