Honeywell Aerospace Cuts Sales Forecast Amid Supply-Chain Woes

Honeywell Aerospace, a newly spun-off company from Honeywell, has revised its sales growth forecast downward due to persistent supply-chain issues. The company is facing challenges in meeting surging aftermarket demand, forcing it to prioritize original equipment deliveries to Boeing and Airbus.

According to CEO James Currier, the company's actions so far have not been effective in addressing the supply-chain issues, leading to a lower-than-expected earnings outlook for 2026. Honeywell Aerospace now expects 4% to 5% organic sales growth, down from its earlier forecast of 7% to 9%. Adjusted earnings per share are projected at $7.60 to $7.90, below analysts' average estimate of $8.86.

To address the supply-chain issues, Honeywell Aerospace is increasing spending on multi-sourcing and in-sourcing initiatives fourfold this year. The company has also incurred about $100 million in separation-related costs and inventory obsolescence charges since its spin-off from Honeywell in June.