Honeywell has signed a definitive agreement to sell its Warehouse and Workflow Solutions (WWS) unit to American Industrial Partners. The WWS business generated about $935 million in revenue in 2025, serves a global customer base with more than 3,300 employees, and is expected to close in the second half of 2026 pending regulatory approvals.

In the first quarter Honeywell reported adjusted EPS of $2.45, beating estimates by $0.13, while revenue of $9.14 billion fell short of the $9.28 billion consensus. Orders grew 7% organically, backlog reached roughly $38 billion, and segment margins expanded by 90 basis points to 23.3%, but operating cash flow guidance was lowered to a $4.4–4.7 billion range.

The proceeds and focus gained from the WWS divestiture will support Honeywell’s core aerospace, building technologies and automation segments, as the company prepares the planned aerospace spin-off for June 29, 2026. Management expects the transaction to streamline operations and accelerate investment in higher-margin businesses.