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Honeywell Aerospace shares fall after first standalone earnings miss

The company cut full-year organic growth guidance to 4% to 5% from 7% to 9%, while backlog rose 9% to $18.2 billion.

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Honeywell Aerospace, the NASDAQ-listed company that began trading as a standalone business after spinning off from Honeywell International in June 2026, reported its first set of earnings as its own company and the results missed expectations, dragging shares down about 23%. MarketBeat Ratings said the weakness was driven by a sharp year-over-year decline in net income, an adjusted EPS miss of 20 cents versus estimates, and a guidance cut.

The company reduced its full-year organic growth guidance from a range of 7% to 9% to a range of 4% to 5%. Honeywell Aerospace also said the guidance reset reflects a prioritization of its 2030 growth initiatives, and MarketBeat Ratings pointed out the spin-off timing may be distorting near-term headline results.

MarketBeat Ratings added that much of the reported net income and EPS decline can be traced to spin-off costs and financing expenses, including a $329 million transaction and $200 million of standalone interest expense. With those items removed, the miss appears more modest, the outlet said, and the quarter highlighted a supply issue rather than a demand problem.

Backlog increased 9% year over year to $18.2 billion, trailing 12-month orders rose 8%, and the book-to-bill ratio came in at 1.1x. MarketBeat Ratings reported Electronic Solutions posted 8% organic sales growth and held adjusted EBIT roughly flat, while Engines & Power Systems lagged with 1% organic sales growth and adjusted EBIT down 24%.

Latest closeNasdaq Comp. 26,729.16 ▼0.3%

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