Honeywell Aerospace (HONA)
Market Price (9/2/2026): $154.4 | Market Cap: $48.9 BilSector: Industrials | Industry: Aerospace & Defense
Honeywell Aerospace (HONA)
Market Price (9/2/2026): $154.4Market Cap: $48.9 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 -66%, 3Y Excs Rtn is -103% | Expensive valuation multiplesP/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 36x Key risksHONA key risks include [1] losing market share by failing to out-innovate technologically advanced competitors, Show more. |
| 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 -66%, 3Y Excs Rtn is -103% |
| Expensive valuation multiplesP/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 36x |
| Key risksHONA key risks include [1] losing market share by failing to out-innovate technologically advanced competitors, Show more. |
Qualitative Assessment
AI Analysis | Feedback
Updated on 9/1/2026
Honeywell Aerospace (HONA) stock has lost about 30% since it went public on 6/29/2026 because of the following key factors:
1. Disappointing Fiscal Q2 2026 Earnings and Reduced Full-Year Guidance.
Honeywell Aerospace (HONA) reported a significant miss in its fiscal Q2 2026 earnings, which were announced on August 5, 2026. The company's revenue of $4.52 billion fell short of the $4.61 billion consensus estimate. Net income attributable to Aerospace plummeted 70% to $246 million compared to $844 million in the prior-year period, and adjusted diluted earnings per share (EPS) declined 32% to $1.87, missing analyst expectations. Following these results, HONA lowered its full-year 2026 organic sales growth forecast from the initial 7%-9% range to 4%-5%, and issued an adjusted EPS guidance of $7.60-$7.90, which was below the $8.86 analyst estimate.
2. Persistent Supply Chain Constraints and Unfavorable Business Mix.
A core reason for the underperformance and reduced outlook stems from persistent supply chain constraints. CEO Jim Currier acknowledged that the company's efforts to address these issues "have not been good enough" and that the scale of the recovery challenge was "underestimated". These constraints forced Honeywell Aerospace to prioritize lower-margin Original Equipment Manufacturer (OEM) deliveries over its higher-margin aftermarket business, negatively impacting overall profitability in fiscal Q2 2026. Profitability was further pressured by an unfavorable business mix.
Show more
Honeywell Aerospace (HONA) stock has lost about 30% since it went public on 6/29/2026 because of the following key factors:
1. Disappointing Fiscal Q2 2026 Earnings and Reduced Full-Year Guidance.
Honeywell Aerospace (HONA) reported a significant miss in its fiscal Q2 2026 earnings, which were announced on August 5, 2026. The company's revenue of $4.52 billion fell short of the $4.61 billion consensus estimate. Net income attributable to Aerospace plummeted 70% to $246 million compared to $844 million in the prior-year period, and adjusted diluted earnings per share (EPS) declined 32% to $1.87, missing analyst expectations. Following these results, HONA lowered its full-year 2026 organic sales growth forecast from the initial 7%-9% range to 4%-5%, and issued an adjusted EPS guidance of $7.60-$7.90, which was below the $8.86 analyst estimate.
2. Persistent Supply Chain Constraints and Unfavorable Business Mix.
A core reason for the underperformance and reduced outlook stems from persistent supply chain constraints. CEO Jim Currier acknowledged that the company's efforts to address these issues "have not been good enough" and that the scale of the recovery challenge was "underestimated". These constraints forced Honeywell Aerospace to prioritize lower-margin Original Equipment Manufacturer (OEM) deliveries over its higher-margin aftermarket business, negatively impacting overall profitability in fiscal Q2 2026. Profitability was further pressured by an unfavorable business mix.
Show more
Updated on 9/1/2026
Honeywell Aerospace (HONA) stock has lost about 30% since it went public on 6/29/2026 because of the following key factors:
1. Disappointing Fiscal Q2 2026 Earnings and Reduced Full-Year Guidance.
Honeywell Aerospace (HONA) reported a significant miss in its fiscal Q2 2026 earnings, which were announced on August 5, 2026. The company's revenue of $4.52 billion fell short of the $4.61 billion consensus estimate. Net income attributable to Aerospace plummeted 70% to $246 million compared to $844 million in the prior-year period, and adjusted diluted earnings per share (EPS) declined 32% to $1.87, missing analyst expectations. Following these results, HONA lowered its full-year 2026 organic sales growth forecast from the initial 7%-9% range to 4%-5%, and issued an adjusted EPS guidance of $7.60-$7.90, which was below the $8.86 analyst estimate.
