Honeywell Aerospace Shares Plummet 26% on Supply-Chain Woes

Honeywell Aerospace's shares plummeted by as much as 26% on Thursday following supply-chain issues that have forced the company to lower its annual sales target and issue a weaker-than-expected profit forecast.

The aerospace supplier, which began trading on the Nasdaq about a month ago after spinning off from Honeywell, prioritized deliveries to Boeing and Airbus over its higher-margin aftermarket business due to supply constraints.

Honeywell Aerospace cut its 2026 organic sales-growth outlook to 4%-5% from 7%-9%, while expecting adjusted earnings of $7.60-$7.90 per share for the year, significantly below analysts' average estimate of $8.86 according to LSEG.

J.P. Morgan reduced its price target from $255 to a Street-low $235, stating that the stock's 'discount to peers is likely to widen following these results.' Jefferies also set a $235 price target and questioned how investors could reconcile the company's 4% growth outlook with the strength of the aerospace sector.