In this article, we will look at the 15 Successful Spin-Off Companies and Their 2025 Returns.
Don’t chase the markets; instead, wait for things to cool off. That’s the sentiment echoed across Wall Street, with markets at record highs. The remarks come as growth stocks have emerged as the bright spots depicted by the 7.57% gain of the S&P 500 Growth ETF. In contrast, the S&P 500 Value ETF has only gained 4.21%. Amid the gains, Carolyn McClanahan, founder of Life Planning Partners, believes it is time for investors to become increasingly cautious.
“Sometimes things are going to cool off and you are going to regret trying to chase the market and making decisions based on current market behavior,” she said. “The smart thing is to have an asset allocation already determined in advance — and that should be based not on what the market is doing but on what your goals and needs are.”
Amid heightened volatility, diversification and an increased focus on income-focused plays should be every investor’s strategy, according to Adam Reinart, chief investment officer at Marshall Financial. On the other hand, Marguerita Cheng, CEO of Blue Ocean Global Wealth, a certified financial planner, cautions against focusing solely on income.
“Including dividend payers in your portfolio can level out the volatility, but I want people to think about total return investing — which means that you have growth and value in there — and that provides you a little bit more flexibility,”
With that in mind, let’s look at the 15 Successful Spin-off Companies and Their 2025 Returns.
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Our Methodology
To compile the list of the 15 Successful Spin-off Companies and Their 2025 Returns, we scanned the US equity markets, focusing on companies that were spun off in recent years and that are popular among elite hedge funds. We analyzed why these companies stand out and provided their year-to-date returns. Finally, we ranked the stocks in ascending order based on the number of hedge funds that hold stakes in them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
15 Successful Spin-off Companies and Their 2025 Returns
15. Cerence Inc. (NASDAQ:CRNC)
Year to Date Return as of July 7: 63.60%
Number of Hedge Fund Holders: 18
Year of Spin-off: 2019
Cerence Inc. (NASDAQ:CRNC) is one of the 15 successful spin-off companies. On July 1, the company announced a strategic partnership with Mahindra. The partnership paves the way for the integration of the company’s Audio AI technology into Mahindra’s new electric SUV’s.
Cerence Speech Signal Enhancement (SSE) enhances in-car voice interactions by leveraging artificial intelligence-based speech enhancement and advanced acoustic processing. The technology is especially suited for India’s noisy road conditions as it ensures clean communication between vehicle occupants.
The strategic partnership presents a significant opportunity for Cerence to demonstrate the adaptability of its technology in challenging environments. Additionally, it will enhance the company’s footprint in emerging markets.
“Cerence Speech Signal Enhancement is the foundation of meaningful interaction in the car, decreasing noise and therefore increasing the assistant’s ability to understand the user,” said Nils Schanz, EVP, Product & Technology, and Cerence AI. “Accuracy of interactions and the assistant’s ability to understand what is being asked are critical to driving long-term usage and adoption of in-car assistants, and we are proud to partner with Mahindra to help create this with their drivers and passengers.”
Cerence Inc. (NASDAQ:CRNC), spun off from Nuance, is a technology company that develops AI-powered interaction solutions for use across transportation networks. It works with the world’s leading automakers and mobility OEMs to drive innovation in the car, two-wheeler, and truck user experience.
14. Sunrise Communications AG (NASDAQ:SNRE)
Year to Date Return as of July 7: 29.84%
Number of Hedge Fund Holders: 20
Year of Spin-off: 2024
Sunrise Communications AG (NASDAQ:SNRE) is one of the 15 successful spin-off companies. Berenberg initiated coverage on SNRE with a Hold rating and a CHF49.00 price target on June 26, suggesting around 10% upside.
The valuation was derived using a discounted cash flow (DCF) model, reflecting cautious optimism in the stock’s potential. The firm cited ongoing pressure on Swiss telecom service revenues, driven by price-sensitive consumers and intensifying competition from low-cost sub-brands and MVNOs. While maintaining a neutral view, Berenberg signaled it could take a more bullish stance if signs of sustained service revenue growth re-emerge in the Swiss market.
