Honeywell reports its first quarter without its aerospace arm

What happened

Honeywell reported on Thursday 22 October its first quarter as a standalone company without its aerospace business, with sales of $4,994 million, 1 percent more than a year earlier, and raised its 2026 outlook. ^{[1, 2]}

The quarterly report filed the same day says the break-up is complete. Honeywell Aerospace became a separate company on Monday 29 June, when holders received one of its shares for every two Honeywell shares, and trades on Nasdaq as HONA. The materials business, Solstice Advanced Materials, left on Thursday 30 October 2025. ^{[2, 4]}

Why it matters

What remains, now called Honeywell Technologies, reports three segments, all in automation, and carries the aerospace results as discontinued operations. Operating income was $740 million against $413 million a year earlier; the company credits in part the removal of costs the spin-offs left behind. Long-term debt was $14,169 million on 30 September against $28,678 million at the end of 2025, after $16.0 billion of notes went with the aerospace company. ^{[1, 2]}

What the separation still costs

Honeywell paid $158 million of separation costs in the quarter and puts the year at about $0.5 billion, its cash flow table shows. Divestiture costs, which include separation costs, were $92 million in the quarter and $487 million over nine months. ^{[1, 2]}

The remaining ties are contracts: a transition services agreement, a tax matters agreement and a trademark license. Under the license Honeywell Aerospace pays $1.125 billion over about five years, in monthly payments of $18.75 million. ^[2]

The quarter also closed two sales: Warehouse and Workflow Solutions on Monday 27 July and Productivity Solutions and Services on Monday 3 August, for $1,527 million together. Honeywell bought Johnson Matthey's Catalyst Technologies business on Friday 17 July for $1,743 million, and keeps a 48 percent stake in Quantinuum, listed since Thursday 4 June. ^[2]

The quarter and the outlook

Building Automation sales were $2,020 million, up 8 percent, and Process Automation and Technology $1,859 million, up 16 percent, with $131 million from the catalyst acquisition. Industrial Automation sales were $1,115 million, down 23 percent after the two sales, with organic growth of 4 percent. Organic growth, the release says, leaves out currency moves, sold businesses and acquisitions in their first year. ^{[1, 2]}

The company now expects 2026 sales of $20.0 billion to $20.1 billion, against $19.8 billion to $20.0 billion before, and organic growth of 4 to 5 percent. Chief executive Vimal Kapur said orders in the data center market were 'up over 100%', Manufacturing Dive reported. ^{[1, 3]}

What settles it next

The release says the company expects 5 to 6 percent organic growth in the fourth quarter and about $2.1 billion of operating cash flow for the year. Chief financial officer Mike Stepniak said gross debt should fall below $13 billion by the end of 2026, Manufacturing Dive reported. A $2.0 billion short-term credit line runs to Friday 5 March 2027, the 10-Q says. ^{[1, 2, 3]}

Who it reaches

Honeywell (HON) is direct: the results and the report are its own. Honeywell Aerospace (HONA) is adjacent through the services agreement and the license payments. Quantinuum (QNT) is adjacent through Honeywell's 48 percent stake, on which it booked a $147 million loss share in the quarter. ^[2]

Solstice Advanced Materials (SOLS) is adjacent: spun off in October 2025, its former results sit in Honeywell's discontinued operations. ^[2]