Honeywell International Inc. reported a one‑time charge of $470 million related to a settlement with private‑jet operator Flexjet over alleged breaches of an engine‑maintenance contract. The charge will reduce GAAP sales by $310 million and operating income by $370 million, but the company said it would not affect its non‑GAAP financial metrics.
The settlement is expected to involve a cash payment of $470 million to the parties involved. Because the charge is a one‑time event, Honeywell’s non‑GAAP earnings, which exclude such items, remain unchanged, allowing the company to present a clearer view of its core operating performance.
Honeywell cut its FY2025 adjusted earnings‑per‑share guidance from $10.60‑$10.70 to $9.70‑$9.80 and its sales guidance from $40.7‑$40.9 billion to $37.5‑$37.7 billion. The new guidance is the first change since the October 2025 announcement of the planned separation of its Automation and Aerospace Technologies units, and it reflects the impact of the discontinued Advanced Materials unit as well as the Flexjet charge.
The Advanced Materials business, which was spun off as Solstice Advanced Materials on October 30 2025, is now classified as discontinued operations, removing its revenue and earnings from the 2025 outlook. The Aerospace Technologies segment, which includes the Flexjet settlement, remains part of Honeywell’s core portfolio, but the one‑time charge has tightened the company’s top‑line and profitability projections.
Investors reacted negatively to the guidance cut and the settlement, as the new EPS range of $9.70‑$9.80 falls well below the consensus estimate of $10.63 and the new sales range of $37.5‑$37.7 billion is below the consensus estimate of $40.8 billion. The market’s concern centers on the significant downward revision of the company’s full‑year outlook and the one‑time cash outflow.
"Honeywell’s strategy is to create three independent, industry‑leading companies that can pursue tailored growth strategies and unlock significant value for shareholders and customers," said Chairman and CEO Vimal Kapur. He added that the company’s simplification of its portfolio has rapidly advanced, underscoring confidence in the long‑term trajectory of the remaining businesses.
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