Honeywell Aerospace (HONA)
Market Price (7/14/2026): $212.46 | Market Cap: $67.3 BilSector: Industrials | Industry: Aerospace & Defense
Honeywell Aerospace (HONA)
Market Price (7/14/2026): $212.46Market Cap: $67.3 BilSector: IndustrialsIndustry: Aerospace & Defense
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Megatrend and thematic driversMegatrends include Advanced Aviation & Space, and Energy Transition & Decarbonization. Themes include Advanced Air Mobility, Drone Technology, Show more. | Weak multi-year price returns2Y Excs Rtn is -38%, 3Y Excs Rtn is -74% |
| Megatrend and thematic driversMegatrends include Advanced Aviation & Space, and Energy Transition & Decarbonization. Themes include Advanced Air Mobility, Drone Technology, Show more. |
| Weak multi-year price returns2Y Excs Rtn is -38%, 3Y Excs Rtn is -74% |
Qualitative Assessment
AI Analysis | Feedback
Updated on 7/13/2026
Honeywell Aerospace (HONA) stock has lost about 5% since it went public on 6/29/2026 because of the following key factors:
1. Selling pressure and rebalancing by institutional investors following the spin-off and index inclusion. Honeywell Aerospace (HONA) was spun off from Honeywell International (HON) on June 29, 2026, leading to a rebalancing of portfolios by existing shareholders, which can generate selling pressure. Although HONA was added to the S&P 500 and S&P 100, which typically attracts passive fund buying, these index re-weightings and the natural churn from investors who do not wish to hold both entities contributed to significant price volatility and temporary downward pressure in the days following its debut. This rebalancing created sharp swings in the stock's early trading.
2. Concerns over a highly leveraged balance sheet and negative equity post-spin-off. Honeywell Aerospace emerged as an independent company with a notably leveraged balance sheet, including approximately $15.8 billion in long-term debt and negative common equity, leading to a long-term debt-to-capital ratio exceeding 150%. Additionally, the company reported negative operating cash flow of -$225 million in fiscal Q2 2026, driven by a working capital drag of about -$1.0 billion, which has raised investor concerns about financial risk and capital allocation flexibility, despite healthy operating profitability.
Show more
Honeywell Aerospace (HONA) stock has lost about 5% since it went public on 6/29/2026 because of the following key factors:
1. Selling pressure and rebalancing by institutional investors following the spin-off and index inclusion. Honeywell Aerospace (HONA) was spun off from Honeywell International (HON) on June 29, 2026, leading to a rebalancing of portfolios by existing shareholders, which can generate selling pressure. Although HONA was added to the S&P 500 and S&P 100, which typically attracts passive fund buying, these index re-weightings and the natural churn from investors who do not wish to hold both entities contributed to significant price volatility and temporary downward pressure in the days following its debut. This rebalancing created sharp swings in the stock's early trading.
2. Concerns over a highly leveraged balance sheet and negative equity post-spin-off. Honeywell Aerospace emerged as an independent company with a notably leveraged balance sheet, including approximately $15.8 billion in long-term debt and negative common equity, leading to a long-term debt-to-capital ratio exceeding 150%. Additionally, the company reported negative operating cash flow of -$225 million in fiscal Q2 2026, driven by a working capital drag of about -$1.0 billion, which has raised investor concerns about financial risk and capital allocation flexibility, despite healthy operating profitability.
Show more
Updated on 7/13/2026
Honeywell Aerospace (HONA) stock has lost about 5% since it went public on 6/29/2026 because of the following key factors:
1. Selling pressure and rebalancing by institutional investors following the spin-off and index inclusion. Honeywell Aerospace (HONA) was spun off from Honeywell International (HON) on June 29, 2026, leading to a rebalancing of portfolios by existing shareholders, which can generate selling pressure. Although HONA was added to the S&P 500 and S&P 100, which typically attracts passive fund buying, these index re-weightings and the natural churn from investors who do not wish to hold both entities contributed to significant price volatility and temporary downward pressure in the days following its debut. This rebalancing created sharp swings in the stock's early trading.
2. Concerns over a highly leveraged balance sheet and negative equity post-spin-off. Honeywell Aerospace emerged as an independent company with a notably leveraged balance sheet, including approximately $15.8 billion in long-term debt and negative common equity, leading to a long-term debt-to-capital ratio exceeding 150%. Additionally, the company reported negative operating cash flow of -$225 million in fiscal Q2 2026, driven by a working capital drag of about -$1.0 billion, which has raised investor concerns about financial risk and capital allocation flexibility, despite healthy operating profitability.
3. Cautious initial analyst sentiment and focus on execution risk. Initial analyst coverage for HONA included a "neutral" or "Peer Perform" rating from firms such as Wolfe Research. This cautious stance, despite a generally constructive setup for the aerospace sector, signals a "wait-and-see" approach from the market, emphasizing execution risk for the newly independent company. This uncertainty contributed to a lack of strong buying conviction in the immediate post-IPO period.
