Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

Honeywell International / Equity Bottom-Up

<ul><li>Honeywell International Inc. delivered a quarter characterized by solid operational execution alongside notable external and internal headwinds, with management commentary indicating a balance between near-term disruption and medium-term visibility supported by backlog and portfolio actions.</li><li>Performance in the quarter reflected resilience across most segments, particularly in Building Automation and Aerospace, where underlying demand trends remained strong despite supply-side constraints.</li><li>Aerospace growth was temporarily limited by acute disruptions from a small number of mechanical suppliers affecting engines and control systems, with management emphasizing that the issue was highly specific and transitory, showing recovery momentum by March and into April.</li></ul>

Honeywell International Inc. delivered a quarter characterized by solid operational execution alongside notable external and internal headwinds, with management commentary indicating a balance between near-term disruption and medium-term visibility supported by backlog and portfolio actions.Performance in the quarter reflected resilience across most segments, particularly in Building Automation and Aerospace, where underlying demand trends remained strong despite supply-side constraints.Aerospace growth was temporarily limited by acute disruptions from a small number of mechanical suppliers affecting engines and control systems, with management emphasizing that the issue was highly specific and transitory, showing recovery momentum by March and into April.

Honeywell: The Stress Test Is Middle East Service Revenue Not The Backlog Story!

Founder, CEO, GSBR Research

Garvit Bhandari

Founder, CEO

Leading Provider of Equity and Investment Research

GSBR Research

We are an independent equity research provider focused on covering global markets. The aim of the research is to provide an unbiased view of the fundamentals of the company.

Event-Driven

<ul>
<li>Honeywell to spin off aerospace unit into Honeywell Aerospace (HONA), creating a pure-play A&amp;D leader with ~$17.4B revenue and strong aftermarket-driven earnings visibility</li>
<li>SOTP valuation implies modest upside, with HONA contributing ~58% of equity value, highlighting potential conglomerate discount unwinding post separation</li>
<li>Key risk remains HONA’s ~$15.7B debt (~3.2x EBITDA), which could constrain flexibility despite strong margins and long-cycle aerospace demand tailwinds.</li>
</ul>


Honeywell to spin off aerospace unit into Honeywell Aerospace (HONA), creating a pure-play A&amp;D leader with ~$17.4B revenue and strong aftermarket-driven earnings visibility
SOTP valuation implies modest upside, with HONA contributing ~58% of equity value, highlighting potential conglomerate discount unwinding post separation
Key risk remains HONA’s ~$15.7B debt (~3.2x EBITDA), which could constrain flexibility despite strong margins and long-cycle aerospace demand tailwinds.


Honeywell (Nasdaq: HON) - Initiating SOTP with Standalone Fair Values for HON (Ex HONA) And HONA

<ul>
<li>Honeywell to spin off Aerospace (HONA) by Q3 2026, creating a ~$17.4B revenue, ~24.5% margin pure-play aerospace &amp; defense company with strong aftermarket exposure</li>
<li>Separation sharpens strategic focus: Honeywell becomes industrial automation-led, while HONA targets aerospace-specific capital allocation and investor base, supporting potential valuation re-rating.</li>
<li>Key risk is leverage: HONA launches with ~$15.7B debt, though strong backlog (~$18B) and recurring revenues support deleveraging and long-term earnings visibility.</li>
</ul>


Honeywell to spin off Aerospace (HONA) by Q3 2026, creating a ~$17.4B revenue, ~24.5% margin pure-play aerospace &amp; defense company with strong aftermarket exposure
Separation sharpens strategic focus: Honeywell becomes industrial automation-led, while HONA targets aerospace-specific capital allocation and investor base, supporting potential valuation re-rating.
Key risk is leverage: HONA launches with ~$15.7B debt, though strong backlog (~$18B) and recurring revenues support deleveraging and long-term earnings visibility.


Honeywell International (HON) To Spin-Off a $17.4B Aerospace Franchise in Q3 FY2026

<ul><li>Honeywell has taken another decisive step in its ongoing portfolio transformation by revising its agreement to acquire Johnson Matthey’s Catalyst Technologies business for £1.325 billion, down from the originally announced £1.8 billion.</li><li>The updated transaction, now expected to close by late August 2026 pending regulatory approvals, reflects a more disciplined capital approach amid a broader strategic overhaul that includes the spin-off of Aerospace and the divestiture of select automation assets.</li><li>Management has reiterated that the acquisition will be accretive to adjusted earnings per share in the first full year of ownership, while reinforcing Honeywell UOP’s position in refining and renewable fuels.</li></ul>

Honeywell has taken another decisive step in its ongoing portfolio transformation by revising its agreement to acquire Johnson Matthey’s Catalyst Technologies business for £1.325 billion, down from the originally announced £1.8 billion.The updated transaction, now expected to close by late August 2026 pending regulatory approvals, reflects a more disciplined capital approach amid a broader strategic overhaul that includes the spin-off of Aerospace and the divestiture of select automation assets.Management has reiterated that the acquisition will be accretive to adjusted earnings per share in the first full year of ownership, while reinforcing Honeywell UOP’s position in refining and renewable fuels.

