Honeywell Supply Chain Issues Boost Stocks Like TransDigm Group, GE Aerospace, and RTX Corporation
Supply chain problems at Honeywell Aerospace have thrown a spotlight on which companies can deliver parts on time, and three stocks are emerging as potential winners. When a major supplier struggles, customers look elsewhere for reliable alternatives.
TransDigm Group, an aerospace supplier based in Cleveland, designs and produces highly specialized components such as actuators, valves, power controls, latches, cockpit hardware, and safety restraints that are built into aircraft engines, airframes, and cabins. The company generates most of its revenue from Power & Control at about $5.4 billion and Airframe at about $4.4 billion, with a smaller Non Aviation segment at about $0.2 billion.
Honeywell's supply issues have put pressure on companies like TransDigm Group, which has seen solid sales and earnings alongside a raised outlook and ongoing acquisition deals like Prince & Izant. However, the company's high leverage and negative equity are concerns that investors should consider carefully. If Honeywell continues to struggle with backlogs, TransDigm could see more repair and replacement work shift its way.
Another stock benefiting from Honeywell's supply chain setbacks is General Electric (GE), now doing business as GE Aerospace. The company designs and builds jet engines, avionics, power systems, and critical components that keep commercial airliners and military aircraft flying. With a backlog of around $210 billion and a commercial services book supported by strong spare parts demand, GE Aerospace stands out as a reliable supplier.
RTX Corporation, a large aerospace and defense supplier, is also well-positioned to absorb Honeywell's missed opportunities. The company provides engines, avionics, sensors, missiles, and other systems for commercial airlines, business, and general aviation operators, and government and military customers around the world. RTX has a record backlog of $289 billion and has raised its sales, EPS, and free cash flow guidance for 2026.
While these stocks may offer opportunities for investors, it's essential to consider their balance sheets and regulatory risks carefully. Honeywell's supply chain setbacks have put pressure on companies like TransDigm Group, GE Aerospace, and RTX Corporation, but each has its unique strengths and weaknesses that should be evaluated before making any investment decisions.