Honeywell Aerospace Cuts Guidance Amid Supply Chain Woes

Honeywell Aerospace recently spoke at Morgan Stanley's 14th Annual Laguna Conference, delivering a mixed message about its outlook. The company acknowledged that demand remains strong, with long-term upside expected, but supply chain problems have forced it to cut its 2026 guidance.

According to Chief Executive Jim Currier, the newly independent aerospace company is working through delays, quality issues, and factory bottlenecks that have slowed the pace of recovery since its separation from a parent company. The market has already priced in much of the pain, with shares down 45% from their 52-week high of $297.50 to the current $160.66.

Honeywell Aerospace cut its 2026 growth outlook to 4% to 5%, citing supply base delays that have slowed output. However, the company remains committed to its 2030 targets and expects 2027 to be a catch-up year as supply constraints ease.