Honeywell adjusts 2025 guidance following segment realignment

Honeywell (NASDAQ: HON) adjusted its 2025 financial guidance to reflect the reclassification of its Advanced Materials business as discontinued operations following the October 30, 2025 spin-off of Solstice Advanced Materials (NASDAQ: SOLS).

The company reduced its full-year adjusted sales guidance to $37.5 billion to $37.7 billion from the previous range of $40.7 billion to $40.9 billion, representing a $3.2 billion decrease. Adjusted earnings per share guidance was lowered to $9.70 to $9.80 from $10.60 to $10.70.

Honeywell also provided supplemental financial information reflecting its new four-segment structure, effective in the first quarter of 2026. The segments will be Aerospace Technologies, Building Automation, Process Automation and Technology, and Industrial Automation.

The company disclosed it expects to record a one-time charge in the fourth quarter of 2025 related to ongoing Flexjet litigation settlements. The charge will reduce GAAP sales by approximately $310 million and operating income by approximately $370 million. Potential settlements could include cash payments totaling approximately $470 million to involved parties.

Fourth quarter adjusted sales guidance was reduced to $9.8 billion to $10.0 billion from $10.1 billion to $10.3 billion, while adjusted earnings per share guidance was lowered to $2.48 to $2.58 from $2.52 to $2.62.

Free cash flow guidance was reduced to $4.8 billion to $5.2 billion from $5.2 billion to $5.6 billion for the full year.

The guidance adjustments exclude the impact from Advanced Materials discontinued operations but otherwise reaffirm the company's fourth quarter performance expectations, according to the statement.

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