Honeywell Separation Set for June as EU Pressure Bears Fruit

Honeywell International Inc. is set to separate into two publicly traded entities on June 29, 2026. The separation will result in Honeywell Aerospace (HONA) and Honeywell Technologies (HON), with existing shareholders receiving one HONA share for every two HON shares owned.

The move comes after pressure from the European Union, which prompted Hungary to scrap harsh crypto penalties. This development is seen as a positive catalyst for the company's future growth.

Honeywell Aerospace is expected to trade at a premium multiple potential due to its strong revenue growth and operating margins approaching 25%. The division delivered $17.4B in 2025 revenue, exceeding the industry benchmark of approximately 17% margins.

On the other hand, Honeywell Technologies aims for low-double-digit earnings growth, with Goldman Sachs estimating the automation operations at roughly $85 billion. This valuation implies approximately 30x projected 2026 earnings.