Brian.Grace@honeywellaerospace.us Sean.Meakim@honeywellaerospace.us
Contacts: Media Investor Relations Brian Grace Sean Meakim (602) 897-0205 (623) 223-5980 Brian.Grace@honeywellaerospace.us Sean.Meakim@honeywellaerospace.us
• Net income of $0.7 billion; adjusted EBIT 1 of $1.2 billion, up 1% despite incremental standalone costs
• Raises full-year pro forma standalone adjusted earnings per share 1 and second half free cash flow 1 guidance
• Board declares inaugural quarterly dividend payment of $0.40 per share on the company’s common stock
-- Honeywell Aerospace (Nasdaq: HONA) today announced results for the third quarter and declared its first quarterly dividend. The company also raised its full-year 2026 pro forma standalone adjusted earnings per share 1 and second half 2026 free cash flow 1 guidance ranges, maintained its full-year organic 1 sales outlook, and narrowed its full-year pro forma standalone adjusted EBIT 1 guidance range.
“Honeywell Aerospace delivered results above our expectations in its first quarter as a standalone company, increasing sales and adjusted EBIT sequentially and year over year as we accelerate investments to drive greater output and better serve our customers. Demand for our solutions remains robust with 9% orders growth over the last 12 months,” said Jim Currier, Chief Executive Officer of Honeywell Aerospace. “We are seeing encouraging signs from pacing suppliers as we deepen our commitment to enduring partnerships. This progress, combined with ongoing qualification of additional material sources, positions us for higher sales and output growth in 2027 and beyond.”
Honeywell Aerospace’s Board of Directors has approved a quarterly cash dividend of $0.40 per share of its common stock. The dividend is payable on December 4, 2026, to shareholders of record as of the close of business on November 13, 2026. Currier added, “The Board’s decision to declare a regular dividend underscores the visibility into our durable free cash flow growth in the years ahead. Paying a competitive, growing dividend is a key component of our capital allocation strategy designed to deliver substantial shareholder value while maintaining financial flexibility and a strong investment-grade credit rating.”
• Year to date, the company has secured more than $20 billion in new wins (estimated lifetime value) supported by the following announcements:
◦ The U.S. Air Force advanced Honeywell Aerospace’s SkyShot 1600 engine, which is designed to meet all mission-critical performance parameters for collaborative combat aircraft and unmanned aircraft systems, into Preliminary Design Review as part of its Autonomous Collaborative Platform program.
◦ Honeywell Aerospace secured over $2 billion in new awards to provide its advanced navigation and RF systems for several missiles and munitions programs, including some initial contracts on platforms prioritized by the Munitions Acceleration Council.
◦ The City of Phoenix Aviation Department signed an agreement with Honeywell Aerospace to study how to translate the company’s Surface Alert (SURF-A) technology to ground vehicle operators on tarmacs, taxiways, and runways at three local airports, including Phoenix Sky Harbor International. Honeywell Aerospace 3Q26 Results - 2 • The company announced a 300,000 square foot expansion of its Tempe, Arizona manufacturing facility, expected to open in late 2028. The new facility adds capacity, lean manufacturing, automation, and supply-chain resilience to support current Control Systems production, recent wins, and next generation platforms.
• Honeywell Aerospace presented an update on its supply chain transformation at a September investor conference. Key messages from the presentation included root causes and actions underway for the constraints from a small number of mechanical suppliers currently limiting output growth.
Honeywell Aerospace sales for the third quarter increased 2% on a reported and organic¹ basis year over year. Backlog grew to $19.3 billion at quarter end, up 12% from the prior year, and trailing twelve-months orders were up 9%, led by Defense and Space. Adjusted EBIT 1 was up 1%, including both an approximately $50 million net benefit from International Emergency Economic Powers Act (IEEPA) tariff refunds and new costs necessary as an independent public company.
Commercial Original Equipment sales were up 7% on a reported basis and 8% organically 1 to $0.7 billion as commercial air transport build rates and selectable equipment volumes increased. Commercial Aftermarket sales of $2.1 billion grew 2% year over year, driven by healthy underlying demand limited by mechanical component availability. Defense and Space sales of $1.8 billion expanded 1%, as strong growth led by the CAES and Civitanavi acquisitions was partially offset by lower international volumes due to supply constraints and the wind-down of a non-aerospace restricted government program.
Based on third quarter results and current outlook, Honeywell Aerospace updated its prior full-year and second half guidance ranges.
Previous guidance Current guidance Organic1,4growth 4% - 5% 4% - 5% Pro forma standalone adjusted $4.35B - $4.45B $4.375B - $4.425B EBIT1,4 Year-over-year growth1,4 Flat - 3% Up 1% - 2% Pro forma standalone adjusted earnings $7.60 - $7.90 $7.85 - $8.00 per share1,3,4 Second half free cash flow1,4 $1.0B - $1.4B $1.2B - $1.4B
1. See additional information at the end of this release regarding non-GAAP financial measures.
2. Comparisons to prior year pre-separation results are not presented as they are not considered meaningful.
3. Earnings per share and adjusted earnings per share for all periods prior to the spin-off is calculated using 317 million common shares based on the shares of Honeywell Aerospace common stock outstanding as of the spin-off date, June 29, 2026. It is assumed there are no dilutive equity instruments as there were no equity awards of Honeywell Aerospace outstanding prior to the spin-off.
