Honeywell Aerospace Slashes 2026 Growth Outlook to 4-5% on Supply Woes, Q2 Misses Across Board
HON sits 29% above its 52-week low of $195.769.
Summary
Honeywell Aerospace, now a standalone company after its June spin-off, cut its full-year organic growth guidance to 4-5% from 7-9%, citing supply constraints that capped Q2 sales. The quarter missed on both top and bottom lines: revenue of $4.52B fell short of the $4.61B consensus, and adjusted EPS of $1.87 was well below the $2.12 estimate. Profit plunged to $246M from $844M a year ago, though the prior period included the former parent's structure. This is the first earnings report for the standalone entity and the first guidance cut since the spin-off, directly contradicting the 6-8% CAGR target laid out at June's Investor Day. The supply-demand imbalance is the core issue—demand is there, but the company can't fulfill it, which raises questions about near-term execution. Management is pointing to 2027 for improved performance, but the market will likely reprice the stock given the magnitude of the miss and the lowered outlook.
At the time of this announcement, HON was trading at $251.64 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $78.6B. The 52-week trading range was $195.77 to $260.15. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.