Honeywell Aerospace Slashes Outlook Amid Supply Chain Woes

Honeywell Aerospace cut its 2026 outlook after reporting second-quarter results following its separation from Honeywell International. The company said it had aligned its forecasts with the supply chain's demonstrated capabilities at the end of the second quarter, despite continued strong customer demand.

The company now expects full-year organic sales growth of 4%-5%, down from its previous forecast of 7%-9%. It also reduced its pro forma standalone adjusted EBIT guidance to US$4.35 billion-US$4.45 billion from US$4.65 billion-US$4.75 billion, implying flat to 3% year-on-year growth instead of the previously expected 7%-10%.

Chief Executive Jim Currier said the company's successful separation marked an important milestone and positioned Honeywell Aerospace to benefit from greater financial flexibility and operational improvements. While secular demand trends across its end markets remain strong, he said supply chain constraints continued to limit output growth during the quarter.