Show less
Honeywell Aerospace (HONA) stock has lost about 5% since it went public on 6/29/2026 because of the following key factors:
1. Selling pressure and rebalancing by institutional investors following the spin-off and index inclusion. Honeywell Aerospace (HONA) was spun off from Honeywell International (HON) on June 29, 2026, leading to a rebalancing of portfolios by existing shareholders, which can generate selling pressure. Although HONA was added to the S&P 500 and S&P 100, which typically attracts passive fund buying, these index re-weightings and the natural churn from investors who do not wish to hold both entities contributed to significant price volatility and temporary downward pressure in the days following its debut. This rebalancing created sharp swings in the stock's early trading.
2. Concerns over a highly leveraged balance sheet and negative equity post-spin-off. Honeywell Aerospace emerged as an independent company with a notably leveraged balance sheet, including approximately $15.8 billion in long-term debt and negative common equity, leading to a long-term debt-to-capital ratio exceeding 150%. Additionally, the company reported negative operating cash flow of -$225 million in fiscal Q2 2026, driven by a working capital drag of about -$1.0 billion, which has raised investor concerns about financial risk and capital allocation flexibility, despite healthy operating profitability.
3. Cautious initial analyst sentiment and focus on execution risk. Initial analyst coverage for HONA included a "neutral" or "Peer Perform" rating from firms such as Wolfe Research. This cautious stance, despite a generally constructive setup for the aerospace sector, signals a "wait-and-see" approach from the market, emphasizing execution risk for the newly independent company. This uncertainty contributed to a lack of strong buying conviction in the immediate post-IPO period.
Show less
Holding a concentrated position? Know your true downside before the momentum shifts.
Protect Your Wealth →
Stock Movement Drivers
Fundamental Drivers
nullnull
Market Drivers
3/31/2026 to 7/13/2026| Return | Correlation | |
|---|---|---|
| HONA | ||
| Market (SPY) | 15.2% | -3.7% |
| Sector (XLI) | 11.5% | 13.3% |
Fundamental Drivers
nullnull
Market Drivers
12/31/2025 to 7/13/2026| Return | Correlation | |
|---|---|---|
| HONA | ||
| Market (SPY) | 10.2% | -3.7% |
| Sector (XLI) | 16.6% | 13.3% |
Fundamental Drivers
nullnull
Market Drivers
6/30/2025 to 7/13/2026| Return | Correlation | |
|---|---|---|
| HONA | ||
| Market (SPY) | 22.3% | -3.7% |
| Sector (XLI) | 23.5% | 13.3% |
Fundamental Drivers
nullnull
Market Drivers
6/30/2023 to 7/13/2026| Return | Correlation | |
|---|---|---|
| HONA | ||
| Market (SPY) | 75.0% | -3.7% |
| Sector (XLI) | 75.1% | 13.3% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| HONA Return | - | - | - | - | - | 0% | 0% |
| Peers Return | 20% | -1% | 53% | 43% | 39% | 12% | 308% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 11% | 102% |
Monthly Win Rates [3] | |||||||
| HONA Win Rate | - | - | - | - | - | 50% | |
| Peers Win Rate | 57% | 43% | 65% | 70% | 70% | 60% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 57% | |
Max Drawdowns [4] | |||||||
| HONA Max Drawdown | - | - | - | - | - | - | |
| Peers Max Drawdown | -16% | -28% | -18% | -14% | -23% | -19% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: GE, RTX, PH, ETN, TDG.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 7/13/2026 (YTD)
How Low Can It Go
HONA has limited trading history. Below is the Industrials sector ETF (XLI) in its place.
| Event | XLI | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -15.8% | -18.8% |
| % Gain to Breakeven | 18.8% | 23.1% |
| Time to Breakeven | 34 days | 79 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -11.7% | -9.5% |
| % Gain to Breakeven | 13.2% | 10.5% |
| Time to Breakeven | 45 days | 24 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -20.1% | -24.5% |
| % Gain to Breakeven | 25.1% | 32.4% |
| Time to Breakeven | 125 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -41.6% | -33.7% |
| % Gain to Breakeven | 71.2% | 50.9% |
| Time to Breakeven | 231 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -23.7% | -19.2% |
| % Gain to Breakeven | 31.1% | 23.8% |
| Time to Breakeven | 120 days | 105 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -11.1% | -12.2% |
| % Gain to Breakeven | 12.5% | 13.9% |
| Time to Breakeven | 51 days | 62 days |
In The Past
State Street Industrial Select Sector SPDR ETF's stock fell -15.8% during the 2025 US Tariff Shock. Such a loss loss requires a 18.8% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
HONA has limited trading history. Below is the Industrials sector ETF (XLI) in its place.
