Honeywell(US:HON) Prnewswire·2026-01-29 11:00Core Insights - Honeywell reported strong fourth-quarter results for 2025, with sales growth driven by Aerospace and Building Automation segments, and an organic order growth of 23% [2][6][8] - The company anticipates the spin-off of Honeywell Aerospace into an independent publicly traded company to be completed in the third quarter of 2026, ahead of previous expectations [1][20] Financial Performance - Fourth-quarter sales reached $9.8 billion, a 6% increase year-over-year, while adjusted sales were $10.1 billion, up 10% [4][10] - Operating income decreased by 35% to $996 million, with an operating margin contraction of 640 basis points to 10.2% due to one-time impairment charges [3][10] - Adjusted EPS for the fourth quarter was $2.59, up 17% year-over-year, while GAAP EPS was $0.49, down 72% [4][10] - For the full year 2025, reported sales increased by 8% to $37.4 billion, with adjusted sales up 9% [5][10] Segment Performance - Aerospace Technologies segment sales grew 21% organically in the fourth quarter, driven by strong demand in commercial aftermarket and defense [10][15] - Industrial Automation sales increased by 1% year-over-year, while Building Automation sales rose by 8% [11][13] - Energy and Sustainability Solutions segment sales decreased by 7% organically due to demand softness in petrochemical catalysts [14][15] 2026 Outlook - Honeywell expects 2026 sales to be between $38.8 billion and $39.8 billion, with organic sales growth projected at 3% to 6% [17][18] - Adjusted EPS for 2026 is anticipated to be between $10.35 and $10.65, representing a growth of 6% to 9% [17][18] Portfolio Transformation - The company completed the spin-off of Solstice Advanced Materials and is progressing with the planned separation of its automation and aerospace businesses [20] - Leadership appointments for Honeywell Aerospace have been announced, including Jim Currier as President and CEO [20][9] Legal Matters - Honeywell and Flexjet reached a comprehensive agreement to resolve pending litigation, which includes extending their aircraft engine maintenance agreement through 2035 [21]