The stock was last down about 20% and headed for its worst session since its recent listing, if the losses held.
The aerospace supplier, which began trading on the Nasdaq about a month ago following its spinoff from Honeywell, said supply constraints forced it to prioritise deliveries to Boeing and Airbus over its higher-margin aftermarket business.
Honeywell Aerospace lowered its 2026 organic sales-growth outlook to 4%-5% from 7%-9% previously.
The company expects adjusted earnings of $7.60-$7.90 per share for the year, significantly below analysts’ average estimate of $8.86, according to LSEG.
JP Morgan reduced its price target from $255 to a Street-low $235, saying the stock’s “discount to peers is likely to widen following these results”. The brokerage added that repeated disappointments this year could leave investors waiting for clear signs of better execution.Jefferies, meanwhile, which had also set a $235 price target, said the company’s 4% growth outlook was difficult for investors to reconcile with the strength of the aerospace sector.Honeywell Aerospace’s second-quarter adjusted earnings declined 32% year over year to $1.87 per share. Revenue grew 5% to $4.52 billion, but both results fell short of Wall Street expectations.
In an interview with Reuters, finance chief Josh Jepsen said, “It’s really resetting the forecast based on what we’re seeing coming through the supply chain. And that’s where we’ve been most impacted, is by the lack of ramp in that supply.”
Still, J.P. Morgan analysts led by Seth M. Seifman said that while the recently disclosed supply-chain bottlenecks “have left HONA starting behind the curve,” the shortfall “does not seem insurmountable at this point.”
