Honeywell Aerospace Cuts Forecast Amid Component Shortage

Honeywell Aerospace has lowered its 2026 sales growth forecast to 4-5%, down from the 7-9% it predicted earlier in the year. The company cited component shortages as the reason, rather than weak demand.

Chief financial officer Josh Jepsen stated that 'demand continues to be really robust' but that the problem is supply. Component shortages are forcing Honeywell Aerospace to prioritize original equipment deliveries over its aftermarket business.

The company has already started taking action to address the shortage by quadrupling its 2026 investment in multi-sourcing and in-sourcing, aiming to reduce dependence on single suppliers for casting, forging, and machined parts. This is a long-term fix that will take several years to implement.