Honeywell Aerospace Stocks Plunge Amid Revised Forecast and Supply Chain Bottlenecks

Honeywell Aerospace's stock plummeted by as much as 26% on Thursday after the company announced a significant cut to its annual sales target and forecast profit below estimates.

The aerospace supplier, which was spun off from Honeywell just over a month ago, cited supply-chain issues as the reason for the revised forecast. It now expects 2026 organic sales growth of 4% to 5%, down from an earlier projection of 7% to 9%. The company also trimmed its annual adjusted earnings per share target to $7.60 to $7.90, below analysts' expectations of $8.86.

The stock, which debuted on the Nasdaq last month, is on track for its worst day since listing if losses hold. J.P. Morgan cut its price target on Honeywell Aerospace to a Street-low of $235 from $255, stating that the company's discount to peers will likely widen following these results.

Honeywell Aerospace's second-quarter adjusted profit per share fell 32% to $1.87 compared to the previous year, while sales rose 5% to $4.52 billion. Finance chief Josh Jepsen attributed the shortfall to supply chain bottlenecks, saying 'it's really resetting the forecast based on what we're seeing coming through the supply chain.'

Despite the challenges, analysts at J.P. Morgan believe that investors will wait for proven results before reassessing the company's prospects.