Honeywell International Inc. is experiencing an uptick in demand tied to both geopolitical tensions in the Middle East and increased use of artificial intelligence in industrial operations, Chief Executive Vimal Kapur said in an interview on Bloomberg Television.
Kapur noted that while external events were not the reasons behind Honeywell's plan to separate its automation and aerospace divisions in 2025, recent developments are boosting the outlook for both businesses.
"When the company made the decision to separate, there was the Ukraine war already, but the Iran war hadn't occurred at that time," Kapur said. "So now that generates the defense-related demand into our business." The CEO framed the Iran conflict as an additional source of defense-driven opportunities for Honeywell's operations.
On the technology front, Kapur said artificial intelligence has become a more prominent factor for the automation business than it was when he joined. "When I came to the automation business, AI was not this prominent play for automation companies," he said. He pointed out that the automation side of the company produces substantial volumes of data that can be leveraged to raise customer productivity. "That data can be used to make our customers more productive," he added.
Corporate restructuring at Honeywell has advanced over the past year. The company announced plans to separate its aerospace division from its automation business in February 2025, while the chemicals division was spun off in October 2025. The aerospace unit will complete its separation next month under the leadership of President and CEO Jim Currier. Kapur will remain at the helm of the automation business following the split.
Activist investor Elliott Investment Management, which acquired a stake in Honeywell in 2024, publicly pushed for the split. Kapur characterized Elliott's engagement as constructive, saying their input "had been productive and collaborative."
Looking ahead, Kapur said the automation business intends to pursue acquisitions with enterprise values in the $2 billion to $3 billion range. He indicated that such deals could strengthen earnings while limiting the amount of shareholder capital at risk.
Sectors impacted: aerospace, industrial automation, defense, and technology services that use AI-driven analytics.