Honeywell Aerospace Beats, Raises EPS and Cash Guidance, Declares First $0.40 Dividend
HONA sits 24% above its 52-week low of $149.19.
Summary
Honeywell Aerospace beat on its first standalone quarter, raised full-year adjusted EPS and second-half free cash flow guidance, and declared its first quarterly dividend of $0.40 per share alongside a $500 million Arizona plant expansion.
Key Events · Earnings and Guidance · HONA
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Q3 Sales Up 2% to $4.6B
Sales of $4,644 million rose 2% reported and organic; net income was $737 million and adjusted EBIT $1,161 million, up 1% despite incremental standalone costs.
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Guidance Raised on EPS and Cash
Full-year pro forma standalone adjusted EPS guidance rose to $7.85-$8.00 from $7.60-$7.90, and second-half free cash flow to $1.2B-$1.4B from $1.0B-$1.4B; organic growth held at 4%-5%.
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First Dividend of $0.40 Declared
Inaugural quarterly cash dividend of $0.40 per share, payable December 4, 2026 to shareholders of record November 13, 2026.
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$500M Tempe Plant Expansion
New 300,000 square foot Arizona facility opening late 2028 adds machining capacity for Control Systems wins and defense programs, creating about 600 jobs.
Analysis · HONA · Manufacturing
In its first standalone quarter, Honeywell Aerospace grew sales 2% to $4.6 billion and lifted adjusted EBIT 1% to $1.2 billion despite new standalone costs. It then raised full-year adjusted EPS to $7.85-$8.00 from $7.60-$7.90 and the low end of second-half free cash flow to $1.2B-$1.4B. The board also declared an inaugural $0.40 quarterly dividend and committed $500 million to a new Tempe, Arizona plant opening in late 2028. For a freshly spun-off company carrying $15.9 billion of debt, that dividend is a statement that cash generation is durable, and the raised guidance plus a $19.3 billion backlog (up 12%) supports the standalone thesis. The soft spot is Engines and Power Systems, where segment profit fell 16% on unfavorable mix and higher costs.
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At the time of this filing, HONA was trading at $185.00 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $56.1B. The 52-week trading range was $149.19 to $297.50. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.