Honeywell scales back sales guidance after Solstice spin-off

(Sharecast News) - American industrial and tech conglomerate Honeywell has lowered its 2025 guidance after spinning off its specialty materials company Solstice Advanced Materials in October. The adjustment reflects the reclassification of its Advanced Materials business unit as discontinued operations from the fourth quarter, as well as a $470m one-time charge related to litigation after Honeywell was sued by private aviation firm Flexjet in 2023.

"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," Honeywell said.

Honeywell now expects full-year adjusted sales to total $37.5bn-37.7bn, down $3.2bn from October's guidance of $40.7b-40.9bn.



Full-year adjusted earnings are now tipped to be $9.70-9.80 a share, compared with earlier estimates of $10.60-10.70, while free cash flow guidance has been cut to $4.8bn-5.2bn from $5.2bn-5.6bn.

Nevertheless, the company still expects organic top-line growth to come in at 6%, with Advanced Materials no longer classed as a core operation.

Honeywell futures were trading 1.4% at $80.39 ahead of the opening bell on Wall Street.