Honeywell International Inc. is reportedly reconsidering its $1.8 billion acquisition of Johnson Matthey’s Catalyst Technologies business, a deal announced in May 2025 for £1.8 billion (≈$2.4 billion). The transaction was intended to broaden Honeywell’s Energy and Sustainability Solutions (ESS) portfolio by adding advanced catalyst technologies that support lower‑emission fuels and chemicals, and to strengthen the company’s position as a world‑class technology provider of critical energy, as CEO Vimal Kapur said, "The acquisition of Johnson Matthey’s Catalyst Technologies business broadens Honeywell’s role as a world‑class technology provider of critical energy needed to drive growth into the future – further strengthening our model of combining process technologies and process automation."
Honeywell’s Q4 2025 results, released in January 2026, showed adjusted sales of $10.1 billion, up 10% year‑over‑year, and adjusted EPS of $2.59, up 17% from the prior year. Full‑year 2025 sales rose 8% and adjusted sales increased 9%, with organic sales up 7%. CEO Vimal Kapur noted, "We concluded 2025 with strong results that exceeded the high end of our guidance for adjusted sales and adjusted EPS. Orders grew 23% stemming from robust demand in the Aerospace Technologies and Energy and Sustainability Solutions segments, including from our LNG acquisition that closed last year. As a result, we exited 2025 with a record backlog of over $37 billion which positions us well for 2026."
According to Bloomberg, Honeywell’s reconsideration stems from concerns about regulatory approvals and the achievement of certain business milestones, as well as a broader portfolio simplification strategy that includes a planned spin‑off of its Aerospace business in Q3 2026. The company is evaluating whether the Catalyst Technologies business aligns with its current focus on pure‑play segments and whether the regulatory environment will allow a smooth transaction.
For Johnson Matthey, the sale is a key element of its restructuring plan to concentrate on Clean Air and PGMS businesses. CEO Liam Condon said, "Today's announcement represents a significant milestone in the history of Johnson Matthey. Following on from the divestment of our Medical Devices business at a highly attractive valuation, we have now agreed to the sale of our Catalyst Technologies business for £1.8 bn. This allows JM to realise a very attractive valuation for this business that fully reflects its strong long‑term growth prospects. We will now fundamentally re‑shape Johnson Matthey into a more focused and leaner business." The announcement had lifted Johnson Matthey shares 27% on the day of the deal announcement and contributed to a 60–70% rise over the past 12 months.
If Honeywell ultimately walks away, the company will miss the opportunity to accelerate its sustainability portfolio and may need to adjust its 2026 guidance, which currently projects sales of $38.8 billion to $39.8 billion and adjusted EPS of $10.35 to $10.65. Johnson Matthey would forgo the cash infusion that could accelerate its restructuring, potentially delaying the shift to a leaner, more focused business model.
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