Sunrise Communications AG (NASDAQ:SNRE) was spun off from Liberty Global late last year. The telecommunication company provides high-quality mobile, landline, broadband, and TV services to residential customers. It also offers business customers 360° communications solutions and integrated ICT solutions for connectivity, security, and IoT.
13. Adeia Inc. (NASDAQ:ADEA)
Year to Date Return as of July 7: 6.63%
Number of Hedge Fund Holders: 21
Year of Spin-off: 2022
Adeia Inc. (NASDAQ:ADEA) is one of the 15 successful spin-off companies. On June 20, Roth/MKM initiated coverage of the stock with a ‘Buy’ rating and a $26 price target. The bullish stance underscores the research firm’s confidence in the company’s intellectual property portfolio and growth prospects.
Roth/MKM has reiterated that Adeia is a leading developer and licensor of intellectual property for the media and semiconductor market. It has echoed its business model, which generates over 85% of its sales in recurring revenue.
The research firm expects the company to generate significant sales as over-the-top media services and next-generation semiconductor hybrid bonding solutions become widely licensed. It also expects company growth to be driven by the penetration of next-generation artificial intelligence in 2026 and beyond.
Adeia Inc. (NASDAQ:ADEA) was formerly part of Xperi Holding. It came into being following the spin-off of the IP licensing business. It specializes in the development and licensing of foundational innovations, particularly in the media, entertainment, and semiconductor industries.
12. Haleon plc (NYSE:HLN)
Year to Date Return as of July 7: 7.94%
Number of Hedge Fund Holders: 22
Year of Spin-off: 2022
Haleon plc (NYSE:HLN) is one of the 15 successful spin-off companies. On July 4, the company broke ground on a new £130m Global Oral Health Innovation Center. The company is developing a state-of-the-art facility that focuses on enhancing scientific capabilities, accelerating innovation, and serving as a center for global oral health research.
The construction of the £130m Global Oral Health Innovation Centre is part of Haleon’s focus on reaching over one billion consumers by 2030. The center is designed to pioneer research, drive product innovation, achieve commercial and supply chain excellence, and foster cross-functional collaboration.
Jayant Singh, Global Category Lead, Oral Health, and Haleon, said: “With oral diseases affecting nearly half the world’s population, this marks an exciting step forward in our mission to put health in more hands for millions across the world. This centre will play a key role in harnessing the full potential of science and innovation across our oral health portfolio.”
Established as a corporate spin-off from GSK, Haleon plc (NYSE:HLN) has evolved into a global leader in consumer health. Its product portfolio spans six major categories – Oral Health, Vitamins, Minerals and Supplements (VMS), Pain Relief, Respiratory Health, Digestive Health, Therapeutic Skin Health, and Others.
11. GRAIL, Inc. (NASDAQ:GRAL)
Year to Date Return as of July 7: 160.71%
Number of Hedge Fund Holders: 25
Year of Spin-off: 2024
Grail, Inc. (NASDAQ:GRAL) is one of the 15 successful spin-off companies. On June 25, Morgan Stanley reiterated an ‘Equal Weight’ on the stock. However, the investment bank raised its price target to $38 from $20. The adjustment is in response to the stock rallying by more than 150% year to date.
Morgan Stanley remains optimistic, given the long-term potential of the company’s Galleri multi-cancer early detection test. The test is tailored to detect multiple types of cancer through a single blood draw before symptoms appear.
Grail has positioned the Galleri test as a potential breakthrough in cancer screening. Nevertheless, Morgan Stanley insists the company faces inherent risks tied to the regulatory reimbursement pathway perspective. The investment firm has highlighted challenges in the development of cancer tests, including gaining widespread adoption and securing insurance coverage.
Grail, Inc. (NASDAQ:GRAL) is a healthcare company focused on developing blood tests for early cancer detection. Its primary goal is to enhance cancer detection at earlier stages when it may be more treatable and potentially curable. The company was formed following its spin-off from Illumina in 2024.
