Honeywell’s aerospace division reported a 14% year-over-year revenue increase in the most recent quarter, driven by robust aftermarket service orders and a recovery in original equipment manufacturer (OEM) deliveries. The segment’s top line reached approximately $3.2 billion, marking the fastest pace of growth in three years. Management highlighted that spares and repairs contributed 12% growth, while new engine and airframe component shipments grew 16%.

Continued strength in airline flight schedules and maintenance cycles lifted aftermarket service orders by 18%, pushing the aerospace backlog to a record $9.5 billion. Honeywell noted that regional carriers in Asia and Europe have accelerated component overhaul programs, resulting in a 20% increase in shop visits compared with the same period last year. This steady inflow of service work is expected to support margin expansion, with segment operating margins projected to improve by 150 basis points in the next two quarters.

Defense contract awards contributed significantly to the unit’s growth, with the U.S. Department of Defense amplifying spending on avionics, navigation systems and radar technologies. Honeywell secured $1.1 billion in new defense orders, up 25% year-over-year, and its defense backlog now stands at $4.7 billion. Management emphasized ongoing development programs for next-generation fighter jets and unmanned aerial systems, providing multi-year revenue visibility and underpinning the division’s long-term growth trajectory.

OEM deliveries rebounded strongly as Boeing and Airbus ramped production, leading to a 16% increase in new build equipment orders. Honeywell reported 5,400 kits sold for the leading narrow-body and wide-body platforms, compared with 4,650 a year earlier. The company’s aftermarket digital solutions, including connected engine diagnostics and predictive maintenance tools, also saw a 30% uptake from key airframers, positioning Honeywell to capture higher recurring revenue as fleet utilization continues to climb.