Honeywell Aerospace Trims 2026 Outlook Amid Supply Bottlenecks

Honeywell Aerospace, a newly spun-off company from Honeywell, has trimmed its 2026 outlook due to ongoing supply bottlenecks. Despite strong demand, the company cannot get enough parts to feed its most profitable business segment.

According to Reuters, Honeywell Aerospace is rationing shipments and prioritizing lower-margin work, such as original equipment manufacturer (OEM) deliveries to Boeing and Airbus, over higher-margin aftermarket spares and services. This change in strategy affects the company's sales mix and puts pressure on profits.

Honeywell Aerospace has cut its 2026 organic sales growth forecast to 4%-5% from 7%-9%, and guided annual adjusted earnings per share (EPS) to $7.60-$7.90, below the $8.86 analyst consensus tracked by LSEG. This decision reflects a pattern already seen in the second quarter, where sales rose 5% to $4.52 billion, but adjusted EPS fell 32% due to separation costs and inventory write-downs.