4. Organic growth, pro forma standalone adjusted EBIT, pro forma standalone adjusted EPS and free cash flow are non-GAAP financial measures. We are unable to provide a reconciliation of these forward-looking measures to the most directly comparable GAAP measures without unreasonable effort because we cannot reliably predict the amount and timing of certain items that may be material to our GAAP results. The magnitude of these items may be material to the comparable GAAP measures. Honeywell Aerospace 3Q26 Results - 3
sales grew 4% year over year on a reported basis and 5% organically¹, led by strength in Commercial Original Equipment and Defense and Space. Segment adjusted EBIT¹ increased by 11% year over year as tariff refunds and pricing more than offset unfavorable mix and higher costs.
sales increased 3% year over year on a reported basis and 2% organically¹, led by higher Commercial Aftermarket volumes. Segment adjusted EBIT¹ decreased 16% year over year as unfavorable mix and higher costs more than offset price and the impact of tariff refunds.
sales were flat year over year on a reported and organic¹ basis as Defense and Space growth was offset by a decline in Commercial Aftermarket. Segment adjusted EBIT¹ increased 2% year over year as price more than offset higher costs and unfavorable mix.
Honeywell Aerospace will discuss its third quarter results and full-year 2026 guidance during an investor conference call starting at 5:00 pm EDT today. A live webcast of the investor call as well as related presentation materials will be available through the Investor Relations section of the company’s website (investor.honeywellaerospace.com). A replay of the webcast will be available for 30 days following the presentation.
Honeywell Aerospace (Nasdaq: HONA) is an independent global aerospace and defense company whose critical technologies are broadly deployed on the world’s leading commercial air transport, business aviation, defense and space platforms. These integrated solutions enable safer, more efficient, and more reliable missions. Headquartered in Phoenix, Arizona, the company employs more than 36,000 people globally and supports more than 10,000 customers. With a broad portfolio spanning avionics and navigation systems, engines and power systems, and control systems for aircraft, Honeywell Aerospace combines commitment and deep engineering expertise to drive innovation and long-term value for the aerospace industry. For more information, visit www.honeywellaerospace.com or follow Honeywell Aerospace on LinkedIn.
Honeywell Aerospace uses our Investor Relations website, investor.honeywellaerospace.com, as a means of disclosing information which may be of interest or material to our investors and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, webcasts, public conference calls, and webcasts.
We describe many of the trends and other factors that drive our business and future results in this release. These discussions contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements are those that address activities, events, or developments that management intends, expects, projects, believes, estimates, forecasts, or anticipates will or may occur in the future. They are based on management's assumptions and assessments in light of past experience and trends, current economic and industry conditions, expected future developments, and other relevant factors, many of which are difficult to predict and outside of our control.
Forward-looking statements are not guarantees of future performance, and actual results may differ materially from those reflected in such statements. Important factors that could cause Honeywell Aerospace's actual results to differ materially from those projected in any forward-looking statements include, but are not limited to: (i) risks relating to Honeywell Aerospace's spin-off from Honeywell International Inc., including our ability to realize the anticipated benefits of operating as an independent public company; Honeywell Aerospace 3Q26 Results - 4 (ii) supply chain disruptions, including constraints on or changes in the price or availability of raw materials and components; (iii) our ability to successfully develop new technologies and introduce new products; (iv) our ability to compete successfully in the markets in which we operate; (v) changes in demand for our products and services, including conditions in the commercial aerospace, business aviation, and defense and space markets; (vi) changes in government spending and risks associated with our government contracts; (vii) other economic, business, competitive, regulatory, geopolitical, and market factors described in our filings with the Securities and Exchange Commission ("SEC"); (viii) the impact of tariffs, including the amount and timing of any tariff refunds; (ix) adverse outcomes of litigation matters and government and other proceedings; and (x) our ability to declare and pay dividends in future periods.
These forward-looking statements should be considered in light of the information included in this release, our Registration Statement on Form 10-12B, as amended (File No. 001-43173), including the final Information Statement dated June 15, 2026 furnished as Exhibit 99.1 to our Current Report on Form 8-K filed on June 15, 2026, our Quarterly Reports on Form 10-Q for the quarters ended June 27, 2026 and September 26, 2026, and our other filings with the SEC. In addition, no assurance can be given that any plan, initiative, projection, goal, commitment, expectation, or prospect set forth in this release can or will be achieved. Any forward-looking plans described herein are not final and may be modified or abandoned at any time. We do not undertake to update or revise any of our forward-looking statements, except as required by applicable securities law.
