Honeywell Aerospace slumps as supply-chain strains cloud aerospace upcycle

Honeywell Aerospace

06/08/2026 09:06

** Shares of Honeywell Aerospace HONA.O plunge 10% premarket after the newly spun-off co cut its 2026 sales growth forecast and issues a weak earnings outlook, citing persistent supply-chain issues
** Co says it is prioritizing original equipment deliveries to Boeing BA.N and Airbus AIR.PA as they ramp production, diverting output from its higher-margin aftermarket biz and creating a less favorable sales mix
** HONA now expects 2026 organic sales growth of 4% to 5%, vs 7% to 9% previously, and projects annual adjusted EPS of $7.60 to $7.90, below analysts' average estimate of $8.86, per LSEG-compiled data
** Jefferies analyst Sheila Kahyaoglu says the key investor question following the results is "how is an Aero company growing only 4%"
** Weak outlook follows a Q2 profit and revenue miss, with CEO James Currier saying efforts to address supply-chain issues "have not been good enough" and failed to deliver the expected increase in output
** Average rating of 15 analysts on the stock is "hold" and their median price target is $247.50, about 22% above its current price 

 (Reporting by Rashika Singh in Bengaluru)
 ((Rashika.Singh@thomsonreuters.com;))