Honeywell Aerospace Lifts 2026 Earnings-Per-Share Outlook To $7.85-$8.00 In First Quarter As Standalone Company
The spun-off company also declared a $0.40 dividend and plans a $500 million Arizona plant, while narrowing its adjusted EBIT range.
Honeywell Aerospace, the aerospace and defense company spun off from Honeywell International, raised its 2026 adjusted earnings-per-share guidance to $7.85 to $8.00 from $7.60 to $7.90 on Wednesday, as it reported its first quarter as an independent company. The board also declared a first quarterly dividend of $0.40 per share.
Guidance: EPS up, EBIT range tighter
The new range is a pro forma standalone adjusted figure. Second-half free cash flow guidance moved to $1.2 billion to $1.4 billion, from $1.0 billion to $1.4 billion.
The company narrowed its adjusted EBIT (earnings before interest and taxes) range to $4.375 billion to $4.425 billion, from $4.35 billion to $4.45 billion. Organic sales growth guidance stayed at 4% to 5%.
CEO Jim Currier said results came in "above our expectations in its first quarter as a standalone company."
A quarter of 2% growth
Third-quarter sales were $4.644 billion, up 2% on both a reported and organic basis. Net income rose 13% to $737 million, and adjusted EBIT edged up 1% to $1.161 billion. That EBIT includes an approximately $50 million net benefit from tariff refunds under the International Emergency Economic Powers Act, along with new costs of being a public company on its own.
Backlog reached $19.3 billion, up 12% from a year earlier, and trailing twelve-month orders rose 9%, led by Defense and Space. Commercial Original Equipment sales rose 7% to $690 million, Commercial Aftermarket rose 2% to $2.126 billion, and Defense and Space rose 1% to $1.828 billion.
Honeywell Aerospace makes avionics and navigation systems, engines and power systems, and control systems for aircraft. Engines and Power Systems segment adjusted EBIT fell 16% to $250 million, as mix and higher costs outweighed price and tariff refunds.
Supplier limits and a $500 million plant
Management says a small number of mechanical suppliers are limiting output growth. In response, the company announced a $500 million, 300,000-square-foot Tempe, Arizona facility that adds in-house complex machining. It is slated to open in late 2028 and create about 600 jobs.
The plant is also meant to support $15 billion in Control Systems program wins.
The spin-off, completed June 29, 2026, shows in the balance sheet. Long-term debt was $15.853 billion at quarter end, against $4 million at the end of 2025, and total equity was a deficit of $2.489 billion.
Dividend and call
The $0.40 dividend is payable December 4 to holders of record at the close of business November 13. Currier said the board's decision reflects visibility into growing free cash flow.
The company holds an investor call at 5:00 p.m. EDT Wednesday.
The first dividend goes to shareholders on the books at the close of business November 13.
Sources
- 8-K Filing — Honeywell Aerospace Inc. (HONA) — SEC EDGAR
- Exhibit exhibit991q32026earningsre.htm — Honeywell Aerospace Inc. 8-K exhibit — SEC EDGAR
- Exhibit exhibit992projectarisepres.htm — Honeywell Aerospace Inc. 8-K exhibit — SEC EDGAR
- Honeywell Aerospace reports third quarter results; updates 2026 outlook — prnewswire.com
- Honeywell Technologies Reports Third Quarter Results, Raises Full-Year 2026 Outlook — businesswire.com
