Honeywell Aerospace Slumps Amid Supply Chain Bottlenecks

Honeywell Aerospace's shares plummeted as much as 26% on Thursday after it cut its annual sales target and forecast profit below estimates. The company, which was spun off from Honeywell a month ago, cited supply-chain issues that are forcing it to prioritize deliveries to Boeing and Airbus over its revenue-boosting aftermarket business.

The aerospace supplier expects 2026 organic sales growth of 4% to 5%, down from an earlier forecast of a 7% to 9% increase. It also anticipates annual adjusted earnings per share of $7.60 to $7.90, below analysts' expectations of $8.86.

J.P. Morgan cut its price target on Honeywell Aerospace to $235 from $255, stating that the company's discount to peers will likely widen following these results.