2. Persistent Supply Chain Constraints and Unfavorable Business Mix.
A core reason for the underperformance and reduced outlook stems from persistent supply chain constraints. CEO Jim Currier acknowledged that the company's efforts to address these issues "have not been good enough" and that the scale of the recovery challenge was "underestimated". These constraints forced Honeywell Aerospace to prioritize lower-margin Original Equipment Manufacturer (OEM) deliveries over its higher-margin aftermarket business, negatively impacting overall profitability in fiscal Q2 2026. Profitability was further pressured by an unfavorable business mix.
3. Significant Decline in Profitability Due to Spin-Off Related Costs.
The spin-off itself, completed on June 29, 2026, incurred substantial costs that impacted profitability. The company absorbed approximately $100 million in separation-related costs and inventory obsolescence charges during fiscal Q2 2026. This, combined with higher transaction, interest, and tax costs associated with the spin-off, contributed to the 70% year-over-year decline in net income and a 7% decline in adjusted EBIT in fiscal Q2 2026. Specifically, segment profits in Engines and Power Systems fell 32%, and Electronic Solutions declined 3% in fiscal Q2 2026.
4. Post-Spin-off Selling Pressure from Institutional Investors.
The initiation of trading for HONA as an independent entity on June 29, 2026, likely triggered significant selling pressure from various institutional investors. Funds with environmental, social, and governance (ESG) mandates, which often exclude companies with defense exposure (HONA has approximately 30-35% defense/space exposure), and automation-focused funds that held the former parent company (HON) for its non-aerospace segments, were expected to sell their HONA shares to rebalance their portfolios. This structural selling, along with general portfolio adjustments by multi-sector mandates, contributed to the initial volatility and downward trend experienced by the stock following its debut.
Show less
Honeywell Aerospace (HONA) stock has lost about 30% since it went public on 6/29/2026 because of the following key factors:
1. Disappointing Fiscal Q2 2026 Earnings and Reduced Full-Year Guidance.
Honeywell Aerospace (HONA) reported a significant miss in its fiscal Q2 2026 earnings, which were announced on August 5, 2026. The company's revenue of $4.52 billion fell short of the $4.61 billion consensus estimate. Net income attributable to Aerospace plummeted 70% to $246 million compared to $844 million in the prior-year period, and adjusted diluted earnings per share (EPS) declined 32% to $1.87, missing analyst expectations. Following these results, HONA lowered its full-year 2026 organic sales growth forecast from the initial 7%-9% range to 4%-5%, and issued an adjusted EPS guidance of $7.60-$7.90, which was below the $8.86 analyst estimate.
2. Persistent Supply Chain Constraints and Unfavorable Business Mix.
A core reason for the underperformance and reduced outlook stems from persistent supply chain constraints. CEO Jim Currier acknowledged that the company's efforts to address these issues "have not been good enough" and that the scale of the recovery challenge was "underestimated". These constraints forced Honeywell Aerospace to prioritize lower-margin Original Equipment Manufacturer (OEM) deliveries over its higher-margin aftermarket business, negatively impacting overall profitability in fiscal Q2 2026. Profitability was further pressured by an unfavorable business mix.
3. Significant Decline in Profitability Due to Spin-Off Related Costs.
The spin-off itself, completed on June 29, 2026, incurred substantial costs that impacted profitability. The company absorbed approximately $100 million in separation-related costs and inventory obsolescence charges during fiscal Q2 2026. This, combined with higher transaction, interest, and tax costs associated with the spin-off, contributed to the 70% year-over-year decline in net income and a 7% decline in adjusted EBIT in fiscal Q2 2026. Specifically, segment profits in Engines and Power Systems fell 32%, and Electronic Solutions declined 3% in fiscal Q2 2026.
4. Post-Spin-off Selling Pressure from Institutional Investors.
The initiation of trading for HONA as an independent entity on June 29, 2026, likely triggered significant selling pressure from various institutional investors. Funds with environmental, social, and governance (ESG) mandates, which often exclude companies with defense exposure (HONA has approximately 30-35% defense/space exposure), and automation-focused funds that held the former parent company (HON) for its non-aerospace segments, were expected to sell their HONA shares to rebalance their portfolios. This structural selling, along with general portfolio adjustments by multi-sector mandates, contributed to the initial volatility and downward trend experienced by the stock following its debut.
