Honeywell Aerospace Cuts Full-Year Growth Guidance as Supply Constraints Dampen 2Q Sales

By Kelly Cloonan

Honeywell Aerospace cut its outlook for the year after supply constraints weighed on sales growth in the second quarter.

The results marked the company's final quarter as a segment of industrial conglomerate Honeywell International, as it completed its spinoff in June into a standalone manufacturer focused on the commercial air travel and defense industries.

For the full year, Honeywell Aerospace now expects organic growth of 4% to 5%, down from its prior forecast of 7% to 9%. The company also gave a projection for pro-forma standalone adjusted earnings per share of $7.60 to $7.90.

Honeywell Aerospace Chief Executive Jim Currier said the updated guidance factors in the company's supply-chain capabilities seen at the end of the second quarter, when demand outpaced supply, putting a lid on sales growth.

In the second quarter, sales rose 5%, to $4.52 billion, below FactSet analyst estimates of $4.61 billion.

The Phoenix company is now working to position itself for accelerating growth, Currier said, adding that it is committed to hitting targets for 2030 that it had laid out in June.

"We are moving with the speed and urgency required for improved performance in 2027 and beyond," Currier said.

Honeywell Aerospace's second-quarter profit came in at $246 million, or 78 cents a share, down from $844 million, or $2.66 a share, a year earlier.

Adjusted earnings per share were $1.87, missing estimates of $2.12 a share according to analysts polled by FactSet.

The company's topline growth was led by commercial aftermarket sales, up 8%, to $2.03 billion on broad-based demand, including higher business aviation flight hours, while commercial original equipment sales rose 6%.

Defense and space sales ticked up 3%, with an increase in domestic volumes partially offset by weaker volumes internationally due to supply constraints and the wind-down of a restricted government program, the company said.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

August 05, 2026 16:24 ET (20:24 GMT)