Honeywell Aerospace Begins Trading as Independent Company
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 21 hours ago
0mins
Honeywell Aerospace (HONA) celebrates its first day as an independent, publicly traded company following the completion of its spin-off from Honeywell International (HON). Shares of Honeywell Aerospace will begin trading on the Nasdaq Stock Market effective at the market opening on June 29.
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Analyst Views on HONA
Wall Street analysts forecast HONA stock price to rise
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Current: 221.010
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Current: 221.010
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Honeywell Aerospace Debuts Strongly as Independent Company
- Strong Debut: Honeywell Aerospace (HONA) saw its shares rise approximately 7% on its Nasdaq debut, opening at $236.78, above its recent when-issued trading price, indicating strong investor interest in aerospace and defense stocks.
- Strategic Split: The separation marks a significant milestone in Honeywell's plan to split into three standalone businesses focused on aerospace, automation, and advanced materials, reflecting a broader trend among industrial conglomerates to unlock value through more focused operations.
- Robust Market Demand: Honeywell Aerospace supplies engines, avionics, and mission-critical systems to Boeing, Airbus, airlines, and the U.S. military, benefiting from strong demand driven by commercial aerospace recovery and rising global defense spending.
- Ambitious Financial Targets: Management has outlined ambitious long-term targets, projecting adjusted earnings of approximately $6.5 billion by 2030, with expected revenue growth of 7% to 9% and free cash flow between $1 billion and $1.5 billion by 2026.
See More
Honeywell's Spinoff Debuts with Mixed Market Reception
- Spinoff Overview: Honeywell International's spinoff of Honeywell Aerospace resulted in a more than 6% drop in the legacy stock on its first trading day, indicating a lukewarm market response that could affect investor confidence.
- Shareholder Return Mechanism: Shareholders received one share of Honeywell Aerospace for every two shares of Honeywell International, reflecting the company's strategy to enhance shareholder value during the separation process.
- Business Restructuring Impact: Honeywell Technologies remains a large industrial conglomerate post-spinoff, with projected net sales of $19.9 billion for 2025, a 3% increase from 2024, highlighting its potential in sectors like building automation.
- Market Outlook Analysis: Despite the decline in Honeywell Technologies' stock price, Honeywell Aerospace's independent operation may enhance its competitiveness in the aerospace and defense sectors, particularly with rising infrastructure construction demands, making its future development worth monitoring.
See More
Market Reaction to Honeywell's Spin-Off
- New Structure Post Spin-Off: Following a year-long review, Honeywell announced in February 2025 the spin-off of Honeywell Technologies and Honeywell Aerospace, aiming to unlock value for shareholders and enhance tailored growth strategies for each entity.
- Poor Market Performance: On the first trading day post-spin-off, Honeywell Technologies saw its stock price drop over 6%, while Honeywell Aerospace, after an initial surge, closed nearly 5% down, indicating market caution towards the new companies.
- Shareholder Adjustment: Legacy Honeywell International shareholders received one share of Honeywell Aerospace for every two shares they owned, while Honeywell Technologies executed a 1-for-2 reverse stock split to recalibrate its share price and count.
- Future Outlook: Although Honeywell Technologies has potential in building automation, analysts suggest that both companies may perform better separately, particularly given the rapid developments in the aerospace and defense sectors.
See More
Honeywell Completes Aerospace Spin-Off, Unlocking Value
- Spin-Off Completion: Honeywell has officially completed the spin-off of its aerospace business, allowing shareholders to receive one share of the new publicly traded company for every two shares of Honeywell, aimed at focusing on the unique needs and strategies of the aerospace sector to unlock potential value.
- Strong Backlog: The aerospace division currently boasts a backlog worth approximately $19 billion, indicating robust demand for its products, and improvements in supply chain and delivery speed are expected to translate into future earnings growth.
- Growth Forecast: Management anticipates annual organic revenue growth of 6% to 8% from 2025 to 2030, with adjusted EBIT expected to grow even faster, reflecting the strong growth potential in the aerospace market.
