Honeywell Aerospace Stock Takes Hit After Disappointing Earnings Report

Honeywell Aerospace's first earnings report as an independent company was met with disappointment, causing its stock to plummet 20.8% in early trading on Thursday.

The supplier of airplane navigation systems, engines, and power systems reported pro forma Q2 2026 results that fell short of expectations, with earnings coming in at $1.87 per share, down from the predicted $2.13.

Revenue for the quarter was $4.5 billion, a 5% increase relative to what the company would have collected as a standalone entity one year ago, but still below estimates.

Honeywell Aerospace's CEO Jim Currier attributed the underperformance to supply constraints limiting sales growth, despite strong customer demand and growing backlog.

In response, the company is taking a conservative stance in its guidance, lowering expectations for sales growth in the second half of this year and forecasting earnings of perhaps $7.75 per share and free cash flow between $1 billion and $1.5 billion.