Honeywell Aerospace Slashes Sales Growth Forecast Amid Supply Chain Strains
Honeywell Aerospace is facing ongoing supply-chain constraints that are limiting its ability to meet surging aftermarket demand. The company, which debuted on the Nasdaq in June after being spun off from Honeywell International, has been forced to prioritize deliveries to Boeing and Airbus over its revenue-boosting aftermarket business.
In a quarterly earnings report released on Wednesday, August 7, Honeywell Aerospace lowered its sales growth forecast for 2026. The company now expects organic sales growth of 4% to 5%, down from a previous forecast of 7% to 9%. It also projected full-year adjusted earnings per share of $7.60 to $7.90, which is below the average analyst estimate of $8.86.
Honeywell Aerospace Chief Executive Officer Jim Currier said that secular trends across its end markets remain strong, but supply constraints have limited output growth in the quarter. The company recorded roughly $100 million in separation-related costs and inventory obsolescence charges during the quarter, contributing to a 7% year-over-year decline in core profit.