HONEYWELL FILES ANNUAL REPORT ON FORM 10-K FOR FISCAL YEAR 2025

Rhea-AI Summary

Honeywell (NASDAQ: HON) filed its Annual Report on Form 10-K for fiscal 2025 on Feb 17, 2026, reporting incremental impairment charges tied to businesses classified as held for sale.

The company recorded an incremental $436 million goodwill impairment, a $35 million asset impairment with an offsetting $61 million tax benefit, and revised full-year continuing EPS to $6.94, net income to $4,468 million, operating income to $5,573 million, and operating margin to 14.9%. Honeywell reaffirmed prior adjusted results and 2026 guidance and expects to announce the sale of PSS and WWS in H1 2026.

Positive

• Reaffirmed 2026 guidance and adjusted 2025 results, indicating management confidence
• $61 million tax benefit offsets part of impairment charges
• Sale expected of PSS and WWS in H1 2026 supports portfolio focus

Negative

• $436 million goodwill impairment in Industrial Automation
• $35 million impairment on assets held for sale recorded
• Full-year continuing EPS revised to $6.94 after incremental charges

News Market Reaction – HON

+0.53%

+0.53% Session close to close

In the Feb 17 session, HON gained 0.53%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement details incremental impairments tied to PSS and WWS, including a $436M goodwill ch...

Analysis

This announcement details incremental impairments tied to PSS and WWS, including a $436M goodwill charge and a $35M asset impairment, partly offset by a $61M tax benefit. Reported 2025 EPS from continuing operations fell to $6.94 with operating margin at 14.9%, while adjusted 2025 results and 2026 guidance were reaffirmed. Investors may focus on progress toward selling PSS/WWS in the first half of 2026 and on how these changes affect reported versus adjusted performance going forward.

Key Figures

Goodwill impairment: $436 million Asset impairment: $35 million Tax benefit: $61 million +5 more

8 metrics

Goodwill impairment $436 million Incremental goodwill impairment in Industrial Automation segment

Asset impairment $35 million Additional impairment on assets held for sale (PSS and WWS)

Tax benefit $61 million Offsetting tax benefit related to incremental impairment charges

EPS from continuing ops $6.94 Revised full-year 2025 reported EPS from continuing operations

Net income $4,468 million Revised 2025 net income from continuing operations

Operating income $5,573 million Revised 2025 operating income after incremental impairments

Operating margin 14.9% Revised 2025 operating margin including additional charges

Expected sale timing First half of 2026 Planned announcement of PSS and WWS business sales

Historical Context

5 past events · Latest: Feb 04 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Feb 04	Investor conferences	Neutral	+1.9%	Announced management participation in two Miami investor conferences with webcasts.
Jan 29	Earnings & outlook	Positive	+4.9%	4Q 2025 adjusted sales and EPS exceeded guidance and 2026 outlook was issued.
Jan 22	Aerospace spin leadership	Positive	-0.5%	Named CFO and business unit leaders for the planned Honeywell Aerospace spin-off.
Jan 21	Litigation settlement	Positive	+1.5%	Finalized Flexjet settlement and extended engine maintenance agreement through 2035.
Jan 14	IPO announcement	Positive	+1.3%	Quantinuum plans confidential submission of draft S-1 for a proposed IPO.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent news with clearly positive fundamentals or strategic clarity has generally coincided with positive share moves, while the aerospace spin leadership announcement saw a mild divergence.

Recent Company History

Over the last month, HON has reported strong 4Q 2025 earnings with adjusted sales and EPS above guidance and issued a detailed 2026 outlook, which was followed by a +4.89% move. It announced leadership for the planned Honeywell Aerospace spin-off and finalized a litigation settlement extending an engine maintenance agreement through 2035. A Quantinuum IPO planning update and investor conference participation rounded out a steady flow of strategic and capital markets news leading into today’s 10-K impairment revision.