Honeywell’s £1.325B Catalyst Bet Could Supercharge Margins And Reshape Its Automation Empire!

<ul><li>Honeywell International Inc. recently concluded its fourth-quarter earnings for 2025 and provided an outlook for 2026, outlining a series of strategic initiatives and performance metrics that paint a mixed picture for investors.</li><li>On the positive side, Honeywell delivered a solid performance in the fourth quarter, with adjusted sales and earnings per share (EPS) exceeding expectations.</li><li>Orders increased by 23%, contributing to a backlog that exceeded $37 billion, signaling strong demand across various markets.</li></ul>

Honeywell International Inc. recently concluded its fourth-quarter earnings for 2025 and provided an outlook for 2026, outlining a series of strategic initiatives and performance metrics that paint a mixed picture for investors.On the positive side, Honeywell delivered a solid performance in the fourth quarter, with adjusted sales and earnings per share (EPS) exceeding expectations.Orders increased by 23%, contributing to a backlog that exceeded $37 billion, signaling strong demand across various markets.

Why Honeywell Is Doubling Down on Quantum Computing—and What Quantinuum’s 2027 Roadmap Signals!

United States

Honeywell International Inc. is a worldwide diversified technology and manufacturing company providing aerospace products and services, control, sensing and security technologies, turbochargers, automotive products, specialty chemicals, electronic and advanced materials, process technology for refining and petrochemicals, and energy efficient products and solutions.

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Honeywell International (HON US)

Honeywell: The Stress Test Is Middle East Service Revenue Not The Backlog Story!

Honeywell International Inc. delivered a quarter characterized by solid operational execution alongside notable external and internal headwinds,...

Baptista Research

Honeywell (Nasdaq: HON) - Initiating SOTP with Standalone Fair Values for HON (Ex HONA) And HONA

Honeywell to spin off aerospace unit, creating pure-play A&D leader. Initiate stand alone fair value estimate for the parent and the spin. SOTP...

GSBR Research

Honeywell International (HON) To Spin-Off a $17.4B Aerospace Franchise in Q3 FY2026

Honeywell to spin off Aerospace by Q3 2026, creating a $17.4B revenue pure-play aerospace & defense company. Separation sharpens focus and...

GSBR Research

Honeywell’s £1.325B Catalyst Bet Could Supercharge Margins And Reshape Its Automation Empire!

Honeywell has taken another decisive step in its ongoing portfolio transformation by revising its agreement to acquire Johnson Matthey’s Catalyst...

Baptista Research

Why Honeywell Is Doubling Down on Quantum Computing—and What Quantinuum’s 2027 Roadmap Signals!

Honeywell International Inc. recently concluded its fourth-quarter earnings for 2025 and provided an outlook for 2026, outlining a series of...

Baptista Research

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Honeywell: The Stress Test Is Middle East Service Revenue Not The Backlog Story!

Honeywell International Inc. delivered a quarter characterized by solid operational execution alongside notable external and internal headwinds,...

Baptista Research

Honeywell (Nasdaq: HON) - Initiating SOTP with Standalone Fair Values for HON (Ex HONA) And HONA

​Honeywell to spin off aerospace unit, creating pure-play A&D leader. Initiate stand alone fair value estimate for the parent and the spin. SOTP...

GSBR Research

Honeywell International (HON) To Spin-Off a $17.4B Aerospace Franchise in Q3 FY2026

​Honeywell to spin off Aerospace by Q3 2026, creating a $17.4B revenue pure-play aerospace & defense company. Separation sharpens focus and...

GSBR Research

Honeywell’s £1.325B Catalyst Bet Could Supercharge Margins And Reshape Its Automation Empire!

Honeywell has taken another decisive step in its ongoing portfolio transformation by revising its agreement to acquire Johnson Matthey’s Catalyst...

Baptista Research

Why Honeywell Is Doubling Down on Quantum Computing—and What Quantinuum’s 2027 Roadmap Signals!

Honeywell International Inc. recently concluded its fourth-quarter earnings for 2025 and provided an outlook for 2026, outlining a series of...

Baptista Research

Honeywell to spin off aerospace unit, creating pure-play A&D leader. Initiate stand alone fair value estimate for the parent and the spin. SOTP...

Honeywell to spin off Aerospace by Q3 2026, creating a $17.4B revenue pure-play aerospace & defense company. Separation sharpens focus and...