This release contains financial measures presented on a non-GAAP basis. Honeywell Aerospace’s non-GAAP financial measures used in this release are as follows:
Management believes that, when considered together with reported amounts, these measures are useful to investors and management in understanding our ongoing operations and in the analysis of ongoing operating trends. These measures should be considered in addition to, and not as replacements for, the most comparable GAAP measure. Certain measures presented on a non-GAAP basis represent the impact of adjusting items net of tax. The tax-effect for adjusting items is determined individually and on a case-by-case basis. Refer to the Appendix attached to this release for reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures. Honeywell Aerospace 3Q26 Results - 5
September 26, 2026 December 31, 2025 ────────────────────────────────────────────────────────────────────────────── ASSETS Current assets: Cash and cash equivalents $ 1,558 $ 213 Accounts receivable, less allowances of 2,324 2,156 $54 and $33, respectively Inventories 4,624 4,311 Current contract assets 1,462 1,366 Other current assets 544 344 Total current assets 10,512 8,390 Property, plant and 2,318 2,101 equipment, net Goodwill 3,035 3,025 Other intangible assets, 2,239 2,177 net Deferred tax assets 72 412 Pension assets 3,039 13 Other assets 1,817 1,567 Total assets $ 23,032 $ 17,685 LIABILITIES Current liabilities: Accounts payable $ 2,931 $ 2,883 Current contract 1,612 1,589 liabilities Accrued liabilities 1,857 2,105 Total current liabilities 6,400 6,577 Long-term debt 15,853 4 Contract liabilities 1,075 1,091 Deferred tax liabilities 679 61 Other liabilities 1,514 1,456 Total liabilities 25,521 9,189 EQUITY Preferred stock, par value $0.01 per share; 40.0 million shares — — authorized; no shares issued and outstanding Common stock, par value $0.01 per share; 1.0 billion shares authorized; 317.0 million shares issued and 3 — outstanding as of September 26, 2026; no shares issued and outstanding as of December 31, 2025 Additional paid-in capital 29 — Accumulated deficit -1,804 — Net Parent investment — 8,609 Accumulated other -800 -210 comprehensive loss Total (deficit) equity attributable to -2,572 8,399 Aerospace Noncontrolling interests 83 97 Total (deficit) equity -2,489 8,496 Total liabilities and $ 23,032 $ 17,685 (deficit) equity
1. Amounts included in Cost of products and services sold and Selling, general and administrative expenses.
3. Amounts included in Selling, general and administrative expenses and Other (income) expense, net.
5. Amounts included in Cost of product and services sold, Selling, general and administrative, Research and development, and Other (income) expense, net.
The following information provides definitions and reconciliations of certain non-GAAP financial measures presented in this press release to which this reconciliation is attached to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP).
Management believes that, when considered together with reported amounts, these measures are useful to investors and management in understanding our ongoing operations and in the analysis of ongoing operating trends. Management believes these non‑GAAP financial measures provide investors with useful supplemental information related to our performance period to period, align the measures to how management evaluates performance internally, and make it easier for investors to compare our performance to peers. These measures should be considered in addition to, and not as replacements for, the most comparable GAAP measure. Certain measures presented on a non-GAAP basis represent the impact of adjusting items net of tax. The tax-effect for adjusting items is determined individually and on a case-by-case basis. Other companies may calculate these non-GAAP measures differently, limiting the usefulness of these measures for comparative purposes.
Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitations of these non-GAAP financial measures are that they exclude significant expenses and income that are required by GAAP to be recognized in the consolidated financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Investors are urged to review the reconciliation of the non- GAAP financial measures to the comparable GAAP financial measures and not to rely on any single financial measure to evaluate Honeywell Aerospace’s business.
Information reconciling forward-looking GAAP financial measures to non-GAAP financial measures related to full-year 2026 guidance, including organic sales growth, pro forma standalone adjusted EBIT, pro forma standalone adjusted earnings per share, and second half free cash flow, is not available because management cannot reliably predict or estimate certain items without unreasonable effort. These items include fluctuations in global currency markets; the timing, occurrence and impact of acquisition and divestiture transactions; pension mark-to-market expense as it is dependent on macroeconomic factors, such as interest rates and the return generated on invested pension plan assets; and the timing of working capital cash flows and capital expenditures. The information that is unavailable to provide a quantitative reconciliation could have a significant impact on our reported financial results. Honeywell Aerospace 3Q26 Results - 10
3Q 2026 v. 3Q 2025 Honeywell Aerospace Reported sales percent change 2 % Less: Foreign currency translation — % Less: Acquisitions — % Less: Other — % Organic sales percent change 2 % Electronic Solutions Reported sales percent change 4 % Less: Foreign currency translation -1 % Less: Acquisitions — % Less: Other — % Organic sales percent change 5 % Engines & Power Systems Reported sales percent change 3 % Less: Foreign currency translation 1 % Less: Acquisitions — % Less: Other — % Organic sales percent change 2 % Control Systems Reported sales percent change — % Less: Foreign currency translation — % Less: Acquisitions — % Less: Other — % Organic sales percent change — %
We define organic sales percent change as the year-over-year change in reported Net sales relative to the comparable period, excluding the impact on sales from foreign currency translation and acquisitions, net of divestitures, for the first 12 months following the transaction date, and other items that are unusual and non-recurring in nature (e.g., impact of comprehensive settlement related to Flexjet litigation). We believe this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends. Honeywell Aerospace 3Q26 Results - 11
