Honeywell Aerospace lowered its full-year 2026 guidance after reporting second-quarter results following its separation from Honeywell International, saying it had aligned its forecasts with the supply chain’s demonstrated capabilities at the end of the second quarter despite continued strong customer demand.
The company now expects full-year organic sales growth of 4%-5%, down from its previous forecast of 7%-9%. It also reduced its pro forma standalone adjusted EBIT guidance to US$4.35 billion-US$4.45 billion from US$4.65 billion-US$4.75 billion, implying flat to 3% year-on-year growth instead of the previously expected 7%-10%. Honeywell Aerospace initiated full-year pro forma standalone adjusted earnings per share guidance of US$7.60-US$7.90 and maintained its second-half free cash flow forecast of US$1.0 billion-US$1.5 billion.
Chief Executive Jim Currier said the company’s successful separation marked an important milestone and positioned Honeywell Aerospace to benefit from greater financial flexibility and operational improvements. While secular demand trends across its end markets remain strong, he said supply chain constraints continued to limit output growth during the quarter.
Currier said the revised outlook reflected the supply chain’s performance at the end of the second quarter, while the company was taking strategic and operational measures to accelerate growth and improve financial performance. He reaffirmed Honeywell Aerospace’s commitment to meeting its 2030 targets.
Second-quarter sales rose 5% year on year on both a reported and organic basis. Order backlog increased 9% to US$18.2 billion, while trailing 12-month orders climbed 8%, led by continued strength in Defence and Space.
Adjusted EBIT fell 7%, including around US$100 million of separation-related costs and inventory obsolescence charges.
Commercial Aftermarket revenue rose 8% to US$2.0 billion, supported by broad-based demand across the installed base, including higher business aviation flight hours. Commercial Original Equipment sales increased 6% to US$700 million as commercial air transport shipments aligned with higher customer production schedules. Defence and Space revenue rose 3% to US$1.8 billion, with stronger domestic demand partly offset by weaker international volumes due to supply constraints and the wind-down of a restricted government programme.
Corrected article: the former version stated that Honeywell Aerospace lifted its outlook but in fact it lowered its outlook.