Show less
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Stock Movement Drivers
Fundamental Drivers
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Market Drivers
5/31/2026 to 9/1/2026| Return | Correlation | |
|---|---|---|
| HONA | ||
| Market (SPY) | 0.7% | 27.3% |
| Sector (XLI) | -0.2% | 25.1% |
Fundamental Drivers
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Market Drivers
2/28/2026 to 9/1/2026| Return | Correlation | |
|---|---|---|
| HONA | ||
| Market (SPY) | 11.4% | 27.3% |
| Sector (XLI) | -2.2% | 25.1% |
Fundamental Drivers
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Market Drivers
8/31/2025 to 9/1/2026| Return | Correlation | |
|---|---|---|
| HONA | ||
| Market (SPY) | 19.1% | 27.3% |
| Sector (XLI) | 14.8% | 25.1% |
Fundamental Drivers
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Market Drivers
8/31/2023 to 9/1/2026| Return | Correlation | |
|---|---|---|
| HONA | ||
| Market (SPY) | 75.1% | 27.3% |
| Sector (XLI) | 66.2% | 25.1% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| HONA Return | - | - | - | - | - | -28% | -28% |
| Peers Return | -9% | -14% | 69% | -8% | 88% | -15% | 94% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 12% | 105% |
Monthly Win Rates [3] | |||||||
| HONA Win Rate | - | - | - | - | - | 33% | |
| Peers Win Rate | 42% | 50% | 58% | 25% | 52% | 38% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| HONA Max Drawdown | - | - | - | - | - | - | |
| Peers Max Drawdown | -51% | -48% | -35% | -33% | -24% | -51% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: FLY, ATRO, FBDT, LYNX, SPCX.
[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 9/1/2026 (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.
About Honeywell Aerospace (HONA)
Honeywell Aerospace Inc. (HONA) is a key player in the aerospace industry, specializing in the manufacturing and supply of a broad range of aircraft components, advanced avionics, engines, and integrated systems. Beyond its robust product offerings, the company provides essential aerospace services, including maintenance, training, and asset availability solutions, supporting the entire lifecycle of aircraft operations.
HONA's product portfolio is comprehensive, encompassing critical systems such as auxiliary power units, cockpit displays, navigation products, and engines, alongside specialized components like weather radars, sensors, and braking systems. The company is also active in advanced areas like satellite communications and space products. A significant service innovation is GoDirect Trade, an e-commerce platform dedicated to facilitating transactions for new and used aircraft parts, complemented by services like cabin connectivity and training programs.
The company serves a wide array of customers and markets globally, including airframe manufacturers, commercial airlines, military and defense organizations, business aviation operators, and the space industry. Its products and services are utilized across diverse platforms such as business jets, cargo planes, helicopters, and defense aircraft. Honeywell Aerospace maintains a strong presence, particularly supporting military fixed and rotary wing operators in South America, Latin America, Africa, and the Middle East.
AI Analysis | Feedback
Here are 1-3 brief analogies to describe Honeywell Aerospace (HONA):
- Like **Bosch** or **Continental**, but for the aerospace industry, supplying a vast array of critical components, systems, and services for all types of aircraft.
- Imagine **Qualcomm**, but instead of providing the core chips and connectivity for smartphones, Honeywell Aerospace provides the essential engines, avionics, and systems that make airplanes fly and operate.
AI Analysis | Feedback
- Aircraft Components: Manufactures essential parts including actuation products, air and thermal management products, microelectronics, sensors, lighting, and wheels and braking systems.
- Avionics and Cockpit Systems: Supplies sophisticated electronic systems for aircraft, including cockpit systems, displays, navigation products, radios, recorders, and transmitters.
- Engines and Auxiliary Power Units (APUs): Provides engines for aircraft and auxiliary power units that supply power on the ground.
- Cabin Management and Entertainment Products: Offers systems for managing the in-cabin environment and providing entertainment.
- Flight Safety and Awareness Systems: Develops terrain and traffic awareness systems, weather radars, and health and usage monitoring products.
- Space Products: Manufactures specialized components and systems for space applications.
- Vehicle Turbochargers: Supplies turbochargers to boost engine performance for various vehicles.
- Aerospace Trading and Asset Availability: Provides services for buying, selling, and ensuring the availability of aerospace assets and parts.
