Honeywell Aerospace's Disappointing Debut Leaves Bull Case Intact

Honeywell Aerospace (NASDAQ:HONA) had a disappointing debut as a standalone public company. After spinning off from Honeywell in June, the aerospace pure-play reported its first-quarter results on August 5, 2026. The market reacted harshly, with shares falling 23.2% in the most recent session and down 34.3% over the past month, closing at $156.47 on August 6, 2026.

The company's adjusted earnings per share (EPS) came in at $1.87, down 32% from $2.75 a year earlier. 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 the reset to aligning guidance with supply chain capabilities.

Despite the disappointing debut, Jim Cramer's bull case for Honeywell Aerospace remains intact. He has repeatedly championed the stock as the aerospace pure-play investors were missing. Three pillars anchor the thesis: a strong aftermarket moat, defense tailwinds from a 38% Air Force budget increase, and fleet modernization with a $18 billion backlog.

Wall Street still backs the story, with a mean analyst target of $244.58 well above the current share price despite a consensus Hold rating. Execution on supplier qualifications and debt paydown are the near-term keys for long-term investors.