Honeywell Is Now Three Companies. Here's Which Piece I'd Actually Own.
2026-09-05 02:15
•Reuben Gregg Brewer •The Motley Fool
••••• ••• Axe Cap view
Picking Winners from Honeywell’s Breakup: Focus on Automation
Honeywell’s split offers three distinct bets; the automation unit stands out for growth and leadership confidence.
Honeywell has broken into three companies, but only one earns a real look from a serious investor. Honeywell Technologies, focused on industrial automation, is led by the CEO Vimal Kapur himself—a clear signal of where the management’s faith lies. With 16% order growth and a hefty $20 billion backlog, this business is riding the wave of AI-driven industrial upgrades. Contrast that with Honeywell Aerospace, which already cut its sales outlook and feels shaky, or Solstice Advanced Materials, which is growing nicely but too small to move the needle meaningfully. For South African investors, this theme fits well with local industrial and tech sectors getting ready to adopt smarter automation—potentially benefiting firms like Barloworld, which distribute industrial equipment, or even MTN’s growing tech services footprint. The risk? Automation growth might slow if global supply chains tighten again or if AI hype fizzles. But for now, the message is clear: automation wins the day here. this is just our opinion and not financial advice
Buy Honeywell Technologies exposure through USD/ZAR hedged instruments or related South African industrial stocks like Barloworld; avoid Honeywell Aerospace for now and watch Solstice Advanced Materials for size and performance improvements.
- USD/ZAR
- Barloworld
- Global supply chain disruptions slow automation demand
- AI optimism fades leading to lower industrial capex
7/10
Honeywell has completed its breakup into three separate companies: Honeywell Technologies (automation), Solstice Advanced Materials, and Honeywell Aerospace. The article recommends Honeywell Technologies as the best investment choice, as CEO Vimal Kapur chose to lead this division, which shows strong 16% order growth and benefits from AI-driven industrial automation trends. Honeywell Aerospace lowered guidance and appears to be off to a rocky start, while Solstice Advanced Materials, though performing well, is the smallest of the three.
Our take is based on reporting first published by The Motley Fool.