Key Terms

form 10-k, assets held for sale, impairment charges, goodwill impairment, +1 more

5 terms

form 10-k regulatory

"filed its Annual Report on Form 10-K for the fiscal year"

A Form 10-K is a comprehensive report that publicly traded companies are required to file annually with regulators. It provides a detailed overview of a company's financial health, operations, and risks, similar to a detailed health report. Investors use this information to assess the company's performance and make informed decisions about buying or selling its stock.

assets held for sale financial

"classified the PSS and WWS businesses as assets held for sale"

Assets held for sale are things a company has decided to sell and has reclassified on its balance sheet to show they are being marketed rather than used in daily operations — like putting a house on the market instead of living in it. This matters to investors because these items are measured based on expected sale proceeds (which can reveal likely gains or losses), stop being treated as regular operating assets, and signal upcoming cash inflows or a change in strategy that can affect the company’s financial health and stock value.

impairment charges financial

"announced impairment charges for the PSS and WWS assets held for sale"

Impairment charges are one-time accounting write-downs taken when a company decides an asset — like a factory, brand, patent, or investment — is worth less than it was recorded for. Like marking down the price of a damaged item on a store shelf, they reduce reported profits and the asset’s book value; investors watch them because they can signal lasting business problems or change future earnings and balance-sheet strength.

goodwill impairment financial

"an incremental goodwill impairment charge of $436 million associated"

Goodwill impairment occurs when a company’s valued reputation or brand strength, known as goodwill, is found to be worth less than previously recorded on its financial statements. This usually happens when the company's performance declines or market conditions change, signaling that the expected benefits from acquisitions or brand value are no longer as strong. It matters to investors because it can indicate that a company's assets are less valuable than initially thought, potentially affecting its overall financial health.

operating margin financial

"operating margin was revised to 14.9%"

Operating margin shows how much profit a company makes from its core business activities after paying for costs like wages and materials. It’s useful because it tells you how efficiently a company is running—higher margins mean it keeps more money from each dollar of sales, which can indicate better management or stronger products.

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CHARLOTTE, N.C., Feb. 17, 2026 /PRNewswire/ -- Honeywell (NASDAQ: HON) today filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2025, with the U.S. Securities and Exchange Commission.

As previously disclosed in its January 29, 2026 press release announcing fourth quarter and full year 2025 earnings (the "Earnings Release"), Honeywell classified the Productivity Solutions and Services ("PSS") and Warehouse and Workflow Solutions ("WWS") businesses as assets held for sale during the fourth quarter of 2025. The PSS and WWS businesses are planned for sale as part of Honeywell's ongoing portfolio optimization strategy, allowing Honeywell to focus on its core automation portfolio. In addition, in the Earnings Release, Honeywell announced impairment charges for the PSS and WWS assets held for sale that were reflected in the Company's year-end results.

In connection with Honeywell's ongoing sale process for the businesses, the Company continually evaluates information relevant to the financial analysis associated with the sale as it becomes available. Subsequent to the Earnings Release, the Company received incremental information that resulted in additional impairment charges that are reported in the 2025 Annual Report on Form 10-K that the Company filed on February 17, 2026. The additional impairment charges include, relative to the corresponding impairment charges referenced in the Earnings Release, an incremental goodwill impairment charge of $436 million associated with Honeywell's Industrial Automation reportable segment and an impairment charge on assets held for sale of $35 million, with an offsetting tax benefit of $61 million. Therefore, Honeywell's full-year reported earnings per share from continuing operations was revised to $6.94, net income from continuing operations was revised to $4,468 million, operating income was revised to $5,573 million, and operating margin was revised to 14.9%. However, these incremental charges do not change Honeywell's previously announced adjusted fourth quarter or full-year 2025 results or 2026 guidance, which the Company reaffirms today.

As previously announced, Honeywell continues to expect to announce the sale of the PSS and WWS businesses in the first half of 2026.

The Company's Annual Report on Form 10-K, including its audited financial statements and Management's Discussion and Analysis of Financial Condition and Results of Operations, is available on Honeywell's Investor Relations website at investor.honeywell.com under the heading "Financials" (see "SEC Filings") and on the SEC's website at www.sec.gov.

