CHARLOTTE, N.C. - Honeywell (NASDAQ:HON) announced today that its board of directors has approved the spin-off of its aerospace division, with the distribution scheduled for June 29, 2026. The industrial conglomerate, with a market capitalization of $139.6 billion, is currently trading above its InvestingPro Fair Value, according to the platform’s analysis.
Honeywell shareowners of record as of today will receive one share of Honeywell Aerospace common stock for every two shares of Honeywell common stock held. The distribution will occur at 12:01 a.m. New York City time on June 29, according to a press release statement.
Following the separation, the remaining automation business will operate as Honeywell Technologies and continue trading on Nasdaq under the ticker HON. Honeywell Aerospace common stock is expected to begin when-issued trading on Nasdaq under the ticker symbol HONAV today, transitioning to regular-way trading under HONA on June 29.
The company’s registration statement on Form 10 was declared effective by the Securities and Exchange Commission on June 11, 2026. The distribution remains subject to the satisfaction or waiver of certain conditions outlined in the Separation and Distribution Agreement filed with the SEC.
From today through June 26, Honeywell common stock will trade in two markets on Nasdaq: a regular-way market under HON with rights to receive Honeywell Aerospace shares, and an ex-distribution market under HONIV without those rights.
A 1-for-2 reverse stock split of Honeywell Technologies common stock will immediately follow the spin-off, along with a proportionate reduction in authorized shares, contingent on completion of the separation.
"Today’s announcement clears the path to establishing two independent industry leaders in Honeywell Aerospace and Honeywell Technologies," said Vimal Kapur, chairman and CEO of Honeywell. The company has maintained dividend payments for 42 consecutive years, with a current yield of 2.16%, reflecting its commitment to shareholder returns even as it undergoes this major restructuring. For investors seeking deeper insights into Honeywell’s financial health and future prospects, InvestingPro offers a comprehensive Pro Research Report, available for this and 1,400+ other US equities.
The separation will create two independent companies, with Honeywell Aerospace operating as an aerospace and defense supplier and Honeywell Technologies focusing on industrial automation.
In other recent news, Honeywell International has set ambitious three-year financial targets, including 4% to 6% organic growth, over 60 basis points of annual margin expansion, and more than 10% annual earnings growth, accompanied by over 90% free cash flow conversion. The company is also eyeing acquisitions valued between $2 billion and $4 billion, particularly focusing on its industrial automation division, which operates in a market worth approximately $35 billion. As Honeywell prepares for the spinoff of its Aerospace Technologies unit at the end of June, the company hosted an investor day in New York City to discuss its strategic plans.
Bernstein SocGen Group has initiated coverage on Honeywell with a Market Perform rating and a $233 price target, indicating that the spinoff aligns with the company’s strategy to focus on its core automation business. Additionally, Mizuho has reiterated an Outperform rating for Honeywell, setting a price target of $240 following the investor day event. The company’s management engaged in discussions during the event, highlighting potential growth areas and strategic moves.
Bernstein also reiterated its Market Perform rating, emphasizing the significance of the upcoming spinoff for Honeywell’s strategic refocus. These recent developments reflect Honeywell’s strategic direction as it navigates its business transformation and potential growth opportunities.
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