- Cabin Connectivity: Offers services for in-flight internet and communication.
- Maintenance and Service Plans: Delivers comprehensive plans for aircraft upkeep and support.
- Certifications and Training: Provides services related to aviation certifications and personnel training.
- GoDirect Trade Platform: Operates an e-commerce platform for accessing new and used air transport and business aircraft parts.
- Other Flight Services: Offers a range of additional support services for flight operations.
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Honeywell Aerospace Inc. (HONA) primarily sells its products and services to other companies (B2B) rather than individuals. Based on the company description and its diverse offerings across various aerospace and defense markets, its major customers would typically include companies in the following sectors:
-
Aircraft Manufacturers (Commercial, Business, and Space): These companies integrate Honeywell Aerospace's components, avionics, engines, and systems into new aircraft and spacecraft. Examples include:
- Boeing (BA)
- Airbus (AIR.PA)
- Embraer (EMBR3.SA)
- Bombardier (BBD.B.TO)
- General Dynamics (owner of Gulfstream Aerospace) (GD)
-
Commercial Airlines: Airlines purchase Honeywell Aerospace's components, systems, maintenance services, and connectivity solutions for their existing fleets. Examples include:
- Delta Air Lines (DAL)
- American Airlines Group (AAL)
- United Airlines Holdings (UAL)
- Southwest Airlines (LUV)
-
Military and Defense Contractors / Government Agencies: Honeywell Aerospace provides various systems, engines, and components for military fixed and rotary-wing aircraft, as well as defense applications. Examples of major defense contractors that would be customers include:
- Lockheed Martin (LMT)
- RTX Corporation (formerly Raytheon Technologies) (RTX)
- Northrop Grumman (NOC)
- General Dynamics (GD)
- Various national defense departments (e.g., U.S. Department of Defense)
-
Automotive Manufacturers: Due to its offering of "vehicle turbochargers" and services for "automotive platforms," Honeywell Aerospace also serves the automotive industry. Examples include:
- Ford Motor Company (F)
- General Motors Company (GM)
- Stellantis N.V. (STLA)
AI Analysis | Feedback
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Jim Currier
President and CEO, Honeywell Aerospace
Jim Currier has served as the President and Chief Executive Officer of Honeywell Aerospace since November 2025, and previously led Honeywell's Aerospace Technologies business as President and CEO since August 2023. He brings nearly two decades of experience in senior roles across Honeywell's global operations, including president of electronic solutions, president of aftermarket operations for Europe, the Middle East, Africa, and India, and vice president of airlines, North America.
Josh Jepsen
Chief Financial Officer
Josh Jepsen joined Honeywell Aerospace as Chief Financial Officer in February 2026. Prior to this role, he served as Senior Vice President and Chief Financial Officer of Deere & Company, where he was responsible for the company's worldwide accounting and finance functions and advised on major financial and strategic issues. He also held other senior positions in finance, investor relations, and accounting at Deere.
Bob Buddecke
President and Chief Executive Officer, Electronic Solutions
Bob Buddecke was appointed President and Chief Executive Officer of Electronic Solutions for Honeywell Aerospace. He will assume this title upon the completion of the spin-off.
Rich DeGraff
President and Chief Executive Officer, Control Systems
Rich DeGraff serves as President and Chief Executive Officer of Control Systems. His career includes senior roles outside of Honeywell and over 17 years with the company, where he has held various leadership positions focusing on customer engagement, P&L ownership, and business growth. He is a former Salesforce executive.
Dave Marinick
President and Chief Executive Officer, Engines & Power Systems
Dave Marinick is the President and Chief Executive Officer of Engines & Power Systems. With more than 37 years at Honeywell, he possesses extensive expertise in business strategy, engineering leadership, and large-scale program management.
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Here are the key risks to Honeywell Aerospace (HONA):
- Supply Chain Disruptions and Constraints: Honeywell Aerospace, as a major manufacturer and supplier of aircraft components, avionics, engines, and systems, is highly vulnerable to supply chain disruptions. The aerospace industry consistently faces challenges such as material and component shortages (including rare earths, aluminum, titanium, and semiconductors), workforce constraints, and skill gaps. Geopolitical tensions, trade restrictions, and rising commodity tariffs further exacerbate these issues, leading to increased costs, production delays, and difficulties in meeting delivery schedules. Such disruptions can impact revenue timing, customer satisfaction, and working capital for Honeywell Aerospace.
