Honeywell's Stock Takes a Dip: What's Happening?

Honeywell's stock took a hit recently. The company lowered its expectations for the fourth quarter and the full year. This change is due to a new way of organizing its business units, which will start in early 2026. There's also some legal trouble. Honeywell is in talks to settle a lawsuit related to Flexjet. They expect to take a big one-time hit in the fourth quarter of 2025. This will affect their sales and operating income, but not their non-GAAP metrics.The company is restructuring. Starting next year, they will report their business in four main areas: Aerospace Technologies, Building Automation, Industrial Automation, and Process Automation and Technology. They will also stop reporting their Advanced Materials unit as part of their main operations after spinning it off. The outlook isn't great. For the fourth quarter, they expect lower earnings and revenue than previously thought. The same goes for the full year of 2025. Despite this, their recent earnings report was better than expected. They beat analysts' estimates for both earnings and revenue. Investors are worried. The stock price dropped during premarket trading. This shows that the market is reacting to the company's lowered expectations.