Honeywell Lowers FY2025 EPS Guidance to $9.70-$9.80 Amid Business Unit Discontinuation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 22 2025
0mins
Source: Benzinga
- Guidance Reduction: Honeywell confirmed the discontinuation of its Advanced Materials business unit and lowered its FY2025 adjusted EPS guidance from $10.60-$10.70 to $9.70-$9.80, reflecting significant market challenges and pressure on profitability.
- Sales Forecast Cut: The company also reduced its sales guidance from $40.70 billion-$40.90 billion to $37.50 billion-$37.70 billion, indicating a cautious outlook on future market demand, which may impact investor confidence.
- Stock Price Reaction: In pre-market trading, Honeywell's shares fell 2.1% to $195.00, reflecting market concerns about the company's outlook and potentially increasing selling pressure among investors in the short term.
- Industry Impact: The discontinuation of this business unit and the guidance reduction may negatively affect Honeywell's market position in the materials sector, forcing the company to reassess its strategic direction to cope with intensifying competition.
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Analyst Views on HON
Wall Street analysts forecast HON stock price to rise
15 Analyst Rating
8 Buy
6 Hold
1 Sell
Moderate Buy
Current: 217.640
Low
195.00
Averages
235.07
High
262.00
Current: 217.640
Low
195.00
Averages
235.07
High
262.00
About HON
Honeywell International Inc. is an integrated operating company serving a range of industries and geographies around the world, with a portfolio that is underpinned by its Honeywell Accelerator operating system and Honeywell Forge platform. The Company provides actionable solutions for aerospace, building automation, industrial automation, process automation, and process technology. The Company supplies products, software, and services for aircrafts that it sells to original equipment manufacturers (OEM) and other customers in a variety of end markets. The Company’s portfolio of solutions and services is used in buildings worldwide for fire prevention, controls, access and security. Its offerings serve as the fundamental building blocks of industrial automation. Its sensor technologies and value-added smart edge devices offer connectivity across a variety of sensing and measurement applications. The Company offers a comprehensive portfolio of end-to-end process automation solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Tax Implications: The spin-off is anticipated to be tax-free for Honeywell shareholders for U.S. federal income tax purposes, except for cash received for fractional shares, further attracting investor interest in the company's future growth potential.
See More
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- Trading Arrangement: The newly formed Honeywell Aerospace is expected to trade on Nasdaq under the ticker “HONA,” while Honeywell will continue trading as “HON,” with the spin-off aimed at allowing the aerospace unit to focus on opportunities in both commercial and defense markets.
- Reverse Stock Split: Following the spin-off, Honeywell will execute a 1-for-2 reverse stock split, reducing outstanding shares from approximately 634 million to about 317 million, a move intended to enhance earnings per share and optimize capital structure.
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See More
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- Independent Trading Launch: Aerospace common stock is set to begin trading on Nasdaq under the ticker symbol 'HONA' on June 29, 2026, providing Honeywell Aerospace with an independent capital market platform that enhances its competitive position in the aerospace sector.
- Reverse Stock Split: Honeywell also announced a 1-for-2 reverse stock split, expected to reduce the outstanding shares from approximately 634 million to about 317 million, aimed at improving earnings per share and optimizing capital structure to boost investor confidence.
- Tax Implications Clarified: The spin-off is expected to be tax-free for Honeywell shareholders for U.S. federal income tax purposes, except for cash received for fractional shares, which will help attract more investors to focus on the company's long-term value creation potential.
See More
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See More
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