S&P Global to Spin Off Mobility Division into Separate Public Entity

S&P Global, a prominent ratings agency, revealed its strategy on Tuesday to separate its mobility division, a supplier of data to vehicle manufacturers and automotive vendors. The move aims to enhance operational focus by creating an independent publicly traded entity.

The New York-based organization stated that post-separation, its activities will be structured around four primary business units: S&P Global Market Intelligence, S&P Global Ratings, S&P Global Commodity Insights, and S&P Dow Jones Indices.

“The separation of Mobility will enable us to maintain our attention on our main business lines and advance our growth strategy,” stated Martina Cheung, President and CEO of S&P Global.

The mobility segment reported revenues of $1.6 billion in fiscal year 2024, marking a year-over-year increase of approximately 8%.

Strong Financial Performance

S&P Global’s first-quarter earnings exceeded analysts’ forecasts, driven by sustained demand for its data and analytics solutions amidst ongoing economic uncertainties.

The need for market analysis tools has grown as investors have actively reallocated assets to hedge against increased market instability resulting from broad tariffs imposed by the U.S. administration on its trading partners.

Revenue from S&P’s Ratings division, which delivers credit ratings, research, and analytics to investors, grew by 8% to $1.15 billion during the three-month period concluding on March 31.

The Market Intelligence unit, providing data and analytics, saw a 5% increase in revenue, reaching $1.2 billion.

The company declared an adjusted profit of $4.37 per share, outperforming analysts’ expectations of $4.19.