About Honeywell
Honeywell is an integrated operating company serving a broad range of industries and geographies around the world, with a portfolio that is underpinned by our Honeywell Accelerator operating system and Honeywell Forge platform. As a trusted partner, we help organizations solve the world's toughest, most complex challenges, providing actionable solutions and innovations for aerospace, building automation, industrial automation, process automation, and process technology that help make the world smarter and safer as well as more sustainable. For more news and information on Honeywell, please visit www.honeywell.com/newsroom.

Additional Information
Honeywell uses our Investor Relations website, www.honeywell.com/investor, as a means of disclosing information which may be of interest or material to our investors and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, webcasts, and social media.

Forward-Looking Statements 
We describe many of the trends and other factors that drive our business and future results in this release. Such discussions contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including statements related to the proposed separation of Honeywell from Honeywell Aerospace and the planned sale of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses. Forward-looking statements are those that address activities, events, or developments that we or our management intend, expect, project, believe, or anticipate will or may occur in the future. They are based on management's assumptions and assessments in light of past experience and trends, current economic and industry conditions, expected future developments, and other relevant factors, many of which are difficult to predict and outside of our control, including Honeywell's current expectations, estimates, and projections regarding the proposed separation of Honeywell from Honeywell Aerospace and the planned sale of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses. They are not guarantees of future performance, and actual results, developments, and business decisions may differ significantly from those envisaged by our forward-looking statements, including the proposed separation of Honeywell from Honeywell Aerospace and the planned sale of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses, and the anticipated benefits of each. We do not undertake to update or revise any of our forward-looking statements, except as required by applicable securities law. Our forward-looking statements are also subject to material risks and uncertainties, including ongoing macroeconomic and geopolitical risks, such as changes in or application of trade and tax laws and policies, including the impacts of tariffs and other trade barriers and restrictions, lower GDP growth or recession in the U.S. or globally, supply chain disruptions, capital markets volatility, inflation, and certain regional conflicts, which can affect our performance in both the near- and long-term. In addition, no assurance can be given that any plan, initiative, projection, goal, commitment, expectation, or prospect set forth in this release can or will be achieved. These forward-looking statements should be considered in light of the information included in this release, our Form 10-K, and our other filings with the Securities and Exchange Commission. Any forward-looking plans described herein are not final and may be modified or abandoned at any time.

Contacts:
Media	Investor Relations
Stacey Jones	Mark Macaluso
(980) 378-6258	(704) 627-6118
Stacey.Jones@honeywell.com	Mark.Macaluso@honeywell.com

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SOURCE Honeywell

FAQ

What did Honeywell (HON) report in its Feb 17, 2026 Form 10-K filing?

Honeywell reported incremental impairment charges and revised 2025 continuing earnings figures. According to the company, the 10-K includes a $436 million goodwill impairment, a $35 million asset impairment with a $61 million tax benefit, and revised full-year metrics.

How did the Form 10-K change Honeywell's (HON) 2025 earnings per share?

The filing revised Honeywell's full-year continuing EPS to $6.94 after additional impairments. According to the company, incremental charges drove the EPS adjustment but did not affect its previously announced adjusted results or 2026 guidance.

What impairments did Honeywell (HON) disclose for the PSS and WWS businesses?

Honeywell disclosed additional impairments tied to PSS and WWS assets held for sale. According to the company, these include a $436 million goodwill impairment and a $35 million asset impairment, with a $61 million tax benefit offset.

Will the 10-K impairments change Honeywell's (HON) 2026 guidance?

No, the company reaffirmed its 2026 guidance despite the incremental charges. According to the company, the impairments adjusted GAAP metrics but did not alter previously announced adjusted results or guidance for 2026.

When does Honeywell (HON) expect to complete the sale of PSS and WWS?

Honeywell expects to announce the sale of PSS and WWS in the first half of 2026. According to the company, the sales are part of its ongoing portfolio optimization to focus on core automation.