Honeywell Aerospace Takes a Tumble but Bull Thesis Remains Intact

Honeywell Aerospace's debut as a standalone public company has been rocky. After spinning off from Honeywell on June 29, 2026, the aerospace pure-play reported its first-quarter results on August 5, 2026, and the market reacted harshly. Shares fell 23.2% in the most recent session and are down 34.3% over the past month, closing at $156.47 on August 6, 2026.

The company's adjusted EPS came in at $1.87, down 32% from $2.75 a year earlier. GAAP diluted EPS of $0.78 was hit by $329 million in spin-off transaction costs ($1.04 per share) and roughly $200 million in interest and financial charges tied to the $15.8 billion debt load the company absorbed. Revenue grew 5% to $4.52 billion, but management cut full-year organic sales growth guidance to 4% to 5%, from 7% to 9%. CEO Jim Currier attributed this reset: “For the second half of 2026, we believe it is prudent to align our guidance to our supply chain’s demonstrated capabilities at the end of the second quarter.”

Despite a disappointing debut, the bull case for Honeywell Aerospace remains intact. Jim Cramer has repeatedly championed the stock as the aerospace pure-play investors were missing. He cites three pillars that anchor his thesis: an aftermarket moat, defense tailwinds, and fleet modernization.