Honeywell aerospace spin-off on track for second half of 2026

CHARLOTTE - Honeywell (NASDAQ:HON), a prominent $131 billion industrial conglomerate according to InvestingPro data, confirmed Wednesday that its planned separation of the Aerospace Technologies business remains on schedule for the second half of 2026, with the spin-off set to create one of the largest publicly traded pure-play aerospace suppliers in the market.

Beginning January 1, 2026, Honeywell will reorganize into four reporting segments: Aerospace Technologies, Building Automation, Industrial Automation, and Process Automation and Technology. This new structure will be reflected in the company’s Q1 2026 earnings results. The company currently generates nearly $40 billion in annual revenue, with a healthy EBITDA of approximately $10 billion.

Following the aerospace spin-off, Honeywell will streamline to three business segments focused on automation technologies. The company will also complete the previously announced spin-off of its Solstice Advanced Materials business on October 30, 2025.

"Building on its legacy of shaping the future of aviation, Honeywell Aerospace is poised to further solidify its position as a leader in commercial aerospace, defense and space markets as it transforms its business in this next chapter as a standalone company," said Vimal Kapur, Chairman and CEO of Honeywell.

The independent Aerospace Technologies business will maintain its portfolio of aircraft propulsion, cockpit and navigation systems, and auxiliary power systems, which are currently used on virtually every commercial and defense aircraft platform worldwide.

After the separation, Honeywell’s remaining businesses will continue under their current leadership, with all division presidents reporting to Kapur, who will remain Chairman and CEO of Honeywell.

The company stated in its press release that the aerospace separation is expected to be tax-free to Honeywell shareholders for U.S. federal income tax purposes. InvestingPro analysis shows Honeywell maintains a strong dividend track record, having raised dividends for 15 consecutive years with a current yield of 2.35%. For detailed insights into Honeywell’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, Honeywell International Inc. announced plans to spin off its Advanced Materials business, Solstice Advanced Materials Inc., into an independent, publicly traded company. The distribution of Solstice common stock is scheduled for October 30, 2025, with Honeywell shareholders receiving one share of Solstice stock for every four shares of Honeywell stock held as of the record date, October 17, 2025. Additionally, Honeywell has divested all of its legacy Bendix asbestos liabilities to Delticus, a corporate liability acquisition platform, in an agreement involving approximately $1.68 billion in cash and certain insurance assets. This move is expected to strengthen Honeywell’s cash flow by transferring the responsibility for asbestos-related claims to Delticus.

Honeywell’s Board of Directors has also approved a 5.3% increase in the company’s regular annual cash dividend, raising it from $4.52 to $4.76 per share. The increased dividend will take effect with the fourth-quarter payment, scheduled for December 5, 2025. Meanwhile, UBS has reiterated its Buy rating on Honeywell, maintaining a $268.00 price target, as the company undergoes a significant transformation. UBS views the Solstice spin-off as a strategic step towards Honeywell becoming a focused building and industrial automation company with projected revenues exceeding $20 billion.

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