What Honeywell International (HON)'s Portfolio Reshuffle and Solstice Spin-Off Plan Means For Shareholders

• Honeywell International recently outlined a revised business segment structure effective Q1 2026, confirmed that its Advanced Materials unit will be reported as discontinued operations following the Solstice Advanced Materials spin-off, and disclosed an expected one-time litigation charge tied to Flexjet settlements that will not alter its non-GAAP guidance.
• This reshaping of Honeywell’s portfolio, paired with continued reinvestment at a roughly 14% return on capital employed over five years, underscores management’s focus on refining where capital is deployed within the group.
• We’ll now examine how Honeywell’s updated segment structure and upcoming Solstice Advanced Materials spin-off could influence its breakup-focused investment narrative.

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Honeywell International Investment Narrative Recap

To own Honeywell today, you need to believe in its ability to steadily reinvest at mid‑teens returns while executing a complex breakup into focused businesses. The latest news about the Solstice Advanced Materials spin off, new segment reporting from Q1 2026, and the one time Flexjet litigation charge does not materially change the biggest near term swing factors, which remain separation execution risk and any reset to expectations around the aerospace separation plan.

Among recent announcements, the upcoming Q4 2025 results on 29 January 2026 look most relevant, as they will be the first detailed update after Honeywell confirmed its revised segment structure and the treatment of Advanced Materials as discontinued operations. How management frames 2026 guidance and separation related costs at that event will matter for how investors weigh the breakup catalyst against the risk of higher than expected one time charges.

Yet beneath the appeal of a focused, higher return Honeywell, investors should be aware of the tariff and separation cost risks that could...

Read the full narrative on Honeywell International (it's free!)

Honeywell International's narrative projects $45.8 billion revenue and $7.5 billion earnings by 2028. This requires 4.6% yearly revenue growth and roughly a $1.8 billion earnings increase from $5.7 billion today.

Uncover how Honeywell International's forecasts yield a $239.40 fair value, a 17% upside to its current price.

Exploring Other Perspectives

Some of the lowest ranked analysts had already built in a tougher view, assuming only about US$43.7 billion of revenue and US$7.4 billion of earnings by 2028, so this new information may sharpen or soften that caution depending on how you judge tariff exposure and separation costs.

Explore 5 other fair value estimates on Honeywell International - why the stock might be worth as much as 21% more than the current price!

Build Your Own Honeywell International Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Honeywell International research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Honeywell International research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Honeywell International's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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