- Economic Cyclicality and Geopolitical Risks: The performance of Honeywell Aerospace is closely tied to global economic cycles, the financial health of airlines, and government defense spending. Economic downturns, lower GDP growth, or recessions can significantly reduce demand for new aircraft, aftermarket services, and defense-related products. Geopolitical instability, regional conflicts, and changes in trade and tax policies can introduce unpredictability, affect market access, and disrupt global operations, posing a substantial risk to the company's profitability and growth prospects.
- Intense Competition and Rapid Technological Advancements: The aerospace parts manufacturing market is highly competitive, characterized by both consolidation among top-tier players and specialization among smaller firms. Competitors continually invest in advanced technologies like ceramic matrix composites, additive manufacturing, and digital thread initiatives. Honeywell Aerospace must continuously innovate and adapt its product offerings to remain competitive and meet evolving customer demands for better, lighter, and more cost-effective components. Failure to keep pace with technological advancements or market shifts, particularly from major aircraft OEMs, could lead to a loss of market share and reduced profitability.
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- The accelerating shift towards **electrification and hybridization in aviation**, particularly with the rise of urban air mobility (UAM) vehicles (eVTOLs) and regional electric aircraft. As traditional engines and auxiliary power units (APUs) form a core part of Honeywell Aerospace's offerings, this trend threatens to diminish demand for conventional propulsion systems and related components, favoring new entrants or existing companies specializing in advanced battery technology, electric motors, and power electronics tailored for these new platforms.
- The increasing adoption of **additive manufacturing (3D printing) for aerospace parts**. This technology allows airframe manufacturers, airlines, and maintenance, repair, and overhaul (MRO) facilities to produce complex, lightweight, and customized components on demand, potentially reducing reliance on traditional suppliers of manufactured parts and impacting the aftermarket for new and used components, including those sold through platforms like Honeywell's GoDirect Trade.
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Honeywell Aerospace (symbol: HONA) operates in several significant addressable markets globally for its main products and services. The market sizes for these key areas, primarily estimated for 2025 and 2026, are as follows:
- Aerospace Avionics: The global aerospace avionics market is projected to be approximately USD 117.3 billion in 2026. This broad category includes engine controls, flight control systems, navigation, communications, flight recorders, lighting systems, threat detection, fuel systems, electro-optical systems, weather radars, and performance monitors. Other estimates for the global aerospace avionics market in 2026 range from USD 56.1 billion to USD 87.77 billion.
- Aircraft Engines: The global aircraft engines market is projected to reach approximately USD 170.34 billion in 2026. Different sources estimate the global aircraft engines market to be between USD 108.46 billion and USD 127.91 billion in 2026.
- Aircraft Auxiliary Power Units (APUs): The global aircraft auxiliary power unit market is expected to be around USD 7.4 billion in 2026. Other estimates for 2026 range from USD 3.19 billion to USD 6.62 billion.
- Aircraft Components (General, including structural elements, microelectronics, sensors): The global aircraft parts market is estimated to reach approximately USD 1.08 trillion in 2026. The global aerospace parts manufacturing market is projected to be USD 1,042.8 billion in 2026. Another estimate for the aircraft parts market is USD 765.79 billion in 2026.
- Aircraft Wheels and Braking Systems: The global aircraft wheels and brakes market was valued at approximately USD 11.29 billion in 2025 and is projected to grow at a CAGR of 6.12% from 2025 to 2031. Other estimates for 2025 range from USD 5.262 billion to USD 7.63 billion.
- Aircraft Lighting Products: The global aircraft lighting market is projected to reach approximately USD 3 billion in 2026. Other estimates for 2026 range from USD 1.4 billion to USD 1.59 billion.
- Aircraft Air and Thermal Management Products: The global aerospace and defense thermal management systems market was valued at USD 23.8 billion in 2024 and is estimated to grow at a CAGR of 6.6% to reach USD 44.6 billion by 2034. More specific estimates for the global aircraft thermal management market place it at around USD 5.15 billion in 2026.
- Aerospace Maintenance, Repair, and Overhaul (MRO) Services: The global aerospace and defense MRO market is expected to reach approximately USD 150.4 billion in 2026. Other estimates for 2026 range from USD 96.44 billion to USD 124.7 billion.
