Honeywell Aerospace Q2 2026 earnings miss, cuts full-year outlook

Honeywell Aerospace Q2 2026 earnings miss, cuts full-year outlook

Thu, August 6, 2026 at 8:41 PM GMT+3 2 min read

Honeywell Aerospace stock fell 21% in early Thursday trading after the company reported second-quarter results that missed Wall Street expectations and cut its full-year financial outlook, citing supply chain constraints that limited output during the quarter.

The Phoenix-based aerospace and defense company posted second-quarter sales of $4.5 billion, up 5% year over year, and adjusted earnings before interest and taxes of $995 million, down 7% from the same period a year earlier. Wall Street had projected $4.6 billion in sales and $1.1 billion in operating profit, according to Barron's. Adjusted earnings per share came in at $1.87, compared with $2.75 in the prior-year period.

For the full year, Honeywell Aerospace now expects organic sales growth of 4% to 5%, down from its prior guidance of 7% to 9%. The company also trimmed its pro forma standalone adjusted EBIT target, guiding to $4.35 billion–$4.45 billion against a prior outlook of $4.65 billion–$4.75 billion. The company issued full-year adjusted earnings per share guidance of $7.60 to $7.90.

"For the second half of 2026, we believe it is prudent to align our guidance to our supply chain's demonstrated capabilities at the end of the second quarter," Chief Executive Officer Jim Currier said in a statement. "We are moving with the speed and urgency required for improved performance in 2027 and beyond."

The adjusted EBIT decline included approximately $100 million of separation-related costs and inventory obsolescence charges, the company said. Backlog grew 9% year over year to $18.2 billion, and trailing twelve-month orders were up 8%, led by Defense and Space.

By end market, Commercial Aftermarket sales rose 8% to $2.0 billion, Commercial Original Equipment climbed 6% to $679 million, and Defense and Space increased 3% to $1.8 billion. The company noted that lower international Defense and Space volumes reflected supply constraints and the wind-down of a restricted government program.

To address supply chain bottlenecks, Honeywell Aerospace said it is qualifying more than 50 new suppliers — with 50 more expected in the second half — and plans to increase investment in supplier tooling by 20% in the second half versus the first half, with spending set to double from 2025 to 2027. The company also said it is expanding the number of multi-sourced parts by more than 15% for the year.

Honeywell Aerospace began trading on Nasdaq under the ticker HONA in late June after completing its spinoff from Honeywell Technologies. At the time of its market debut, the company projected revenue growth of 7% to 9% for the year. Heading into Thursday's session, the stock had shed roughly 8% from its spinoff debut, according to Barron's.