01—Abstract
Summary
Summary of the 8-K filed June 29, 2026. Cited figures are marked; the original filing is the authoritative source.
On June 29, 2026, Honeywell International completed the spin-off of its Aerospace Technologies business into Honeywell Aerospace Inc. (Nasdaq: HONA), distributed at one HONA share for every two HON shares held as of June 15, 2026.
The parent company now operates as Honeywell Technologies, a pure-play automation company (Nasdaq: HON), and will no longer consolidate Aerospace. Aerospace is reported as discontinued operations beginning in Q3 2026, with prior periods recast. Concurrently, a 1-for-2 reverse stock split took effect, reducing shares outstanding from roughly 634 million to roughly 317 million and cutting authorized shares from 2 billion to 1 billion.
The filing also reflects the earlier deconsolidation of Quantinuum, which no longer qualifies as an operating segment. The pro forma financials show the continuing business is much smaller than the legacy company. For FY2025, pro forma continuing net sales were about $19.9 billiona versus $37.4 billion as reported, and pro forma net income from continuing operations attributable to Honeywell was about $1.37 billion versus $4.46 billion.
Continuing segment profit was $3.5 billionb in FY2025 (up from $3.3 billion in FY2024), but segment profit margin on continuing sales is roughly 17.6%. Segment-level trends are mixed: Building Automation grew strongly (FY2025 sales up 13%, organic up 8%), Process Automation grew modestly, while Industrial Automation declined on a reported basis and took a $724 million goodwill impairment in Q4 2025.
For investors, the key items are the scale of the remaining company, the capital structure changes (Aerospace issued $16.0 billionc of senior notes, of which $13.0 billion was used to repay Honeywell Technologies debt, and $1 billion of cash is retained by Aerospace), and the ongoing relationships set out in the Separation, Tax Matters, and Trademark License agreements. Several figures are preliminary and subject to change in upcoming 10-K and 10-Q filings, so investors should treat the recast numbers as estimates.
02—Key points
Key Highlights
- Spin-off completed June 29, 2026: Honeywell Aerospace (HONA) distributed at 1 share per 2 HON shares; the parent is renamed Honeywell Technologies (HON).
- 1-for-2 reverse stock split effective June 29, 2026; shares outstanding fall from ~634M to ~317M and authorized shares drop from 2B to 1B.
- Pro forma FY2025 continuing net sales of $19.9B (vs. $37.4B as reported) and continuing net income attributable to Honeywell of $1.37B (vs. $4.46B as reported).
- FY2025 continuing segment profit of $3.5B (up from $3.3B in FY2024); Building Automation was the strongest segment with FY2025 sales up 13% and organic growth of 8%.
- Industrial Automation weakened, with FY2025 sales down 10% reported and organic sales roughly flat to down, plus a $724M goodwill impairment in Q4 2025.
- Aerospace raised $16.0B in senior notes; $13.0B of proceeds were used to repay Honeywell Technologies' third-party debt, and Aerospace retains about $1B of cash.
- Recast discontinued-operations presentation and preliminary estimates may change in the 2026 10-K and Q3 2026 10-Q, so the new baseline is not yet final.
03—Questions
Frequently Asked Questions
What did shareholders receive in the spin-off, and how were fractional shares handled?
Holders of record of HON as of June 15, 2026 received one share of Honeywell Aerospace (HONA) for every two HON shares held. No fractional shares were issued; the distribution agent sold the aggregated fractions and paid out the net proceeds in cash pro rata, without interest.
How does the reverse stock split affect my position?
Every two HON shares were combined into one, so the share count roughly halved while the economic value per holder is unchanged apart from fractional-share cash payouts. Equity awards and the equity plan reserve were adjusted proportionately, and the new CUSIP is 438516205.
Why do the reported and pro forma financials differ so much?
Aerospace and the former Advanced Materials business are presented as discontinued operations, and Quantinuum is excluded because it is no longer an operating segment. The pro forma continuing sales of about $19.9B for FY2025 reflect only the remaining automation businesses, so historical comparisons should use the recast figures.
What are the key ongoing relationships between Honeywell Technologies and Aerospace?
The Separation and Distribution Agreement sets the framework for asset and liability allocation, the Tax Matters Agreement allocates tax liabilities (including if the distribution fails to qualify as tax-free under Sections 355 and 368(a)(1)(D)), and the Trademark License Agreement lets Aerospace use the 'Honeywell Aerospace' mark in exchange for fees, while Honeywell Technologies keeps the 'Honeywell' mark. A transition services agreement and sub-lease arrangements also apply.
What should investors watch next?
Investors should watch the 2026 10-K and Q3 2026 10-Q, where the discontinued-operations accounting and recast figures will be finalized, and the trajectory of Industrial Automation after the Q4 2025 goodwill impairment. Continued organic growth in Building Automation and whether the company can sustain its continuing segment profit will be central to valuation.
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