3Q 2026 v. 3Q 2025 Commercial Original Equipment Reported sales percent change 7 % Less: Foreign currency translation -1 % Less: Acquisitions — % Less: Other — % Organic sales percent change 8 % Commercial Aftermarket Reported sales percent change 2 % Less: Foreign currency translation — % Less: Acquisitions — % Less: Other — % Organic sales percent change 2 % Defense and Space Reported sales percent change 1 % Less: Foreign currency translation — % Less: Acquisitions — % Less: Other — % Organic sales percent change 1 %
We define organic sales percentage as the year-over-year change in reported Net sales relative to the comparable period, excluding the impact on sales from foreign currency translation and acquisitions, net of divestitures, for the first 12 months following the transaction date, and other items that are unusual and non-recurring in nature (e.g., impact of comprehensive settlement related to Flexjet litigation). We believe this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends. Honeywell Aerospace 3Q26 Results - 12
Three Months September 26, September 27, Ended 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net income $ 737 $ 654 Income tax 164 87 expense Amortization of acquisition-re… 28 3 intangibles(1) Stock compensation 28 16 expense(2) Environmental 19 258 expense(3) Transaction 18 143 costs(4) Honeywell trademark 54 — license expense(2) Pension (income) -76 1 expense(5) Interest expense 187 -5 (income), net Other, net(6) 2 -6 Total Segment Profit/Adjusted $ 1,161 $ 1,151 EBIT
1. Amounts included in Cost of products and services sold and Selling, general and administrative. 2. Amounts included in Selling, general and administrative expenses.
4. Amounts included in Selling, general and administrative expenses and Other (income) expense, net.
5. A mounts included in Cost of products and services sold, Selling, general and administrative, Research and development, and Other (income) expense, net.
6. Amounts include repositioning and other charges. We define Total segment profit as Net income excluding taxes, interest, amortization of acquisition-related intangibles, stock compensation expense, environmental expense, pension (income) expense, repositioning and other charges, transaction costs, expenses associated with the Honeywell trademark license, and other items within Other (income) expense, net. We define adjusted EBIT as Net income excluding taxes, excluding interest, amortization-related intangibles, stock compensation expense, environmental expense, pension (income) expense, repositioning and other charges, transaction costs, expenses associated with the Honeywell trademark license, other items within Other (income) expense, net, and other items that are unusual or non-recurring in nature, including but not limited to impairment charges and litigation charges (e.g., comprehensive settlement related to Flexjet litigation). We believe these measures are useful to investors as they provide greater transparency with respect to supplemental information used by management in its financial and operational decision making, as well as understanding ongoing operating trends. Honeywell Aerospace 3Q26 Results - 13
Three Months Ended September 26, 2026 ────────────────────────────────────────────────────────────────────────────── Earnings per share of common stock - diluted1 $ 2.29 Amortization of acquisition-related 0.06 intangibles2 Transaction costs3 0.04 Pension income4 -0.18 Adjusted earnings per share of common stock - $ 2.21 diluted
1. For the three months ended September 26, 2026, adjusted earnings per share utilizes weighted average shares of 317.7 million.
2. For the three months ended September 26, 2026, acquisition-related intangibles amortization was $21 million, net of tax benefit of $7 million.
3. For the three months ended September 26, 2026, transaction related costs were $14 million, net of tax benefit of $4 million.
4. For the three months ended September 26, 2026, pension income was $58 million, net of tax expense of $18 million.
We define adjusted earnings per share as diluted earnings per share adjusted to exclude various charges as listed above. We believe adjusted earnings per share is a measure that is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends. Honeywell Aerospace 3Q26 Results - 14
We define free cash flow as cash provided by operating activities less cash for capital expenditures and excluding the cash payments for settlement of Flexjet- related litigation matters.
We believe this measure is useful to investors and management as a measure of cash generated by operations that will be used to repay scheduled debt maturities and can be used to invest in future growth through new business development activities or acquisitions, pay dividends, repurchase stock, or repay debt obligations prior to their maturities. This measure can also be used to evaluate our ability to generate cash flow from operations and the impact that this cash flow has on our liquidity.
Full text with the tables
Exhibit 99.1
Contacts:
Media Investor Relations
Brian Grace Sean Meakim
(602) 897-0205 (623) 223-5980
Brian.Grace@honeywellaerospace.us Sean.Meakim@honeywellaerospace.us
Honeywell Aerospace reports third quarter results;
updates 2026 outlook
• Sales of $4.6 billion, reported and organic 1 sales up 2% year over year
• Net income of $0.7 billion; adjusted EBIT 1 of $1.2 billion, up 1% despite
incremental standalone costs
• Raises full-year pro forma standalone adjusted earnings per share 1 and second
half free cash flow 1 guidance
• Board declares inaugural quarterly dividend payment of $0.40 per share on the
company’s common stock
PHOENIX, October 28, 2026
-- Honeywell Aerospace (Nasdaq: HONA) today announced results for the third
quarter and declared its first quarterly dividend. The company also raised its
full-year 2026 pro forma standalone adjusted earnings per share 1 and second
half 2026 free cash flow 1 guidance ranges, maintained its full-year organic 1
sales outlook, and narrowed its full-year pro forma standalone adjusted EBIT 1
guidance range.
