Honeywell Aerospace Cuts 2026 Forecast on Supply-Chain Issues

Honeywell Aerospace has reduced its 2026 organic sales growth forecast to 4-5% from 7-9% and lowered its adjusted EPS outlook to $7.60-$7.90 due to persistent supply-chain issues. These constraints are forcing the company to prioritize OEM deliveries to Boeing and Airbus over its higher-margin aftermarket business, impacting profitability and leading to a less favorable sales mix. The newly spun-off company also incurred about $100 million in separation-related costs and inventory obsolescence charges, contributing to a 7% year-on-year fall in quarterly core profit despite a 5% rise in sales.