Now Reading: Honeywell Aerospace shares plunge 26% after supply-chain warning
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Honeywell Aerospace shares plunge 26% after supply-chain warning
Honeywell Aerospace shares plunge 26% after supply-chain warning
Honeywell Aerospace shares fell as much as 26% after supply-chain problems forced the company to cut its 2026 sales-growth forecast and issue a weaker profit outlook. The company now expects organic sales…
The Story in Brief
Honeywell Aerospace shares fell as much as 26% after supply-chain problems forced the company to cut its 2026 sales-growth forecast and issue a weaker profit outlook. The company now expects organic sales growth of 4% to 5%, down from 7% to 9% earlier. It forecast adjusted earnings of $7.60 to $7.90 per share, below the $8.86 analyst average tracked by LSEG.
The aerospace supplier said shortages had forced it to prioritise deliveries to Boeing and Airbus over its higher-margin aftermarket business. Second-quarter adjusted earnings fell 32% year on year to $1.87 per share, while revenue rose 5% to $4.52 billion. JP Morgan and Jefferies both set a $235 price target, according to the Economic Times report.
The Indian Opinion
The lazy reading is that one weak forecast proves aerospace demand has collapsed. That is not supported here. Honeywell’s revenue still grew, while the company blamed supply constraints and said the problem came from a lack of production ramp-up. The opposite overreaction, that strong aircraft demand will automatically rescue execution, is just as weak. Investors should watch whether sales growth returns towards the earlier 7% to 9% range and whether earnings recover towards $8.86 per share.
Source: economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
Updated: this story now draws on 1 sources.
