Honeywell is in the final stage of its portfolio review, announcing intentions to pursue strategic alternatives for its Productivity Solutions and Services (PSS) and Warehouse and Workflow Solutions businesses.
The company is on track to spin off into three independent companies, with the Advanced Materials spin expected in Q4 2025 and Aerospace spin planned for the second half of 2026.
Management emphasized the focus on simplifying and optimizing the portfolio to maximize long-term value and strategic clarity.
Data Center Market Expansion and Product Innovation
Gates has significantly increased its involvement in the data center cooling market, with program involvement and revenue from this segment growing rapidly from a small base.
The company introduced new products such as the universal quick disconnect fitting and scaled up its electric pump portfolio to meet higher flow requirements.
Negotiations are underway with a major hyperscaler for 2026 supply, indicating a strategic focus on high-growth data center opportunities.
The momentum in product development and commercial coverage in data centers is expected to lead to a revenue inflection over the next few years.
Management sees the liquid cooling market expansion as a key secular growth opportunity, with potential revenues exceeding $150 million in the near term.
The company is actively building relationships with infrastructure providers and engineering firms, aiming for additional design wins.
Dafinchi
