Summary
Honeywell International Inc. (HON) announced a significant realignment of its business units, effective for the first quarter of 2026. This strategic move will consolidate certain operations into a new reportable segment called 'Process Automation and Technology,' which will integrate UOP (currently in Energy and Sustainability Solutions) and a core part of the Process Solutions business (from Industrial Automation). The Industrial Automation segment will be restructured to include smart energy, thermal solutions, and process measurement and control businesses from the former Process Solutions, along with Sensing and Safety Technologies, Warehouse and Workflow Solutions, and Productivity Solutions and Services. Following this realignment, Honeywell will report its financial performance across four primary segments: Aerospace Technologies, Building Automation, Process Automation and Technology, and Industrial Automation. The company emphasized that these changes are purely an internal restructuring for reporting purposes and will not affect historical consolidated financial statements, results of operations, or cash flows. Historical segment information will be provided on a comparable basis in the future to aid investor analysis under the new structure. This move is part of a broader strategy leading up to the spin-off of the Aerospace Technologies business, with key leadership appointments already in place for the remaining segments.
Key Highlights
- 1Honeywell is realigning its business units into four new reportable segments: Aerospace Technologies, Building Automation, Process Automation and Technology, and Industrial Automation, effective Q1 2026.
- 2A new 'Process Automation and Technology' segment will be created, incorporating UOP and core Process Solutions businesses.
- 3The 'Industrial Automation' segment will be redefined with a new composition of businesses.
- 4These changes are for reporting purposes and do not impact historical financial statements, results of operations, or cash flows.
- 5Historical segment financial information will be restated on a comparable basis to reflect the new structure.
- 6The realignment is in preparation for the planned spin-off of the Aerospace Technologies business.
- 7Key leadership roles for the future segments (Building Automation, Industrial Automation, Process Automation and Technology) have been announced.