The Weekly Wrap-Up provides a list of upcoming spin-offs and summaries of recent publications. If you haven’t engaged with the research over the past seven days, the Weekly Wrap-Up will quickly update you on our newest and highest conviction ideas.
UPCOMING U.S. SPIN-OFFS AND EXPECTED COMPLETION DATES:
2025
2026
RECENT PUBLICATIONS:
ALERT: Corteva, Inc. (CTVA) – October 1, 2025
CTVA to Separate its Crop Protection & Seed Businesses via a Tax-Free Spin-Off in 2H 2026
On October 1, 2025, before the market open, Corteva, Inc. (CTVA), a global agricultural company that was spun off from Dupont de Nemours, Inc. (DD) in June 2019, announced plans to separate its Crop Protection and Seed businesses into two publicly traded entities via a tax-free transaction that is expected to be completed in 2H 2026, subject to customary conditions, including final Board approval.
Beyond the standard rationale of improved management/strategic focus, enhanced operational flexibility, optimized capital structures & capital allocation policies the company indicates that the separation will better equip NewCorteva, which is projected to generate ~$7.8 billion of sales in 2025 with adj. operating EBITDA of ~$1.35 billion, to compete, largely via investments in innovation, within an increasingly competitive market while SpinCo, which is projected to generate ~$9.9 billion of sales in 2025 with adj. operating EBITDA of $2.6 billion, will become a “classic growth compounder”. In terms of leadership, CTVA’s current Board Chairman, Greg Page, will become the Chair of NewCorteva while CTVA’s current chief executive officer (CEO) will assume the helm at SpinCo. Both companies are targeting investment grade credit ratings on a standalone basis, while NewCorteva will retain all legacy liabilities, including historical Dupont pension plans as well as all PFAS obligations, which we cursorily estimate are likely capped at ~$200 million.
Primary players in the wider agricultural sector include, CF Industries (CF), FMC Corp. (FMC), Nutrien Ltd. (NTR), which merged with PotashCorp in 2018 at an implied valuation of ~9.5x, Mosaic Company (MOS), Intrepid Potash (NYSE: IPI), Bayer AG (BAYN GR), which purchased Monsanto in 2016 at ~16x, ChemChina (private), which purchased Syngenta in 2016 for ~16.5x, Yara International (YAR NO), K+S AG (SDF GR), Sociedad Quimica y Minera de Chile (SQM), and ICL Group (ICL), which, as a group, trade, on average of ~7x 2026E EV/EBITDA (in a range of 5x-8x). Applying a 13x multiple to the higher-margin Seed business and a peer 7.0x multiple to the Crop Protection business implies segment values of ~$44.5 billion and $9.5 billion, respectively. Accounting for corporate costs as well as projected net debt yields a sum of the parts value of ~$51.0 billion or ~$75 per share.
ALERT: KBR, Inc. (KBR) – September 24, 2025
KBR to Separate its Mission Technologies Business in a Tax-Free Spin-Off Expected to be Completed in Mid-to-Late 2026
On September 24, 2025, KBR, Inc. (KBR), a global IT services contractor, announced plans to separate its government-focused Mission Technology Solutions (MTS) business from its energy & infrastructure focused Sustainable Technology Solutions (STS or NewKBR) business via a tax-free spin-off that is expected to be completed in “mid-to-late” 2026, subject to customary conditions, including regulatory approvals and final Board approval.
Beyond the standard rationale of improved management/strategic focus, enhanced operational flexibility, optimized capital structures & capital allocation policies we would note that this step is likely the culmination of KBR’s multi-year transformation efforts aimed at focusing on an asset-light business model with differentiated/proprietary (i.e., less commoditized) solutions that generate stable/predictable cash flows. To that end, one could surmise that beyond the contention that this transaction will unlock value a secondary motivation would be to reduce NewKBR’s exposure to fluctuations in federal IT spending, which has been a recent overhang for the group. Additionally, we would note that in December 2024, activist investor Irenic Capital, purportedly a ~1% holder, announced plans to push KBR to separate its MTS and STS segments. Subsequently, in January 2025, KBR announced a segment realignment, which among other things, resulted in the former Government Solutions segment being renamed Mission Technology Solutions (MTS).
Applying a blended multiple of ~10.0x EV/EBITDA to 2026E adj. EBITDA, which reflects a multiple roughly in-line with peers to the faster-growing, higher margin STS business and a modest discount to MTS, implies values of ~$5.5 billion and ~$4.85 billion, respectively. Accounting for projected net debt yields a preliminary, base case, sum-of-the-parts valuation of ~$8.1 billion or ~$63 per share.
UPDATE: Ralliant Corp. (RAL)– September 18, 2025
Upgrade RAL to BUY (from NEUTRAL) With Shares Seemingly Attractively Priced Off Trough Earnings & Ahead of a Potential Cyclical Upturn at the T&M Segment (as well as RAL’s Overall Exposure to Several Secular Growth Areas)
Ralliant Corp. (RAL) completed its tax-free separation from Fortive Corp. (FTV) in late June 2025; since that time, amid initial technical factors as well as the reality that a portion of RAL’s underlying business, primarily within the Test & Measurement (T&M) segment, is in the midst of a relatively prolonged cyclical downtrend, shares have declined ~21% since its debut.
In that context, with shares currently trading at ~12x 2026E EV/EBITDA and 16x 2026E EPS, a notable discount to all relevant peers, we contend shares are attractively priced, particularly off what we view as trough earnings and ahead of what is expected to be cyclical recovery in looking into 2026E. On a comparative basis, the higher-margin Sensors & Safety Systems (S&S) segment, which accounts for ~60% of consolidated sales at RAL, has posted relatively steady (albeit modest) core growth over the last several years.
While we are admittedly only modeling a relatively gradual slope of top-line improvement looking in 2026E it strikes us that the risk to our numbers is likely to the upside, particularly given the depth/length of the downturn at T&M as well RAL’s exposure to secular demand trends, including grid modernization/new power demand, space & defense and electrification, among others. Moreover, considering that incremental margins on organic growth have historically ranged in the 45%-50% area management’s current 30%-35% commentary/target could prove somewhat conservative.
Succinctly, we upgrade shares to BUY (from NEUTRAL) as we think shares currently offer an attractive opportunity to purchase a “beaten-down” but high-quality, and now pure-play SpinCo that is trading at a historically low multiple amid a cyclical downturn but ahead of what seems to be the cusp of a modest cyclical recovery
Monthly publication providing ongoing analysis on companies where we see potential for a value-unlocking event
Companies discussed this month: Caesars Entertainment, Inc. (CZR), Corteva, Inc. (CTVA)*, Coty Inc. (COTY)*, Genuine Parts Company (GPC)*, Goodyear Tire & Rubber, Inc. (GT), Luxfer Holdings (LXFR), Matthews International Corp. (MATW), Netgear Inc. (NTGR), PepsiCo, Inc. (PEP), Sealed Air Corp. (SEE), Stanley Black & Decker (SWK), The Scotts Miracle-Gro Co. (SMG), TriMas Corporation (TRS), XPO Inc. (XPO)
*added this month
Published monthly, The Spin-Off Calendar provides one-page summaries of every spin-off under coverage from the announcement date, followed by the filing of the Form 10 and continuing 60 days post completion.
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