Honeywell Advances Aerospace Spin-Off, Reverse Split Plan

Honeywell International Inc. HON has taken a major step toward separating its Aerospace business. The spinoff is scheduled to be completed on June 29, 2026, after which Honeywell Aerospace will operate as an independent public company.The Aerospace business is a provider of integrated avionics, engines, systems and service solutions for aircraft manufacturers, airlines, business and general aviation, military, space and airport operations. It develops laser communication products for satellite communication.Inside the HeadlinesHoneywell plans to allocate all outstanding shares of Honeywell Aerospace common stock to its shareholders on June 29, 2026. Shareholders of record as of June 15, 2026, will receive one share of Honeywell Aerospace for every two shares of Honeywell common stock they hold. The separation will take place once all specified conditions under the U.S. Securities and Exchange Commission filing are met.At the first instance, Honeywell Aerospace shares are likely to commence trading on a "when-issued’’ basis on Nasdaq under the symbol "HONAV" on or about June 15, 2026. However, regular-way trading under the ticker "HONA" is expected to start on June 29, 2026. Honeywell shares are expected to trade in two markets, under the regular ticker "HON" with the right to receive Honeywell Aerospace shares and under the ticker "HONIV" without that right.Also, HON announced plans to proceed with a one-for-two reverse stock split, contingent upon the completion of the Aerospace spin-off. The move will reduce the company's outstanding shares from roughly 634 million to approximately 317 million, while maintaining its Nasdaq listing under the ticker "HON." The separation and related corporate actions are expected to restructure Honeywell's portfolio, enhance strategic focus and support long-term value creation for shareholders.HON’s Zacks RankSolid demand for its products and solutions, led by increasing building projects, particularly in North America, will likely be beneficial for HON’s Building Automation segment. Increasing order rates and capex investments in data centers and health care projects bode well for it.In the past six months, this Zacks Rank #3 (Hold) company’s shares have risen 12.5% against the industry’s 3.6% decline.Image Source: Zacks Investment ResearchHowever, weakness in the Process Automation and Technology segment, due to lower petrochemical catalyst shipments, is worrisome. Also, the company has been dealing with increasing operating costs, which might hurt its margins and profitability.Stocks to ConsiderBetter-ranked companies are discussed below.GPGI, Inc. GPGI currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.GPGI delivered a trailing four-quarter average earnings surprise of 25.6%. In the past 60 days, the Zacks Consensus Estimate for GPGI’s 2026 earnings has increased 20.3%.ITT Inc. ITT presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 5.8%.The Zacks Consensus Estimate for ITT’s 2026 earnings has increased 8.1% in the past 60 days.Griffon Corporation GFF presently carries a Zacks Rank of 2. GFF delivered a trailing four-quarter average earnings surprise of 3.3%.In the past 60 days, the consensus estimate for Griffon’s 2026 earnings has increased 2.6%.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks