Al Root
Honeywell stock dropped early Monday after announcing a litigation charge and changes to full-year guidance.
None of the things announced amounts to much, but Honeywell investors aren't feeling charitable this holiday season.
Shares were down 2.3% at $194.50, while S&P 500 and Dow Jones Industrial Average futures were up 0.4% and 0.1%, respectively.
The move followed Honeywell's announcement of a $470 million settlement with Flexjet. The litigation stems from disagreements over aircraft engine maintenance. Flexjet alleged that Honeywell failed to meet repair timelines. Honeywell pointed out that supply-chain problems made that difficult during the COVID-19 pandemic.
The charge will not affect guidance, according to the company. Its initial stock move reduced Honeywell's market value by about $3 billion, or six times the charge, even if the charge was completely out of the blue.
Honeywell did adjust guidance after completing the spinoff of Solstice Advanced Materials in October, though. That wasn't big news either. Solstice is now considered a "discontinued operation." Honeywell still controlled it in the fourth quarter.
Honeywell's guidance for full-year earnings per share is now $9.70 to $9.80, down from $10.60 to $10.70. The missing 90 cents is with Solstice.
"Excluding the reclassification, no change to the company's expectations for its fourth quarter non-GAAP financial guidance," according to the company's news release.
The litigation and discontinued operations qualify as some year-end cleanup for the company. Still, with the stock down, it doesn't look like investors will give the company a break.
Coming into Monday trading, Honeywell stock was down about 6% this year. The company has had a decent year, beating earnings estimates and raising guidance, but the stock feels as if it is stuck in deal limbo. Honeywell is breaking into three parts. The Solstice spin was the first part. The larger split of its automation and aerospace businesses will be completed in 2026. Investors appear to be on the sidelines, waiting for the transactions to wrap up.
Write to Al Root at allen.root@dowjones.com
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(END) Dow Jones Newswires
December 22, 2025 08:00 ET (13:00 GMT)
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