Honeywell has realigned its business segments to three compelling megatrends: automation, the future of aviation and energy transition. The shift within the company’s segments will enable it to deliver accelerated organic sales growth and inorganic capital deployment, creating greater value for shareholders. The new segmentation will take effect from the first quarter of 2024.

“We are committed to delivering differentiated, profitable growth. 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,” said Vimal Kapur, Chief Executive Officer, Honeywell.

The simplified structure will enable the company to realise synergies that will accelerate its innovation playbook, leverage its financial strength, and unlock greater value through its Accelerator operating system, the company said.

“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 CEO added.

The updated reporting structure will include four segments, underpinned by the company’s Accelerator operating system and Honeywell Connected Enterprise integrated software platform, enabling Honeywell to serve its customers better and positioning us to outperform in any environment. These include aerospace technologies (AT), industrial automation (IA), building automation (BA), and energy and sustainability solutions (ESS).

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