Honeywell Aerospace Cuts Sales Growth Forecast Amid Supply-Chain Woes

Honeywell Aerospace, a recent spin-off from Honeywell, cut its sales growth forecast for 2026 due to supply-chain challenges. The company reported that it is prioritizing original equipment deliveries to Boeing and Airbus as production ramps up, diverting output from its higher-revenue aftermarket business.

This move has led to a less favorable sales mix in the second half of the year. As a result, Honeywell Aerospace expects 2026 organic sales growth of only 4% to 5%, down from an earlier forecast of 7% to 9%. The company also projected annual adjusted earnings per share of $7.60 to $7.90, which is below analysts' average estimate of $8.86.

Honeywell Aerospace incurred about $100 million in separation-related costs and inventory obsolescence charges after its spin-off from Honeywell. This led to a 7% year-on-year fall in quarterly core profit. Second-quarter adjusted profit per share fell 32% to $1.87, while sales rose 5% to $4.52 billion.