Honeywell bets on 'simpler structure’ to drive growth
Streamlining for a Stronger Future
Honeywell’s latest restructuring is reshaping its business for the future.
The company recently spun off its advanced materials unit and plans to separate automation and aerospace.
These moves boosted its third-quarter 2025 results and clarified its strategic direction.
CEO Vimal Kapur said Honeywell is building a “simpler structure” aligned with its long-term goals.
He emphasized that the company is cleaning up legacy liabilities to strengthen its balance sheet.
Solid Third-Quarter Growth
Honeywell delivered 6% organic sales growth in Q3 2025, surpassing its guidance range.
Commercial aftermarket and defense and space segments achieved double-digit growth.
Kapur said the results reflected disciplined execution and rising demand in core sectors.
He highlighted that Honeywell’s transformation is creating “a more focused and agile business.”
New Four-Segment Structure in 2026
Starting Q1 2026, Honeywell will operate under four distinct segments.
These include Aerospace Technologies, Building Automation, Process Automation and Technology, and Industrial Automation.
Kapur said this new framework better aligns operations with customer-facing business models.
He noted that each segment will focus on innovation, customer value, and recurring revenue.
Focused on High-Value Verticals
Honeywell continues to target high-performing verticals where it delivers mission-critical solutions.
The company sells core products first, then builds on its installed base with software and services.
Kapur said this approach helps create long-term relationships and recurring income streams.
He added that Honeywell’s software-driven strategy enables outcome-based solutions for industrial customers.
Rising Role in Data Centers
Investors are increasingly asking about Honeywell’s role in data centers.
Kapur said this segment is growing within the company’s building automation business.
Honeywell’s fire and security systems already have a strong foothold in data centers.
Kapur said, “Our share in building management keeps improving as hyperscalers and REITs join our customer base.”
He added that while data center spending on safety systems is small, Honeywell’s position is strong and growing.
Looking Ahead
Kapur said the company’s simplified structure will support steady growth and operational excellence.
He believes Honeywell is well-positioned to capture opportunities in automation, aerospace, and digital infrastructure.
“Each move strengthens our focus on innovation and value creation,” Kapur concluded.