Honeywell International Inc.’s HON 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 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 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 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%.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Honeywell International Inc. (HON): Free Stock Analysis Report
ITT Inc. (ITT): Free Stock Analysis Report
Griffon Corporation (GFF): Free Stock Analysis Report
CompoSecure, Inc. (GPGI): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).