Honeywell's Board has finalized long-awaited plans to break the conglomerate into three independent companies. Honeywell Aerospace comprises about 40% of 2024 consolidated revenues and will emerge as one of the largest pure-play aerospace companies in the world with 2024 revenues of approximately $14 billion.
Honeywell's leadership hopes to replicate the stunning market value growth that GE's aerospace, healthcare, and energy businesses have seen since their breakup in 2022. Those businesses are now worth nearly four times as much as pre-breakup GE was worth three years ago, and independent GE Aerospace is worth more than pre-breakup GE all by itself.
Can Honeywell expect similar results? Time will tell, but I think trends in commercial aircraft production will provide some stellar revenue growth opportunities for Honeywell Aerospace as Airbus pushes single-aisle aircraft production to record levels, Boeing gets B737MAX production back up to reasonable rates, and wide-body aircraft production rates climb from post-pandemic lows.
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