In an update provided in an 8-K filing with the Securities and Exchange Commission on December 22, Honeywell revealed the possible nearly $500 million financial impact of the March 1, 2023, lawsuit filed by Flexjet. The complaint alleged, according to Honeywell, “breach of the parties’ aircraft engine maintenance service agreement (the MSA), seeking liquidated damages for delayed engine repairs, and claiming that its liquidated damages continue to accrue monthly related to engines awaiting repair.”
In the 8-K filing, Honeywell said it “expects to record a one-time charge within its Aerospace Technologies segment in the fourth quarter of 2025 that will reduce GAAP sales (due to contra-revenue accounting) and operating income by approximately $310 million and $370 million, respectively. The Company further expects that any comprehensive settlements will include one-time cash payments to the parties to the Flexjet-related litigation matters totaling approximately $470 million in the aggregate.”
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