- R&D Synergies: Post-spin-off, Honeywell Aerospace can more effectively integrate R&D resources, driving innovation across adjacent markets, which is expected to accelerate product development cycles, enhance market competitiveness, and reduce operational volatility.
See More
Market Rally Holds as Healthcare Stocks Surge
- Market Rally: The S&P 500 and Nasdaq are on track to end a five-session losing streak on Monday, indicating a rebound in market sentiment, particularly with Amazon, Alphabet, and Meta Platforms leading the recovery, which could boost investor confidence.
- Healthcare Sector Surge: Corning and Palo Alto Networks reached all-time highs during Monday's session, reflecting a resurgence in the healthcare sector, which may attract more capital into this previously undervalued area, further driving industry growth.
- Executive Changes Impact: Goldman Sachs served as the exclusive financial advisor for Martin Marietta's $13.5 billion acquisition of Lhoist North America and provided fully committed debt financing, showcasing its strong performance in investment banking, which could enhance its market position.
- Economic Data Focus: This week will see the release of the consumer confidence survey and the JOLTS report, which are expected to influence market sentiment, especially ahead of the upcoming non-farm payroll report, prompting investors to closely monitor these economic indicators.
See More
US Stocks Rebound as Oil Prices Stabilize
- Market Rebound: The S&P 500 rose on Monday, bouncing back from last week's pullback, indicating resilience in the market and a recovery in investor confidence for future performance.
- Oil Price Dynamics: West Texas Intermediate crude advanced to about $70 per barrel after Iran and the U.S. agreed to a ceasefire, allowing commercial vessels to pass freely through the Strait of Hormuz, which helps stabilize oil prices and may influence bond yields.
- Cybersecurity Stock Performance: Shares of Palo Alto Networks rose approximately 7.5%, while CrowdStrike jumped over 6%, driven by increased demand for cybersecurity as Chinese AI systems can now identify vulnerabilities, enhancing the urgency for robust cybersecurity measures.
- Investor Strategy: Jim Cramer noted that despite challenges faced by megacap tech stocks due to shifting market dynamics, there remains an opportunity to regain market trust through strategic adjustments, urging investors to stay informed on these developments to optimize their portfolios.
See More
Honeywell Aerospace Debuts Strongly as Independent Company
- Strong Debut: Honeywell Aerospace (HONA) saw its shares rise approximately 7% on its Nasdaq debut, opening at $236.78, above its recent when-issued trading price, indicating strong investor interest in aerospace and defense stocks.
- Strategic Split: The separation marks a significant milestone in Honeywell's plan to split into three standalone businesses focused on aerospace, automation, and advanced materials, reflecting a broader trend among industrial conglomerates to unlock value through more focused operations.
- Robust Market Demand: Honeywell Aerospace supplies engines, avionics, and mission-critical systems to Boeing, Airbus, airlines, and the U.S. military, benefiting from strong demand driven by commercial aerospace recovery and rising global defense spending.
- Ambitious Financial Targets: Management has outlined ambitious long-term targets, projecting adjusted earnings of approximately $6.5 billion by 2030, with expected revenue growth of 7% to 9% and free cash flow between $1 billion and $1.5 billion by 2026.
See More
Honeywell's Spinoff Debuts with Mixed Market Reception
- Spinoff Overview: Honeywell International's spinoff of Honeywell Aerospace resulted in a more than 6% drop in the legacy stock on its first trading day, indicating a lukewarm market response that could affect investor confidence.
- Shareholder Return Mechanism: Shareholders received one share of Honeywell Aerospace for every two shares of Honeywell International, reflecting the company's strategy to enhance shareholder value during the separation process.
- Business Restructuring Impact: Honeywell Technologies remains a large industrial conglomerate post-spinoff, with projected net sales of $19.9 billion for 2025, a 3% increase from 2024, highlighting its potential in sectors like building automation.
