Overview
- Honeywell Aerospace reported a weaker-than-expected quarter and cut its 2026 organic sales growth target to 4%–5% and full-year adjusted EPS to $7.60–$7.90.
- The company said supply constraints forced it to prioritize parts for Boeing and Airbus over higher-margin aftermarket work, which reduced near-term profitability and lowered adjusted EPS for the quarter.
- Second-quarter revenue rose about 5% to $4.52 billion while adjusted EPS fell 32% to $1.87, and the results included roughly $100 million of separation and inventory obsolescence charges.
- Management announced a remediation plan that includes qualifying more than 50 new suppliers, adding about 50 more in the second half, increasing supplier-tooling spending and expanding multi-sourcing to restore capacity into 2027.
- Investors sold shares sharply after the report with the stock plunging in early trading, even as backlog grew to roughly $18.2 billion and orders remain elevated, leaving valuation and aftermarket share at risk relative to peers.