Honeywell Records $436M Goodwill Impairment, Revises 2025 EPS to $6.94
Honeywell filed its 2025 Form 10-K on February 17, revealing an incremental $436 million goodwill impairment and a $35 million asset-sale charge, partly offset by a $61 million tax benefit. These adjustments revised full-year EPS to $6.94, net income to $4,468 million, operating income to $5,573 million and margin to 14.9%, while 2026 guidance remains unchanged.
1. Annual Report Filing and Financial Revisions
On February 17, Honeywell filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2025, updating previously disclosed fourth-quarter and full-year results. The filing incorporates new information obtained after the January earnings release, resulting in additional non-cash impairment adjustments.
2. Details of Incremental Impairments
Subsequent to year‐end, Honeywell recorded an additional $436 million goodwill impairment tied to its Industrial Automation segment and a $35 million write-down on assets held for sale, offset by a $61 million tax benefit. These incremental charges supplement earlier impairment provisions for the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses.
3. Revised 2025 Earnings Metrics
The updated impairments revised full-year 2025 results: EPS from continuing operations fell to $6.94, net income from continuing operations totaled $4,468 million, operating income decreased to $5,573 million and operating margin stood at 14.9%. Despite these adjustments, previously announced adjusted results and 2026 guidance remain affirmed.
4. Portfolio Optimization and Divestiture Plans
As part of its ongoing portfolio optimization, Honeywell plans to complete the sale of its Productivity Solutions and Services and Warehouse and Workflow Solutions units in the first half of 2026. The divestitures are intended to sharpen focus on the core automation portfolio without altering the company’s broader financial outlook.