U.S. markets reopen Friday, December 26, 2025, after the Christmas Day closure—and Honeywell International Inc. (NASDAQ: HON) is heading into the post-holiday session with a fresh mix of litigation headlines, guidance adjustments, and restructuring catalysts that investors are still digesting.
Below is a comprehensive pre-market briefing on the latest Honeywell news, what management just updated, how analysts are positioning, and what could move HON stock next.
Honeywell stock price check: where HON stands heading into Dec. 26
Honeywell last traded on Dec. 24, finishing at $196.93 after moving between roughly $195.01 and $197.14 on the session, with volume around 1.48 million shares. [1]
In the context of the past year, several market data providers currently peg HON’s 52-week range in the neighborhood of about $169 to $228. [2]
Why this matters for Friday’s open:
- Holiday-thinned liquidity can amplify moves.
- Any headline-driven gap—especially around litigation costs, segment reporting, or the breakup timeline—can look larger than it would in a normal week.
The headline dominating Honeywell right now: the Flexjet settlement charge
The most market-moving development into the Dec. 26 open is Honeywell’s disclosure that it expects a one-time fourth-quarter charge tied to litigation with private aviation firm Flexjet.
What Honeywell said
Honeywell disclosed that ongoing settlement negotiations could lead to one-time cash payments totaling about $470 million in aggregate. [3]
The company also said the matter is expected to:
- Reduce GAAP sales (due to contra‑revenue accounting) by ~$310 million
- Reduce operating income by ~$370 million
- Not impact non‑GAAP metrics (and therefore not change non‑GAAP guidance) [4]
Reuters reported the headline initially pushed shares down in premarket trading when the news broke earlier in the week. [5]
Why investors care (even if it’s “one-time”)
Even when companies frame legal charges as non-recurring, the market often re-prices:
- Cash-flow timing risk (when the cash actually goes out the door)
- Execution risk during a major corporate transition (Honeywell is mid-restructuring)
- Earnings quality debates (GAAP vs. adjusted results)
Some market commentary argued the selloff looked larger than the fundamentals warranted, especially given Honeywell’s emphasis that adjusted guidance wasn’t impaired by the litigation charge itself. [6]
The other big change: Honeywell’s guidance was reset after the Solstice spin
A key reason Honeywell’s full-year 2025 outlook shifted is accounting and reporting, not a sudden collapse in the underlying businesses.
Advanced Materials becomes “discontinued operations”
Honeywell said it will report its Advanced Materials unit as discontinued operations beginning Q4 2025, following the successful spin of Solstice Advanced Materials (NASDAQ: SOLS) on Oct. 30, 2025. [7]
Updated 2025 guidance (continuing operations view)
In its Dec. 22 update, Honeywell reconciled prior guidance to the new structure. Highlights included:
Full-year 2025
- Adjusted sales:$37.5B–$37.7B (vs. $40.7B–$40.9B previously, reflecting the Advanced Materials reclassification)
- Adjusted EPS:$9.70–$9.80 (vs. $10.60–$10.70 previously)
- Free cash flow:$4.8B–$5.2B (vs. $5.2B–$5.6B previously)
- Organic growth: roughly ~6% (shown as unchanged in the reconciliation) [8]
Fourth-quarter 2025
- Adjusted sales:$9.8B–$10.0B
- Adjusted EPS:$2.48–$2.58
- Organic growth:8%–10% (per the guidance reconciliation table) [9]
Important nuance: Honeywell explicitly stated that excluding the reclassification, there is no change to its expectations for Q4 non‑GAAP guidance. [10]
What to watch Friday
Because reporting definitions changed, investors should be careful comparing:
- older analyst models (which may still reflect the pre‑reclassification framework), and
- the newly presented continuing operations outlook.
MarketWatch noted that some consensus estimates at the time of the update were still higher than the revised company outlook. [11]
The restructuring story isn’t slowing down: four segments in 2026, aerospace spin still targeted for 2H 2026
Honeywell’s transformation is central to the long-term bull vs. bear debate on HON.
