Honeywell 1Q Profit Falls Amid Ongoing Restructuring

By Connor Hart

Honeywell International is continuing work to restructure its business, planning to spin off its aerospace unit in June and entering an agreement to sell its warehouse and workflow-solutions business to American Industrial Partners.

The updates came as the industrial conglomerate logged a lower profit in the first quarter, hurt by charges related to debt restructuring, impairment of assets held for sale and other separation-related items.

Shares fell 7.6%, to $203.23, in premarket trading Thursday.

Honeywell said it plans to spin off Honeywell Aerospace on June 29, subject to final approval by its board and other customary conditions. The company had previously said it planned to complete the spin during the third quarter.

Honeywell additionally said it agreed to sell its warehouse and workflow-solutions business to private-equity firm American Industrial Partners. Terms of the deal, expected to be completed in the second half of 2026, weren't disclosed.

The transaction comes after Honeywell earlier this week agreed to sell its productivity solutions-and-services business to Brady for $1.4 billion.

The Charlotte, N.C. company is in the process of restructuring and spinning off several businesses, part of an effort to streamline operations and carve itself into three publicly traded companies. It previously completed the spinoff of its advanced-materials business, Solstice Advanced Materials, in October.

"All of the acquisitions, divestitures, spinoffs and simplification efforts over the last several years have positioned both aerospace and automation for bright futures as independent, leading companies," Chief Executive Vimal Kapur said.

For the three months ended March 31, Honeywell posted a profit of $821 million, or $1.29 a share, compared with $1.45 billion, or $2.22 a share, in the same quarter last year.

Stripping out one-time items, earnings were $2.45 a share. Analysts polled by FactSet expected adjusted earnings of $2.32 a share.

Sales ticked up 2.4% to $9.14 billion but missed Wall Street models for $9.3 billion.

Kapur noted the company faced rising inflation and a challenging geopolitical environment during the recent quarter.

Looking ahead, Honeywell 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 connor.hart@wsj.com

(END) Dow Jones Newswires

April 23, 2026 07:03 ET (11:03 GMT)