Honeywell’s Aerospace Split: Why Elliott’s Activist Call Could Unlock Billions in Value

Honeywell International has recently become the center of investor attention following mounting
pressure from activist investor Elliott Investment Management. With a massive $5 billion stake,
Elliott has called for the separation of Honeywell’s aerospace business, pushing the industrial giant
toward a portfolio realignment. Honeywell’s board announced that it is actively considering a
potential aerospace spin-off, signaling a possible strategic transformation. The company plans to
share further updates alongside its fourth-quarter earnings. This development comes as Honeywell
grapples with a lagging stock performance relative to the broader market. The aerospace segment,
contributing approximately 40% of its revenue, has been a focal point for investors expecting
improved operational and financial performance through restructuring. Elliott’s advocacy highlights
the belief that the split could unlock significant shareholder value, echoing a broader trend where
conglomerates have opted for simpler business structures. This move follows a string of corporate
reshuffles, including the sale of Honeywell’s personal protective equipment business and the
planned spin-off of its advanced materials division. Let’s explore four key drivers underpinning
Elliott’s call for Honeywell’s aerospace separation.