Honeywell completes aerospace spin-off amid industrial automation slump
Continuing operations net sales rose 1% to $4.82 billion in the first quarter.
Honeywell International (HON), the industrial technology conglomerate, completed the spin-off of its Aerospace Technologies business into an independent entity, Honeywell Aerospace (HONA), on June 29, 2026. The company rebranded as Honeywell Technologies and executed a 1-for-2 reverse stock split on the same date, reducing outstanding shares from approximately 634 million to 317 million.
Net sales for continuing operations reached $4,823 million in the first quarter of 2026, a 1% increase from $4,756 million in the first quarter of 2025. Organic sales growth for these operations slowed to 1%, down from 2% in the prior-year period.
Total segment profit from continuing operations rose to $944 million, compared to $793 million in the first quarter of 2025. This result follows a change in reporting structure as Quantinuum ceased to meet the definition of an operating segment effective the second quarter of 2026, removing its sales and losses from segment totals.
Performance diverged across the company's remaining industrial portfolios. Building Automation organic sales growth held steady at 8%. In contrast, Process Automation and Technology organic sales growth fell to (6)% from 3% growth in the first quarter of 2025.
Industrial Automation saw a sharper decline, with organic sales growth dropping to (18)% in the first quarter of 2026, compared to a (14)% decline in the same period last year.
Honeywell announced further divestitures to streamline its remaining operations. The company said it expects to close the sale of its Warehouse and Workflow Solutions business to American Industrial Partners and its Productivity Solutions and Services business to Brady Corporation in the second half of 2026.