Honeywell's Legal Bill And Outlook Cut Rattle Investors

Honeywell International Inc. (NASDAQ:HON) stock fell Monday after the company slashed fourth-quarter and full-year guidance.

The revised guidance reflects the company’s new business segment structure, set to take effect in the first quarter of 2026.

Litigation Charges

Honeywell also provided an update on its ongoing Flexjet-related litigation.

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The company is in settlement talks with Flexjet and other parties. It expects to record a one-time charge in the fourth quarter of 2025 in its Aerospace Technologies segment of approximately $310 million to sales (contra-revenue) and $370 million to operating income.

The company states that this will not impact its non-GAAP metrics.

New Segment Structure

During the earnings release in October, the company announced that, effective January 1, 2026, Honeywell will adopt a new structure for its reporting segments: Aerospace Technologies, Building Automation, Industrial Automation, and Process Automation and Technology.

The company also confirmed that it will report its Advanced Materials unit as discontinued operations starting in the fourth quarter of 2025, following the successful spin-off of Solstice Advanced Materials (NASDAQ:SOLS) on October 30, 2025.

Outlook Lowered

For the fourth quarter, the company now sees adjusted EPS of $2.48–$2.58 (down from $2.52–$2.62) versus the $2.57 consensus, and revenue of $9.8–$10.0 billion (down from $10.1–$10.3 billion) versus the $10.197 billion estimate.

Also, Honeywell trimmed its fiscal 2025 guidance and now projects adjusted EPS of $9.70–$9.80 (down from $10.60–$10.70) versus the $10.65 consensus, and revenue of $37.5–$37.7 billion (down from $40.7–$40.9 billion) versus the $40.804 billion estimate.

Recent Earnings

The company reported adjusted earnings of $2.82 per share, surpassing analysts’ estimates of $2.57, and revenue increased 7% year over year (Y/Y) to $10.41 billion, exceeding expectations of $10.14 billion.

HON Price Action: Honeywell Intl shares were down 1.81% at $195.50 during premarket trading on Monday, according to Benzinga Pro data.

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