Honeywell Aerospace rises in Nasdaq debut

By Aatreyee Dasgupta

June 29 (Reuters) - ‌Honeywell Aerospace shares ​rose ​7% in their Nasdaq debut on Monday, marking another step in the three-way split of manufacturing giant Honeywell.

Shares of the aircraft ‌engine, parts and defense systems maker opened at $236.78 apiece, versus $221.01 at ⁠the close of last week in "when-issued" trading, which began earlier this month.

In 2025, Honeywell said ‌it would separate into three ‌standalone companies focused on automation, aerospace and advanced materials, a process expected to conclude this year.

With the listing, Honeywell Aerospace follows peer GE Aerospace ​in conglomerate breakups, aimed at improving performance through more streamlined, specialized operations.

"Under legacy Honeywell reporting, HONA significantly underperformed its peers in aftermarket growth, ⁠largely due to execution and supply chain challenges," RBC analyst Ken Herbert said in a research note ​on Friday.

"We believe better execution, and increased focus on RMUs (Retrofit, Migration and Upgrade Programs), will support HONA's improved AM right ​to price."

Honeywell Aerospace makes engines, electronics and ‌systems used in aircraft and spacecraft for customers, including planemakers Boeing and Airbus, as well as for airlines and the ⁠U.S. military.

Its debut comes amid strong investor appetite for aerospace and defense assets, driven by pent-up demand and rising military spending.

In March, U.S. President Donald Trump met ⁠with munitions makers including Honeywell Aerospace, as his administration pushes to expand weapons production after ​military operations in Iran and other conflicts drew down U.S. stockpiles.

The company will make a $500 million investment as part of an agreement made the same month with the Pentagon, ‌joining RTX and Lockheed Martin to increase precision-guided missiles and munitions production.

Earlier this month, Honeywell Aerospace told investors that ‌it expects to book $6.5 billion in adjusted earnings by 2030, driven by strong ⁠demand from defense customers and ‌jetmakers.

It expects sales growth of ​7% to 9% this year and free cash flow of $1 billion to $1.5 billion.

(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by ‌Joyjeet Das)

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