This article is based on an official press release from Honeywell.

Honeywell Reports Strong Q4 2025 Results, Accelerates Aerospace Spin-Off Timeline

Honeywell (NASDAQ: HON) has announced a robust finish to its fiscal year 2025, reporting fourth-quarter results that surpassed analyst expectations for both sales and earnings. According to the company’s official press release, the industrial giant achieved 11% organic sales growth in the quarter, largely fueled by a surging Commercial-Aircraft sector and steady demand in building automation.

Alongside the financial results, Honeywell provided significant strategic updates, most notably accelerating the timeline for the spin-off of its Aerospace business. Originally slated for a later date, the separation is now expected to be completed in the third quarter of 2026. The company also issued a confident financial outlook for 2026, projecting continued margin expansion and sales growth.

Financial Performance: Q4 2025

Honeywell’s fourth-quarter performance highlighted a sharp divergence between its adjusted operational health and its GAAP reported figures, primarily due to significant one-time charges.

Earnings and Revenue

The company reported adjusted earnings per share (EPS) of $2.59, a 17% increase year-over-year, beating analyst estimates of $2.54. Adjusted sales reached $10.1 billion, exceeding the projected $10.02 billion.

However, GAAP earnings per share fell 72% year-over-year to $0.49. Honeywell attributed this drop to non-cash impairment charges associated with planned divestitures and a litigation settlement. Despite these charges, the company’s operational metrics remained strong.

“Organic orders grew 23%, signaling strong future demand, while the backlog reached a record high of over $37 billion.”

Cash Flow and Capital

For the full year, Honeywell generated $6.1 billion in operating cash flow, a 19% increase. Free cash flow also saw a healthy boost, rising 20% to $5.1 billion.

Segment Breakdown

Performance across Honeywell’s portfolio was mixed, with the Aerospace division acting as the primary engine of growth.

• Aerospace Technologies: This segment was the top performer, posting 21% organic sales growth. The surge was driven by robust commercial aftermarket demand and increased defense spending. Even excluding the impact of the Bombardier agreement, the segment grew by 11%.
• Building Automation: Sales in this segment grew 8% organically, supported by the market’s push for energy-efficient building solutions and management systems.
• Industrial Automation: This sector remained relatively flat (+1%) as it faced softer demand in warehouse and workflow solutions.
• Energy & Sustainability (ESS): Sales declined by 7% due to weakness in petrochemical catalysts, although order growth in the segment suggests a potential rebound.

Strategic Realignment and 2026 Outlook

Honeywell is undertaking a significant portfolio transformation to simplify its structure and focus on automation and energy transition megatrends.

Accelerated Spin-Off and Divestitures

The company confirmed that the spin-off of its Aerospace business is now targeted for Q3 2026. Additionally, Honeywell plans to divest its Productivity Solutions & Services (PSS) and Warehouse & Workflow Solutions (WWS) businesses in the first half of 2026. The reclassification of these businesses as “held for sale” triggered the impairment charges reflected in the Q4 GAAP results.

Litigation Settlement

The financial results included a one-time charge related to a settlement with Flexjet. This involves a cash payment of approximately $177 million, scheduled for the first quarter of 2026. Honeywell noted that this payment is excluded from its Free Cash Flow guidance to provide a clearer view of operational cash generation.

2026 Guidance

Looking ahead, Honeywell issued optimistic guidance for the full year 2026:

• Total Sales: $38.8 billion – $39.8 billion.
• Organic Sales Growth: 3% – 6%.
• Adjusted EPS: $10.35 – $10.65 (representing 6% – 9% growth).
• Free Cash Flow: $5.3 billion – $5.6 billion.

AirPro News Analysis

The decision to accelerate the Aerospace spin-off to Q3 2026 signals Honeywell’s confidence in the standalone viability of the unit. By separating the high-growth Aerospace division from the more cyclical industrial and building automation segments, Honeywell aims to unlock shareholder value and allow each entity to pursue distinct capital allocation strategies. The record $37 billion backlog provides a substantial safety net, ensuring that the Aerospace business will launch as an independent entity with a guaranteed revenue pipeline, insulating it from immediate short-term economic volatility.

Sources: Honeywell Q4 2025 Earnings Press Release

This article is based on an official press release from Newbow Aerospace.

Newbow Aerospace Doubles Capacity with New UK Facility and Secures Major Airline Contracts

Newbow Aerospace, a prominent UK-based manufacturer of Ground Support Equipment (GSE), has officially opened a new fabrication facility in Redditch, West Midlands. The expansion marks a significant start to 2026 for the company, coinciding with the announcement of several major contracts with international carriers including Iberia, British Airways, and Jet2.

According to the company’s announcement, the new 4,000-square-foot facility is located in close proximity to Newbow’s headquarters and its existing twin-unit production site. The primary objective of this expansion is to double the manufacturing capacity for the company’s core product lines, specifically GSE trailers and service carts. To support this increased output, Newbow has recruited additional welders and fabricators.

Strategic Contracts Secured for 2026

Alongside the infrastructure expansion, Newbow Aerospace has confirmed three significant commercial agreements that underscore its growing footprint in the European aviation market.

Iberia Fleet Support

In a new partnership, Newbow has secured an order from Spanish flag carrier Iberia. The agreement involves the initial production of 16 wheel and brake change trailers. These units are scheduled for deployment across various airports in Spain to support Iberia’s long-haul Airbus A350-900 fleet.

British Airways at Gatwick

Building on existing relationships, Newbow has been contracted by British Airways to supply trailers for Line Maintenance operations at London Gatwick Airport. These units will specifically support the maintenance of the airline’s Airbus A320 and Boeing 777 fleets.

