Supply Chain Woes Force Honeywell Aerospace to Downgrade Sales Growth Forecast

Honeywell Aerospace's sales growth forecast for 2026 has been lowered to 4-5% due to supply chain issues. This is a decrease from their earlier prediction of a 7-9% increase in sales.

The company, which split from Honeywell in June 2026, cited supply constraints as the main reason for the downgrade. According to CEO James Currier, the problems have made it difficult to meet surging demand for aftermarket products, forcing them to prioritize deliveries to Boeing and Airbus over higher-margin international contracts.

'Demand continues to be really robust. It's really a supply challenge,' said Chief Financial Officer Josh Jepsen in an interview with Reuters.

To address the issue, Honeywell Aerospace is quadrupling its spending on multi-sourcing and in-sourcing initiatives in 2026. Despite this effort, CEO Currier acknowledged that their actions so far have not led to the expected output increase.