Honeywell Aerospace shares fell sharply after the newly independent aerospace and defence supplier posted weaker-than-expected second-quarter results and cut its full-year outlook following its June spin-off from Honeywell. The group reported $4.5 billion in sales for the quarter ended at the end of June, with net income of $300 million and adjusted EBIT of $1.0 billion, but warned that supply-chain constraints were limiting output.
Management reduced 2026 organic sales growth guidance to 4% to 5%, from 7% to 9% previously, and trimmed pro forma standalone adjusted EBIT guidance to $4.35 billion to $4.45 billion. It also introduced pro forma standalone earnings per share guidance of $7.60 to $7.90.
The market reaction was severe, with the stock losing around a fifth of its value in trading after Reuters reported a near 17% pre-market drop. Investors focused on the profit miss, the lower outlook and continuing bottlenecks just weeks after Honeywell Aerospace began trading as a pure-play aerospace and defence company.