Honeywell lifts 2025 profit outlook despite Solstice spinoff on sturdy demand

Core Viewpoint - Honeywell raised its 2025 profit forecast, indicating strong growth prospects driven by robust aerospace demand, despite the planned separation of its advanced materials unit, Solstice, which will begin trading independently on October 30 [1][2] Financial Performance - Honeywell surpassed Wall Street expectations for its third-quarter results, reporting overall sales of $10.41 billion, a 7% increase, and exceeding analysts' average estimate of $10.14 billion [2][5] - The adjusted profit per share for the quarter was $2.82, surpassing expectations of $2.57 [5] - The aerospace business, Honeywell's largest revenue driver, saw a 15% increase in sales to $4.51 billion in the third quarter [3] Future Outlook - Honeywell now 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, up from a previous expectation of $10.24 to $10.44 [3] - The advanced materials unit, Solstice, is part of Honeywell's strategy to split into three independent companies, with the aerospace unit set to be carved out in the second half of 2026 [4] Industry Context - Aerospace suppliers are experiencing strong demand for parts due to increased production by planemakers amid booming new jet demand, which has also benefited Honeywell's maintenance and repair services as airlines operate older aircraft [2]