Why Honeywell (HON) Is Down 6.9% After Announcing Corporate Split and Breakthrough Biofuels Technology

• In late October 2025, Honeywell International announced a major corporate split into automation and aerospace units, while simultaneously unveiling a new process technology that converts agricultural and forestry waste into renewable marine and aviation fuels from cost-effective biomass sources.
• This technology targets long-standing challenges in the shipping industry by offering drop-in, lower-carbon fuels that do not require costly engine upgrades, and reflects Honeywell's wider push into sustainable solutions amid regulatory and customer demand for decarbonization.
• To understand how Honeywell's business split and renewable fuels innovation could shape its future outlook, we'll explore their impact on the investment narrative.

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Honeywell International Investment Narrative Recap

For investors to remain confident in Honeywell International, they need to believe in the company’s ability to grow through business transformation, technological innovation, and operational resilience, even in the face of execution risks from its split and ongoing macroeconomic uncertainty. The recent breakthrough in renewable fuels aligns with Honeywell's sustainability catalysts but does not materially change the largest short-term catalysts or increase the primary risks, specifically, the complexity of managing the corporate separation and uncertainties in global demand. Among the latest announcements, the most relevant is the lowering of Honeywell’s 2025 earnings guidance. While the company posted strong third-quarter results, management reduced its sales expectations for 2025. This move reflects a cautious approach amid potential demand weakness and stresses the importance of monitoring both short-term execution and external market factors as Honeywell implements its corporate split. How these adjustments integrate with headline innovations, like the new biocrude technology, is something investors should not overlook. Yet, in contrast, investors should not ignore the implications of separation costs and stranded expenses, which could have a lingering effect on earnings that might not be fully appreciated...

Read the full narrative on Honeywell International (it's free!)

Honeywell International's outlook anticipates $45.8 billion in revenue and $7.5 billion in earnings by 2028. This projection depends on a 4.6% annual revenue growth rate and a $1.8 billion increase in earnings from the current $5.7 billion.

Uncover how Honeywell International's forecasts yield a $248.54 fair value, a 23% upside to its current price.

Exploring Other Perspectives

If you look at the lowest analyst estimates, they present a much more pessimistic view: forecasting US$43.7 billion in revenue and US$7.4 billion in earnings by 2028, despite recent headlines. Your assumptions might differ and exploring several outlooks is key.

Explore 8 other fair value estimates on Honeywell International - why the stock might be worth as much as 23% more than the current price!

Build Your Own Honeywell International Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Honeywell International research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Honeywell International research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Honeywell International's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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