Honeywell Aerospace Inc. (HONA)

Honeywell Aerospace reported third-quarter 2026 sales of $4.6 billion on October 28, 2026, up 2 percent from a year earlier, in its first quarter as a standalone company 3. Net income was $737 million, up 13 percent, and backlog reached $19,324 million, up 12 percent 3.

The company raised its full-year 2026 pro forma standalone adjusted earnings per share guidance to $7.85 to $8.00 and kept its organic sales outlook at 4 to 5 percent 3. It also declared its first quarterly dividend as an independent public company, $0.40 per share, payable December 4, 2026 2.

On the same day the company announced a new $500 million, 300,000 square foot manufacturing facility in Tempe, Arizona, which it said would open in late 2028 and create approximately 600 jobs 4.

Chief executive Jim Currier said demand remains robust, with orders up 9 percent over the last 12 months 3. The release also says a small number of mechanical suppliers are limiting output growth 3.

A securities class action filed on September 22, 2026 names the company, its chief executive and its chief financial officer over statements about its supply chain, outlook and a cybersecurity-related government matter 1. The company says it cannot yet estimate a possible loss 1.

Until June 29, 2026 the business was part of Honeywell International Inc., and its financial statements were derived from Honeywell’s historical accounting records 1. Its figures before that date show how large the aerospace arm already was inside the older company 1.

Sales grew from $13,790 million in 2023 to $15,445 million in 2024 and $17,404 million in 2025 5. Net income over the same three years was $2,914 million, $2,849 million and $2,722 million 5.

Electronic Solutions grew fastest, from $5,098 million of sales in 2023 to $6,025 million in 2024 and $6,816 million in 2025 5. Engines & Power Systems sales were $4,595 million, $4,731 million and $5,411 million in the same years 5.

In 2024 aftermarket sales rose as flight hours increased 5. Two acquisitions added $332 million of sales that year, CAES and Civitanavi 5.

The company paid total consideration of $1.9 billion, net of cash acquired, for CAES and $200 million for Civitanavi in 2024 5. These deals added electronic warfare, alternative navigation and a larger European defense footprint 5.

In the fourth quarter of 2024 it signed a strategic agreement with Bombardier covering avionics, propulsion and satellite communications 5. Payments owed to Bombardier under that deal cut 2024 Engines & Power Systems sales by $372 million 5.

Sales rose 13 percent in 2025, 12 percent of it organic, and acquisitions added another 3 percent 5. Commercial original equipment sales for Engines & Power Systems rose $486 million on higher volumes from airframers 5.

In the fourth quarter of 2025 the company recorded charges tied to a dispute with Flexjet, a private jet operator, over engine maintenance contracts 5. They cut 2025 Engines & Power Systems sales by $312 million and segment profit by $373 million 5.

Honeywell completed a settlement with Flexjet on January 16, 2026, and the company paid $375 million in the first quarter of 2026 1. Flexjet and Honeywell also extended the maintenance contract through 2035 1.

The spin-off came on June 29, 2026, when each Honeywell holder received one Aerospace share for every two Honeywell shares held on the June 15, 2026 record date, 316.9 million shares in all 1. The company had arranged a private offering of $16.0 billion of senior unsecured notes in connection with the separation 5.

Separation costs showed up quickly: first-quarter 2026 selling costs included $158 million of professional advisory fees and bonuses connected to the separation and distribution 5. The company expects such costs to continue through at least fiscal year 2027 1.

What the company is

Honeywell Aerospace describes itself as a leading global tier-1 aerospace and defense supplier, which means it sells systems directly to aircraft builders, defense contractors and airlines 1. Its customers sit in commercial air transport, business aviation, and defense and space 1.

It is headquartered in Phoenix, Arizona, employs more than 36,000 people and supports more than 10,000 customers, according to its own release 4. The Nasdaq lists its common stock under the symbol HONA 2.

Electronic Solutions

Electronic Solutions made 39 percent of 2025 revenue and supplies cockpit displays, flight management systems, weather radar, inertial navigation, space electronics and electronic warfare equipment 5. Third-quarter sales were $1,784 million, up 4 percent, and segment adjusted EBIT, the segment's operating profit measure, was $564 million, up 11 percent 3.

Its top five customers made up 37 percent of segment revenue in 2025 5. Named rivals include BAE Systems, Collins Aerospace, Garmin, L3Harris, Safran, Starlink, Teledyne and Thales 5.

Engines and Power Systems

Engines and Power Systems made 31 percent of 2025 revenue and builds business jet engines, helicopter engines and auxiliary power units, the small engines that power an aircraft on the ground 5. Its TFE731 and HTF7000 engines hold leading positions on midsize and super-midsize business jets 5.

