Honeywell to explore options for logistics tech businesses

CHARLOTTE - Honeywell (NASDAQ:HON), a $153.8 billion industrial conglomerate, announced Tuesday it will evaluate strategic alternatives for its Productivity Solutions and Services (PSS) and Warehouse and Workflow Solutions (WWS) businesses as part of ongoing portfolio simplification efforts.

The two businesses, which together generated approximately $2 billion in revenue in 2024 (representing about 5% of Honeywell’s total revenue of $39.2 billion), serve transportation, warehouse and logistics markets. PSS provides mobile computers, barcode scanners and printing solutions, while WWS offers warehouse automation systems, including sortation equipment and robotics solutions. According to InvestingPro, Honeywell maintains a strong financial health score of GOOD, with 12+ additional insights available to subscribers.

This strategic review comes as Honeywell continues preparations for its previously announced plan to separate into three independent companies by the second half of 2026, transforming the remaining Honeywell into a pure-play automation business focused on building, process and industrial automation.

"With a simpler and more cohesive portfolio that serves the end markets of buildings, process and industrials, Honeywell will focus on our core areas of automation expertise," said Vimal Kapur, Chairman and CEO of Honeywell.

The company also announced the appointment of Jim Masso as President and CEO of Honeywell Process Automation, effective July 14. Masso brings 20 years of energy sector experience, most recently serving as President and CEO of Allied Power Group. For detailed analysis of Honeywell’s leadership and performance metrics, access the comprehensive Pro Research Report available on InvestingPro.

Honeywell stated the evaluation of strategic alternatives for the PSS and WWS businesses will not impact previously announced timelines for other planned separations, including Solstice Advanced Materials by early 2026 and Honeywell Aerospace in the second half of 2026. The company currently trades at a P/E ratio of 27.25 and has maintained dividend payments for 41 consecutive years, demonstrating strong financial stability.

The company has retained Centerview Partners as its financial advisor for the strategic review process. Honeywell noted in its press release statement that there is no guarantee the evaluation will result in any transaction.

In other recent news, Honeywell International announced the acquisition of the Li-ion Tamer business from Nexceris, enhancing its Building Automation segment with advanced lithium-ion battery fire detection technology. This acquisition is expected to positively impact Honeywell’s financials immediately. Additionally, Honeywell has completed a liability management reorganization, involving asbestos-related and environmental assets, with no changes affecting shareholders’ rights or ownership. UBS has reiterated its Buy rating on Honeywell, maintaining a price target of $268, expressing confidence in the management’s execution and potential for growth. Meanwhile, Jefferies raised its price target for Honeywell to $240, citing potential growth from the planned Aerospace Technologies spin-off, although maintaining a Hold rating. Jefferies also noted Honeywell’s strategic focus on adapting existing technologies, highlighting the use of inceptor technology in Vertical Aerospace’s VX4 vehicle. Honeywell’s recent efforts to innovate and adapt its product offerings aim to enhance operational efficiency and address unmet customer needs. These developments reflect Honeywell’s strategic maneuvers to strengthen its market position and explore growth opportunities.

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