“Honeywell Aerospace delivered results above our expectations in its first
quarter as a standalone company, increasing sales and adjusted EBIT sequentially
and year over year as we accelerate investments to drive greater output and
better serve our customers. Demand for our solutions remains robust with 9%
orders growth over the last 12 months,” said Jim Currier, Chief Executive
Officer of Honeywell Aerospace. “We are seeing encouraging signs from pacing
suppliers as we deepen our commitment to enduring partnerships. This progress,
combined with ongoing qualification of additional material sources, positions us
for higher sales and output growth in 2027 and beyond.”
Initial dividend declaration
Honeywell Aerospace’s Board of Directors has approved a quarterly cash dividend
of $0.40 per share of its common stock. The dividend is payable on December 4,
2026, to shareholders of record as of the close of business on November 13,
2026.
Currier added, “The Board’s decision to declare a regular dividend underscores
the visibility into our durable free cash flow growth in the years ahead. Paying
a competitive, growing dividend is a key component of our capital allocation
strategy designed to deliver substantial shareholder value while maintaining
financial flexibility and a strong investment-grade credit rating.”
Recent Honeywell Aerospace highlights
• Year to date, the company has secured more than $20 billion in new wins
(estimated lifetime value) supported by the following announcements:
◦ The U.S. Air Force advanced Honeywell Aerospace’s SkyShot 1600 engine, which
is designed to meet all mission-critical performance parameters for
collaborative combat aircraft and unmanned aircraft systems, into Preliminary
Design Review as part of its Autonomous Collaborative Platform program.
◦ Honeywell Aerospace secured over $2 billion in new awards to provide its
advanced navigation and RF systems for several missiles and munitions programs,
including some initial contracts on platforms prioritized by the Munitions
Acceleration Council.
◦ The City of Phoenix Aviation Department signed an agreement with Honeywell
Aerospace to study how to translate the company’s Surface Alert (SURF-A)
technology to ground vehicle operators on tarmacs, taxiways, and runways at
three local airports, including Phoenix Sky Harbor International.
Honeywell Aerospace 3Q26 Results - 2
• The company announced a 300,000 square foot expansion of its Tempe, Arizona
manufacturing facility, expected to open in late 2028. The new facility adds
capacity, lean manufacturing, automation, and supply-chain resilience to support
current Control Systems production, recent wins, and next generation platforms.
• Honeywell Aerospace presented an update on its supply chain transformation at
a September investor conference. Key messages from the presentation included
root causes and actions underway for the constraints from a small number of
mechanical suppliers currently limiting output growth.
Summary financial results
Honeywell Aerospace sales for the third quarter increased 2% on a reported and
organic¹ basis year over year. Backlog grew to $19.3 billion at quarter end, up
12% from the prior year, and trailing twelve-months orders were up 9%, led by
Defense and Space. Adjusted EBIT 1 was up 1%, including both an approximately
$50 million net benefit from International Emergency Economic Powers Act (IEEPA)
tariff refunds and new costs necessary as an independent public company.
($ in millions, except per share 3Q 2026 3Q 2025 % Change
amounts)
Backlog $19,324 $17,255 12%
Sales $4,644 $4,533 2%
Net income $737 $654 13%
Adjusted EBIT1 $1,161 $1,151 1%
Earnings per share2,3 $2.29
Adjusted earnings per share1,2,3 $2.21
Cash flow from operations2 $668
Free cash flow1,2 $500
End market sales
Commercial Original Equipment sales were up 7% on a reported basis and 8%
organically 1 to $0.7 billion as commercial air transport build rates and
selectable equipment volumes increased. Commercial Aftermarket sales of $2.1
billion grew 2% year over year, driven by healthy underlying demand limited by
mechanical component availability. Defense and Space sales of $1.8 billion
expanded 1%, as strong growth led by the CAES and Civitanavi acquisitions was
partially offset by lower international volumes due to supply constraints and
the wind-down of a non-aerospace restricted government program.
($ in millions) 3Q 2026 3Q 2025 % Change % Organic1
Commercial Original $690 $642 7% 8%
Equipment
Commercial Aftermarket $2,126 $2,084 2% 2%
Defense and Space $1,828 $1,807 1% 1%
2026 outlook
Based on third quarter results and current outlook, Honeywell Aerospace updated
its prior full-year and second half guidance ranges.
Previous guidance Current guidance
Organic1,4growth 4% - 5% 4% - 5%
Pro forma standalone adjusted $4.35B - $4.45B $4.375B - $4.425B
EBIT1,4
Year-over-year growth1,4 Flat - 3% Up 1% - 2%
Pro forma standalone adjusted
earnings $7.60 - $7.90 $7.85 - $8.00
per share1,3,4
Second half free cash flow1,4 $1.0B - $1.4B $1.2B - $1.4B
1. See additional information at the end of this release regarding non-GAAP
financial measures.
2. Comparisons to prior year pre-separation results are not presented as they
are not considered meaningful.