10. Worthington Steel Inc. (NYSE:WS)
Year to Date Return as of July 7: 3.27%
Number of Hedge Fund Holders: 28
Year of Spin-off: 2023
Worthington Steel Inc. (NYSE:WS) is one of the 15 successful spin-off companies. On June 25, the company confirmed a quarterly dividend of $0.16 per common share. The dividend is payable on September 26, 2025, to shareholders of record as of the close of business on September 12, 2025.
The quarterly dividend underscores Worthington Steel’s commitment to returning value to shareholders. However, it follows mixed fourth-quarter fiscal 2025 results whereby the company posted a 9% decline in revenue to $832.9 million. Operating income was also down to $66.4 million, compared to $67.3 million in the same quarter a year ago.
Nevertheless, Worthington Steel’s net earnings per diluted share improved to $1.10, compared to $1.06 in the same quarter a year ago. During the quarter, the company made significant progress toward closing the Sitem acquisition, which is expected to bolster its steel investments and help gain market share.
Worthington Steel Inc. (NYSE:WS) is one of the most successful companies following its spin-off from Worthington Enterprises. It has established itself as a flat-roll steel processor specializing in carbon steel and electrical steel laminations. It offers a range of services, including steel processing, tailor-welded solutions, and supply chain solutions.
9. Millrose Properties, Inc. (NYSE:MRP)
Year to Date Return as of July 7: 30.37%
Number of Hedge Fund Holders: 31
Year of Spin-off: 2025
Millrose Properties, Inc. (NYSE:MRP) is one of the 15 successful spin-off companies. On June 16, the company’s board of directors approved a cash quarterly dividend of $0.69 per share for Class A and Class B common stock.
The dividend offering is to be paid on July 15 to shareholders of record as of July 3, 2025. The company is to spend $114.5 million as part of the dividend offering. It marks the company’s first full quarterly dividend following its spin-off from Lennar Corporation in the first quarter of 2025.
“This quarterly dividend is indicative of the increasing demand for our platform and underscores our pledge to return 100% of earnings to our shareholders,” stated Darren Richman, Chief Executive Officer and President of Millrose. “As we continue to broaden our partnerships with homebuilders, our focus remains on generating accretive income growth for our shareholders.”
Millrose Properties, Inc. (NYSE:MRP) is one of the most successful spin-off companies, focusing on financing and developing residential land for homebuilders, specifically through its “Homesite Option Purchase Platform” (HOPP’R). It acquires and develops land and then sells finished homesites to builders like Lennar.
8. Concentra Group Holdings Parent, Inc. (NYSE:CON)
Year to Date Return as of July 7: 6.58%
Number of Hedge Fund Holders: 33
Year of Spin-off: 2024
Concentra Group Holdings Parent, Inc. (NYSE:CON) is one of the 15 successful spin-off companies. On June 26, the company confirmed the appointment of two new board members as it looks to unlock new growth opportunities and enhance shareholder value.
The company confirmed the appointment of Vipin Gopal and Brigid Bonner to its board, effective July 1, 2025. Gopal joins the board with extensive experience in data and artificial intelligence strategy. He has previously worked at Eli Lilly and Walgreens Boots. On the other hand, Bonner brings vast experience and knowledge in strategic planning and digital transformation.
Concentra Group is to leverage their experience as it seeks to strengthen its position in the healthcare industry.
“Concentra analyzes vast amounts of healthcare data, empowering our clinicians by providing them with valuable insights for superior clinical decision making,” said Keith Newton, Concentra’s chief executive officer. “And, with AI expected to revolutionize numerous aspects of care, Vipin will apply his deep knowledge to help provide guidance to the Concentra organization moving forward.”
Concentra Group Holdings Parent, Inc. (NYSE:CON) provides occupational health services. It offers a wide range of services, including treatment for workplace injuries, physical therapy, physical examinations, drug testing, and urgent care. It is one of the most successful companies following its spin-off from Select Medical Holdings Corporation.
7. Concentrix Corporation (NASDAQ:CNXC)
Year to Date Return as of July 7: 30.85%
Number of Hedge Fund Holders: 33
Year of Spin-off: 2020
Concentrix Corporation (NASDAQ:CNXC) is one of the 15 successful spin-off companies. On June 26, the company reiterated plans to return $240 million to shareholders through dividends and share repurchases. The commitment to returning value to shareholders stems from the company delivering second-quarter 2025 results that affirmed its resilience and strategic foresight.
