Industrial firm Honeywell plans to spin off its advanced-materials business to shareholders. The separation should be complete by the end of 2025 or early 2026.

Honeywell plans to spin off its advanced materials division into a separate publicly traded company by 2026, creating opportunities for growth and financial flexibility.

News of a business rationalization measure lifted Honeywell International ( HON 1.80%) stock comfortably into positive territory on Tuesday. The storied industrial company's shares closed the day almost 2% higher, a figure that was more than high enough to top the benchmark S&P 500 index's increase of less than 1%.

Honeywell International Inc. is reportedly planning to spin off its $3.65 billion advanced materials division, potentially worth over $10 billion.

Honeywell will spin off its $11 billion advanced materials unit into a publicly traded company, aiming to focus on aviation, automation, and energy tr