New segment reporting in Q1 2026
Honeywell says that beginning in Q1 2026 it intends to report four segments:
- Aerospace Technologies
- Building Automation
- Industrial Automation
- Process Automation and Technology [12]
In its Investor Relations “frequently asked questions” update, Honeywell provided additional detail on what sits inside the new construct—including that Process Automation and Technology will include UOP (process technology, catalysts, connected services) and referenced recent acquisitions such as LNG and Sundyne. [13]
Aerospace spin-off still slated for the second half of 2026
Honeywell reiterated that the segment realignment is meant to support its go-forward automation strategy ahead of the planned aerospace spin-off in the second half of 2026. [14]
Reuters has also covered leadership moves tied to the aerospace separation, including Honeywell naming Jim Currier to lead the aerospace unit as it moves toward becoming an independent public company. [15]
Investor takeaway: Friday’s trading could still reflect a market “weighing machine” dynamic—investors trying to handicap whether Honeywell’s breakup will unlock value similarly to other conglomerate separations, or whether execution and growth gaps persist into 2026.
Additional recent Honeywell news investors may be pricing in
Indra Nooyi joins Honeywell’s board (effective Jan. 1, 2026)
Honeywell announced that Indra Nooyi, former PepsiCo chair and CEO, was appointed to its board as an independent director, effective Jan. 1, 2026. [16]
Dangote refinery expansion: a potentially meaningful Process Automation win
Reuters reported that Nigeria’s Dangote tapped Honeywell in connection with a major refinery expansion effort, with sources estimating the deal value above $250 million (terms not disclosed publicly). [17]
Honeywell’s own statement described technology and services supporting capacity growth from 650,000 bpd to 1.4 million bpd over the next three years. [18]
Aerospace supply chain: signs of easing constraints
Earlier reporting cited Honeywell commentary pointing to aerospace supply chain improvements in electronics for aircraft—one factor that can support deliveries, spares, and aftermarket revenue cadence. [19]
Building Automation demand narrative: data centers in focus
Industry coverage has highlighted Building Automation growth drivers such as demand from data centers, healthcare, and hospitality, with strong order momentum referenced in 2025 reporting. [20]
Dividend and shareholder return: Honeywell increased the payout in 2025
Income-focused investors also have a clean, easy headline to keep in mind: Honeywell raised its regular dividend.
The company announced an increase in its annual dividend rate from $4.52 to $4.76 per share, beginning with a quarterly dividend of $1.19, paid Dec. 5, 2025 to shareholders of record on Nov. 14, 2025. [21]
That dividend support can matter on quiet trading days—especially when the market is rotating between growth and defensives.
Analyst forecasts and price targets: what Wall Street is projecting for HON stock
Analyst views remain mixed, but the broad picture is: moderate upside targets with debate around growth and execution.
Here’s how major aggregators and recent notes stack up:
Consensus price targets cluster in the mid-$230s to low-$240s
- MarketWatch shows an average target price around $235 and an average recommendation listed as Overweight (based on its tracked ratings set). [22]
- TipRanks shows a “Moderate Buy” consensus with an average target around $237.62 (with a mix of buys, holds, and at least one sell). [23]
- Nasdaq’s summary cited an average one-year target around $241.54, with a wide range (roughly $197 to $282). [24]
With HON around $196–$197 into the Dec. 26 open, those averages imply roughly high‑teens to low‑20% upside on paper—though targets can shift quickly after guidance resets and accounting changes. [25]
Notable recent analyst actions (the tug-of-war)
- Evercore ISI initiated coverage with an Outperform and a $255 price target, framing Honeywell as having a “catalyst path” and highlighting Building Automation as a key piece of the story. [26]
- Barclays recently lowered its price target to $250 (from $269) while keeping an Overweight rating, pointing to investor attention potentially rising as aerospace spin milestones approach. [27]
- BofA drew attention in November with a rare double downgrade and a price target cut to $205, arguing Honeywell’s earnings trajectory has lagged peers and that growth is the central pressure point. [28]
How to read this going into Friday: The market is effectively pricing a debate about whether Honeywell’s breakup is a value unlock story or a growth execution story—especially heading into 2026.
