Honeywell Aerospace Slashes Growth Forecast on Supply-Chain Challenges

Honeywell Aerospace has reported lower-than-expected earnings and a weaker sales growth forecast due to persistent supply-chain issues. The company, which spun off from Honeywell in June, cited crimped supply as the reason for its inability to meet surging aftermarket demand.

As planemakers Boeing and Airbus ramp up production, Honeywell Aerospace is forced to prioritize original equipment deliveries over higher-revenue aftermarket business. This shift has resulted in a less favorable sales mix for the company in the back half of the year.

Honeywell Aerospace's Chief Financial Officer Josh Jepsen attributed the demand surge to robust customer orders, stating 'Demand continues to be really robust. It’s really a supply challenge.'

The company now expects 2026 organic sales growth of 4% to 5%, down from its earlier forecast of 7% to 9%. It also projects annual adjusted earnings per share of $7.60 to $7.90, below analysts' average estimate of $8.86.