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

Founder, CEO, GSBR Research

Garvit Bhandari

Founder, CEO

Event-Driven

<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