Honeywell International to Split Aerospace Unit on June 29 with $38B Backlog
DE•Honeywell International spins off its aerospace division on June 29, creating two focused companies, with a three-month stock return of 0.3% versus the S&P 500’s 11.9% gain and trading 10% below its 52-week high. Its $38 billion backlog contrasts with 0.9% three-year revenue growth and a 17.2% operating margin below market average.
1. June 29 Aerospace Spin-Off
Honeywell International will separate its aerospace division on June 29 into a standalone aerospace and defense company, while its industrial automation business will continue independently. Management regards this move as the final step in a multi-year transformation aimed at unlocking value through more focused operations.
2. Premium Valuation and Stock Performance
The stock trades at a price-to-earnings ratio of 35.3 and a price-to-sales ratio of 3.9, both above broader market averages, reflecting investor optimism about the split. Shares returned 0.3% over the past three months versus the S&P 500’s 11.9% gain and sit approximately 10% below their 52-week high.
3. Backlog and Segment Performance
Total backlog exceeds $38 billion, underscoring strong order momentum despite slow revenue growth. Building Automation sales rose 8% organically in the most recent quarter, Process Automation sales declined 6%, and the Aerospace division grew 3% amid supply chain constraints, while securing over $2 billion in new project wins for LNG and sustainable aviation fuel.
