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Honeywell Aerospace (HONA) Down 1% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Honeywell Aerospace (HONA - Free Report) . Shares have lost about 1% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Honeywell Aerospace due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
Honeywell Aerospace Q2 Earnings Miss Estimates, Sales Increase Y/Y
Honeywell Aerospace reported second-quarter 2026 adjusted earnings of $1.87 per share, which missed the Zacks Consensus Estimate of $2.07 by 9.7%. The bottom line declined 32% from $2.75 in the year-ago quarter.
HONA’s Q2 Sales Discussion
Sales rose 5% year over year to $4.52 billion but missed the consensus estimate of $4.67 billion by 3.1%. Supply constraints limited deliveries across end markets, while backlog increased 9% to $18.15 billion.
Commercial Aftermarket sales increased 8% to $2.03 billion, supported by broad-based demand across the installed base and higher business aviation flight hours.
Commercial Original Equipment sales rose 6% to $679 million as commercial air transport shipments recoupled with higher customer build schedules. Defense and Space revenues advanced 3% to $1.82 billion, as stronger domestic volumes were partly offset by supply-constrained international deliveries and the wind-down of a restricted government program.
Honeywell Aerospace's Segment Results Stay Mixed
Electronic Solutions sales grew 8% to $1.77 billion, led by Defense and Space and Commercial Aftermarket demand. Segment adjusted EBIT declined 3% to $459 million as higher volume and pricing were more than offset by unfavorable mix and higher costs.
Engines & Power Systems sales increased 1% to $1.41 billion, but segment adjusted EBIT dropped 32% to $174 million. Control Systems sales rose 7% to $1.34 billion, while segment adjusted EBIT improved 8% to $389 million as pricing more than offset higher costs.
HONA's Profitability Faces Mix and Cost Pressure
Adjusted EBIT declined 7% to $995 million from $1.07 billion. The adjusted EBIT margin contracted to 22% from 24.9%, reflecting unfavorable sales mix, higher costs and roughly $50 million of inventory obsolescence charges.
The company allocated more output to domestic defense customers and Engines & Power Systems original equipment programs, which carry lower profitability. Reported net income fell 70% to $256 million, while GAAP earnings decreased to 78 cents per share from $2.66.
HONA’s Financial Position
Cash and cash equivalents amounted to $1.06 billion as of June 27, 2026, up from $213 million as of 2025-end. Long-term debt increased to $15.85 billion from $4 million, reflecting financing transactions related to the separation from Honeywell Technologies.
Net cash provided by operating activities totaled $571 million in the quarter, down from $748 million a year earlier.
HONA’s 2026 Outlook
Management lowered its 2026 organic sales growth outlook to 4-5% from 7-9%.
Pro forma standalone adjusted EBIT is now projected to be between $4.35 billion and $4.45 billion, down from the prior guidance of $4.65 billion to $4.75 billion.
The company initiated pro forma standalone adjusted earnings guidance of $7.60-$7.90 per share and maintained second-half free cash flow guidance of $1-$1.5 billion. The Zacks Consensus Estimate is pinned at $8.44 per share, which is higher than the company’s newly guided range.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -11.46% due to these changes.
VGM Scores
Currently, Honeywell Aerospace has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Honeywell Aerospace has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
View the Zacks #1 Rank List
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Honeywell Aerospace (HONA) Down 1% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Honeywell Aerospace (HONA - Free Report) . Shares have lost about 1% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Honeywell Aerospace due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
Honeywell Aerospace Q2 Earnings Miss Estimates, Sales Increase Y/Y
Honeywell Aerospace reported second-quarter 2026 adjusted earnings of $1.87 per share, which missed the Zacks Consensus Estimate of $2.07 by 9.7%. The bottom line declined 32% from $2.75 in the year-ago quarter.
HONA’s Q2 Sales Discussion
Sales rose 5% year over year to $4.52 billion but missed the consensus estimate of $4.67 billion by 3.1%. Supply constraints limited deliveries across end markets, while backlog increased 9% to $18.15 billion.
Commercial Aftermarket sales increased 8% to $2.03 billion, supported by broad-based demand across the installed base and higher business aviation flight hours.
Commercial Original Equipment sales rose 6% to $679 million as commercial air transport shipments recoupled with higher customer build schedules. Defense and Space revenues advanced 3% to $1.82 billion, as stronger domestic volumes were partly offset by supply-constrained international deliveries and the wind-down of a restricted government program.
Honeywell Aerospace's Segment Results Stay Mixed
Electronic Solutions sales grew 8% to $1.77 billion, led by Defense and Space and Commercial Aftermarket demand. Segment adjusted EBIT declined 3% to $459 million as higher volume and pricing were more than offset by unfavorable mix and higher costs.
Engines & Power Systems sales increased 1% to $1.41 billion, but segment adjusted EBIT dropped 32% to $174 million. Control Systems sales rose 7% to $1.34 billion, while segment adjusted EBIT improved 8% to $389 million as pricing more than offset higher costs.
HONA's Profitability Faces Mix and Cost Pressure
Adjusted EBIT declined 7% to $995 million from $1.07 billion. The adjusted EBIT margin contracted to 22% from 24.9%, reflecting unfavorable sales mix, higher costs and roughly $50 million of inventory obsolescence charges.
The company allocated more output to domestic defense customers and Engines & Power Systems original equipment programs, which carry lower profitability. Reported net income fell 70% to $256 million, while GAAP earnings decreased to 78 cents per share from $2.66.
HONA’s Financial Position
Cash and cash equivalents amounted to $1.06 billion as of June 27, 2026, up from $213 million as of 2025-end. Long-term debt increased to $15.85 billion from $4 million, reflecting financing transactions related to the separation from Honeywell Technologies.
Net cash provided by operating activities totaled $571 million in the quarter, down from $748 million a year earlier.
HONA’s 2026 Outlook
Management lowered its 2026 organic sales growth outlook to 4-5% from 7-9%.
Pro forma standalone adjusted EBIT is now projected to be between $4.35 billion and $4.45 billion, down from the prior guidance of $4.65 billion to $4.75 billion.
The company initiated pro forma standalone adjusted earnings guidance of $7.60-$7.90 per share and maintained second-half free cash flow guidance of $1-$1.5 billion. The Zacks Consensus Estimate is pinned at $8.44 per share, which is higher than the company’s newly guided range.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -11.46% due to these changes.
VGM Scores
Currently, Honeywell Aerospace has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Honeywell Aerospace has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.