Honeywell Revises FY 2025 Financial Metrics Following Impairment Charges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 22 hours ago
0mins
Should l Buy HON?
Source: seekingalpha
- Impairment Charges Disclosure: Honeywell disclosed in its FY 2025 10-K filing that it incurred an incremental goodwill impairment charge of $436 million in Q4 related to its industrial automation business, alongside a $35 million impairment on assets held for sale, although offset by a $61 million tax benefit, indicating financial strain during restructuring.
- Net Income Adjustment: As a result of these impairment charges, Honeywell revised its FY 2025 net income from continuing operations to $4.47 billion, or $6.94 per share, and adjusted operating income to $5.57 billion with operating margins declining to 14.9%, reflecting the financial pressures faced during its business spin-off process.
- Full-Year Performance Review: Last month, Honeywell reported that its net income from continuing operations for FY 2024 totaled $4.89 billion, or $7.57 per share, with operating income of $6.04 billion and operating margins at 16.1%, showcasing strong profitability prior to the impairment.
- Unchanged Future Outlook: Despite the impairment losses, Honeywell reiterated its guidance for FY 2026, projecting adjusted earnings between $10.35 and $10.65 per share on revenues of $38.8 billion to $39.8 billion, indicating confidence in future growth prospects.
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Analyst Views on HON
Wall Street analysts forecast HON stock price to fall
15 Analyst Rating
8 Buy
6 Hold
1 Sell
Moderate Buy
Current: 241.380
Low
195.00
Averages
235.07
High
262.00
Current: 241.380
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.
Honeywell Releases 2025 Annual Report with Asset Impairments
- Asset Impairment Impact: Honeywell's 2025 Annual Report reveals impairment charges of $436 million and $35 million for its Productivity Solutions and Warehouse Workflow Solutions businesses, indicating financial strain during the asset disposal process, which may affect investor confidence.
- Earnings Revision: Due to these impairments, Honeywell's earnings per share were revised to $6.94, with net income at $4.468 billion and operating income at $5.573 billion, reflecting challenges in optimizing its asset portfolio amidst ongoing market pressures.
- Strategic Restructuring Plans: Honeywell intends to sell its PSS and WWS businesses in the first half of 2026, aiming to refocus resources on its core automation portfolio, signaling a strategic move to enhance efficiency and competitiveness in the market.
- Ongoing Investor Relations Focus: Honeywell utilizes its Investor Relations website to disclose annual reports and financial information, ensuring transparency and compliance with regulatory requirements, demonstrating the company's commitment to effective investor communication.
See More
Honeywell Files 2025 Annual Report with SEC
- Asset Sale Strategy: Honeywell classified its Productivity Solutions and Services (PSS) and Warehouse and Workflow Solutions (WWS) businesses as held for sale in Q4 2025, aiming to optimize its portfolio and focus on core automation operations, thereby enhancing overall operational efficiency.
- Increased Impairment Charges: The latest annual report reveals additional impairment charges, including a $436 million goodwill impairment related to the Industrial Automation segment and a $35 million impairment on assets held for sale, although these losses do not affect previously announced adjusted financial results for 2025.
- Revised Earnings Per Share: Due to the impairment charges, Honeywell's reported earnings per share from continuing operations was revised to $6.94, with net income adjusted to $4.468 billion and operating income at $5.573 billion, reflecting challenges in financial management.
- Future Outlook: Honeywell expects to complete the sale of the PSS and WWS businesses in the first half of 2026, continuing its strategic restructuring efforts to adapt to market changes and enhance competitiveness.
See More
Honeywell Revises FY 2025 Financial Metrics Following Impairment Charges
- Impairment Charges Disclosure: Honeywell disclosed in its FY 2025 10-K filing that it incurred an incremental goodwill impairment charge of $436 million in Q4 related to its industrial automation business, alongside a $35 million impairment on assets held for sale, although offset by a $61 million tax benefit, indicating financial strain during restructuring.
- Net Income Adjustment: As a result of these impairment charges, Honeywell revised its FY 2025 net income from continuing operations to $4.47 billion, or $6.94 per share, and adjusted operating income to $5.57 billion with operating margins declining to 14.9%, reflecting the financial pressures faced during its business spin-off process.
- Full-Year Performance Review: Last month, Honeywell reported that its net income from continuing operations for FY 2024 totaled $4.89 billion, or $7.57 per share, with operating income of $6.04 billion and operating margins at 16.1%, showcasing strong profitability prior to the impairment.
- Unchanged Future Outlook: Despite the impairment losses, Honeywell reiterated its guidance for FY 2026, projecting adjusted earnings between $10.35 and $10.65 per share on revenues of $38.8 billion to $39.8 billion, indicating confidence in future growth prospects.
See More
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- Strong Performance in Industrials: Stocks like Eaton, Honeywell, and GE have continued their strong performance in 2026, with Eaton's shares rising over 4% last week and up 22% year-to-date, reflecting market optimism about economic recovery and driving what Jim Cramer describes as an
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Honeywell Declares Quarterly Dividend of $1.19
- Quarterly Dividend Announcement: Honeywell's Board of Directors has declared a quarterly dividend of $1.19 per share, payable on March 13, 2026, reflecting the company's ongoing commitment to stable cash flow and shareholder returns.
- Record Date for Shareholders: The record date for this dividend payment is set for February 27, 2026, ensuring that shareholders holding stock on this date will receive the dividend, thereby enhancing investor confidence in the company.
- Company Background: Honeywell operates as an integrated company providing solutions across various industries globally, supported by its Honeywell Accelerator and Honeywell Forge platforms, showcasing its strengths in technological innovation and market competitiveness.
