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.