Industrial conglomerate Honeywell announced in a Feb. 6 news release that it will split into three independent companies, effectively ending the conglomerate.

The company said it will be fully separated from its automation and aerospace technologies business. This planned separation, along with the previously announced spinoff of advanced materials, will create three publicly listed companies.

“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,” Honeywell Chairman and CEO Vimal Kapur said in the company’s release.

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The news comes less than two months after Honeywell said it was exploring a sale of its Aerospace unit, and it already announced the pending sale of its Advanced Materials unit back in October.

Honeywell said the planned separations of its automation, aerospace and advanced materials units will create value for all stakeholders by simplifying strategic focus, enhancing financial flexibility to pursue growth opportunities, improving capital allocation alignment and providing focused boards and management teams.

Kapur added: “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.”

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The separation of the automation and aerospace technologies businesses is expected to be finalized in the second half of 2024, while the spinoff of the advanced materials business is anticipated to be completed by the end of this year or early next year.

4Q and 2024 Financial Results

In addition to reporting its move to split into three separate companies, Charlotte, NC-based Honeywell shared its 2024 fourth quarter and full-year financial results, showing an increase in 4Q sales year-over-year exceeding its previous expectations.

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The company posted 4Q24 sales of $10.1 billion, up 7% year-over-year, with organic sales likewise up 2%, exceeding previous expectations reported by Honeywell. Net profit of $1.2 billion increased slightly from 4Q23’s $1.2 billion.

For the full-year, Honeywell’s 2024 total sales were $38.4 billion, up 5% from 2023’s $36.6 billion, reflecting an organic sales increase of 3%. Operating profit of $7.4 billion increased 5% year-over-year, while operating margin of 19.3% was flat compared to the same period a year prior.

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“We delivered a strong end to a successful year, exceeding the high end of our guidance for fourth quarter sales and adjusted earnings per share while navigating a dynamic operating environment,” Kapur said in the company’s financial release. “In 2024, we also made significant progress optimizing Honeywell’s portfolio. We completed four strategic bolt-on acquisitions representing $9 billion in capital deployed and announced two key divestitures in alignment with our portfolio simplification strategy, including the planned spin of our Advanced Materials business.”

To read more about Honeywell’s split into three separate companies, click here.