Honeywell International (NASDAQ:HON) issued a comprehensive update to its financial projections on Monday, recalibrating its 2025 guidance to account for the strategic spin-off of its Advanced Materials business.
The industrial giant confirmed that the segment—now operating independently following the October 30 launch of Solstice Advanced Materials—will be reported as discontinued operations starting in the fourth quarter of 2025.
The removal of the high-performing materials unit has led to a significant downward revision of Honeywell's top and bottom-line forecasts.
The company lowered its full-year 2025 adjusted sales guidance by approximately $3.2 billion, now targeting a range of $37.5 billion to $37.7 billion.
Adjusted earnings per share (EPS) were reduced by roughly $0.90 to a new range of $9.70 to $9.80, while free cash flow expectations were trimmed by $0.4 billion to between $4.8 billion and $5.2 billion.
Beyond the structural changes, Honeywell disclosed a substantial financial hit related to legal headwinds.
The company expects to record a one-time GAAP charge in the fourth quarter of 2025 of approximately $310 million against sales and $370 million against operating income.
These charges stem from ongoing settlement negotiations regarding the Flexjet litigation.
Honeywell anticipates that the aggregate one-time cash payments to resolve the dispute will total roughly $470 million.
The reporting update also serves as a bridge to a new four-segment organizational structure, which is set to become effective in the first quarter of 2026.
Management indicated that the leaner portfolio and simplified reporting are intended to enhance operational focus on three prevailing megatrends: automation, the future of aviation, and the energy transition.