Honeywell has announced plans to realign its business segments to three compelling megatrends: automation, the future of aviation, and energy transition.

Accordingly, this shift within the company’s segments will enable Honeywell to deliver accelerated organic sales growth. In addition, pursue inorganic capital deployment, creating greater value for shareholders. The new segmentation will take effect beginning first quarter 2024.

Honeywell Chief Executive Officer Vimal Kapur said the company remains committed to its differentiated and profitable growth. In addition, Kapur said, “After a complete review of our portfolio, we plan to organize our businesses around three powerful megatrends…This simplified structure will enable Honeywell to realize synergies that will accelerate our innovation playbook and leverage our financial strength. In addition, unlock greater value through our Accelerator operating system.”

Aligning Our Segments with Three Compelling Megatrends

The updated reporting structure will include four segments, underpinned by the company’s world-class Accelerator operating system. At the same time, with Honeywell Connected Enterprise integrated software platform. Thus, enabling Honeywell to better serve its customers and positioning us to outperform in any environment.

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. Particularly, in 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. Thus, creating world-class sensor technologies and automating supply chains. For that reason, making warehouses smarter and improves worker safety. This combination will build on the company’s core strengths in controls and automation technologies. At the same time, 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 centers.

Energy and Sustainability Solutions (ESS): Honeywell enables energy evolution, improves resiliency and efficiency, reduces emissions, and facilitates the circular economy. Furthermore, Honeywell’s expertise in this area will continue to help solve the world’s toughest challenges across our end markets.

New Leaders Appointed 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.

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