Honeywell (HON) has officially cleared the final hurdle for its spinoff of Solstice Advanced Materials. The company’s board of directors gave its approval last week, confirming that the separation will proceed as planned on October 30, 2025, with shares to begin regular-way trading under the ticker SOLS on the Nasdaq.
As we previously covered here, this marks the first of Honeywell’s two-part breakup. The second leg, the separation of its Aerospace business, is expected in the second half of 2026.
Solstice Spinoff Details: Distribution, Debt, and Ticker Symbol
Honeywell shareholders of record as of October 17 will receive one share of Solstice for every four shares of Honeywell they own. The distribution is tax-free for U.S. federal income tax purposes, and Honeywell will retain no ownership in Solstice after the spin.
Solstice began trading on a when-issued basis under the symbol SOLSV on October 20. That same day, Honeywell shares began trading in two forms: regular-way with rights to the spinoff, and ex-distribution under the symbol DD WI, without entitlement to Solstice shares. The when-issued trading will end October 29, with regular-way trading of SOLS beginning October 30.
To fund a one-time dividend to Honeywell, Solstice issued $1 billion in debt, consistent with what we’ve seen in recent spin-offs like DuPont’s Qnity. Honeywell will receive the full proceeds upon distribution.
Solstice By the Numbers
According to its Form 10, Solstice generated $3.8 billion in net sales in 2024 and $1.1 billion in adjusted EBITDA, giving it a margin profile competitive with top-tier specialty chemical firms.
Solstice will operate in two primary segments:
- Refrigerants & Applied Solutions – including its low-global-warming Solstice® branded refrigerants and solvents
- Electronic & Specialty Materials – which includes semiconductor process chemicals and protective fibers like Spectra®
The business spans 21 manufacturing sites and four R&D centers, and employs roughly 3,900 people worldwide.
At a when-issued price around $46 per share, Solstice is being valued at about $7.3 billion in market cap. Adding in the $1 billion in new debt, its enterprise value is roughly $8.3 billion, or around 7.5x 2024 EBITDA—a relatively conservative multiple for a stable, high-margin business with growth opportunities.
Early Market Reaction and Analyst Take
Initial trading has been relatively stable after a brief pop to the low $60s. As of October 23, Solstice was hovering in the mid-$40s. That implies a stub value of around $11.50 per Honeywell share.
BMO Capital initiated coverage with an Outperform rating and $70 price target, highlighting Solstice’s strong portfolio and potential re-rating post-spin. Analyst John McNulty called the company a “high-quality, stable growth” play and noted its favorable position in regulatory-driven refrigerants and semiconductor materials.
Solstice CEO Speaks
In the press release announcing board approval, incoming Solstice CEO David Sewell said:
“With a leading portfolio of refrigerants, semiconductor materials, protective fibers, healthcare packaging solutions and unique nuclear power capabilities—Solstice is well positioned to deliver long-term value for our shareowners while helping our customers address some of the world’s most pressing challenges.”
— Honeywell Press Release
Sewell will lead the new company as it begins its journey as a standalone advanced materials specialist, focused on sustainability, specialty applications, and growth sectors like clean energy and healthcare.
Honeywell Turns to Aerospace
With the Solstice spinoff nearly complete, Honeywell is already pivoting to its next act: the spin-off of its Aerospace business.
Earlier this week, the company announced a new business segment structure, which will go into effect on January 1, 2026, ahead of the planned Aerospace spin in the second half of next year.
The company’s new structure will include:
- Aerospace Technologies
- Building Automation
- Industrial Automation
- Process Automation & Technologies
Honeywell’s post-spin focus will center around industrial automation, advanced control systems, and sustainability technology. CEO Vimal Kapur described the reshaped Honeywell as a leader in the transition “from automation to autonomy.”
Elliott Management and other investors have applauded the company’s efforts to unwind its conglomerate structure. With Solstice spun and Aerospace queued up next, Honeywell is mid-flight on one of the most significant corporate restructurings in recent industrial history.
Disclosure: The author holds no position in any stock mentioned.
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