Honeywell to split into 3 companies with Phoenix aerospace HQ to stay

• Honeywell Aerospace will remain headquartered in Phoenix after being spun off from Honeywell International.
• The tax-free spinoff will result in three separate, publicly listed companies, each focused on distinct industries.
• Honeywell Aerospace, with $15 billion in 2024 revenue, specializes in technology for commercial and defense aircraft.

Honeywell Aerospace will become a separate company with its headquarters still in Phoenix, officials confirmed after details of its parent company’s breakup were announced Thursday morning.

Honeywell International Inc. planned to spin off its aerospace and automation technologies, the company said. The industrial conglomerate already had announced it would spin off its advanced materials arm. The moves would create three separate companies.

Honeywell International Inc. has 7,111 employees in Arizona, according to The Arizona Republic’s Republic 100 data of the largest employers in the state, making it the 25th largest employer here.

The company plans to complete the separation by the second half of 2026, and it will be done in a manner that is tax-free to Honeywell shareholders, Vimal Kapur, chairman and CEO announced. Each of the three companies would be publicly listed.

“The formation of three independent, industry-leading companies builds on the powerful foundation we have created, positioning each to pursue tailored growth strategies, and unlock significant value for shareholders and customers,” Kapur said in a statement.

“Our simplification of Honeywell has rapidly advanced over the past year, and we will continue to shape our portfolio to create further shareholder value. We have a rich pipeline of strategic bolt-on acquisition targets, and we plan to continue deploying capital to further enhance each business as we prepare them to become leading, independent public companies,” he added.

Honeywell Aerospace creates technology used in commercial and defense aircraft, including propulsion, cockpit and navigation systems and auxiliary power systems. According to Honeywell, it had $15 billion in revenue in 2024.

The spinoff could create future job opportunities for employees as the individual companies grow, a company representative said.

This is a developing story. Check back here for updates.

Reach the reporter at cvanek@arizonarepublic.com. Follow her on X, formerly Twitter: @CorinaVanek.