Honeywell Updates FY25 Outlook Following Solstice Spinoff and Flexjet Settlement
Honeywell has adjusted its FY25 outlook following the spinoff of its Advanced Materials unit and reported a one-time $470 million charge related to a settlement with Flexjet. Despite these changes, the company maintains its Q4 organic growth guidance of 8-10% and segment margin of 22.5-22.8%. Additionally, Honeywell plans to spin off its Aerospace business in the second half of 2026 to focus on its automation operations.
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Honeywell has revised its FY25 outlook after reclassifying its Advanced Materials unit as discontinued following the Solstice Advanced Materials spinoff on October 30. Despite this change, Honeywell's core operational guidance for Q4 remains steady.
The company reported a one-time $470 million charge in Q4 related to a potential settlement with Flexjet over maintenance service agreements and engine performance issues, a resolution that does not impact non-GAAP results. Honeywell maintains its Q4 organic growth guidance of 8-10% and segment margin of 22.5-22.8%.
The Aerospace Technologies segment saw a 15% revenue increase in Q3 FY25, driven by strong commercial aftermarket demand and increased global defense spending. The Energy and Sustainability segment also reported an 8% revenue rise. Honeywell plans to spin off its Aerospace business in the second half of 2026, aiming for enhanced focus and valuation in its remaining automation operations.
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