Revenue in the quarter increased 1.5% year over year to $2.42 billion, as Concentrix generated $200 million in adjusted free cash flow. It remains on track to achieve between $625 million and $650 million in cash flow for the year.
According to CEO Chris Caldwell, Concentrix is enjoying robust growth due to heightened client activity and positive momentum from the iX Product Suite. Consequently, third-quarter revenue is expected to be in the range of $2.45 billion and $2.47 billion. Management has also raised full-year revenue outlook growth to between 1% and 2%.
Concentrix Corporation (NASDAQ:CNXC), spun off from TD SYNNEX Corporation, is a global technology and services company that focuses on providing customer experience (CX) solutions and technology. It offers a wide range of services, including strategic thinking, technology solutions, and automation, to improve business performance.
6. Amentum Holdings Inc. (NYSE:AMTM)
Year to Date Return as of July 7: 11.77%
Number of Hedge Fund Holders: 37
Year of Spin-off: 2024
Amentum Holdings, Inc. (NYSE:AMTM) is one of the 15 successful spin-off companies. On June 27, the global leader in advanced engineering and innovative technology reaffirmed its status as a pure-play provider of technology solutions.
The company announced the divestment of its Rapid Solution unit to Lockheed Martin. As part of the transaction, Amentum is to receive $360 million in cash. The unit that the company sold accounted for 1% of total revenue and adjusted EBITDA. It specializes in manufacturing products aligned with national security missions.
Amentum came into being following its merger with Jacob’s Critical Mission Solutions and Cyber & Intelligence Government Services Businesses. The merger resulted in the creation of a pure-play government technology Solutions Company focused on addressing the world’s most complex and critical challenges.
Amentum Holdings Inc. (NYSE:AMTM) has established itself as a provider of advanced engineering and technology solutions. It supports the United States and its allies by addressing complex challenges in science, security, and sustainability.
5. Solventum Corporation (NYSE:SOLV)
Year to Date Return as of July 7: 19.07%
Number of Hedge Fund Holders: 38
Year of Spin-off: 2024
Solventum Corporation (NYSE:SOLV) is one of the 15 successful spin-off companies. On July 1, analysts at Argus Research upgraded the company to a ‘Buy’ from a Hold.’ The analysts also reiterated a $90 price target on the stock. The adjustment comes amid growing confidence that the company is enjoying robust growth.
The upgrade underscores Argus Research’s confidence in Solventum Corp’s ability to execute its long-range plan. The firm expects the company to achieve its margin and revenue targets. In addition, the research firm cited the company’s higher-margin business as one of the reasons behind the upgrade.
Consequently, the research firm has raised its adjusted earnings estimate for the company’s 2026 fiscal year from $5.95 to $5.98 per share. In the first quarter of 2025, Solventum achieved top-line results with robust revenue of $8.3 billion and a solid gross margin of 54.9%.
Solventum Corporation (NYSE:SOLV) is a global healthcare company that was formed following a spin-off from the 3M healthcare business. It develops, manufactures, and commercializes solutions that leverage material science, data science, and digital capabilities to improve healthcare.
4. GXO Logistics, Inc. (NYSE:GXO)
Year to Date Return as of July 7: 17.99%
Number of Hedge Fund Holders: 42
Year of Spin-off: 2021
GXO Logistics, Inc. (NYSE:GXO) is one of the 15 successful spin-off companies. On June 26, the company launched GXO IQ, an artificial intelligence-powered platform built for the logistics industry.
The AI-powered platform is designed to help businesses navigate the complexities of global supply chain networks. It deploys industry-leading AI capabilities that orchestrate more productive and dynamic logistics operations.
GXO IQ leverages proprietary AI algorithms to orchestrate complex, multi-step actions across inventory distribution and movement. It is, therefore, tailored to enhance order picking, packing, shipping, and staffing. It also leverages a best-in-class technology stack, including Google Cloud’s Vertex AI and Snowflake Cortex AI.
