Linear flow splitting is a new cold forming process for the production of branched sheet metal structures in integral style. It induces extremely high deformation degrees without formation of cracks in the split sheets due to hydrostatic compressive stresses. Investigations on a HSLA steel (ZStE 500) show the formation and fragmentation of a dislocation cell structure in the severely deformed regions of the steel sheet. This results in ultrafine-grained microstructures and improved mechanical properties, similar to SPD processes as Equal Channel Angular Pressing (ECAP) or High Pressure Torsion (HPT). EBSD measurements reveal a gradient in grain size with an increase in direction perpendicular to the surface, whereas micro hardness decreases in the same direction. Based on these results, basic principles of linear flow splitting and its expected potential are discussed.