3. Earnings per share and adjusted earnings per share for all periods prior to
the spin-off is calculated using 317 million common shares based on the shares
of Honeywell Aerospace common stock outstanding as of the spin-off date, June
29, 2026. It is assumed there are no dilutive equity instruments as there were
no equity awards of Honeywell Aerospace outstanding prior to the spin-off.
4. Organic growth, pro forma standalone adjusted EBIT, pro forma standalone
adjusted EPS and free cash flow are non-GAAP financial measures. We are unable
to provide a reconciliation of these forward-looking measures to the most
directly comparable GAAP measures without unreasonable effort because we cannot
reliably predict the amount and timing of certain items that may be material to
our GAAP results. The magnitude of these items may be material to the comparable
GAAP measures.
Honeywell Aerospace 3Q26 Results - 3
Segment results
Electronic Solutions
sales grew 4% year over year on a reported basis and 5% organically¹, led by
strength in Commercial Original Equipment and Defense and Space. Segment
adjusted EBIT¹ increased by 11% year over year as tariff refunds and pricing
more than offset unfavorable mix and higher costs.
($ in millions) 3Q 2026 3Q 2025 % Change % Organic1
Sales $1,784 $1,708 4% 5%
Segment profit/segment $564 $510 11%
adjusted EBIT1
Engines and Power Systems
sales increased 3% year over year on a reported basis and 2% organically¹, led
by higher Commercial Aftermarket volumes. Segment adjusted EBIT¹ decreased 16%
year over year as unfavorable mix and higher costs more than offset price and
the impact of tariff refunds.
($ in millions) 3Q 2026 3Q 2025 % Change % Organic1
Sales $1,515 $1,478 3% 2%
Segment profit/segment $250 $299 (16)%
adjusted EBIT1
Control Systems
sales were flat year over year on a reported and organic¹ basis as Defense and
Space growth was offset by a decline in Commercial Aftermarket. Segment adjusted
EBIT¹ increased 2% year over year as price more than offset higher costs and
unfavorable mix.
($ in millions) 3Q 2026 3Q 2025 % Change % Organic1
Sales $1,345 $1,347 —% —%
Segment profit/segment $382 $376 2%
adjusted EBIT1
Conference call details
Honeywell Aerospace will discuss its third quarter results and full-year 2026
guidance during an investor conference call starting at 5:00 pm EDT today. A
live webcast of the investor call as well as related presentation materials will
be available through the Investor Relations section of the company’s website
(investor.honeywellaerospace.com). A replay of the webcast will be available for
30 days following the presentation.
About Honeywell Aerospace
Honeywell Aerospace (Nasdaq: HONA) is an independent global aerospace and
defense company whose critical technologies are broadly deployed on the world’s
leading commercial air transport, business aviation, defense and space
platforms. These integrated solutions enable safer, more efficient, and more
reliable missions. Headquartered in Phoenix, Arizona, the company employs more
than 36,000 people globally and supports more than 10,000 customers. With a
broad portfolio spanning avionics and navigation systems, engines and power
systems, and control systems for aircraft, Honeywell Aerospace combines
commitment and deep engineering expertise to drive innovation and long-term
value for the aerospace industry. For more information, visit
www.honeywellaerospace.com or follow Honeywell Aerospace on LinkedIn.
Additional information
Honeywell Aerospace uses our Investor Relations website,
investor.honeywellaerospace.com, as a means of disclosing information which may
be of interest or material to our investors and for complying with disclosure
obligations under Regulation FD. Accordingly, investors should monitor our
Investor Relations website, in addition to following our press releases, SEC
filings, public conference calls, webcasts, public conference calls, and
webcasts.
Forward-looking statements
We describe many of the trends and other factors that drive our business and
future results in this release. These discussions contain forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). Forward-looking statements are those that address activities,
events, or developments that management intends, expects, projects, believes,
estimates, forecasts, or anticipates will or may occur in the future. They are
based on management's assumptions and assessments in light of past experience
and trends, current economic and industry conditions, expected future
developments, and other relevant factors, many of which are difficult to predict
and outside of our control.
Forward-looking statements are not guarantees of future performance, and actual
results may differ materially from those reflected in such statements. Important
factors that could cause Honeywell Aerospace's actual results to differ
materially from those projected in any forward-looking statements include, but
are not limited to: (i) risks relating to Honeywell Aerospace's spin-off from
Honeywell International Inc., including our ability to realize the anticipated
benefits of operating as an independent public company;
Honeywell Aerospace 3Q26 Results - 4
(ii) supply chain disruptions, including constraints on or changes in the price
or availability of raw materials and components; (iii) our ability to
successfully develop new technologies and introduce new products; (iv) our
ability to compete successfully in the markets in which we operate; (v) changes
in demand for our products and services, including conditions in the commercial
aerospace, business aviation, and defense and space markets; (vi) changes in
government spending and risks associated with our government contracts; (vii)
other economic, business, competitive, regulatory, geopolitical, and market
factors described in our filings with the Securities and Exchange Commission
("SEC"); (viii) the impact of tariffs, including the amount and timing of any
tariff refunds; (ix) adverse outcomes of litigation matters and government and
other proceedings; and (x) our ability to declare and pay dividends in future
periods.