“We see AI as the central nervous system of the modern supply chain, transforming it from a linear sequence of operations into an intelligent, interconnected ecosystem. GXO IQ is a powerful example of this transformation in action,” said Paula Natoli, Global Director, Head of Supply Chain & Logistics, and Google Cloud.
GXO Logistics, Inc. (NYSE:GXO), formerly the global logistics segment of XPO Logistics, is a worldwide provider of logistics services specializing in contract logistics. It offers technologically advanced supply chain solutions, handling complex logistics challenges for its customers.
3. Corteva, Inc. (NYSE:CTVA)
Year to Date Return as of July 7: 36.92%
Number of Hedge Fund Holders: 42
Year of Spin-off: 2019
Corteva, Inc. (NYSE:CTVA) is one of the 15 successful spin-off companies. On June 18, the company signed a multi-year research and development collaboration with Micropep Technologies, a leader in micropeptide technology for sustainable crop protection.
The two are joining forces to co-develop next-generation peptide-based bio-control solutions. Corteva is to hold, on a defined peptide library, exclusive rights to apply peptides globally across biocontrol and fungicide applications.
The partnership with Micropep paves the way for Corteva to advance sustainable agriculture in new ways.
“Their innovative peptide technology complements our leading biological solutions and offers new ways to protect crops. By collaborating, we can accelerate the delivery of eco-friendly solutions that meet growers’ needs while promoting environmental stewardship,” said Tom Greene, senior director at Corteva and global leader for Corteva Catalyst.
Corteva, Inc. (NYSE:CTVA) is an agricultural company specializing in seeds and crop protection products. It engages in the research, development, and production of various farm solutions, including seeds, seed traits and treatments, crop protection, digital services, and inoculants.
2. Sandisk Corporation (NASDAQ:SNDK)
Year to Date Return as of July 7: 28.92%
Number of Hedge Fund Holders: 44
Year of Spin-off: 2025
Sandisk Corporation (NASDAQ:SNDK) is one of the 15 successful spin-off companies. On July 7, analysts at Jefferies initiated coverage of the stock with a Buy rating and a $60 price target.
Jefferies’ Buy rating affirms confidence that SanDisk is well-positioned to generate significant shareholder value following its spin-off from Western Digital early in the year. The research firm expects the company’s updated technology roadmap to drive market share gains in the solid-state drive (SSDSSD) market.
The research firm is forecasting revision of current estimates on improvements in content and unit trends despite tariff pressure. Consequently, Jefferies expects SanDisk to benefit from high single-digit percentage price increases in the second half of the year. The price improvements are expected to yield low to mid-teens growth.
Sandisk Corporation (NASDAQ:SNDK) is involved in designing, developing, and manufacturing flash memory storage solutions and software. Its products include memory cards, USB flash drives, and solid-state drives (SSDs).
1. GE Vernova Inc. (NYSE:GEV)
Year to Date Return as of July 7: 52.55%
Number of Hedge Fund Holders: 111
Year of Spin-off: 2024
GE Vernova Inc. (NYSE:GEV) is one of the 15 successful spin-off companies. On June 26, the company received a business order from Rio Tinto. The order is for the upgrade of eight turbine alternator units at the Isle Maligne hydropower plant in the Saguenay–Lac-Saint-Jean region of Quebec.
The proposed upgrades will improve the performance and extend the life of the turbine alternator units. Additionally, they will provide power to Rio Tinto’s five low-carbon aluminum smelters. The new agreement comes on the heels of Ge Vernova modernizing one generator at the plant in the past.
Frederic Ribieras, Hydro Power CEO at GE Vernova, said: “This modernization project at the Isle Maligne plant is a testament of how we can achieve greater efficiency and performance without altering the core infrastructure. And, this long-term collaboration will be critical to help secure the supply chain in a capacity-constrained market, with pressure on the industry to execute on many projects.”
GE Vernova Inc. (NYSE:GEV) is an energy company that provides a broad range of products and services across power generation, transmission, and distribution. It is one of the most successful companies following its spin-off from GE in 2024.
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