Honeywell announced on October 1, 2025, that it has divested all of its legacy Bendix asbestos liabilities and certain non-Bendix asbestos liabilities to Delticus, a corporate liability acquisition platform. The agreement involved both companies contributing about $1.68 billion in cash and related insurance assets to a new structure. Delticus will now be responsible for handling all current and future asbestos-related claims linked to these liabilities.
Honeywell used part of the approximately $1.6 billion it received from the recent termination of the Resideo Indemnification and Reimbursement Agreement to help fund this transaction. According to Honeywell, “The transaction allows Honeywell to permanently divest these legacy asbestos liabilities and transfer them to a high-quality partner in Delticus, providing finality and allowing the company to focus on redeploying capital toward core growth priorities.” The timing coincides with Honeywell’s ongoing efforts to simplify its portfolio ahead of its planned separation into three independent companies, which is expected by the second half of 2026.
After this deal, Honeywell states it will have no further financial exposure regarding the transferred liabilities. These will be managed entirely by Delticus, with Honeywell fully indemnified.
Financially, Honeywell expects a one-time after-tax loss of around $115 million from this divestiture, which will not be included in Adjusted Earnings Per Share calculations. The company also anticipates that transferring these liabilities will improve annual free cash flow by more than $100 million over several years before decreasing over time.
Honeywell operates globally across multiple industries with business segments focused on automation, aviation’s future, and energy transition.
“We describe many of the trends and other factors that drive our business and future results in this release,” said Honeywell in a statement addressing forward-looking information. The company noted that actual outcomes may differ from projections due to various risks and uncertainties.
