Honeywell Exits Asbestos Liabilities in $1.68B Deal Ahead of 2026 Corporate Split

Honeywell International has completed a $1.68 billion transaction with liability acquisition platform Delticus to transfer all remaining asbestos liabilities related to its Bendix and North American Refractories Company businesses, permanently indemnifying Honeywell from current and future claims. This move, funded partly by cash from a prior Resideo agreement, results in a one-time after-tax loss of around $115 million but is expected to improve Honeywell's annual free cash flow by over $100 million in the coming years. Concurrently, Honeywell is undergoing a major restructuring, planning to spin off its Solstice Advanced Materials division and aerospace business by 2026, and has increased its dividend payout for the sixteenth consecutive year, signaling confidence in its financial stability. The company also continues to invest in innovation, notably raising $600 million for its quantum computing subsidiary, Quantinuum, and advancing technology acquisitions to strengthen its building automation and smart energy segments. Honeywell's Q2 2025 earnings surpassed expectations, driven by momentum in aerospace and strategic supply chain investments, while the firm emphasizes unlocking value through its strategic portfolio optimization. Overall, Honeywell is positioning itself for growth and shareholder value through liability resolution, restructuring, and technological advancements.