Honeywell Aerospace used a conference appearance on Wednesday to highlight that supply-chain bottlenecks, not weak demand, remain the main brake on output as it trims its 2026 outlook. Chief executive Jim Currier pointed to a small group of constrained suppliers across commercial transport, business aviation and defence, while stressing that capacity recovery is now more likely in 2027 and beyond.
The company has identified about 70 suppliers as critical or constrained, with roughly 10 severe bottlenecks concentrated in complex machining, castings, forgings and bearings. Currier said Honeywell Aerospace has already invested more than $1bn in its supply base since August 2023 and is accelerating spending further, including shifting some planned 2027 capital expenditure into 2026.
The revised guidance reflects those persistent constraints. Honeywell Aerospace lowered its 2026 organic sales growth forecast to 4% to 5% from 7% to 9% and reduced pro forma adjusted EBIT guidance. Management has framed 2026 as a reset year, with output and margins expected to improve more clearly once the supply base begins to unlock.