Honeywell Aerospace Cuts Outlook After Weak Debut
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- Honeywell Aerospace reported second-quarter revenue of $4.52 billion, missing the LSEG consensus of $4.6 billion, while adjusted EPS fell 32% to $1.87, below the $2.11 estimate.
- Honeywell Aerospace cut its full-year organic sales growth guidance to 4%–5%, down from 7%–9%, and lowered pro-forma adjusted EBIT to $4.35B–$4.45B, down from $4.65B–$4.75B.
- Honeywell Aerospace now expects 2026 adjusted EPS between $7.60 and $7.90, significantly below the Street consensus of $8.90, marking the first standalone EPS forecast.
- Jim Currier, CEO of Honeywell Aerospace, acknowledged underestimating how long corrective supply chain measures would take, citing factory volume growth below expectations despite a steady ramp in output.
- Josh Kepsen, CFO, stated the updated financial guidance is set at achievable levels without requiring dramatic improvements in supply chain performance, as management prioritizes credibility over optimism.
- Honeywell Aerospace noted that 98% of its 3,000 suppliers are performing well, but bottlenecks from the remaining 2% are disrupting output, prompting urgent remedial actions and elevated investment.
Why it matters: Investor confidence in Honeywell Aerospace has taken a material hit: the stock dropped 17% across regular and extended trading, falling to $182—a new low—because management failed to reset expectations ahead of this report, despite having multiple opportunities, making future guidance harder to trust even if demand remains strong.
