Honeywell Aerospace slumps as supply-chain strains cloud aerospace upcycle
HONA•Shares fall after 2026 outlook cut
Shares of Honeywell Aerospace HONA.O plunge 10% premarket after the newly spun-off company cut its 2026 sales growth forecast and issued a weak earnings outlook, citing persistent supply-chain issues.
Forecast now below analyst estimates
HONA now expects 2026 organic sales growth of 4% to 5%, versus 7% to 9% previously, and projects annual adjusted EPS of $7.60 to $7.90, below analysts' average estimate of $8.86, per LSEG-compiled data.
Profit miss and management comments add pressure
The weak outlook follows a second-quarter profit and revenue miss, with CEO James Currier saying efforts to address supply-chain issues "have not been good enough" and failed to deliver the expected increase in output.
Jefferies analyst Sheila Kahyaoglu says the key investor question following the results is "how is an Aero company growing only 4%".
The average rating of 15 analysts on the stock is "hold" and their median price target is $247.50, about 22% above its current price.
Original equipment deliveries prioritized over aftermarket
The company says it is prioritizing original equipment deliveries to Boeing BA.N and Airbus AIR.PA as they ramp production, diverting output from its higher-margin aftermarket business and creating a less favorable sales mix.
