Honeywell Aerospace Cuts Sales Forecast Amid Supply Chain Woes

Honeywell Aerospace has revised its sales growth forecast for 2026 due to ongoing supply-chain disruptions. The company, which spun off from Honeywell in June, now expects organic sales growth of 4% to 5%, down from a previous estimate of 7% to 9%. This downgrade is largely attributed to the increasing demand for original equipment deliveries to Boeing and Airbus as production ramps up.

The company's Chief Financial Officer, Josh Jepsen, stated that 'demand continues to be really robust. It's really a supply challenge.' To address these issues, Honeywell Aerospace is increasing spending on multi-sourcing and in-sourcing initiatives fourfold this year. The company had initially expected supply-chain fixes to boost output more quickly.

Honeywell Aerospace's second-quarter adjusted profit per share fell 32% to $1.87, while sales rose 5% to $4.52 billion. The company is prioritizing domestic defense and space programs over international contracts, leading to a less favorable sales mix in the back half of the year.