<div id="readability-page-1"><div><ul> <li>Honeywell International (NasdaqGS:HON) plans to accelerate the spin off of its Aerospace division into a separate company.</li> <li>The company reports Q4 results that exceed prior expectations, alongside higher orders and a larger backlog.</li> <li>The combination of the faster spin off timeline and strong order activity signals a significant shift in Honeywell's portfolio mix.</li> </ul> <p>Honeywell International, known for its mix of aerospace systems, industrial automation and building technologies, is now putting more emphasis on its automation and industrial solutions as it prepares Aerospace to stand on its own. For investors, this reshapes how you might think about Honeywell's core business profile, with a clearer separation between industrial and aerospace exposure. The larger orders and backlog in Q4 also highlight demand across key end markets.</p> <p>Looking ahead, the accelerated Aerospace separation could change how NasdaqGS:HON trades over time, as the market starts to value the remaining industrial focused business differently from the future aerospace entity. For now, the key questions for you are around execution of the spin off, how cash flows and capital allocation will be divided, and what kind of risk and return profile each company may offer once the process is complete.</p> <p>Stay updated on the most important news stories for Honeywell International by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Honeywell International.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/2f0dc207-79a8-4f1c-9a1c-8db734fc94c8/chart/earnings-and-revenue-growth?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/2f0dc207-79a8-4f1c-9a1c-8db734fc94c8/chart/earnings-and-revenue-growth"/><figcaption>NasdaqGS:HON Earnings &amp; Revenue Growth as at Feb 2026</figcaption></figure> <p>We've flagged 1 risk for Honeywell International. See which could impact your investment.</p> <p>The accelerated Aerospace spin-off and better than expected Q4 result point to Honeywell reshaping itself into a more focused industrial-automation and building-solutions group, while creating a separate avionics pure play. Q4 orders rising 23% and backlog at US$37b suggest strong demand visibility for both the existing Honeywell operations and the future Aerospace company. At the same time, the Board’s decision to maintain a quarterly dividend of US$1.19 per share underlines an ongoing commitment to returning cash to shareholders as this transition plays out. Management is also targeting 6 to 9% EPS growth by 2026 and has raised its 2026 adjusted EPS guidance, which signals confidence in execution on portfolio changes and cost discipline.</p> <h3>How This Fits Into The Honeywell International Narrative</h3> <ul> <li>The faster Aerospace separation aligns with the existing narrative that portfolio moves and breakups could surface value by giving investors cleaner exposure to automation, materials and aerospace businesses.</li> <li>The complexity of spinning into three independent companies introduces execution risk around stranded costs and integration that the narrative already flags as a potential drag on margins.</li> <li>The latest Q4 order strength, higher backlog and updated 2026 EPS guidance reinforce the portfolio-momentum theme, but the specific acceleration of the Aerospace spin timing is not fully captured in the earlier narrative.</li> </ul> <p>Knowing what a company is worth starts with understanding its story.  Check out one of the top narratives in the Simply Wall St Community for Honeywell International to help decide what it's worth to you.</p> <h3>The Risks and Rewards Investors Should Consider</h3> <ul> <li>⚠️ Execution risk around the Aerospace spin-off and broader separation plan, including potential stranded costs and management distraction during a multi-year restructuring.</li> <li>⚠️ Analysts have highlighted that debt is not fully covered by operating cash flow, so higher investment needs or weaker demand could pressure balance-sheet flexibility.</li> <li>🎁 Q4 orders up 23% and a US$37b backlog give Honeywell and the future Aerospace entity a sizable pipeline, which may support revenue visibility across cycles.</li> <li>🎁 The established dividend of US$1.19 per share and a history of reliable payouts are seen as rewards for shareholders who prioritize income alongside exposure to automation and aerospace end markets.</li> </ul> <h3>What To Watch Going Forward</h3> <p>From here, you will want to track the detailed spin-off terms for Aerospace, including how debt and cash are split between the two companies and what the target margin profiles look like. Watch for any updates to the 6 to 9% EPS growth ambition by 2026 as integration costs and separation expenses become clearer. It is also worth keeping an eye on how Honeywell positions its industrial-automation and building-automation offerings against peers like Siemens and Schneider Electric, and how the future Aerospace company stacks up against players such as Raytheon and GE Aerospace. Finally, monitor order growth, backlog quality and any commentary on end-market demand, as these will provide early clues about how durable the recent momentum is for both entities.</p> <p>To ensure you're always in the loop on how the latest news impacts the investment narrative for Honeywell International, head to the  community page for Honeywell International to never miss an update on the top community narratives.</p> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p><div><h3>Valuation is complex, but we're here to simplify it.</h3><p>Discover if Honeywell International might be undervalued or overvalued with our detailed analysis, featuring <strong>fair value estimates, potential risks, dividends, insider trades, and its financial condition.</strong></p><p>Access Free Analysis</p></div></div></div>

HONIV

<p>Honeywell International is accelerating the spin-off of its Aerospace division following better-than-expected Q4 results, which included a 23% rise in orders and a $37 billion backlog. This strategic move aims to reshape Honeywell's focus towards industrial automation and building technologies, while creating a standalone aerospace entity. The company maintains a quarterly dividend of $1.19 per share and targets 6-9% EPS growth by 2026. Investors should monitor the execution of the spin-off, cash flow allocation, and market positioning against competitors.</p>

Honeywell Speeds Aerospace Spin Off As Q4 Beat Reshapes Portfolio Focus