First Standalone Quarter: Spin-Off Costs and $15.9B Debt Load Slam Profit
HONA is trading near its 52-week low of $192.03 (4.7% below the low).
Summary
Honeywell Aerospace's first standalone 10-Q shows net income fell 71% YoY to $246M on spin-off costs and new interest expense. The company carries $15.9B in debt but has an $18.2B backlog and a new $3.5B buyback plan.
Key Events · Earnings and Guidance · HONA
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Net Income Plunges on Spin-Off Costs
Net income attributable to Aerospace fell to $246M in Q2 2026 from $844M in Q2 2025, driven by $329M in transaction costs and $200M in new interest expense.
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$15.9B Debt Load After Spin-Off
Total long-term debt stood at $15.9B as of June 27, 2026, up from $9M at year-end 2025, following the issuance of $16.0B in senior notes to fund the separation.
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$3.5B Share Buyback Authorized
The board authorized a $3.5B share repurchase program on July 23, 2026, with no fixed expiration date, signaling confidence in future cash flows.
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$18.2B Backlog Provides Revenue Visibility
Remaining performance obligations stood at $18.2B as of June 27, 2026, with 58% expected to be recognized within one year.
Analysis · HONA · Manufacturing
The first quarterly report as an independent company reveals a sharp profit decline, as one-time spin-off costs and new interest expense from a $15.9 billion debt load hit the bottom line. Net income attributable to Aerospace fell to $246 million from $844 million a year ago, with $329 million in transaction costs and $200 million in interest charges driving the drop. The balance sheet now carries $15.9 billion in long-term debt, a dramatic shift from near-zero debt at year-end 2025. On a positive note, an $18.2 billion backlog and a new $3.5 billion share repurchase authorization signal confidence in future cash generation. With the stock trading near its 52-week low, management faces pressure to demonstrate the benefits of independence.
How filings like this one have moved
In the 30 days to Oct 2, 2026, 36.4% of the 1070 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.57%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, HONA was trading at $182.92 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $64.5B. The 52-week trading range was $192.03 to $297.50. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.