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Can Honeywell Sustain Aerospace Momentum With Robust Market Demand?
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Key Takeaways
Honeywell's Aerospace Technologies unit drove 6% organic revenue growth in Q2 2025.
Commercial aviation aftermarket sales rose 7% on strong air transport demand and better supply chains.
Defense and space sales surged 13% in Q2, supported by steady global defense spending trends.
The strongest driver of Honeywell International Inc.’s (HON - Free Report) business at the moment is the Aerospace Technologies segment. Organic revenues from the segment increased 6% year over year in the second quarter of 2025, constituting more than 40% of its business. Also, in the first quarter, organic revenues from this market increased 9%.
The revenues were driven by sustained strength in its commercial aviation aftermarket business, due to solid demand in the air transport market and supply-chain improvements. After witnessing an increase of 15% in first-quarter 2025, organic sales from its commercial aviation aftermarket increased 7% year over year in the second quarter.
Strong momentum in Honeywell’s defense and space business, owing to stable U.S. and international defense spending volumes and sustained demand from the current geopolitical climate, has also been proving beneficial. In the first and second quarters, organic sales from its defense and space business surged 10% and 13%, respectively, on a year-over-year basis.
With both commercial and military aircraft programs expected to continue benefiting from strength in air travel and defense budgets, HON is poised to maintain strong demand momentum in the quarters ahead. For 2025, Honeywell expects organic sales in the Aerospace Technologies segment to be up in the high single-digit percentage.
HON's Peers in the Aerospace Market
Among its major peers, Howmet Aerospace Inc.’s (HWM - Free Report) defense aerospace market is playing an important role in driving its overall growth. In the second quarter of 2025, Howmet’s revenues from the defense aerospace market jumped 21% year over year, which accounted for 17% of its total sales. The surge in revenues was fueled by robust demand for Howmet’s engine spares, particularly related to the F-35 program and an increase in orders for new builds and legacy fighter jet parts.
Its another peer, RTX Corporation (RTX - Free Report) is benefiting from strength in the commercial aerospace market, with growth in both aftermarket and OEM verticals. RTX reported 9% sales growth in the second quarter, driven by solid momentum in the Collins Aerospace and Pratt & Whitney segments. Rising aircraft utilization and demand for sustainable technologies are supporting RTX Corp.’s growth.
HON's Price Performance, Valuation and Estimates
Shares of Honeywell have gained 3% in the past six months compared with the industry’s growth of 8%.
Image Source: Zacks Investment Research
From a valuation standpoint, HON is trading at a forward price-to-earnings ratio of 18.07X, above the industry’s average of 11.37X. Honeywell carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HON’s third-quarter 2025 earnings has declined a penny over the past 30 days.
Image: Bigstock
Can Honeywell Sustain Aerospace Momentum With Robust Market Demand?
Key Takeaways
The strongest driver of Honeywell International Inc.’s (HON - Free Report) business at the moment is the Aerospace Technologies segment. Organic revenues from the segment increased 6% year over year in the second quarter of 2025, constituting more than 40% of its business. Also, in the first quarter, organic revenues from this market increased 9%.
The revenues were driven by sustained strength in its commercial aviation aftermarket business, due to solid demand in the air transport market and supply-chain improvements. After witnessing an increase of 15% in first-quarter 2025, organic sales from its commercial aviation aftermarket increased 7% year over year in the second quarter.
Strong momentum in Honeywell’s defense and space business, owing to stable U.S. and international defense spending volumes and sustained demand from the current geopolitical climate, has also been proving beneficial. In the first and second quarters, organic sales from its defense and space business surged 10% and 13%, respectively, on a year-over-year basis.
With both commercial and military aircraft programs expected to continue benefiting from strength in air travel and defense budgets, HON is poised to maintain strong demand momentum in the quarters ahead. For 2025, Honeywell expects organic sales in the Aerospace Technologies segment to be up in the high single-digit percentage.
HON's Peers in the Aerospace Market
Among its major peers, Howmet Aerospace Inc.’s (HWM - Free Report) defense aerospace market is playing an important role in driving its overall growth. In the second quarter of 2025, Howmet’s revenues from the defense aerospace market jumped 21% year over year, which accounted for 17% of its total sales. The surge in revenues was fueled by robust demand for Howmet’s engine spares, particularly related to the F-35 program and an increase in orders for new builds and legacy fighter jet parts.
Its another peer, RTX Corporation (RTX - Free Report) is benefiting from strength in the commercial aerospace market, with growth in both aftermarket and OEM verticals. RTX reported 9% sales growth in the second quarter, driven by solid momentum in the Collins Aerospace and Pratt & Whitney segments. Rising aircraft utilization and demand for sustainable technologies are supporting RTX Corp.’s growth.
HON's Price Performance, Valuation and Estimates
Shares of Honeywell have gained 3% in the past six months compared with the industry’s growth of 8%.
Image Source: Zacks Investment Research
From a valuation standpoint, HON is trading at a forward price-to-earnings ratio of 18.07X, above the industry’s average of 11.37X. Honeywell carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HON’s third-quarter 2025 earnings has declined a penny over the past 30 days.
Image Source: Zacks Investment Research
Honeywell currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.