Honeywell Aerospace Raises Cash Flow Floor, Lifts EPS Outlook, Declares First Dividend
HONA sits 17% above its 52-week low of $149.19.
Summary
Honeywell Aerospace lifted the bottom of its second-half 2026 free cash flow forecast to $1.2B-$1.4B from $1.0B-$1.4B and raised full-year pro forma adjusted EPS to $7.85-$8.00 from $7.60-$7.90, while narrowing pro forma standalone adjusted EBIT guidance to $4.375B-$4.425B, up 1%-2% year over year. The raise comes after an August standalone 10-Q that showed net income down 71% YoY to $246M on spin-off costs and new interest expense, and after the company cut its 2026 sales growth outlook that same month. Q3 delivered $500M of free cash flow, sales of $4.644B, net income of $726M, EPS of $2.29, adjusted EPS of $2.21 and adjusted EBIT of $1.161B, with organic sales growth guidance reiterated at 4%-5%; backlog grew to $19.3B at quarter end, up 12% from prior year. The board declared a first quarterly dividend of $0.40 per share, payable December 4 to holders of record November 13 — a statement that management sees the cash generation as durable rather than a one-quarter bounce. CEO Jim Currier pointed to supplier improvement and qualification of additional material sources as the setup for higher output in 2027. The parent, Honeywell (HON), is only referenced as the former parent from the June three-way spin-off; the news is squarely about the spun-off HONA.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — Honeywell Aerospace narrowed pro forma standalone adjusted EBIT guidance to $4.375B-$4.425B, up 1%-2% year over year, and reported Q3 adjusted EBIT of $1.161B on sales of $4.644B.
At the time of this announcement, HONA was trading at $174.23 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $56.1B. The 52-week trading range was $149.19 to $297.50. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.