Honeywell Aerospace Slashes 2026 Sales Growth Forecast Amid Supply Chain Woes
Honeywell Aerospace, the newly spun-off aerospace company from Honeywell, has lowered its sales growth forecast for 2026 due to persistent supply-chain hurdles. The company's shares tumbled 12% in extended trading.
In an interview with Reuters, Chief Financial Officer Josh Jepsen said that 'demand continues to be really robust. It's really a supply challenge.' Honeywell Aerospace is prioritizing original equipment deliveries to Boeing and Airbus as the planemakers ramp up production, diverting output from its higher-revenue, higher-margin aftermarket business.
The company now expects 2026 organic sales growth of 4% to 5%, down from its earlier 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.