Honeywell announced on June 15 that its board of directors has formally approved the planned spinoff of its aerospace division, clearing the final major hurdle before the two businesses officially part ways.
The separation is scheduled for June 29, 2026, according to a company statement.
When the dust settles, shareholders will own stakes in two separate, publicly traded companies: Honeywell Aerospace (ticker: HONA) and Honeywell Technologies (ticker: HON). Both will list on the Nasdaq.
It’s one of the biggest corporate breakups in recent memory and the clearest sign yet that the industrial-conglomerate era is giving way to something sharper and more focused.
How the Honeywell split works
Honeywell (HON) shareholders on record as of June 15 will receive one share of Honeywell Aerospace for every two shares of Honeywell common stock they hold. No action is required on their part, as the shares will be distributed automatically on June 29.
Honeywell Aerospace will begin trading on a “when-issued” basis under the ticker “HONAV” around June 15, ahead of its official Nasdaq debut as “HONA” on June 29.
Immediately after the spinoff, Honeywell Technologies will execute a one-for-two reverse stock split, meaning every two shares will be combined into one.
The number of authorized shares will be reduced proportionally. This is standard practice after spinoffs that change a company’s share count, and shareholders’ overall ownership value shouldn’t change as a result.
What each Honeywell company will do going forward
Honeywell Aerospace will emerge as one of the largest pure-play aerospace suppliers trading publicly in the U.S.
The company is betting heavily on electrification and autonomous flight, areas where aerospace technology is evolving rapidly.
Honeywell Aerospace CEO Jim Currier said the new independent structure will allow the business to “innovate faster, move with greater agility and shape the next era of aviation,” according to a company statement.
Related: History of Honeywell: Company timeline, milestones & facts
Honeywell Technologies, meanwhile, is positioning itself as a global leader in what it calls the shift “from automation to autonomy.”
The company serves industrial clients across building management, process automation, and industrial sensing, such as refineries, semiconductor fabs, hospitals, data centers, and hotels.
Its pitch is that AI-powered software can help these facilities run themselves more efficiently, with less human intervention.
At its June 11 investor day, Honeywell Technologies management revealed that:
- 40% of Honeywell Technologies’ roughly $17 billion in annual revenue already comes from services and software.
- The goal is to push that to 45% within three years.
- Software’s annual recurring revenue sits at around $1 billion and is targeted to grow at roughly 15% per year.
Chief Financial Officer Mike Stepniak said the company expects earnings per share of around $4.05 in 2026, growing more than 10% annually through 2029, with a target of $6 per share.
Why the breakup makes sense
Honeywell Chairman and CEO Vimal Kapur spent more than three years restructuring the business before this moment arrived.
The company completed two other major spinoffs, Advanced Materials and the upcoming Aerospace separation, divested several units, and made seven acquisitions in automation, including a significant push into liquefied natural gas technology.
More Aerospace:
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“Today’s announcement clears the path to establishing two independent industry leaders in Honeywell Aerospace and Honeywell Technologies and also reflects our significant portfolio transformation over the past three years,” Kapur said in a company statement.
The logic behind the split is straightforward.
A defense and aviation supplier and an industrial software company have little in common operationally, and bundling them together can muddy the story for investors.
Separate entities can focus capital, talent, and strategy more precisely, and each can be valued on its own merits.
Honeywell Technologies enters its independent life with strong momentum.
Building automation revenue grew at high single digits for seven consecutive quarters heading into mid-2026.
The process automation backlog is converting into revenue.
And the industrial sensing business, after years of underperformance, is being rebuilt around a pure sensing-and-measurement model that management says can grow at mid-single digits annually.
The company also holds a 47% stake in Quantinuum, the quantum computing firm that completed its IPO in early June 2026 and is carried on Honeywell’s books at approximately $7 billion.
That stake gives Honeywell Technologies a significant long-term asset outside its core operations.
For investors, the message from management is simple. Two leaner, more focused companies are worth more than one sprawling conglomerate. June 29 is when that thesis gets put to the test.
Related: JPMorgan resets FedEx stock rating ahead of June spinoff
