Honeywell Aerospace Shares Plummet on Revised Sales Forecast

Honeywell Aerospace's shares plummeted as much as 26% on Thursday after it cut its annual sales forecast and missed profit estimates. The company, which was spun off from Honeywell about a month ago, cited supply-chain issues as the reason for its revised projections.

The aerospace supplier expects 2026 organic sales growth of 4% to 5%, down from an earlier forecast of 7% to 9%. It also forecasts annual adjusted earnings per share of $7.60 to $7.90, below analysts' expectations of $8.86.

Finance chief Josh Jepsen said the company is prioritizing deliveries to Boeing and Airbus over its aftermarket business due to supply constraints. Analysts at J.P. Morgan cut their price target on Honeywell Aerospace to $235 from $255, citing a widening discount to peers.