The installed base of in-service engines totaled over 20,000 as of August 2025, and the APU line counts more than 95,000 deliveries and 47,000 units in service 5. Third-quarter sales were $1,515 million, up 3 percent, while segment adjusted EBIT fell 16 percent to $250 million on unfavorable mix and higher costs 3.

Rivals named in the information statement are GE Aerospace, Pratt and Whitney, Rolls Royce, Safran and Williams 5.

Control Systems

Control Systems made 30 percent of 2025 revenue and supplies cabin pressure and environmental control, thermal management, engine start, fuel control, flight control actuation, and wheels and brakes 5. Its content is on every in-production U.S. fighter aircraft, and over 75 percent of commercial flights begin with its engine start system 5.

Third-quarter sales were flat at $1,345 million and segment adjusted EBIT was $382 million, up 2 percent 3. Named rivals are Collins Aerospace, Liebherr, Parker Aerospace Systems, Safran and Woodward 5.

Where the sales come from

By end market, third-quarter commercial original equipment sales were $690 million, up 7 percent, commercial aftermarket sales were $2,126 million, up 2 percent, and defense and space sales were $1,828 million, up 1 percent 3. The aftermarket, the parts and service sold after an aircraft is delivered, was limited by mechanical component availability 3.

Plants, people and rivals

The company expected to own, lease or otherwise use about 120 facilities, with about 35 owned and about 85 leased or otherwise used, and it owns its Phoenix headquarters 5. Its workforce was approximately 36,000 people across 34 countries as of March 28, 2026, and less than 5 percent of U.S. employees are represented by unions 5.

Jim Currier is president and chief executive officer of Honeywell Aerospace 5.

Current problems

Supply is the main operating problem: the company says some suppliers face limits in skilled labor, manufacturing capacity and sub-tier supply, and that these limits can persist 1. Gross margin percentage decreased by 1 percent over nine months 1.

A trade-secret lawsuit by Paradigm Powerboats and Turbine Marine over T-55 engine uses had a jury trial scheduled for November 3, 2026 1. The Green securities class action was filed on September 22, 2026 and is at an early stage 1.

Environmental liabilities were $815 million on the books at the quarter's end, and the company says reasonably possible losses could make the total two to three times higher 1.

The umbrella, in words

Honeywell Aerospace Inc. is a Delaware company, and Honeywell International Inc. no longer owns any of its shares 6. Honeywell now operates as Honeywell Technologies 6.

The two main purchases are CAES, now the Electromagnetic Defensive Solutions offering, and Civitanavi Systems, both bought in 2024 5. Honeywell Aerospace IP Holdings Inc., a wholly owned subsidiary, signed a trademark license with Honeywell on June 25, 2026 6.

Its Honeywell Federal Solutions offering manages government-owned and classified facilities as a contract operator, including Sandia National Laboratories and the Kansas City National Security Campus, which hold about 20,000 employees outside the company's count 5. A strategic alliance with Denso covers electric propulsion for emerging air-mobility vehicles, an agreement, not a stake 5.

The company agreed with Honeywell on a Separation and Distribution Agreement, a Transition Services Agreement, a Tax Matters Agreement, an Employee Matters Agreement and licenses for patents and trademarks 1. Long-term debt stood at $15,853 million on September 26, 2026, mostly senior notes due from 2028 to 2066 1.

The company raised its 2026 pro forma standalone adjusted earnings per share guidance to a range of $7.85 to $8.00 3. It narrowed adjusted EBIT guidance to $4.375 billion to $4.425 billion and kept organic sales growth at 4 to 5 percent 3. It also raised second half free cash flow guidance to $1.2 billion to $1.4 billion 3.

Currier said the progress with suppliers and ongoing qualification of additional material sources positions the company for higher sales and output growth in 2027 and beyond 3.

The Tempe facility is planned to open in late 2028 and to support $15 billion in Control Systems new program wins, with production of Assure advanced actuation systems and Attune vapor cycle cooling subsystems 4. The company said it would add approximately 600 jobs 4.

The board declared a first quarterly dividend of $0.40 per share, payable December 4, 2026 to holders of record on November 13, 2026 2. On July 23, 2026 it authorized a program to repurchase up to $3.5 billion of stock, with no shares bought so far and no expiration date 1.

Year to date the company reports more than $20 billion in estimated lifetime value of new wins, including over $2 billion in awards for navigation and radio-frequency systems on missile and munitions programs 3. The U.S. Air Force advanced the SkyShot 1600 engine into Preliminary Design Review 3.

The company says its independent status lets it make investments in growth, and Currier described the Tempe plant as an example of decisions the spin-off allows 4. The release also says the plant adds capacity for defense technologies in a supplier framework agreement signed with the Department of War in March 4.

Separation costs continue: the company expects standalone transaction costs through at least fiscal year 2027 1. A court may still reschedule the Paradigm Powerboats trial, since a short continuance may be granted 1.