Honeywell expects $470 million charge from Flexjet settlement
Honeywell anticipates a $470 million fourth-quarter charge due to a potential settlement with Flexjet over a dispute regarding aircraft engine maintenance.Summary
Honeywell announced on December 22nd that it expects to record a one-time charge of approximately $470 million in the fourth quarter, stemming from a potential settlement in litigation with Flexjet. The lawsuit, filed in March 2023, alleged that Honeywell breached an aircraft engine maintenance services agreement, seeking damages for delayed engine repairs. A New York state court previously ruled in favor of Flexjet, enforcing a liquidated damages provision.
According to court filings, Flexjet claimed damages of at least $500 million, with the potential for additional damages exceeding $1 billion. Legal expert Jonathan Nelson of Dorf, Nelson & Zauderer stated that the $470 million settlement is a “calculated legal and economic decision” given the potential for higher damages.
In addition to the settlement charge, Honeywell lowered its 2025 adjusted profit forecast to $9.70 to $9.80 per share, attributing the reduction to the planned reporting of its Advanced Materials unit as discontinued operations following the spinoff of Solstice Advanced Materials in the fourth quarter of 2025.
(Source：Channel Newsasia)