Honeywell Aerospace Stock Plummets on Weak Earnings and Reduced Outlook

Honeywell Aerospace (HONA) stock plummeted up to 17% in premarket trading after its first earnings report as an independent entity.

The company's second-quarter revenue reached $4.52 billion, a 5% increase from the same period last year, but fell short of the $4.6 billion analyst forecast.

Adjusted earnings per share declined 32% to $1.87, significantly below the full-year analyst projection of $8.86.

Honeywell Aerospace reduced its 2026 organic revenue growth outlook to 4%-5%, a significant drop from the previously communicated 7%-9% range.

The company's Chief Financial Officer Josh Jepsen explained that the revised outlook stems directly from ongoing supply chain challenges, which are compelling the aerospace manufacturer to prioritize shipments to major OEMs Boeing and Airbus at the expense of its more lucrative aftermarket operations.