- Cabin Management Systems: The global aircraft cabin management systems market is expected to reach USD 1.65 billion in 2025 and is forecasted to grow at a CAGR of 8.14% to reach USD 2.44 billion by 2030. Another source values the market at USD 1.50 billion in 2025.
- Satellite Communications (for aviation/cabin connectivity): The global satellite communication market is expected to reach approximately USD 27.6 billion in 2026. The aircraft communication systems market, which includes SATCOM, is projected to reach USD 13.01 billion in 2026.
- Space Products: Null
- GoDirect Trade (e-commerce platform): Null
- Vehicle Turbochargers (aerospace specific): Null
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Expected Drivers of Future Revenue Growth for Honeywell Aerospace (HONA)
Honeywell Aerospace (symbol: HONA) is expected to experience significant revenue growth over the next 2-3 years, driven by several key factors across the aerospace industry:
- Ramping Commercial Aircraft Production and Fleet Expansion: The commercial aviation sector is undergoing a robust recovery and expansion. Both Boeing and Airbus are increasing narrowbody aircraft production rates to meet surging demand following supply chain disruptions. The global passenger and freighter fleet is projected to nearly double by 2045, necessitating over 42,000 new aircraft deliveries. This widespread fleet expansion, coupled with rising passenger volumes and increasing aircraft utilization, directly translates into higher demand for Honeywell Aerospace's components, avionics, engines, and systems.
- Growth in the Business Aviation Market: The business aviation market is entering a sustained period of expansion, propelled by a growing demand for private travel, corporate mobility, and increased investments from high-net-worth individuals (HNWIs). Honeywell's 2024 Business Aviation Outlook forecasts approximately 8,500 new business jet deliveries, valued at $280 billion, over the next decade. This trend drives demand for advanced and efficient aircraft, including the sophisticated avionics and cabin technologies that Honeywell Aerospace supplies.
- Increasing Demand for Aftermarket Services (MRO & Upgrades): The aerospace aftermarket, encompassing maintenance, repair, and overhaul (MRO), upgrades, and spare parts, is a significant growth area. Aging global aircraft fleets, coupled with higher utilization rates, are driving a steady need for comprehensive aftermarket services to ensure operational efficiency, safety, and regulatory compliance. Honeywell Aerospace's own filings highlight increasing demand for avionics upgrades, electrification, and connectivity solutions for existing aircraft. The global aerospace aftermarket is projected to grow at a compound annual growth rate (CAGR) of 6.9% from 2026 to 2034.
- Growing Defense and Space Spending and Modernization: Increased global defense budgets and ongoing military modernization initiatives are strong drivers for Honeywell Aerospace. J.P. Morgan identifies the defense and space segment as a key growth area for the company, boosted by rising missile production and broader defense spending. Honeywell Aerospace supplies critical guidance, navigation, and electronic warfare systems for various defense programs, and benefits from the expansion of commercial space exploration and the growing satellite communication market, which is seeing increased defense procurement and R&D investment.
- Advancements in Avionics and Cabin Technologies: Continuous technological innovation in aircraft systems, particularly in avionics and cabin management, is creating new revenue opportunities. Honeywell Aerospace is actively investing in electrification and advanced connectivity solutions. There is a growing emphasis on state-of-the-art avionics, high-speed in-flight connectivity, enhanced cabin comfort, and even autonomous flight systems. The evolution of cabin management systems (CMS) to include intuitive digital controls, touchscreen interfaces, voice-activated controls, and AI-driven personalization represents a significant market for Honeywell Aerospace's product offerings.
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Capital Allocation Decisions for Honeywell Aerospace (HONA)
Share Issuance
- Honeywell Aerospace became an independent public company on June 29, 2026, after completing its spin-off from Honeywell International.
- Honeywell International distributed all 316,939,750 shares of HONA common stock to its shareholders on a pro rata basis.
- Shareholders of Honeywell International received one share of Honeywell Aerospace common stock for every two shares of Honeywell International common stock held as of the record date of June 15, 2026, with cash provided in lieu of fractional shares.
Outbound Investments
- In the last two years (prior to July 2026), when it was part of Honeywell International, Honeywell Aerospace completed two strategic acquisitions: Civitanavi Systems S.p.A. and CAES Systems Holdings LLC, adding capabilities in alternative navigation and electronic warfare.
