The newly listed aerospace and defense company opened at $236.78 versus $221.01 in when-issued trading, as investors focus on its growth targets and demand from defense customers and jetmakers.
Honeywell Aerospace shares rose 7% in their Nasdaq debut on Monday, opening at $236.78 versus $221.01 at the close of last week in when-issued trading, in the latest step in Honeywell's breakup into separate automation, aerospace and advanced materials companies. The newly independent company makes engines, electronics and systems for aircraft and spacecraft used by customers including Boeing and Airbus, as well as airlines and the U.S. military. The debut comes as investors have shown strong appetite for aerospace and defense assets, supported by pent-up demand and higher military spending. Honeywell Aerospace has said it expects sales growth of 7% to 9% this year, free cash flow of $1 billion to $1.5 billion, and $6.5 billion in adjusted earnings by 2030, driven by demand from defense customers and jetmakers. RBC analyst Ken Herbert said the business had underperformed peers in aftermarket growth under legacy Honeywell reporting because of execution and supply chain challenges, but said improved execution and greater focus on retrofit, migration and upgrade programs could support better aftermarket pricing. In March, U.S. President Donald Trump met with munitions makers including Honeywell Aerospace as his administration sought to expand weapons production after military operations in Iran and other conflicts reduced U.S. stockpiles. Honeywell Aerospace also agreed that month to invest $500 million under a Pentagon arrangement alongside RTX and Lockheed Martin to increase precision-guided missiles and munitions production.