Key dates and catalysts to watch after the Dec. 26 open
Even if Friday is quiet, several near-term “known unknowns” could matter over the next few weeks:
- Flexjet settlement timing
Honeywell has outlined estimated impacts and potential cash payments, but timing remains an uncertainty and could produce follow-up headlines. [29] - New segment reporting goes live in Q1 2026
As the four-segment structure becomes effective, investors will re-map valuation frameworks and compare Honeywell’s pieces more directly to pure-play peers. [30] - Next earnings date (late Jan / early Feb 2026 window)
Honeywell has not always “confirmed” dates as early as aggregators estimate, but several services peg the next report in the late January to early February 2026 timeframe. [31] - Breakup milestones toward the 2H 2026 aerospace separation
Leadership and preparation moves (like the aerospace CEO appointment) are already happening; future investor events and filings can move sentiment. [32]
Risks to keep on the radar (and why they matter for HON valuation)
Heading into the Dec. 26 session, the core risks investors are likely to weigh include:
- GAAP vs. adjusted optics risk: The Flexjet charge is expected to hit GAAP results even if adjusted metrics exclude it, which can affect headline perceptions and index/quant screens. [33]
- Cash flow timing and “one-time” creep: The company disclosed ~$470M in potential settlement payments, but final terms and timing aren’t guaranteed. [34]
- Conglomerate breakup execution risk: Segment reshaping, portfolio actions, and a major spin are management-intensive and can create temporary dis-synergies. [35]
- End-market sensitivity: Aerospace aftermarket strength, automation spending cycles, and process industry capex can all shift with macro conditions. [36]
Bottom line: the Honeywell (HON) setup for Dec. 26, 2025
Into Friday’s open, Honeywell stock is primarily trading around a handful of narratives:
- A large but framed-as-one-time Flexjet litigation charge with meaningful cash implications—paired with management insisting non‑GAAP guidance is intact. [37]
- A reset of 2025 guidance largely driven by the Solstice Advanced Materials spin and the move to treat Advanced Materials as discontinued operations. [38]
- A restructuring roadmap that moves Honeywell into four segments in 2026 and keeps the aerospace spin-off targeted for 2H 2026, giving the stock multiple upcoming “catalyst moments.” [39]
- Analysts broadly see upside to current levels, but the spread between bullish $250–$255 frameworks and more skeptical views (like $205) underscores how much the market is still debating growth vs. execution. [40]
This article is for informational purposes only and is not investment advice. Always consider your risk tolerance and consult a qualified financial professional when making investment decisions.
References
1. finance.yahoo.com, 2. www.barchart.com, 3. investor.honeywell.com, 4. investor.honeywell.com, 5. www.reuters.com, 6. www.barrons.com, 7. investor.honeywell.com, 8. investor.honeywell.com, 9. investor.honeywell.com, 10. investor.honeywell.com, 11. www.marketwatch.com, 12. investor.honeywell.com, 13. investor.honeywell.com, 14. investor.honeywell.com, 15. www.reuters.com, 16. www.honeywell.com, 17. www.reuters.com, 18. www.honeywell.com, 19. www.reuters.com, 20. www.facilitiesdive.com, 21. investor.honeywell.com, 22. www.marketwatch.com, 23. www.tipranks.com, 24. www.nasdaq.com, 25. www.nasdaq.com, 26. www.investing.com, 27. www.tipranks.com, 28. www.barrons.com, 29. investor.honeywell.com, 30. investor.honeywell.com, 31. www.marketbeat.com, 32. www.reuters.com, 33. investor.honeywell.com, 34. investor.honeywell.com, 35. investor.honeywell.com, 36. www.reuters.com, 37. investor.honeywell.com, 38. investor.honeywell.com, 39. investor.honeywell.com, 40. www.investing.com
