Honeywell International Inc. (HON) on Monday trimmed its outlook for fourth-quarter and fiscal 2025 adjusted earnings per share and sales to exclude Advanced Materials, following its spin-off on October 30.
In the pre-market activity on the Nasdaq, Honeywell shares were losing around 2.6 percent to trade at $194.01.
In addition, Honeywell said it expects its previously disclosed Flexjet-related litigation matters to result in a one-time charge in the fourth quarter. Any potential settlements of these litigation matters would include one-time cash payments totaling around $470 million in the aggregate to the involved parties.
The firm also released supplemental 2024 and year-to-date 2025 financial information to reflect its updated business segment structure expected to become effective for the first quarter of 2026.
Regarding its outlook, the firm said its Advanced Materials business will be considered as discontinued operations beginning the fourth quarter of 2025, following the spin-off of Solstice Advanced Materials (SOLS).
Excluding the reclassification of Advanced Materials to discontinued operations, there is no change to the company's expectations for its fourth quarter adjusted guidance.
For the fourth quarter, the company now expects adjusted earnings per share to be $2.48 to $2.58, compared to previous estimate of $2.52 to $2.62.
Adjusted sales are now projected to be $9.8 billion to $10.0 billion, lower than previous estimate of $10.1 billion to $10.3 billion.
The Wall Street analysts on average expect the company to report earnings of $2.57 per share on sales of $10.19 billion. Analysts' estimates typically exclude special items.
Meanwhile, the company continues to expect organic sales growth of 8 percent to 10 percent and segment margin of 22.5 percent to 22.8 percent for the fourth quarter.
Further, for fiscal 2025, Honeywell now expects adjusted earnings per share of $9.70 to $9.80, lower than previous estimate of $10.60 to $10.70.
Adjusted sales would be $37.5 billion to $37.7 billion, compared to previous estimate of $40.7 billion to $40.9 billion.
Organic sales growth is still projected to be around 6 percent.
The Street is looking for earnings of $10.63 per share on sales of $40.80 billion for the year.
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