Jet2 Trading Agreement

The company also announced a new general trading agreement with leisure airline Jet2. The scope of this deal focuses on the procurement of precision tyre inflation tooling and pressure gauges. Additionally, the agreement includes provisions for ongoing service and calibration support, ensuring the equipment remains compliant with safety standards.

Executive Commentary and 2025 Performance

The expansion follows what Newbow describes as a “record-breaking” performance in 2025. The company cites increased market penetration in the UK and Europe, as well as growing demand in the Middle East, as key drivers for the investment in new production capabilities.

Marc Green, Sales Director at Newbow Aerospace, highlighted the strategic necessity of the new site in a statement regarding the opening:

“The opening of our third production facility, which is now fully operational, provides Newbow with significant extra bandwidth to ramp up the manufacture of our service carts and trailers, for which we’re seeing high demand. The prospects for 2026 look very encouraging.”

AirPro News Analysis: Market Context and Sustainability

The expansion of Newbow Aerospace aligns with broader trends in the global Ground Support Equipment (GSE) market. Industry data suggests that the sector is poised for steady growth, with projections indicating a Compound Annual Growth Rate (CAGR) of approximately 7% through 2033. This growth is largely driven by the full recovery of global air passenger traffic and the subsequent pressure on airlines to optimize turnaround times.

Furthermore, the industry’s shift toward “Fly Net Zero” goals is influencing procurement decisions. Newbow’s recent innovation, a solar-powered wheel and brake change trailer launched with Aer Lingus, demonstrates how manufacturers are adapting to these environmental mandates. By utilizing roof-mounted solar panels to power internal LED lighting, operators can reduce reliance on towing vehicles for power, thereby lowering the carbon footprint of line maintenance operations.

Newbow’s strategic partnership with GGAS Aviation Services in Saudi Arabia, established in 2025, also positions the company to capitalize on the region’s aggressive aviation infrastructure development under Saudi Vision 2030.

Sources

• Newbow Aerospace

This article is based on an official press release from Aegean Airlines.

Aegean Airlines Acquires 45% Stake in MRO Provider Apella S.A.

On January 29, 2026, Aegean Airlines announced a significant expansion of its maintenance capabilities through the acquisition of a minority stake in Apella S.A., a specialized Greek aviation maintenance company. Through its subsidiary Olympic Air, the Aegean Group has secured a 45% stake in the firm, aiming to vertically integrate its operations and establish Greece as a stronger regional hub for aviation support services.

According to the company’s official announcement, the investment involves both the purchase of existing shares and a share capital increase. While the specific transaction value remains undisclosed, the deal leaves the majority 55% stake with Dr. Nikos Kontoyannis, who will continue to lead Apella as its CEO. The move represents a strategic effort by Aegean to bring heavy maintenance, aircraft painting, and disassembly services in-house, complementing its existing line maintenance infrastructure.

Strategic Expansion and New Infrastructure

A central component of this partnership is the development of a new technical base in Almyros, Magnesia. The press release details plans to utilize a privately owned 100,000-square-meter plot near Nea Anchialos National Airport (VOL). This facility is projected to roll out in phases, initially focusing on aircraft parking and disassembly, a critical component of aircraft recycling, before expanding into heavy maintenance and painting services.

Dimitris Gerogiannis, CEO of Aegean Airlines, emphasized the collaborative nature of the deal in a statement regarding the acquisition:

“This investment is a vote of confidence in the potential of Apella and its people… [It aims] to create synergies, facilitate the exchange of know-how, and support the expansion of the AEGEAN Group’s activities in the field of heavy aircraft maintenance.”

This new infrastructure is designed to function alongside Aegean’s “Aircraft Maintenance & Crew Training Center” at Athens International Airport, which opened in early 2024. While the Athens facility handles line maintenance and crew training, the partnership with Apella allows the group to capture industrial-level work, such as painting and recycling, that was previously outsourced or unavailable within the group’s direct control.

Operational Synergies and Capabilities

Apella S.A. brings decades of specialized experience to the Aegean Group. Founded in 1987 and operating as a certified MRO (Maintenance, Repair, and Overhaul) provider since 1998, Apella is currently the largest provider of wheel and brake repair services in Greece. The company holds EASA Part-145 certification and maintains strategic partnerships with major defense contractors, including Lockheed Martin, for whom it supports the Hellenic Air Force’s F-16 Viper upgrade program.

Dr. Nikos Kontoyannis, CEO of Apella, welcomed the investment as a catalyst for growth:

“[The deal creates] prospects for strengthening infrastructure, expanding the range of services provided, and establishing Greece as a regional hub for aviation technical support.”

Financial Overview

Data provided in the announcement highlights Apella’s financial standing prior to the acquisition. For the fiscal year 2024, Apella reported:

• Revenue: €15 million
• Net Profit (after tax): €1.3 million
• Workforce: 151 employees

AirPro News Analysis

This acquisition aligns with a broader industry trend where major carriers are increasingly investing in vertical integration to secure their supply chains. By acquiring a stake in an MRO provider capable of heavy maintenance and disassembly, Aegean reduces its reliance on third-party vendors for critical, high-cost services. Furthermore, the inclusion of “disassembly” capabilities suggests a forward-looking approach to sustainability and fleet lifecycle management, allowing the airline to manage end-of-life processes for aircraft more efficiently.

Frequently Asked Questions

Who is the majority owner of Apella S.A. following the deal?
Dr. Nikos Kontoyannis retains a 55% majority stake and remains the CEO of the company.

What services will the new Almyros facility provide?
The facility is planned to offer aircraft parking, disassembly (recycling), aircraft painting, and heavy maintenance services.

Does this replace Aegean’s Athens maintenance center?
No. The new capabilities complement the existing center at Athens International Airport, which focuses on line maintenance and crew training.

Sources

• Aegean Airlines Press Release