These forward-looking statements should be considered in light of the
information included in this release, our Registration Statement on Form 10-12B,
as amended (File No. 001-43173), including the final Information Statement dated
June 15, 2026 furnished as Exhibit 99.1 to our Current Report on Form 8-K filed
on June 15, 2026, our Quarterly Reports on Form 10-Q for the quarters ended June
27, 2026 and September 26, 2026, and our other filings with the SEC. In
addition, no assurance can be given that any plan, initiative, projection, goal,
commitment, expectation, or prospect set forth in this release can or will be
achieved. Any forward-looking plans described herein are not final and may be
modified or abandoned at any time. We do not undertake to update or revise any
of our forward-looking statements, except as required by applicable securities
law.
This release contains financial measures presented on a non-GAAP basis.
Honeywell Aerospace’s non-GAAP financial measures used in this release are as
follows:
Organic sales growth,
Adjusted EBIT,
Pro forma standalone adjusted EBIT,
Adjusted earnings per share,
Pro forma standalone adjusted earnings per share,
Free cash flow, and
Segment adjusted EBIT.
Management believes that, when considered together with reported amounts, these
measures are useful to investors and management in understanding our ongoing
operations and in the analysis of ongoing operating trends. These measures
should be considered in addition to, and not as replacements for, the most
comparable GAAP measure. Certain measures presented on a non-GAAP basis
represent the impact of adjusting items net of tax. The tax-effect for adjusting
items is determined individually and on a case-by-case basis. Refer to the
Appendix attached to this release for reconciliations of non-GAAP financial
measures to the most directly comparable GAAP measures.
Honeywell Aerospace 3Q26 Results - 5
Honeywell Aerospace Inc.
Consolidated Statements of Operations (Unaudited)
(Dollars in millions, except per share amounts)
Three Septem… Septem… Nine Septem…
Months 26, 27, Months 26, Septemb…
Ended 2026 2025 Ended 2026 27, 2025
──────────────────────────────────────────────────────────────────────────────
Produ… $ 2,690 $ 2,533 $ 7,723 $ 7,191
sales
Servi… 1,954 2,000 5,795 5,705
sales
Net 4,644 4,533 13,518 12,896
sales
Costs,
expen…
and
other
Cost
of 1,985 1,950 5,805 5,422
produ…
sold
Cost
of 944 926 2,787 2,730
servi…
sold
Total
cost
of
produ… 2,929 2,876 8,592 8,152
and
servi…
sold
Resea…
and 216 186 586 520
devel…
expen…
Selli…
gener…
and 471 441 1,757 1,189
admin…
expen…
Inter…
expen… 187 -5 404 -14
(inco…
net
Other
(inco… -60 294 100 375
expen…
net
Total
costs,
expen… 3,743 3,792 11,439 10,222
and
other
Income
before 901 741 2,079 2,674
taxes
Income
tax 164 87 444 382
expen…
Net 737 654 1,635 2,292
income
Less:
Net
income
attri… 11 10 29 27
to
nonco…
inter…
Net
income
attri… $ 726 $ 644 $ 1,606 $ 2,265
to
Aeros…
Earni…
per
share
of $ 2.29 $ 2.03 $ 5.07 $ 7.15
common
stock
-
basic
Earni…
per
share
of $ 2.29 $ 2.03 $ 5.06 $ 7.15
common
stock
-
dilut…
Honeywell Aerospace 3Q26 Results - 6
Honeywell Aerospace Inc.
Consolidated Balance Sheets (Unaudited)
(Dollars in millions, except per share amounts)
September 26, 2026 December 31, 2025
──────────────────────────────────────────────────────────────────────────────
ASSETS
Current assets:
Cash and cash equivalents $ 1,558 $ 213
Accounts receivable, less
allowances of 2,324 2,156
$54 and $33, respectively
Inventories 4,624 4,311
Current contract assets 1,462 1,366
Other current assets 544 344
Total current assets 10,512 8,390
Property, plant and 2,318 2,101
equipment, net
Goodwill 3,035 3,025
Other intangible assets, 2,239 2,177
net
Deferred tax assets 72 412
Pension assets 3,039 13
Other assets 1,817 1,567
Total assets $ 23,032 $ 17,685
LIABILITIES
Current liabilities:
Accounts payable $ 2,931 $ 2,883
Current contract 1,612 1,589
liabilities
Accrued liabilities 1,857 2,105
Total current liabilities 6,400 6,577
Long-term debt 15,853 4
Contract liabilities 1,075 1,091
Deferred tax liabilities 679 61
Other liabilities 1,514 1,456
Total liabilities 25,521 9,189
EQUITY
Preferred stock, par value
$0.01 per
share; 40.0 million shares — —
authorized;
no shares issued and
outstanding
Common stock, par value
$0.01 per share;
1.0 billion shares
authorized; 317.0
million shares issued and 3 —
outstanding as
of September 26, 2026; no
shares issued
and outstanding as of
December 31, 2025
Additional paid-in capital 29 —
Accumulated deficit -1,804 —
Net Parent investment — 8,609
Accumulated other -800 -210
comprehensive loss
Total (deficit) equity
attributable to -2,572 8,399
Aerospace
Noncontrolling interests 83 97
Total (deficit) equity -2,489 8,496
Total liabilities and $ 23,032 $ 17,685
(deficit) equity
Honeywell Aerospace 3Q26 Results - 7
Honeywell Aerospace Inc.
