Aerospace Boom Ignites Honeywell Rally--And a Breakup That Could Reshape Everything

Honeywell International Inc. HON just gave investors something to talk about. The company raised its full-year profit forecast and posted stronger-than-expected third-quarter earnings, powered by surging aerospace demand ahead of its long-awaited corporate split. Management now sees adjusted earnings between $10.60 and $10.70 a share for 2025, slightly above Wall Street's $10.59 consensus. Shares climbed 1.6% in premarket trading Thursday, paring back part of the 8.5% drop the stock has suffered so far this year.

Momentum in aerospace continues to carry the story. Sales in Honeywell's aerospace unit jumped 15% in the quarter, echoing the strength seen earlier this week from GE Aerospace and RTX Corp. Adjusted profit came in at $2.82 a sharewell above analysts' $2.57 estimatehelped by steady commercial aviation recovery and sustained demand for Honeywell's flight systems. For investors, the performance could signal that the company's aerospace exposure remains its key earnings driver going into next year.

That strength arrives just as Honeywell prepares to reshape itself. The company plans to spin off its advanced materials arm in October, the first step toward separating its aerospace and automation operations into three independent publicly traded entities. The broader restructuring remains on track for completion in the second half of next year. For shareholders, this could mark the beginning of a new chapterone where Honeywell's core businesses are positioned to stand on their own, leaner and possibly more focused on long-term value creation.