Honeywell Restructuring Nears Finish as Iran War Clouds Outlook -- Update

Published: 2026-04-23 12:59:23 ET HON

Published on 04/23/2026 at 12:59 pm EDT

By Connor Hart

Honeywell International is entering the final stages of a multi-year restructuring that will carve the industrial conglomerate into three publicly traded companies.

Honeywell on Thursday set a date of June 29 to spin off its aerospace business and said it has entered an agreement to sell its warehouse and workflow solutions business to private-equity firm American Industrial Partners.

Terms of the sale weren't disclosed.

The moves come as Honeywell continues to reshape its portfolio through a series of divestitures and spinoffs. Earlier this week, the company agreed to sell its productivity solutions and services business to Brady for $1.4 billion. It previously completed the separation of its advanced materials unit, Solstice Advanced Materials, in October.

Chief Executive Vimal Kapur said the aerospace spinoff is on track to occur sooner than previously expected, pending board approval and other customary conditions.

The updates came alongside quarterly results that were pressured by disruptions tied to the ongoing war in the Middle East. Honeywell said logistical challenges and shipment delays reduced sales by about 1% in the period.

The company also reported a lower profit, hurt by charges tied to debt restructuring, asset impairments and separation-related costs.

Shares fell in premarket trading before paring back some losses. The stock was recently down 2.8% at $213.77, though it remains up about 15% over the past year.

First-quarter sales ticked up 2.4% to $9.14 billion but missed Wall Street models for $9.3 billion, according to FactSet. Profit fell to $821 million from $1.45 billion a year ago. Stripping out one-time items, adjusted earnings of $2.45 a share topped analyst views for $2.32 a share.

Kapur said Honeywell expects demand to remain solid and continues to anticipate a stronger second half, though he said the company is taking a more cautious stance on its outlook given geopolitical uncertainty.

The company backed its outlook for adjusted earnings of $10.35 to $10.65 a share for the year, compared with analyst views for $10.52 a share. Sales are still projected to come in between $38.8 billion and $39.8 billion, compared with Wall Street models for $39.55 billion.

Write to Connor Hart at [email protected]

(END) Dow Jones Newswires

04-23-26 1258ET