Honeywell Aerospace Shares Slip 0.4% After 7% Intraday Surge
HON•Honeywell Aerospace debuted on Nasdaq June 29 via a one-for-two spin-off, rising nearly 7% intraday before closing down 0.4% and lagging the sector by about 10 percentage points. The standalone unit posted $17.4 billion sales, $4.3 billion operating profit and $18.6 billion backlog, trading at 15x EV/EBITDA versus 18–20x for peers.
1. Nasdaq Debut Performance
On June 29, Honeywell Aerospace commenced trading on Nasdaq following its one-for-two spin-off distribution. Shares rallied nearly 7% intraday before settling down 0.4%, with early volume reflecting heightened investor attention and choppy price action.
2. Spin-Off Churn Impact
Immediate selling pressure arose as funds adjusted portfolios post-distribution, a common dynamic for newly listed units. This rebalancing drove the 10 percentage point underperformance versus the broader aerospace and defense sector.
3. Standalone Financial Profile
The pure-play aerospace unit recorded $17.4 billion in annual sales, $4.3 billion in operating profit and 12% organic revenue growth. A repeat-service base fuels 44% of revenue, while defense and space contribute 41%, backed by a $18.6 billion order backlog.
4. Valuation Discount
At an enterprise-value to EBITDA multiple of about 15x, Honeywell Aerospace trades at a notable discount to peer multiples of 18–20x. This valuation gap may attract value investors as the market digests the new listing.
