Honeywell reaffirms 2026 outlook ahead of aerospace spin-off

Honeywell International (NASDAQ:HON) announced on Monday that it is reaffirming its full-year 2026 financial guidance as the company nears the final stages of its portfolio transformation.

The announcement comes ahead of the scheduled June 29, 2026, spin-off of its aerospace business, which will emerge as an independent entity.

The company continues to project full-year 2026 sales in the range of $38.8 billion to $39.8 billion, with organic sales growth anticipated between 3% and 6%.

Honeywell reaffirmed its adjusted earnings per share (EPS) target of $10.35 to $10.65, representing a year-over-year increase of 6% to 9%. Free cash flow expectations remain solid at $5.3 billion to $5.6 billion.

In addition to its consolidated outlook, Honeywell provided a preliminary guidance framework for Honeywell Technologies, the entity that will comprise the company’s remaining automation and process businesses following the spin-off.

For the 2026 fiscal year, Honeywell Technologies is positioned to generate sales between $19.9 billion and $20.2 billion, with an adjusted EPS target of $3.95 to $4.15.

The remaining company expects to produce approximately $2 billion in free cash flow, supported by a strategy focused on significant segment margin expansion.

This preliminary framework for Honeywell Technologies accounts for the planned divestitures of the Productivity Solutions and Services (PSS) and Warehouse and Workflow Solutions (WWS) businesses, which are expected to close by the fourth quarter of 2026.

The outlook also incorporates the expected integration of the Johnson Matthey Catalyst Technologies acquisition, which is slated to close in the third quarter.

The spin-off of Honeywell Aerospace is scheduled for completion at the end of June, with shares of the new aerospace entity expected to begin regular-way trading on the Nasdaq under the ticker symbol "HONA" on June 29.