Honeywell International Inc. HON has taken a major step toward separating its Aerospace business. The spinoff is scheduled to be completed on June 29, 2026, after which Honeywell Aerospace will operate as an independent public company.
The Aerospace business is a provider of integrated avionics, engines, systems and service solutions for aircraft manufacturers, airlines, business and general aviation, military, space and airport operations. It develops laser communication products for satellite communication.
Inside the Headlines
Honeywell plans to allocate all outstanding shares of Honeywell Aerospace common stock to its shareholders on June 29, 2026. Shareholders of record as of June 15, 2026, will receive one share of Honeywell Aerospace for every two shares of Honeywell common stock they hold. The separation will take place once all specified conditions under the U.S. Securities and Exchange Commission filing are met.
At the first instance, Honeywell Aerospace shares are likely to commence trading on a "when-issued’’ basis on Nasdaq under the symbol "HONAV" on or about June 15, 2026. However, regular-way trading under the ticker "HONA" is expected to start on June 29, 2026. Honeywell shares are expected to trade in two markets, under the regular ticker "HON" with the right to receive Honeywell Aerospace shares and under the ticker "HONIV" without that right.
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 are expected to restructure Honeywell's portfolio, enhance strategic focus and support long-term value creation for shareholders.
HON’s Zacks Rank
Solid demand for its products and solutions, led by increasing building projects, particularly in North America, will likely be beneficial for HON’s Building Automation segment. Increasing order rates and capex investments in data centers and health care projects bode well for it.
In the past six months, this Zacks Rank #3 (Hold) company’s shares have risen 12.5% against the industry’s 3.6% decline.
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However, weakness in the Process Automation and Technology segment, due to lower petrochemical catalyst shipments, is worrisome. Also, the company has been dealing with increasing operating costs, which might hurt its margins and profitability.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
