Honeywell Aerospace Ditches 2026 Sales Growth Forecast Amid Supply Chain Woes

Honeywell Aerospace, a spin-off from Honeywell that debuted on the Nasdaq in June, has lowered its sales growth forecast for 2026 due to persistent supply-chain hurdles. The company cited persistent supply-chain challenges as the reason behind this move.

These issues are forcing it to prioritize original equipment deliveries to Boeing and Airbus as they ramp up production, diverting output from its higher-revenue aftermarket business. This diversion of resources has led to a less favorable sales mix in the back half of the year.

Honeywell Aerospace expects 2026 organic sales growth of 4% to 5%, down from a previous forecast of 7% to 9%. It also projected annual adjusted earnings per share of $7.60 to $7.90, below analysts' average estimate of $8.86.

The company's quarterly core profit fell 7% year-on-year due to separation-related costs and inventory obsolescence charges. While higher sales volumes and pricing supported revenue growth, profitability came under pressure from higher costs and an unfavorable business mix.