Wedoany.com Report-Jan.1, Honeywell has released supplemental financial information for 2024 and year-to-date 2025 to reflect its updated business segment structure, which is expected to take effect in the first quarter of 2026. This follows the company's announcement on October 22, 2025.

In a key development, Honeywell confirmed that its Advanced Materials business unit will be reported as discontinued operations beginning in the fourth quarter of 2025. This change follows the successful spin-off of Solstice Advanced Materials, completed on October 30, 2025.

As a result of this reclassification, Honeywell has adjusted its full-year and fourth-quarter 2025 guidance. The company otherwise reaffirms its expectations for fourth-quarter performance.

Honeywell also provided an update on previously disclosed litigation matters related to Flexjet. These matters are expected to result in a one-time charge in the fourth quarter. The company stated that this charge will not impact its non-GAAP financial metrics or guidance. Potential settlements are anticipated to include one-time cash payments totaling approximately $470 million in the aggregate to the involved parties.

The supplemental financial information aligns historical reporting with the forthcoming segment structure and presents Advanced Materials as discontinued operations. Corporate expenses previously allocated to Advanced Materials will now be included as part of the Corporate and All Other segment profit.

The new organizational structure prepares Honeywell for its planned Aerospace spin-off in the second half of 2026. Following the change, the company will report four main business segments: Aerospace Technologies, Building Automation, Process Automation and Technology, and Industrial Automation.

The three automation segments will each report two business units aligned with Honeywell's customer-focused business models. Reporting for Aerospace Technologies will remain unchanged.

Due to the reclassification of Advanced Materials to discontinued operations, Honeywell has adjusted its full-year and fourth-quarter 2025 guidance for adjusted sales, segment margin, adjusted earnings per share, and free cash flow. Excluding this reclassification, there is no change to the company's expectations for fourth-quarter non-GAAP financial guidance.

This restructuring reflects Honeywell's ongoing efforts to streamline operations and focus on core growth areas. By separating Advanced Materials through the spin-off and establishing a clearer segment framework, the company aims to enhance transparency, improve resource allocation, and position each business unit for long-term performance.

The updates provide investors and stakeholders with restated historical data and revised outlook figures consistent with the anticipated structure. The company maintains its commitment to delivering value through disciplined financial management and strategic realignment in preparation for the upcoming Aerospace spin-off.