Earnings rose at Honeywell, Charlotte, N.C., in the fourth quarter, even while the company reported a dip in Aerospace, the segment involved with management of several defense-nuclear sites.
Honeywell also announced plans to split into three separate public companies, according to an earnings release.
Net earnings for the entire company for the fourth quarter, ended Dec. 31, were $1.29 billion, or $1.96 a share, up from $1.24, or $1.91 a share, in the year-ago quarter, the company reported Thursday. Quarterly revenue was $10.1 billion, up year-over-year from $9.4 billion.
Quarterly segment operating income for the fourth quarter for the Aerospace Technologies segment, which includes the Federal Solutions operations responsible for Department of Energy contracting, was $811 million, down from $1.03 billion a year ago. Segment revenue was $3.98 billion, up from $3.67 billion in the year-ago period.
Vimal Kapur, CEO of Honeywell, said on a conference call with investors Thursday that “while we may have gone in” to the year with “too much optimism, we have adapted.”
Honeywell is the sole or lead partner on the management and operations contractors for the Department of Energy National Nuclear Security Administration’s Kansas City National Security Complex, Nevada National Security Site and Sandia National Laboratories.
The company also announced Thursday that, following a portfolio review, Honeywell would separate into three separate companies, including the $15 billion Aerospace segment, into its own publicly traded business.
The separation will take effect in the second half of 2026, and along with the separation of the Automation segment, will be tax-free to shareholders, the company said.
The remaining business, Advanced Materials, will be spun-out as planned, Honeywell said. “As Aerospace prepares for unprecedented demand in the years ahead across both commercial and defense markets, now is the right time for the business to begin its own journey as a standalone, public company,” Kapur said.
Of the 2024 Aerospace sales, 40% were defense-related, 14% was for commercial original equipment, and 46% to the commercial aftermarket.
Exchange Monitor affiliate Defense Daily contributed to this story.
