01—Abstract
Summary
Summary of the 8-K filed December 22, 2025. Cited figures are marked; the original filing is the authoritative source.
Honeywell (HON) filed an 8-K on December 22, 2025 with three main items: a segment realignment, the completed Advanced Materials spin-off, and a litigation update.
Beginning in Q1 2026, Honeywell will report four reportable segments: Aerospace Technologies, Building Automation, Process Automation and Technology (a new segment combining Honeywell Process Solutions core process solutions and UOP), and Industrial Automation. The Energy and Sustainability Solutions segment will no longer be reported. Exhibit 99.1 provides recast unaudited historical segment data.
The realignment has no effect on historical consolidated results, but it changes how investors will read segment performance going forward. The Advanced Materials business was spun off on October 30, 2025 as Solstice Advanced Materials (NASDAQ: SOLS) and is now presented as discontinued operations across all periods. In 2024 it generated about $3.8 billiona in sales, $1.0 billion in operating income, and $1.0 billion in operating cash flow.
Continuing-operations net sales were $34.7 billionb in 2024, and segment profit was $7.7 billion. The most material near-term item for investors is the Flexjet litigation. Honeywell expects a one-time fourth-quarter 2025 charge in Aerospace Technologies of about $310 million to GAAP sales (contra-revenue) and about $370 million to operating income.
Comprehensive settlements could also involve roughly $470 millionc in cash payments, though the figures remain subject to negotiation and no settlement is assured. The filing also references the evaluation of strategic alternatives for the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses, and a proposed separation of Automation and Aerospace Technologies.
02—Key points
Key Highlights
- Segment realignment from Q1 2026: four reportable segments (Aerospace Technologies, Building Automation, Process Automation and Technology, Industrial Automation); Energy and Sustainability Solutions is eliminated as a reported segment.
- Advanced Materials spin-off completed October 30, 2025 as Solstice Advanced Materials (SOLS); reported as discontinued operations with 2024 sales of about $3.8B and operating income of about $1.0B.
- Flexjet litigation: expected Q4 2025 one-time charge of about $310M to sales and about $370M to operating income in Aerospace Technologies.
- Potential settlement cash payments to Flexjet and other litigants of about $470M in aggregate, subject to final terms and not assured.
- Revenue disaggregation beginning 2026 by business model (Products, Projects, Solutions, Aftermarket) for Building Automation, Process Automation and Technology, and Industrial Automation.
- Strong Aerospace momentum in the recast data: 2025 quarterly sales of $4.2B, $4.3B, and $4.5B, with segment profit rising to $1.18B in Q3 2025.
- Exhibit 99.1 recasts historical quarterly and annual segment data; the filing states this is non-GAAP supplemental information, not a restatement, and has no effect on consolidated results.
03—Questions
Frequently Asked Questions
Does the segment realignment change Honeywell's historical reported financial results?
No. The company states the realignment has no impact on its historical consolidated financial position, results of operations, or cash flows. Exhibit 99.1 provides recast unaudited segment data for comparability, but it does not restate previously issued financial statements.
How large is the Flexjet charge and what is the cash impact?
Honeywell expects a one-time Q4 2025 charge in Aerospace Technologies reducing GAAP sales by about $310 million (contra-revenue) and operating income by about $370 million. Comprehensive settlements could include about $470 million in aggregate one-time cash payments. These estimates may change, and no settlement is guaranteed.
How will the Advanced Materials spin-off affect comparisons with prior periods?
Advanced Materials is presented as discontinued operations for all periods, so continuing-operations figures exclude it. Corporate expenses previously allocated to it that cannot be included in discontinued operations are now in Corporate and All Other, which may affect segment profit comparisons.
What does the Process Automation and Technology segment include?
It combines the core process solutions of Honeywell Process Solutions, previously in Industrial Automation, with UOP, previously in Energy and Sustainability Solutions. Historically, the segment reported about $5.9B in 2024 sales and $1.46B in segment profit.
Are there additional portfolio changes investors should watch?
Yes. The filing references the evaluation of strategic alternatives for the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses and a proposed separation of Automation and Aerospace Technologies. These plans are not final and may be modified or abandoned.
04—Continue