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CHARLOTTE - Honeywell (NASDAQ:HON), a prominent industrial conglomerate with a market capitalization of $138 billion and trailing twelve-month revenue of $40 billion, filed a Form 10 registration statement with the Securities and Exchange Commission for the planned spin-off of its Solstice Advanced Materials business, the company announced Thursday. According to InvestingPro data, Honeywell maintains strong financial health with a Fair Value indicating the stock is currently fairly priced.
The filing represents a key milestone as Solstice prepares to become an independent public company in the fourth quarter of 2025. Solstice will be listed on the Nasdaq Stock Exchange under the ticker symbol "SOLS." This strategic move comes as Honeywell demonstrates consistent financial strength, with InvestingPro analysis showing 41 consecutive years of dividend payments and 14 years of consecutive dividend increases.
According to the registration statement, Solstice will operate as a specialty materials company focused on refrigerants, semiconductor materials, protective fibers, and healthcare packaging solutions. The business generated $3.8 billion in net sales and $1.1 billion in adjusted EBITDA in 2024. Ten analysts have recently revised their earnings estimates upward for Honeywell, suggesting positive momentum for the company’s strategic initiatives. Discover more detailed analysis and insights with InvestingPro’s comprehensive research reports, available for over 1,400 US stocks.
"Today is a milestone that underscores Solstice’s tremendous momentum as we prepare for our next chapter as a public company," said David Sewell, President and CEO of the Solstice Advanced Materials business, in the press release.
Solstice will be organized into two operating segments: Refrigerants & Applied Solutions, which generated $2.7 billion in 2024 net sales, and Electronic & Specialty Materials, which contributed $1.0 billion.
The company will host an Investor Day on October 8, 2025, in New York City, where leadership will provide details on growth prospects and financial models.
Honeywell Chairman and CEO Vimal Kapur stated the spin-off is part of the company’s plan to form "three industry-leading public companies," though the press release did not specify details about the other planned separations.
The planned spin-off is expected to be tax-free for Honeywell shareholders for U.S. federal income tax purposes, except for any cash received in lieu of fractional shares.
In other recent news, Honeywell International Inc. has reported several significant developments. The company announced the acquisition of three utility platforms from SparkMeter, Inc. to bolster its Smart Energy portfolio. These platforms include Praxis, GridScan, and GridFin, which are expected to enhance Honeywell’s grid solutions. Additionally, Resideo Technologies, Inc. has completed a $1.59 billion payment to Honeywell, ending all obligations under their prior agreement. This transaction eliminates Resideo’s need to make annual payments to Honeywell through 2043.
In the realm of quantum computing, Honeywell’s venture Quantinuum is reportedly seeking a $10 billion valuation in its latest fundraising efforts. This marks a substantial increase from its previous valuation earlier this year. On the financial front, Jefferies has maintained its Hold rating on Honeywell stock, despite the company raising its 2025 revenue guidance. Honeywell’s Building Automation segment is now expected to grow at mid-to-high single digits. These developments reflect Honeywell’s ongoing strategic initiatives and financial adjustments.
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