Honeywell International Inc. (Nasdaq: HON) has filed a Form 10 registration statement with the U.S. SEC for the planned spin-off of its global aerospace supply, software, and services businesses into an independent, publicly traded entity, Honeywell Aerospace Inc. The planned distribution is expected to be tax-free for Honeywell shareholders for U.S. federal income tax purposes and is targeted for completion in the third quarter of 2026. The spin-off will be listed on Nasdaq under the ticker ‘HONA’. The separation is designed to sharpen strategic focus for both companies, better align capital allocation, and unlock distinct value profiles in aerospace & defense versus industrial automation.
HONA launches with roughly $17.4 billion of 2025 sales and about $4.3 billion of adjusted EBIT (~24.5% margin). Its installed base covers ~90% of the in-service aircraft fleet across 250+ in-production platforms, generating highly visible, long-cycle aftermarket revenue. At separation, HONA carries ~$15.7 billion of new senior unsecured debt and ~$1.0 billion of cash, having transferred ~$14.8 billion to Honeywell as separation consideration. Post-spin, HON retains Building Automation, Industrial Automation, and Energy & Sustainability Solutions (ESS), generating ~$19.9 billion in FY2025 sales at a 19.9% EBIT margin.
Valuation & Our Take. On a SOTP basis anchored to FY2027E EBITDA, we arrive at a combined fair value of $244.50 per share. We attribute $90.8B equity value to HONA and $65.2B equity value to HON (ex HONA).
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