Honeywell Aerospace (Nasdaq: HONA) shares plummeted over 21% following its first earnings report as a standalone company. The sell-off occurred just weeks after the entity completed its spin-off from Honeywell International.
Management cut the 2026 revenue growth forecast to a range of 4-5%. This represents a significant reduction from the previous target of 7-9%.
The company cited persistent supply-chain issues for mechanical parts as the primary driver for the revision. Honeywell Aerospace also missed analyst expectations for its second-quarter earnings.
This disappointing debut has raised investor concerns regarding execution risks for the newly independent aerospace business. The spin-off was originally intended to unlock value by allowing the company to focus on its core aerospace operations.