| Event | XLI | S&P 500 |
|---|---|---|
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -20.1% | -24.5% |
| % Gain to Breakeven | 25.1% | 32.4% |
| Time to Breakeven | 125 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -41.6% | -33.7% |
| % Gain to Breakeven | 71.2% | 50.9% |
| Time to Breakeven | 231 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -23.7% | -19.2% |
| % Gain to Breakeven | 31.1% | 23.8% |
| Time to Breakeven | 120 days | 105 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -22.5% | -17.9% |
| % Gain to Breakeven | 29.0% | 21.8% |
| Time to Breakeven | 114 days | 123 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -60.5% | -53.4% |
| % Gain to Breakeven | 153.2% | 114.4% |
| Time to Breakeven | 700 days | 1085 days |
In The Past
State Street Industrial Select Sector SPDR ETF's stock fell -15.8% during the 2025 US Tariff Shock. Such a loss loss requires a 18.8% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 378.13 |
| Mkt Cap | 138.2 |
| Rev LTM | 28,522 |
| Op Inc LTM | 5,181 |
| FCF LTM | 3,776 |
| FCF 3Y Avg | 3,348 |
| CFO LTM | 4,741 |
| CFO 3Y Avg | 4,198 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 12.7% |
| Rev Chg 3Y Avg | 10.1% |
| Rev Chg Q | 16.8% |
| QoQ Delta Rev Chg LTM | 3.9% |
| Op Inc Chg LTM | 14.5% |
| Op Inc Chg 3Y Avg | 21.1% |
| Op Mgn LTM | 18.6% |
| Op Mgn 3Y Avg | 18.2% |
| QoQ Delta Op Mgn LTM | -0.1% |
| CFO/Rev LTM | 18.3% |
| CFO/Rev 3Y Avg | 16.4% |
| FCF/Rev LTM | 15.4% |
| FCF/Rev 3Y Avg | 13.8% |
Price Behavior
null
HONA Betas & Captures as of 6/30/2026
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | � | � | � | � | � | � |
| Up Beta | � | � | � | � | � | � |
| Down Beta | � | � | � | � | � | � |
| Up Capture | 5% | 2% | 1% | 1% | 0% | 0% |
| Bmk +ve Days | 11 | 24 | 40 | 67 | 140 | 429 |
| Stock +ve Days | 1 | 1 | 1 | 1 | 1 | 1 |
| Down Capture | -0% | -0% | -0% | -0% | -0% | -0% |
| Bmk -ve Days | 10 | 17 | 23 | 58 | 112 | 321 |
| Stock -ve Days | 0 | 0 | 0 | 0 | 0 | 0 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with HONA | |
|---|---|---|---|---|
| HONA | -3.3% | 67.7% | -1.13 | - |
| Sector ETF (XLI) | 21.0% | 16.7% | 0.97 | 13.3% |
| Equity (SPY) | 20.8% | 12.6% | 1.23 | -3.7% |
| Gold (GLD) | 20.0% | 27.9% | 0.64 | 60.0% |
| Commodities (DBC) | 27.6% | 18.9% | 1.16 | -49.8% |
| Real Estate (VNQ) | 13.3% | 13.9% | 0.66 | 57.0% |
| Bitcoin (BTCUSD) | -44.8% | 42.7% | -1.28 | 25.0% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with HONA | |
|---|---|---|---|---|
| HONA | -0.7% | 67.7% | -1.13 | - |
| Sector ETF (XLI) | 13.5% | 17.6% | 0.60 | 13.3% |
| Equity (SPY) | 13.0% | 17.1% | 0.59 | -3.7% |
| Gold (GLD) | 17.0% | 18.3% | 0.75 | 60.0% |
| Commodities (DBC) | 7.8% | 19.5% | 0.29 | -49.8% |
| Real Estate (VNQ) | 2.9% | 18.9% | 0.06 | 57.0% |
| Bitcoin (BTCUSD) | 13.6% | 53.5% | 0.44 | 25.0% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with HONA | |
|---|---|---|---|---|
| HONA | -0.3% | 67.7% | -1.13 | - |
| Sector ETF (XLI) | 14.3% | 20.0% | 0.63 | 13.3% |
| Equity (SPY) | 15.4% | 17.9% | 0.73 | -3.7% |
| Gold (GLD) | 11.3% | 16.1% | 0.57 | 60.0% |
| Commodities (DBC) | 6.3% | 18.0% | 0.28 | -49.8% |
| Real Estate (VNQ) | 5.1% | 20.7% | 0.21 | 57.0% |
| Bitcoin (BTCUSD) | 57.7% | 66.2% | 0.98 | 25.0% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 06/08/2026 | 10-12B/A |
| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 06/08/2026 | 10-12B/A |
Honeywell Aerospace — Investor Video Playlist
Products & Services
Justin Kirchhoff’s Approach to Turning Farm Feedstocks into Sustainable Aviation Fuel
Products & Services
Justin Kirchhoff’s Vision for Scaling Sustainable Aviation Fuel Production
Products & Services
We Make Cool Things in Tempe, Arizona
Products & Services
We Make Cool Things in Olathe
Products & Services
We Make Cool Things in Chihuahua
Leadership
Anant Maheshwari on the Trifecta of Energy Security, Economics and Emissions
Industry Resources
| Industrials Resources |
| IndustryWeek |
| Manufacturing.net |
| Aviation Week |
| Aerospace & Defense Resources |
| Defense News |
| FlightGlobal |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
Prefer one of these to Trefis? Tell us why.
Core Cache Last Updated: 7/13/2026