Honeywell reported first-quarter 2026 results on April 23 and confirmed plans to sell its Warehouse and Workflow Solutions (WWS) business as part of a wider portfolio reshaping.
The unit, which focuses on warehouse automation and logistics systems, will be sold in an all-cash deal to American Industrial Partners. The transaction is expected to close in the second half of 2026.
Honeywell said the move follows a broader strategy review, alongside the planned sale of its Productivity Solutions and Services business and the spin-off of its aerospace division later this year.
Sales in the first quarter reached $9.1 billion, up 2%, while orders rose 7%, pushing backlog to around $38 billion. Adjusted earnings per share increased 11% to $2.45, despite lower reported EPS due to restructuring and divestiture-related costs.
The WWS business generated about $935 million in revenue in 2025 and includes automation systems such as sortation, conveyors, robotics, and warehouse software. These technologies are widely used across distribution centres, including those supporting grocery and e-commerce operations.
For the retail sector, the sale signals a shift in ownership of key warehouse automation capabilities. As private equity-backed platforms expand in this space, suppliers and retailers may see changes in how automation systems are deployed, serviced, and priced.
Honeywell said the divestment completes its review of strategic options for the WWS unit, allowing the company to focus more tightly on automation, aerospace, and energy transition technologies.
The company also reaffirmed its full-year 2026 outlook, maintaining expected sales of $38.8 billion to $39.8 billion and organic growth of 3% to 6%.
Why it matters
Warehouse automation is becoming central to modern grocery supply chains, especially as retailers scale e-commerce and faster fulfilment models. Changes in ownership of major solution providers can influence investment cycles, system integration, and long-term partnerships across the sector.
For operators managing large distribution networks, this kind of shift may affect vendor selection and future automation roadmaps, particularly as demand for efficiency and speed continues to rise.
