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Honeywell's Board Gives Nod to the Aerospace Spin-Off Plan
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Key Takeaways
HON approved separating Aerospace into an independent public company, expected to begin operations on June 29.
HON shareholders will receive one Honeywell Aerospace share for every two shares held on record.
HON plans a one-for-two reverse split after the spin-off, reducing outstanding shares.
Honeywell International Inc.’s (HON - Free Report) board of directors announced its approval for the planned spin-off of its Aerospace business into a separate public company. This marks a key step in the divestiture process, which is expected to be completed on June 29, 2026. Following the spin-off, Honeywell Aerospace will start operating as an independent public company.
The Aerospace business is a provider of engines, integrated avionics, systems and service solutions for aircraft manufacturers, military, space and airport operations. It also develops laser communication products for satellite communication.
Inside the Headlines
Honeywell plans to allocate all of Honeywell Aerospace’s issued and outstanding common stock on June 29, 2026. Each HON shareholder of record as of June 15, 2026, will receive one share of the new entity for every two shares of Honeywell they hold. The distribution will take place once all specified conditions under the U.S. Securities and Exchange Commission filing are met.
It's worth noting that Honeywell Aerospace shares have commenced trading on a "when-issued’’ basis on Nasdaq under the symbol "HONAV" on June 15, 2026. However, its regular-way trading under the ticker "HONA" is expected to start on June 29, 2026.
From around June 15 to June 26, 2026, Honeywell stock will trade in two markets. One under the regular ticker “HON” with the right to receive Honeywell Aerospace shares, and another under the ticker “HONIV” without that right. Post spin-off of the Aerospace business, HON will operate as Honeywell Technologies as a premier pure-play automation company.
Also, HON announced plans to proceed with a one-for-two reverse stock split, contingent upon the completion of the Aerospace spin-off. The move will reduce the company's outstanding shares from roughly 634 million to approximately 317 million, while maintaining its Nasdaq listing under the ticker "HON." The separation and related corporate actions will restructure Honeywell's portfolio, enhance strategic focus and unlock long-term value for its shareholders.
HON's Price Performance, Valuation and Estimates
Image Source: Zacks Investment Research
Shares of the Zacks Rank #3 (Hold) company have gained 13.8% in the past six months against the industry’s decline of 2%.
From a valuation standpoint, HON is trading at a forward price-to-earnings ratio of 20.82X, above the industry’s average of 15.84X.
The Zacks Consensus Estimate for HON’s 2026 earnings has inched up 0.1% over the past 60 days.
GPGI delivered a trailing four-quarter average earnings surprise of 25.6%. In the past 60 days, the Zacks Consensus Estimate for GPGI’s 2026 earnings has increased 20.3%.
ITT Inc. (ITT - Free Report) presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 5.8%.
The Zacks Consensus Estimate for ITT’s 2026 earnings has increased 6.8% in the past 60 days.
Griffon Corporation (GFF - Free Report) presently carries a Zacks Rank of 2. GFF delivered a trailing four-quarter average earnings surprise of 3.3%.
In the past 60 days, the consensus estimate for Griffon’s 2026 earnings has increased 2.6%.
View the Zacks #1 Rank List
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Honeywell's Board Gives Nod to the Aerospace Spin-Off Plan
Key Takeaways
Honeywell International Inc.’s (HON - Free Report) board of directors announced its approval for the planned spin-off of its Aerospace business into a separate public company. This marks a key step in the divestiture process, which is expected to be completed on June 29, 2026. Following the spin-off, Honeywell Aerospace will start operating as an independent public company.
The Aerospace business is a provider of engines, integrated avionics, systems and service solutions for aircraft manufacturers, military, space and airport operations. It also develops laser communication products for satellite communication.
Inside the Headlines
Honeywell plans to allocate all of Honeywell Aerospace’s issued and outstanding common stock on June 29, 2026. Each HON shareholder of record as of June 15, 2026, will receive one share of the new entity for every two shares of Honeywell they hold. The distribution will take place once all specified conditions under the U.S. Securities and Exchange Commission filing are met.
It's worth noting that Honeywell Aerospace shares have commenced trading on a "when-issued’’ basis on Nasdaq under the symbol "HONAV" on June 15, 2026. However, its regular-way trading under the ticker "HONA" is expected to start on June 29, 2026.
From around June 15 to June 26, 2026, Honeywell stock will trade in two markets. One under the regular ticker “HON” with the right to receive Honeywell Aerospace shares, and another under the ticker “HONIV” without that right. Post spin-off of the Aerospace business, HON will operate as Honeywell Technologies as a premier pure-play automation company.
Also, HON announced plans to proceed with a one-for-two reverse stock split, contingent upon the completion of the Aerospace spin-off. The move will reduce the company's outstanding shares from roughly 634 million to approximately 317 million, while maintaining its Nasdaq listing under the ticker "HON." The separation and related corporate actions will restructure Honeywell's portfolio, enhance strategic focus and unlock long-term value for its shareholders.
HON's Price Performance, Valuation and Estimates
Image Source: Zacks Investment Research
Shares of the Zacks Rank #3 (Hold) company have gained 13.8% in the past six months against the industry’s decline of 2%.
From a valuation standpoint, HON is trading at a forward price-to-earnings ratio of 20.82X, above the industry’s average of 15.84X.
The Zacks Consensus Estimate for HON’s 2026 earnings has inched up 0.1% over the past 60 days.
Stocks to Consider
Some better-ranked companies are discussed below.
GPGI, Inc. (GPGI - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
GPGI delivered a trailing four-quarter average earnings surprise of 25.6%. In the past 60 days, the Zacks Consensus Estimate for GPGI’s 2026 earnings has increased 20.3%.
ITT Inc. (ITT - Free Report) presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 5.8%.
The Zacks Consensus Estimate for ITT’s 2026 earnings has increased 6.8% in the past 60 days.
Griffon Corporation (GFF - Free Report) presently carries a Zacks Rank of 2. GFF delivered a trailing four-quarter average earnings surprise of 3.3%.
In the past 60 days, the consensus estimate for Griffon’s 2026 earnings has increased 2.6%.