Honeywell Aerospace Slashes Sales Forecast Amid Supply-Chain Woes

Honeywell Aerospace, a recently spun-off company from Honeywell, has lowered its sales growth forecast for 2026 due to persistent supply-chain issues. The company cited difficulties in meeting surging aftermarket demand as a major challenge.

The aerospace supplier prioritizes original equipment deliveries to Boeing and Airbus over higher-revenue aftermarket business, affecting the sales mix in the back half of the year. Despite robust demand, Chief Financial Officer Josh Jepsen said that it's 'really a supply challenge.'

Honeywell Aerospace expects 2026 organic sales growth of 4% to 5%, down from a previous forecast of 7% to 9%. The company also projected annual adjusted earnings per share of $7.60 to $7.90, below analysts' average estimate of $8.86.

The company's shares tumbled 12% in extended trading after the announcement. Honeywell Aerospace incurred about $100 million of separation-related costs and inventory obsolescence charges, resulting in a 7% year-on-year fall in quarterly core profit.