December 22, 2025，CHARLOTTE, N.C., Dec. 22, 2025 /PRNewswire/ -- Honeywell (NASDAQ: HON) today released supplemental 2024 and year-to-date 2025 financial information to reflect its updated business segment structure expected to become effective for the first quarter of 2026, which it previously announced on October 22, 2025.

The company also announced today that it will report its Advanced Materials business unit as discontinued operations beginning the fourth quarter of 2025, following the successful spin of Solstice Advanced Materials (NASDAQ: SOLS) on October 30, 2025. As a result, the company adjusts its full-year and fourth quarter 2025 guidance, and otherwise re-affirms its expectations for fourth quarter performance.

In addition, Honeywell is providing an update on its previously disclosed Flexjet-related litigation matters, which it expects will result in a one-time charge in the fourth quarter. This charge will not impact the company's non-GAAP financial metrics or guidance. Any potential settlements of these litigation matters are anticipated to include one-time cash payments totaling approximately $470 million in the aggregate to the involved parties.

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.

TABLE 1: FULL-YEAR 2025 GUIDANCE RECONCILIATION1

TABLE 2: FOURTH QUARTER GUIDANCE RECONCILIATION1

1.Segment margin and adjusted EPS are non-GAAP financial measures. Management cannot reliably predict or estimate, without unreasonable effort, the impact and timing on future operating results arising from items excluded from segment margin and adjusted EPS. We therefore, do not present a guidance range, or a reconciliation to, the nearest GAAP financial measures of operating margin or EPS.

2.Adjusted Sales is a non-GAAP financial measure and reflects an adjustment to add back approximately $310 million reported as a contra revenue accounting reduction to GAAP Sales as a result of the potential settlements of the Flexjet-related litigation matters. Previously provided October Guidance for Sales did not reflect any such adjustments.

3.See additional information at the end of this release regarding non-GAAP financial measures.

4.Adjusted EPS guidance excludes items identified in the non-GAAP reconciliation of adjusted EPS at the end of this release, and any potential future one-time items that we cannot reliably predict or estimate such as pension mark-to-market. Tax rates used for the impacts of Advanced Materials discontinued operations are based on preliminary estimates.

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.