- Market Outlook Analysis: Despite the decline in Honeywell Technologies' stock price, Honeywell Aerospace's independent operation may enhance its competitiveness in the aerospace and defense sectors, particularly with rising infrastructure construction demands, making its future development worth monitoring.
See More
Market Reaction to Honeywell's Spin-Off
- New Structure Post Spin-Off: Following a year-long review, Honeywell announced in February 2025 the spin-off of Honeywell Technologies and Honeywell Aerospace, aiming to unlock value for shareholders and enhance tailored growth strategies for each entity.
- Poor Market Performance: On the first trading day post-spin-off, Honeywell Technologies saw its stock price drop over 6%, while Honeywell Aerospace, after an initial surge, closed nearly 5% down, indicating market caution towards the new companies.
- Shareholder Adjustment: Legacy Honeywell International shareholders received one share of Honeywell Aerospace for every two shares they owned, while Honeywell Technologies executed a 1-for-2 reverse stock split to recalibrate its share price and count.
- Future Outlook: Although Honeywell Technologies has potential in building automation, analysts suggest that both companies may perform better separately, particularly given the rapid developments in the aerospace and defense sectors.
See More
Honeywell Completes Aerospace Spin-Off, Unlocking Value
- Spin-Off Completion: Honeywell has officially completed the spin-off of its aerospace business, allowing shareholders to receive one share of the new publicly traded company for every two shares of Honeywell, aimed at focusing on the unique needs and strategies of the aerospace sector to unlock potential value.
- Strong Backlog: The aerospace division currently boasts a backlog worth approximately $19 billion, indicating robust demand for its products, and improvements in supply chain and delivery speed are expected to translate into future earnings growth.
- Growth Forecast: Management anticipates annual organic revenue growth of 6% to 8% from 2025 to 2030, with adjusted EBIT expected to grow even faster, reflecting the strong growth potential in the aerospace market.
- R&D Synergies: Post-spin-off, Honeywell Aerospace can more effectively integrate R&D resources, driving innovation across adjacent markets, which is expected to accelerate product development cycles, enhance market competitiveness, and reduce operational volatility.
See More
Market Rally Holds as Healthcare Stocks Surge
- Market Rally: The S&P 500 and Nasdaq are on track to end a five-session losing streak on Monday, indicating a rebound in market sentiment, particularly with Amazon, Alphabet, and Meta Platforms leading the recovery, which could boost investor confidence.
- Healthcare Sector Surge: Corning and Palo Alto Networks reached all-time highs during Monday's session, reflecting a resurgence in the healthcare sector, which may attract more capital into this previously undervalued area, further driving industry growth.
- Executive Changes Impact: Goldman Sachs served as the exclusive financial advisor for Martin Marietta's $13.5 billion acquisition of Lhoist North America and provided fully committed debt financing, showcasing its strong performance in investment banking, which could enhance its market position.
- Economic Data Focus: This week will see the release of the consumer confidence survey and the JOLTS report, which are expected to influence market sentiment, especially ahead of the upcoming non-farm payroll report, prompting investors to closely monitor these economic indicators.
See More
US Stocks Rebound as Oil Prices Stabilize
- Market Rebound: The S&P 500 rose on Monday, bouncing back from last week's pullback, indicating resilience in the market and a recovery in investor confidence for future performance.
- Oil Price Dynamics: West Texas Intermediate crude advanced to about $70 per barrel after Iran and the U.S. agreed to a ceasefire, allowing commercial vessels to pass freely through the Strait of Hormuz, which helps stabilize oil prices and may influence bond yields.
- Cybersecurity Stock Performance: Shares of Palo Alto Networks rose approximately 7.5%, while CrowdStrike jumped over 6%, driven by increased demand for cybersecurity as Chinese AI systems can now identify vulnerabilities, enhancing the urgency for robust cybersecurity measures.
- Investor Strategy: Jim Cramer noted that despite challenges faced by megacap tech stocks due to shifting market dynamics, there remains an opportunity to regain market trust through strategic adjustments, urging investors to stay informed on these developments to optimize their portfolios.
See More
