Memoori: Honeywell Targets Smart Building Expansion Following Restructuring

According to an analysis by research firm Memoori, Honeywell is expected to complete the spin-off of its Aerospace business by the end of June and continue operations as a company fully focused on automation. Its Building Automation division will become the company’s largest business unit, accounting for 42% of total revenue and generating an estimated $7.4 billion in revenue in 2025. Memoori says Honeywell’s future strategy will focus on smaller acquisitions valued between $2 billion and $4 billion, a move that could mark the beginning of a new wave of consolidation in the smart building technology market.

The company expects to achieve annual organic revenue growth of 4% to 6%, continuous margin expansion, and more than 10% annual earnings growth over the next three years. More than 75% of Honeywell’s portfolio already consists of sustainability-oriented solutions, while the company aims to achieve carbon neutrality by 2035. Memoori concludes that the new strategy could increase interest in acquiring companies developing building automation technologies, energy management solutions, security systems, and AI-powered technologies.