Honeywell Aerospace Stocks Plummet Over 20% Amid Supply Chain Crisis
Shares of Honeywell Aerospace (Nasdaq: HONA) experienced a dramatic plunge of over 20% on Thursday, August 6. This significant single-day selloff marked a new low in the company’s short history as an independent entity, erasing an estimated $13.5 billion from its market value. The drop followed the company’s first earnings report as a standalone business, in which it drastically reduced its full-year 2026 growth forecast.
The aerospace and defense supplier, based in Phoenix, separated from Honeywell International on June 29, 2026. The company attributed the bleak outlook to a severe precision-casting shortage. This shortage has forced Honeywell Aerospace to redirect scarce manufactured components towards Boeing and Airbus production lines, diverting parts from its more profitable aftermarket business. Consequently, the company lowered its anticipated organic sales growth to a mere 4%–5%, a significant decrease from its previous forecast of 7%–9%. The full-year adjusted EPS guidance was set at $7.60–$7.90, far below the $8.86 analyst consensus.
Second-quarter revenue was reported at $4.52 billion, marking a 5% increase year-over-year but falling short of the estimated $4.61 billion. The adjusted EPS of $1.87 represented a 32% decrease year-over-year. Additionally, the company incurred $100 million in one-time separation costs.
Despite the challenging circumstances, the company’s demand fundamentals remain strong. The total backlog increased by 9% to $18.15 billion, and trailing orders rose by 8%. CEO Jim Currier committed to implementing “strategic and tactical actions” to position the company for future growth. RBC Capital’s Ken Herbert, meanwhile, reduced his price target from $300 to $250, while maintaining a Buy rating.
Source: AeroTime Hub – Honeywell Aerospace Shares Plunge After Weak First Standalone Quarter