Honeywell Aerospace Soars on Rising Defense Spending

The US Defense Authorization Act proposes a record $1.15 trillion in military spending for fiscal 2027, providing tailwinds for defense stocks.

Honeywell Aerospace is one of the top picks among defense stocks, trading down over 21% since its spinoff from Honeywell Technologies last June.

The company's backlog grew 9% year-over-year to $18.2 billion in the second quarter, with a significant portion tied to defense modernization programs and military avionics upgrades.

Honeywell Aerospace has a strong competitive position due to its focus on high-margin repair, maintenance, and overhaul (MRO) and replacement components for commercial and defense customers.