Honeywell Aerospace Stocks Plummet Amid Supply Chain Woes

Honeywell Aerospace's shares plummeted as much as 26% on Thursday after the company cut its annual sales target and forecast profit below estimates.

The aerospace supplier, which was spun off from Honeywell about a month ago, has been impacted by supply-chain issues that have forced it to prioritize deliveries to Boeing and Airbus over its revenue-boosting aftermarket business.

Honeywell Aerospace 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, which falls short of analysts' expectations of $8.86.

J.P. Morgan cut its price target on Honeywell Aerospace to $235 from $255, citing a widening discount to peers following the company's results. Jefferies also has a $235 target price and expressed puzzlement over how an aerospace company can grow at only 4% annually.