Honeywell Aerospace Q2 FY2026: sales up 5%, profit down 70%, guidance cut
Honeywell Aerospace's first report as a standalone company is a mixed one: sales rose 5.0% to $4.522 billion, but adjusted EPS of $1.87 missed consensus and management cut full-year organic growth guidance to 4.0%-5.0% from 7.0%-9.0%. The story now hinges on supply, not demand, because backlog grew 9.0% to $18.154 billion. We read this quarter as Neutral.
1 · Expected vs. Actual
Free preview belowGAAP EPS fell to $0.78 from $2.66, and adjusted EPS fell 32.0% to $1.87 from $2.75, roughly $0.28 below the $2.1482 consensus estimate. Gross margin slipped to 35.0% of sales from 36.5%, so this was not just one-time noise. Note the two profit lines: net income of $256 million, of which $246 million was attributable to Aerospace after $10 million went to noncontrolling interests.
Sales rose 5.0% to $4.522 billion from $4.289 billion, and all of it was organic, with no currency or acquisition help. Commercial Aftermarket was the engine at $2.026 billion, up 8.0%, while Commercial Original Equipment grew 6.0% to $679 million and Defense and Space grew just 3.0% to $1.817 billion. Backlog of $18.154 billion, up 9.0%, says demand is still running ahead of what the company can ship.
Log in to read 5 analyses a week for free
Create a free account to read 5 full earnings analyses each week — all five steps: expected vs. actual, guidance tracker, money flow, balance sheet and risks. Members get unlimited access.
Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
Answers are based on the earnings release and the analysis above. Free accounts get 3 questions a week; members get 30 a day.