Honeywell reaffirms annual forecast ahead of aerospace spinoff
June 8 (Reuters) - Honeywell reaffirmed its annual adjusted profit and sales forecast on Monday, as it prepares for a spinoff of its aerospace business in the coming weeks.
Honeywell Aerospace, which makes aircraft engines, parts and defense systems, will be spun off on June 29, marking a key step in the conglomerate's previously announced three-way split to focus on automation, aerospace and advanced materials.
Honeywell expects its full-year 2026 adjusted profit between $10.35 and $10.65 per share, and annual revenue in the range of $38.8 billion to $39.8 billion.
CEO Vimal Kapur in April had flagged a 0.5% reduction in first-quarter revenue due to the Middle East conflict and said he expects roughly a 1% drop during the second quarter, largely in its process automation and technology segment.
Kapur said on an investor call on Monday the company has "very high conviction" the conflict will not weigh on the second half of 2026, assuming "no significant re-escalation", instead it could turn into a "tailwind" as customers lift spending on energy security and reconstruction.
Honeywell completed the spinoff of its advanced materials unit into a standalone company called Solstice Advanced Materials in October last year, while the remaining automation business will operate as Honeywell Technologies.
Honeywell Technologies expects to post 2026 adjusted profit between $3.95 and $4.15 per share, and forecast revenue in the range of $19.9 billion to $20.2 billion.
It expects annual free cash flow of about $2 billion.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Vijay Kishore and Shilpi Majumdar)