Capital Expenditures
- Honeywell Aerospace CEO Jim Currier is prioritizing capital investment into the supply base to support demand and address a backlog exceeding $19 billion, aiming to drive organic growth.
- The company has committed $500 million to expand the production of navigation systems, Assure missile actuators, and electronic warfare hardware.
- Capital expenditures for the most recent quarter totaled -$137.00 million USD.
Peer Outperformance in Aerospace & Defense
nullShare of Aerospace & Defense constituents that HONA has outperformed, by holding period. Peers without a full price history over a given window are excluded from that window.
1Y
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insufficient peer history
3Y
—
insufficient peer history
5Y
—
insufficient peer history
null
Median price return by industry across the Industrials sector, ranked by 5Y. Aerospace & Defense is HONA's own industry. Use this to see which corners of the sector have carried the returns.
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Construction & Engineering | 31 | 10.0% | 101.1% | 182.9% | CDNL 2670% · FIX 1977% · STRL 1844% |
| Marine Transportation | 4 | 59.7% | 55.5% | 148.9% | MATX 183% · KEX 160% · SFL 138% |
| Construction Machinery & Heavy Transportation Equipment | 13 | 7.6% | 52.3% | 109.0% | CAT 301% · ALSN 242% · WAB 218% |
| Aerospace & Defense ← | 55 | -0.5% | 56.8% | 73.8% | ATI 1015% · FTAI 845% · HWM 711% |
| Passenger Ground Transportation | 3 | -11.1% | 35.9% | 55.9% | UBER 82% · CAR 56% · LYFT -66% |
| Rail Transportation | 7 | 27.6% | 65.8% | 45.8% | FSTR 119% · CSX 60% · UNP 50% |
| Industrial Machinery & Supplies & Components | 71 | 7.3% | 40.2% | 40.4% | CRS 1386% · PSIX 820% · GHM 572% |
| Cargo Ground Transportation | 16 | 33.4% | -2.7% | 30.0% | XPO 244% · R 241% · CVLG 194% |
| Trading Companies & Distributors | 19 | 0.3% | 27.6% | 29.6% | DXPE 517% · AIT 277% · WCC 194% |
| Diversified Support Services | 33 | 11.2% | 28.6% | 24.5% | LIME 4550% · TH 345% · WLFC 343% |
| Building Products | 33 | -11.8% | 1.5% | 15.7% | LMB 492% · GFF 366% · PPIH 282% |
| Electrical Components & Equipment | 41 | 13.1% | 43.2% | 13.8% | POWL 2084% · BE 870% · ELVA 820% |
| Research & Consulting Services | 13 | -8.9% | -18.6% | -2.4% | HURN 217% · CRAI 91% · GRNQ 75% |
| Industrial Conglomerates | 17 | 4.1% | 8.7% | -6.7% | RCMT 708% · CSW 133% · CSL 69% |
| Environmental & Facilities Services | 29 | -10.6% | 16.3% | -12.0% | CECO 828% · ADUR 546% · NVRI 331% |
| Agricultural & Farm Machinery | 17 | 9.5% | -6.2% | -16.5% | BLBD 189% · DE 88% · GENC 60% |
| Data Processing & Outsourced Services | 6 | -30.6% | -11.9% | -26.0% | EXLS 52% · BR 15% · G -23% |
| Office Services & Supplies | 9 | 11.2% | 19.3% | -29.3% | PBI 178% · TILE 158% · HNI 49% |
| Passenger Airlines | 11 | -1.7% | -7.2% | -29.7% | LTM 2259% · UAL 124% · SKYW 101% |
| Human Resource & Employment Services | 21 | 5.7% | -23.4% | -39.8% | BBSI 84% · ADP 53% · KFY 29% |
| Air Freight & Logistics | 12 | -12.3% | -27.5% | -39.9% | CHRW 83% · FDX 67% · EXPD 60% |
| Security & Alarm Services | 10 | -33.4% | 5.9% | -45.3% | CIX 119% · MG 82% · BCO 47% |
| Airport Services | 3 | -68.9% | -76.1% | -60.3% | JOBY -44% · ASLE -60% · UP -100% |
Median of constituents with a full price history over each window. Top names are unfiltered by size in this render.
