Industrials
Diversified industrial conglomerate spanning aerospace, building technologies, and performance materials.
View forensic reportHoneywell announced a plan in early 2025 to split into three independent companies: Aerospace, Automation, and Advanced Materials. The split is structural; the implied sum-of-the-parts valuation is roughly 15-20% above the current enterprise value.
Honeywell's sum-of-parts value of $185-195 billion implies a 25-30% conglomerate discount. The aerospace business alone is worth close to the current $147 billion market cap.
Deere, Caterpillar and Honeywell all sit at the centre of the capex recovery story. Each offers a different exposure. Here is how to rank them.
Honeywell trades at 33.9x earnings with a $149 billion market cap, a 1.9% dividend yield, and four distinct business segments — each arguably worth more separately than together. The breakup thesis is gaining momentum.
Elliott Management is pushing for a split. The sum-of-parts shows $180-200B in value versus a $150B market cap. The GE precedent makes the case.