Honeywell Aerospace Stocks Plummet on Supply Chain Woes

Honeywell Aerospace's stock plummeted by as much as 26% on Thursday after it cut its annual sales target and issued a weaker-than-expected profit forecast due to supply chain problems.

The aerospace supplier, which recently listed on the Nasdaq following its spinoff from Honeywell, said it was forced to prioritize deliveries to Boeing and Airbus over its higher-margin aftermarket business due to supply constraints.

Honeywell Aerospace lowered its 2026 organic sales-growth outlook to 4%-5% from 7%-9% previously. The company expects adjusted earnings of $7.60-$7.90 per share for the year, significantly below analysts' average estimate of $8.86 according to LSEG.

J.P. Morgan reduced its price target from $255 to a Street-low $235, saying the stock's 'discount to peers is likely to widen following these results.'