Honeywell has released updated financial information to reflect changes in its business segment structure, which will take effect in the first quarter of 2026. The company had previously announced these changes on October 22, 2025.
Starting in the fourth quarter of 2025, Honeywell will report its Advanced Materials business unit as discontinued operations. This follows the successful spin-off of Solstice Advanced Materials on October 30, 2025. Due to this reclassification, Honeywell has adjusted its full-year and fourth-quarter guidance for 2025 but reaffirmed its expectations for fourth-quarter performance.
Honeywell also provided an update regarding ongoing litigation with Flexjet. The company expects to record a one-time charge in the fourth quarter related to this matter, reducing GAAP sales by about $310 million and operating income by approximately $370 million within its Aerospace Technologies segment. However, this charge will not affect non-GAAP financial metrics or guidance. Any settlements are expected to include one-time cash payments totaling around $470 million to the involved parties.
The new business segment structure is designed to align with Honeywell’s strategy for its automation business and comes ahead of a planned spin-off of its Aerospace business in the second half of 2026. Under this structure, Honeywell will have four reportable segments: Aerospace Technologies, Building Automation, Process Automation and Technology, and Industrial Automation. The three automation segments will each contain two business units based on their delivery models for customers. Reporting for Aerospace Technologies remains unchanged.
“Supplemental Financial Information
In the attached supplemental financial information, Honeywell provides historical financial information consistent with its previously announced new business segment structure (anticipated to begin in the first quarter of 2026) and reports its Advanced Materials business unit, previously part of Energy and Sustainability Solutions, as discontinued operations beginning in the fourth quarter of 2025. Corporate expenses previously allocated to Advanced Materials will be included as part of Corporate and All Other segment profit of Honeywell.”
“The new business segment structure aligns to the company’s go-forward strategy for its automation business ahead of the planned spin-off of its Aerospace business in the second half of 2026. The structure will consist of four reportable business segments: Aerospace Technologies, Building Automation, Process Automation and Technology, and Industrial Automation. The three automation segments will each further report two business units aligned to the business models through which the company delivers value for its customers. Reporting for Aerospace Technologies is unchanged.”
“Honeywell Adjusts 2025 Outlook
As a result of the reclassification of Advanced Materials to discontinued operations, Honeywell adjusts its full-year and fourth quarter adjusted sales, segment margin, adjusted earnings per share, and free cash flow guidance. Excluding the reclassification, there is no change to the company’s expectations for its fourth quarter non-GAAP financial guidance. A summary of the change in guidance is provided in tables 1 and 2 below.”
“Flexjet-Related Litigation Matters Update
Honeywell is providing an update with respect to the previously disclosed Flexjet-related litigation matters. The company is in ongoing settlement negotiations with Flexjet and the other parties to the litigation matters. Based on negotiations to date, Honeywell expects to record a one-time charge within its Aerospace Technologies segment in the fourth quarter of 2025 that will reduce GAAP sales (due to contra-revenue accounting) and operating income by approximately $310 million and $370 million, respectively. However, this charge will not impact Honeywell’s non-GAAP financial metrics. The company further expects that any settlements will include one-time cash payments to the parties to the Flexjet-related litigation matters totaling approximately $470 million in the aggregate. There can be no assurance that any settlements will be reached, and the foregoing financial impacts are subject to change based on the final terms of any such settlements.”
For more details about these developments or access Honeywell’s filings including their Current Report on Form 8-K from December 22, 2025, visit http://www.sec.gov.
Honeywell serves a wide range of industries globally through solutions spanning aerospace technologies as well as building and industrial automation.
