Honeywell Eyeing More Deals In Europe To Take Advantage Of Defense Growth

Honeywell International (HON) is reportedly looking to buy more European companies to bolster its portfolio amid a rise in defense spending.

The company is seeking joint venture partnerships and venture investment across Europe, Honeywell’s Aerospace unit’s chief commercial officer, Ben Driggs, said to Bloomberg.

According to the report, the company is interested in expanding into areas such as navigation, safety systems, and control systems related to thermal management and electrification.

Defense spending in the European Union is rising rapidly amid the Trump administration’s repeated calls to the alliance to boost military capabilities.

Earlier this month, NATO ministers agreed in principle to increase security-related spending to 5% of GDP by 2032, comprising 3.5% directly on military expenditure and 1.5% on related matters, including infrastructure and cybersecurity.

“There is absolutely growth in defense that we want to take advantage of,” Driggs reportedly said.

The company had acquired Italian aerospace equipment maker Civitanavi Systems for $217 million last year to enhance its offerings.

According to the report, in addition to acquisitions, Honeywell is expanding its existing facilities in the UK, Germany, and the Czech Republic and has added an engineering center in Poland.

Driggs reportedly said that the company wants to collaborate and co-innovate more with customers in Europe.

Retail sentiment on Stocktwits was in the ‘neutral’ (48/100) territory, while retail chatter was ‘normal.’

Honeywell is in the middle of a three-way split, pushed by activist investor Elliott Investment Management.

The split is expected to be completed in the second half of 2026. Honeywell’s Aerospace, Automation, and Advanced Materials units will emerge as separate companies.

Honeywell stock has fallen 1.2% this year.

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