Honeywell Aerospace posts EPS of $2.21 and revenue of $4.64 billion
Key Facts
Honeywell Aerospace reported third-quarter 2026 results, posting adjusted earnings per share of $2.21 and revenue of $4.64 billion. Both figures exceeded analyst estimates of $1.86 per share and $4.57 billion in revenue, according to Investing.com. The company said its results exceeded expectations in its first quarter as an independent company. EL7 data showed that the company’s shares, listed under the ticker HONA, closed at $167.90 on October 27 and then at $165.32 on October 28. After the results were announced, the stock fell 4.0% in after-hours trading on October 28, according to Investing.com.
Year over year, net income rose to $737 million in the third quarter, compared with $654 million in the same period a year earlier. Sales increased 2% to $4.644 billion, versus $4.533 billion a year earlier, according to the company’s statement. Honeywell Aerospace said sales and adjusted operating profit increased year over year and sequentially in its first quarter as an independent company. However, adjusted operating profit growth was only 1%, reaching $1.2 billion. Investing.com attributed the limited growth to additional costs associated with operating as an independent entity.
The company’s businesses performed differently across commercial original equipment and aftermarket services. Commercial original equipment sales rose 8% organically to $0.7 billion, according to the company’s statement. Commercial aftermarket services sales increased 2% to $2.1 billion year over year. The company said underlying demand for aftermarket services remained strong, but the availability of mechanical components constrained its ability to meet demand in the aftermarket. This constraint indicates that sales growth in the business does not fully translate into realized sales when supply limits the ability to meet demand.
The company kept its 2026 organic sales growth outlook at 4% to 5% and raised its adjusted EPS outlook range to $7.85–8.00. It also raised its second-half free cash flow outlook to $1.2–1.4 billion. In its second-quarter update, it had cut its organic sales growth outlook from 7%–9% to 4%–5%. In the same update, it lowered its adjusted operating profit outlook from $4.65–4.75 billion to $4.35–4.45 billion. The current guidance puts sales growth within the range lowered in the second quarter, while raising the outlook for EPS and free cash flow.
The company had scheduled an investor conference to discuss third-quarter results and its 2026 outlook for 5:00 p.m. Eastern Time on October 28. It said a replay of the conference would remain available for 30 days after the presentation. The company dedicated the conference to presenting its results and annual outlook, in its first earnings season since beginning operations as an independent company. It had previously said sales and adjusted operating profit increased year over year and sequentially during the quarter. The discussion follows results that topped analyst estimates, alongside a decline in the stock in after-hours trading.