Honeywell to realign business segments to bolster organic sales growth

Honeywell today announced plans to realign its business segments to three  megatrends: automation, the future of aviation, and energy transition. This shift within the company’s segments will enable the technology conglomerate to deliver accelerated organic sales growth and inorganic capital deployment, creating greater value for shareholders. The new segmentation will take effect beginning the first quarter 2024.

“We are committed to delivering differentiated, profitable growth,” said Honeywell Chief Executive Officer Vimal Kapur. After a complete review of our portfolio, we plan to organise our businesses around three powerful megatrends, each of which is underpinned by our robust digitalisation capabilities and solutions."

"This simplified structure will enable Honeywell to realise synergies that will accelerate our innovation playbook, leverage our financial strength, and unlock greater value through our Accelerator operating system. " Kapur added. 

“As we enter the next phase of transformation, this realignment will enable us to consistently deliver our upgraded financial algorithm, drive innovation that will help solve the world’s toughest sustainability and digitalisation challenges, and deploy capital more effectively.”

The updated reporting structure will include four segments.

• Aerospace Technologies (AT): Used in virtually every commercial and defense aircraft platform worldwide, Honeywell aerospace products will continue to lead the future of air travel, including driving advanced air mobility and greater sustainability with the electrification of aircraft.

• Industrial Automation (IA): With a deep history in industrial automation that spans more than five decades, Honeywell enables process industry operations, creates world-class sensor technologies, automates supply chains, makes warehouses smarter, and improves worker safety. This combination will build on our core strengths in controls and automation technologies, deliver better commercial outcomes for our customers, and enhance our growth.

• Building Automation (BA): Through hardware, software, sensors, and analytics, Honeywell helps customers convert buildings into integrated, safe, and more sustainable assets. With solutions and services used in more than 10 million buildings worldwide, Building Automation will continue to strengthen Honeywell’s position in attractive end markets like hospitals, airports, education, and data centres.

• Energy and Sustainability Solutions (ESS): With a decades-long focus on sustainability, Honeywell enables energy evolution, improves resiliency and efficiency, reduces emissions, and facilitates the circular economy. Honeywell’s expertise in this area will continue helping solve the world’s toughest challenges across our end markets.

New leaders ppointed for new business groups

Effective January 1, 2024, Lucian Boldea will serve as president and CEO of the Industrial Automation segment, and Ken West will serve as president and CEO of the Energy and Sustainability Solutions segment. Both Boldea and West will report to Kapur and serve as company officers.

Billal Hammoud will remain President and CEO of the renamed Building Automation segment, and Jim Currier will remain President and CEO of the renamed Aerospace Technologies segment. Kevin Dehoff will remain President and CEO of Honeywell Connected Enterprise.

“Our strategic business group leaders are well-positioned to lead Honeywell in both organic and inorganic growth,” Kapur noted. “They have demonstrated a deep understanding of our customers and end markets and are capable of delivering strong results across our industries. Their combined experience and drive to create value for customers and shareowners position Honeywell well for the future," he added.