Honeywell lifts 2025 profit outlook despite Solstice spinoff, shares rise

Company Overview - Honeywell raised its 2025 profit forecast despite the planned separation of its advanced materials unit, indicating strong growth prospects driven by robust aerospace demand, resulting in a more than 7% increase in its shares [1] - The advanced materials unit, now named Solstice, is set to begin independent trading on Nasdaq from October 30 as part of Honeywell's strategy to split into three independent companies [1] Aerospace Sector Performance - Aerospace suppliers are experiencing strong demand for parts due to planemakers increasing production amid booming demand for new jets [2] - Honeywell's aerospace business faced pressures from higher costs and tariffs but maintained steady pricing, with margins in this segment falling by 160 basis points in the quarter ended September [2] Financial Projections - Honeywell expects full-year adjusted earnings per share to be between $10.60 and $10.70, which includes a 21 cent impact from the Solstice separation, an increase from the previous range of $10.24 to $10.44 [3] - The aerospace business reported a 15% increase in sales to $4.51 billion in the third quarter, with supply chain issues appearing to ease [4] Overall Financial Performance - Honeywell's total sales rose by 7% to $10.41 billion in the reported quarter, exceeding expectations of $10.14 billion [5] - Adjusted profit per share was $2.82, surpassing expectations of $2.57 [5]