Core Announcement

Honeywell International’s planned spinoff, Honeywell Aerospace Inc (NASDAQ:HONAV), will be added to both the S&P 100 and S&P 500 indices when the transaction closes on June 29, 2026. According to S&P Dow Jones Indices, HONAV will replace its parent, Honeywell International Inc (NASDAQ:HON), in the S&P 100 and will replace Conagra Brands Inc (NYSE:CAG) in the S&P 500, with Conagra moving to the S&P SmallCap 600.

Market Reaction

The news triggered a 9.4% surge in HONAV’s after‑hours trading as institutional investors rebalanced portfolios to accommodate the upcoming index inclusion.

Distribution Mechanics and Share Structure

  • Shareholders of record June 15 will receive one HONA share for every two HON shares held.
  • The remaining automation‑focused business will retain the HON ticker under the new name Honeywell Technologies and will execute a 1‑for‑2 reverse stock split, cutting shares outstanding from roughly 634 million to 317 million.
  • When‑issued (WI) trading for HONAV runs through June 26, after which regular‑way trading under ticker HONA begins on June 29 on Nasdaq.

Growth Outlook and Valuation

  • Management projects 6‑8% annual sales growth for the aerospace unit and 4‑6% for the automation business.
  • Valuation comparison: GE Aerospace, a pure‑play peer, trades at about 46 times forward earnings, whereas Honeywell’s pre‑split multiple was around 21.6 times.
  • Analysts have raised price targets: RBC Capital lifted its target to $275, and Goldman Sachs analyst Joe Ritchie increased his target to $276 from $258, maintaining a Buy rating.

Broader Market Context

  • The broader market closed at one‑week lows, with the Nasdaq and S&P 500 pressured by semiconductor losses, yet the index‑inclusion news remained a bright spot.
  • Barclays and Stifel raised their year‑end S&P 500 targets to 7,800, citing strong corporate earnings and a supportive backdrop for large‑cap industrials like Honeywell Aerospace.

International Reach

CIBC has applied to list Honeywell Aerospace Canadian Depositary Receipts on the Toronto Stock Exchange under the ticker HONA, extending access to Canadian retail investors holding Honeywell CDRs.

Upcoming Milestones

  • June 26: Final day of WI HONAV trading.
  • June 29: Distribution settles, HONA begins regular trading, Honeywell Technologies completes its reverse split, and both index changes take effect.
  • July 25: Honeywell Technologies will report its first standalone earnings, providing an early performance read for the automation business.