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 46.83 |
| Mkt Cap | 26.1 |
| Rev LTM | 942 |
| Op Inc LTM | -29 |
| FCF LTM | -8 |
| FCF 3Y Avg | 27 |
| CFO LTM | 103 |
| CFO 3Y Avg | 48 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 96.8% |
| Rev Chg 3Y Avg | 15.0% |
| Rev Chg Q | 341.9% |
| QoQ Delta Rev Chg LTM | 30.7% |
| Op Inc Chg LTM | 103.5% |
| Op Inc Chg 3Y Avg | 556.3% |
| Op Mgn LTM | -13.6% |
| Op Mgn 3Y Avg | 6.0% |
| QoQ Delta Op Mgn LTM | 23.1% |
| CFO/Rev LTM | 8.0% |
| CFO/Rev 3Y Avg | 5.2% |
| FCF/Rev LTM | -113.8% |
| FCF/Rev 3Y Avg | 3.0% |
Price Behavior
null
HONA Betas & Captures as of 8/31/2026
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 3.13 | 1.90 | -1.12 | -1.28 | 0.08 | 0.18 |
| Up Beta | 0.31 | -0.98 | -0.70 | 0.83 | 0.82 | 0.13 |
| Down Beta | -7.76 | 0.56 | -2.68 | 4.60 | 0.81 | 2.36 |
| Up Capture | 321% | 186% | 111% | 42% | 19% | 2% |
| Bmk +ve Days | 10 | 21 | 32 | 68 | 138 | 427 |
| Stock +ve Days | 9 | 18 | 20 | 20 | 20 | 20 |
| Down Capture | 1008% | 468% | 240% | 140% | 87% | 49% |
| Bmk -ve Days | 11 | 21 | 32 | 59 | 113 | 324 |
| Stock -ve Days | 12 | 24 | 24 | 24 | 24 | 24 |
[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 | -30.1% | 76.4% | -2.25 | - |
| Sector ETF (XLI) | 14.9% | 17.1% | 0.64 | 25.1% |
| Equity (SPY) | 19.2% | 12.8% | 1.10 | 27.3% |
| Gold (GLD) | 24.8% | 29.2% | 0.76 | 15.3% |
| Commodities (DBC) | 44.0% | 20.4% | 1.67 | -38.4% |
| Real Estate (VNQ) | 8.5% | 13.7% | 0.35 | 37.3% |
| Bitcoin (BTCUSD) | -27.6% | 43.5% | -0.62 | 10.8% |
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 | -6.9% | 76.4% | -2.25 | - |
| Sector ETF (XLI) | 12.3% | 17.6% | 0.54 | 25.1% |
| Equity (SPY) | 12.7% | 17.2% | 0.56 | 27.3% |
| Gold (GLD) | 18.7% | 18.7% | 0.81 | 15.3% |
| Commodities (DBC) | 11.0% | 19.5% | 0.44 | -38.4% |
| Real Estate (VNQ) | 2.0% | 18.9% | -0.00 | 37.3% |
| Bitcoin (BTCUSD) | 10.5% | 52.6% | 0.38 | 10.8% |
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 | -3.5% | 76.4% | -2.25 | - |
| Sector ETF (XLI) | 13.3% | 20.0% | 0.58 | 25.1% |
| Equity (SPY) | 15.1% | 17.9% | 0.72 | 27.3% |
| Gold (GLD) | 12.0% | 16.3% | 0.60 | 15.3% |
| Commodities (DBC) | 7.9% | 18.1% | 0.35 | -38.4% |
| Real Estate (VNQ) | 4.9% | 20.7% | 0.20 | 37.3% |
| Bitcoin (BTCUSD) | 63.2% | 66.1% | 1.03 | 10.8% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Earnings Returns History
Updated 8/14/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/5/2026 | -23.2% | -17.6% | |
| SUMMARY STATS | |||
| # Positive | 0 | 0 | 0 |
| # Negative | 1 | 1 | 0 |
| Median Positive | |||
| Median Negative | -23.2% | -17.6% | |
| Max Positive | |||
| Max Negative | -23.2% | -17.6% | |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/5/2026 | -23.2% | -17.6% | |
| SUMMARY STATS | |||
| # Positive | 0 | 0 | 0 |
| # Negative | 1 | 1 | 0 |
| Median Positive | |||
| Median Negative | -23.2% | -17.6% | |
| Max Positive | |||
| Max Negative | -23.2% | -17.6% | |
Honeywell Aerospace — Investor Video Playlist
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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 |
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Core Cache Last Updated: 9/1/2026