- Forward-Looking Statements: The company notes that future performance may be influenced by macroeconomic and geopolitical risks, emphasizing the importance of maintaining robust operations in an uncertain environment.
See More
Honeywell Releases 2025 Annual Report with Asset Impairments
- Asset Impairment Impact: Honeywell's 2025 Annual Report reveals impairment charges of $436 million and $35 million for its Productivity Solutions and Warehouse Workflow Solutions businesses, indicating financial strain during the asset disposal process, which may affect investor confidence.
- Earnings Revision: Due to these impairments, Honeywell's earnings per share were revised to $6.94, with net income at $4.468 billion and operating income at $5.573 billion, reflecting challenges in optimizing its asset portfolio amidst ongoing market pressures.
- Strategic Restructuring Plans: Honeywell intends to sell its PSS and WWS businesses in the first half of 2026, aiming to refocus resources on its core automation portfolio, signaling a strategic move to enhance efficiency and competitiveness in the market.
- Ongoing Investor Relations Focus: Honeywell utilizes its Investor Relations website to disclose annual reports and financial information, ensuring transparency and compliance with regulatory requirements, demonstrating the company's commitment to effective investor communication.
See More
Honeywell Files 2025 Annual Report with SEC
- Asset Sale Strategy: Honeywell classified its Productivity Solutions and Services (PSS) and Warehouse and Workflow Solutions (WWS) businesses as held for sale in Q4 2025, aiming to optimize its portfolio and focus on core automation operations, thereby enhancing overall operational efficiency.
- Increased Impairment Charges: The latest annual report reveals additional impairment charges, including a $436 million goodwill impairment related to the Industrial Automation segment and a $35 million impairment on assets held for sale, although these losses do not affect previously announced adjusted financial results for 2025.
- Revised Earnings Per Share: Due to the impairment charges, Honeywell's reported earnings per share from continuing operations was revised to $6.94, with net income adjusted to $4.468 billion and operating income at $5.573 billion, reflecting challenges in financial management.
- Future Outlook: Honeywell expects to complete the sale of the PSS and WWS businesses in the first half of 2026, continuing its strategic restructuring efforts to adapt to market changes and enhance competitiveness.
See More
Honeywell Revises FY 2025 Financial Metrics Following Impairment Charges
- Impairment Charges Disclosure: Honeywell disclosed in its FY 2025 10-K filing that it incurred an incremental goodwill impairment charge of $436 million in Q4 related to its industrial automation business, alongside a $35 million impairment on assets held for sale, although offset by a $61 million tax benefit, indicating financial strain during restructuring.
- Net Income Adjustment: As a result of these impairment charges, Honeywell revised its FY 2025 net income from continuing operations to $4.47 billion, or $6.94 per share, and adjusted operating income to $5.57 billion with operating margins declining to 14.9%, reflecting the financial pressures faced during its business spin-off process.
- Full-Year Performance Review: Last month, Honeywell reported that its net income from continuing operations for FY 2024 totaled $4.89 billion, or $7.57 per share, with operating income of $6.04 billion and operating margins at 16.1%, showcasing strong profitability prior to the impairment.
- Unchanged Future Outlook: Despite the impairment losses, Honeywell reiterated its guidance for FY 2026, projecting adjusted earnings between $10.35 and $10.65 per share on revenues of $38.8 billion to $39.8 billion, indicating confidence in future growth prospects.
See More
Market Divergence: Industrials Surge While Tech Stocks Struggle
- AI Fears Hit Financial Stocks: Concerns over a new AI-driven tax planning feature led to significant declines in Wells Fargo and Capital One, with shares dropping over 7.4% and nearly 7% respectively, highlighting investor sensitivity to potential threats in the wealth management sector, although Wells Fargo's rating upgrade on Friday provided some stabilization.
- Strong Performance in Industrials: Stocks like Eaton, Honeywell, and GE have continued their strong performance in 2026, with Eaton's shares rising over 4% last week and up 22% year-to-date, reflecting market optimism about economic recovery and driving what Jim Cramer describes as an
See More
Three Industrial Stocks Reaching Record Highs
Market Trends: The S&P 500 is experiencing fluctuations around the 7,000 level, with some sectors, particularly industrials, breaking out and reaching new all-time highs, while previously beaten-down stocks are gaining momentum.
Industrial Sector Performance: The industrial sector is showing signs of recovery, with companies benefiting from recent Federal Reserve rate cuts and improved manufacturing metrics, indicating potential for a new growth phase.
Company Highlights: Illinois Tool Works and Deere & Company are among the firms reporting strong earnings and growth, with Illinois Tool Works focusing on high-value clients and Deere leveraging automation in agriculture to enhance margins.
Investment Recommendations: Analysts are identifying five stocks as top picks for investors, suggesting that these companies are well-positioned for growth and should be considered for investment before broader market trends catch up.
See More
Honeywell Declares Quarterly Dividend of $1.19
- Quarterly Dividend Announcement: Honeywell's Board of Directors has declared a quarterly dividend of $1.19 per share, payable on March 13, 2026, reflecting the company's ongoing commitment to stable cash flow and shareholder returns.
- Record Date for Shareholders: The record date for this dividend payment is set for February 27, 2026, ensuring that shareholders holding stock on this date will receive the dividend, thereby enhancing investor confidence in the company.
- Company Background: Honeywell operates as an integrated company providing solutions across various industries globally, supported by its Honeywell Accelerator and Honeywell Forge platforms, showcasing its strengths in technological innovation and market competitiveness.
- Forward-Looking Statements: The company notes that future performance may be influenced by macroeconomic and geopolitical risks, emphasizing the importance of maintaining robust operations in an uncertain environment.
See More
