Honeywell CEO: Splitting into 3 separate companies positions us well for the next couple of decades

Watch on YouTube ↗  |  January 21, 2026 at 13:34  |  4:35  |  CNBC
Speakers
Vimal Kapur — CEO, Honeywell

Summary

Vimal Kapur, CEO of Honeywell, discussed the company's planned three-way split into Aerospace, Automation, and Specialty Chemicals/Solstice Advanced Materials. He argued the separation positions each business for long-term growth, with Aerospace benefiting from secular growth and Automation from physical AI, and noted Honeywell trades at a 20%–30% discount that should narrow. Kapur also highlighted the quantum computing business, Quantinuum, which launched a 50-logical-qubit machine and targets 100 logical qubits by end-2027 while working with banks, pharma, and NVIDIA.

  • Honeywell plans to split into three public companies.
  • Solstice Advanced Materials spun off in October and is beating forecasts.
  • Aerospace spin is expected in the second half of the year.
  • Automation is positioned to benefit from physical AI.
  • CEO says Honeywell trades at a 20%–30% discount to fair value.
  • Quantum unit launched 50 logical qubits and targets 100 by end-2027.
  • Quantinuum is working with banks, pharma, and NVIDIA.
  • CEO says each standalone business has strong momentum.
Ideas
Vimal Kapur CEO, Honeywell 0:45
Breakup should unlock Honeywell value.
Honeywell is splitting into three publicly traded companies—Aerospace, Automation, and Specialty Chemicals/Solstice—to position each business for strong long-term momentum. Management believes the market currently discounts Honeywell by 20%–30%, and the breakup should create natural value accretion, with each standalone stock having a compelling proposition for shareholders.
HON HIGH
Vimal Kapur CEO, Honeywell 1:03
Solstice beats forecasts after spin-off.
The specialty chemicals business was spun off in October as the standalone public company Solstice Advanced Materials, and it is doing better than Honeywell had forecast, reinforcing the case for the separation.
Solstice Advanced Materials MED
Vimal Kapur CEO, Honeywell 1:28
Aerospace spin has strong secular growth.
The aerospace spin-off is expected in the second half of the year, creating a standalone public company with a well-known strong secular growth story; Honeywell's CEO says fundamentals are strong for each business to perform individually.
Honeywell Aerospace MED
Vimal Kapur CEO, Honeywell 1:32
Automation benefits from early physical AI.
The automation business is one of the three planned standalone companies and is expected to benefit from physical AI, which the CEO says is still in early innings and should support strong individual fundamentals.
Honeywell Automation MED
Vimal Kapur CEO, Honeywell 1:43
Quantum computing nears commercial outperformance.
Honeywell's quantum business is positioned as an independent growth opportunity: it launched a 50-logical-qubit machine, expects to reach 100 logical qubits by the end of 2027 when quantum should outperform classical computers, and is working with large banks, pharmaceutical companies, and NVIDIA to build a software environment where quantum coexists with CPUs and GPUs.
QUBT HIGH
Up Next
8:34
Morgan Stanley CEO Ted Pick: Corporate health of large cap companies is excellent
CNBC · Jan 21
6:54
Cisco CEO Chuck Robbins on building infrastructure for the AI era
CNBC · Jan 21
4:15
BHP CEO Says Copper Demand Is 'Ubiquitous'
Bloomberg Markets · Jan 21
2:42
Davos: JPMorgan's Dimon Says Credit Card Cap Would Be 'Economic Disaster'
Bloomberg Markets · Jan 21
39:48
Context Engineering Our Way to Long-Horizon Agents: LangChain’s Harrison Chase
Sequoia Capital · Jan 21

This CNBC video, published January 21, 2026, features Vimal Kapur discussing HON, Solstice Advanced Materials, Honeywell Aerospace, Honeywell Automation, QUBT. 5 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Vimal Kapur  · Tickers: HON, Solstice Advanced Materials, Honeywell Aerospace, Honeywell Automation, QUBT