DAVOS, SWITZERLAND — Call it more a portfolio readjustment at iconic industrial giant Honeywell (HON) than a breakup.

"I think the biggest change I'm driving is how we make it a growth-oriented company, and part of that is how we transform our portfolio so that it's naturally pivoted towards end markets, products which are growth-oriented, but also change our own capabilities on new product development and innovation," Vimal Kapur told Yahoo Finance at the World Economic Forum in Davos, Switzerland.

Kapur joined Honeywell in 1989, rising through the ranks and assuming the CEO position in June 2023. He added the additional role of chairman in June 2024.

He's now jumping headfirst into a complete overhaul of a company with roots in thermostats dating back to 1886. Honeywell has also built up through decades of acquisitions, starting with the 1999 merger with Allied Signal.

At a time when industrial conglomerates with economy of scale are no longer rewarded with high valuations, Kapur said in October 2024 that Honeywell would spin off its advanced material business. The new pubic company is slated to begin trading at the end of 2025 or early 2026. It boasts about $3.8 billion in annual revenue.

Apparently, that maneuver and promises of more weren't good enough for the activist community.

Honeywell is reportedly planning to split into two independent publicly traded entities. One business would house Honeywell's automation division and the other its aerospace business. No formal announcement has been reached. This follows Honeywell saying in December it would explore the spin-off of its aerospace business.

"This is under review with the board, and during our earnings call [coming up], we have promised that we'll provide an update on that," Kapur said.

The company reports earnings on Feb. 6.

Honeywell finds itself under pressure from feared activist investor Elliott Management, which has a stake of about $5 billion. The firm disclosed its investment in November.

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Shares of the company are up 8% since late October. But Elliott may view the stock as lagging behind the market, with businesses that overlap. Honeywell shares are up 75% in the past five years, compared to a 144% gain for the S&P 500.

JPMorgan industrials analyst Stephen Tusa estimates Honeywell could be worth $330 a share if broken up. The stock currently trades at about $223.

"This is a board that we believe has, and will continue to, fairly evaluate all value creation options and act accordingly so it’s possible that the activist plan is followed through on," Tusa said.