01—Abstract
Summary
Summary of the 8-K filed February 17, 2026. Cited figures are marked; the original filing is the authoritative source.
On February 17, 2026, Honeywell filed its 2025 Form 10-K and, in a related Regulation FD press release (Exhibit 99.1), disclosed incremental impairment charges tied to the planned sale of its Productivity Solutions and Services (PSS) and Warehouse and Workflow Solutions (WWS) businesses.
The charges were recorded after the January 29, 2026 earnings release: a $436 milliona goodwill impairment in the Industrial Automation segment and a $35 million impairment on assets held for sale, partly offset by a $61 million tax benefit. Together these imply a net after-tax charge of roughly $410 million, though the filing does not state that figure directly. As a result, reported full-year 2025 GAAP results were lowered.
Diluted EPS from continuing operations was revised to $6.94, net income from continuing operations to $4,468 millionb, operating income to $5,573 million, and operating margin to 14.9%. Honeywell states that these charges do not affect its previously announced adjusted fourth-quarter or full-year 2025 results, and it reaffirmed its 2026 guidance. The key forward-looking item is timing: Honeywell still expects to announce the sale of the PSS and WWS businesses in the first half of 2026.
Investors should watch that announcement for valuation and proceeds, since the impairments suggest the sale value is below prior carrying values. The release also references the proposed separation of Honeywell from Honeywell Aerospace, which remains a separate strategic event. The filing is a disclosure of accounting adjustments and does not itself reveal sale terms.
02—Key points
Key Highlights
- Incremental $436 million goodwill impairment associated with the Industrial Automation reportable segment, recorded after the January 29, 2026 earnings release
- Additional $35 million impairment on PSS and WWS assets held for sale, offset by a $61 million tax benefit (net after-tax impact roughly $410 million, implied)
- Full-year 2025 GAAP diluted EPS from continuing operations revised to $6.94; net income from continuing operations revised to $4,468 million
- Full-year 2025 operating income revised to $5,573 million and operating margin to 14.9%
- Adjusted fourth-quarter and full-year 2025 results and 2026 guidance were reaffirmed and are not changed by these charges
- Honeywell still expects to announce the sale of the PSS and WWS businesses in the first half of 2026
- Full 2025 Form 10-K filed on February 17, 2026, with audited financial statements and MD&A available on the SEC and investor relations websites
03—Questions
Frequently Asked Questions
Why did Honeywell record additional impairment charges after its January earnings release?
Honeywell classified the PSS and WWS businesses as held for sale in Q4 2025 and continuously reviews information relevant to their sale. After the earnings release, it received new information that led to incremental charges, which were reflected in the 2025 Form 10-K filed on February 17, 2026.
Do these charges affect Honeywell's adjusted earnings or 2026 guidance?
No. Honeywell states that the incremental charges do not change its previously announced adjusted Q4 or full-year 2025 results, and it reaffirmed its 2026 guidance. The charges affect GAAP results only.
How much did reported GAAP earnings decline?
Full-year 2025 GAAP diluted EPS from continuing operations was revised to $6.94, and net income from continuing operations to $4,468 million. Operating income was revised to $5,573 million, with operating margin at 14.9%. The release does not give the prior figures, so the size of the decline versus the earlier GAAP numbers cannot be confirmed from this document.
When will the PSS and WWS sale be announced, and what does it mean for investors?
Honeywell continues to expect to announce the sale of the PSS and WWS businesses in the first half of 2026. The sale is part of its portfolio optimization to focus on core automation. The filing does not disclose expected proceeds or buyer details, so investors should wait for the announcement to assess valuation.
Does the goodwill impairment signal problems in Industrial Automation?
The release attributes the $436 million goodwill impairment to the Industrial Automation segment but ties it to the held-for-sale review of PSS and WWS, which likely sit within that segment's goodwill. The filing does not state that core Industrial Automation operations are deteriorating, and Honeywell reaffirmed its guidance.
04—Continue