Consolidated Statements of Cash Flows (Unaudited)
(Dollars in millions)
Three Septem… Septem… Nine Septem…
Months 26, 27, Months 26, Septemb…
Ended 2026 2025 Ended 2026 27, 2025
──────────────────────────────────────────────────────────────────────────────
CASH
FLOWS
FROM
OPERA…
ACTIV…
Net $ 737 $ 654 $ 1,635 $ 2,292
income
Adjus…
to
recon…
net
income
to
net
cash
provi…
by
opera…
activ…
Depre… 69 70 214 204
Amort… 53 21 141 99
Pensi…
(inco… -76 1 -72 4
expen…
Stock
compe… 28 16 89 62
expen…
Defer…
income -44 -57 -8 -186
taxes
Other 13 13 -45 33
Chang…
in
assets
and
liabi…
Accou… 134 -179 -231 -390
recei…
Inven… -158 5 -323 -262
Contr… -47 -49 -95 -76
assets
Other -100 40 -185 78
assets
Accou… 156 13 23 -57
payab…
Contr… -15 85 14 4
liabi…
Other -82 206 -143 59
liabi…
Net
cash
provi… 668 839 1,014 1,864
by
opera…
activ…
CASH
FLOWS
FROM
INVES…
ACTIV…
Capit… -168 -138 -428 -372
expen…
Incre…
in — — -5 -1
inves…
net
Amoun…
advan…
for
relat… — -12 -7 -19
party
loans
recei…
Payme…
recei…
from
relat… — — 51 —
party
loans
recei…
Other 4 — 4 —
Net
cash
used -164 -150 -385 -392
for
inves…
activ…
CASH
FLOWS
FROM
FINAN…
ACTIV…
Proce…
from
issua… — — 15,843 —
of
long-…
debt
Net
trans…
from 7 -622 -15,080 -1,224
(to)
Parent
Other -12 -16 -24 -41
Net
cash
(used
for) -5 -638 739 -1,265
provi…
by
finan…
activ…
Effect
of
forei…
excha…
rate
chang… 2 — -23 19
on
cash
and
cash
equiv…
Net
incre…
in
cash 501 51 1,345 226
and
cash
equiv…
Cash
and
cash
equiv… 1,057 419 213 244
at
begin…
of
period
Cash
and
cash
equiv… $ 1,558 $ 470 $ 1,558 $ 470
at end
of
period
Honeywell Aerospace 3Q26 Results - 8
Honeywell Aerospace Inc.
Segment Data (Unaudited)
(Dollars in millions)
Three Septe… Septem… Nine Septem… Septe…
Net Months 26, 27, Months 26, 27,
sales Ended 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Elec… $ 1,784 $ 1,708 $ 5,299 $ 4,903
Solu…
Engi…
& 1,515 1,478 4,341 4,142
Power
Syst…
Cont… 1,345 1,347 3,878 3,851
Syst…
Total
Net $ 4,644 $ 4,533 $ 13,518 $ 12,896
sales
Reconciliation of Segment Profit to Income Before Taxes
Three Septem… Septe… Nine Septe… Septem…
Segme… Months 26, 27, Months 26, 27,
profit Ended 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Elec… $ 564 $ 510 $ 1,533 $ 1,395
Solu…
Engi…
& 250 299 705 748
Power
Syst…
Cont… 382 376 1,098 1,184
Syst…
Corp…
and -35 -34 -85 -70
All
Other
Total
Segm… 1,161 1,151 3,251 3,257
prof…
Amor…
of -28 -3 -72 -37
acqu…
inta…
Stock
comp… -28 -16 -89 -62
expe…
Tran… -18 -143 -540 -160
cost…
Envi… -19 -258 -61 -363
expe…
Hone…
trad… -54 — -54 —
lice…
expe…
Pens…
inco… 76 -1 72 -4
(exp…
Inte…
(exp… -187 5 -404 14
inco…
net
Othe… -2 6 -24 29
net6
Inco…
befo… $ 901 $ 741 $ 2,079 $ 2,674
taxes
1. Amounts included in Cost of products and services sold and Selling, general
and administrative expenses.
2. Amounts included in Selling, general and administrative expenses.
3. Amounts included in Selling, general and administrative expenses and Other
(income) expense, net.
4. Amounts included in Cost of products and services sold and Other (income)
expense, net.
5. Amounts included in Cost of product and services sold, Selling, general and
administrative, Research and development, and Other (income) expense, net.
6. Amounts include repositioning charges and other expenses.
Honeywell Aerospace 3Q26 Results - 9
Non-GAAP Financial Measures
The following information provides definitions and reconciliations of certain
non-GAAP financial measures presented in this press release to which this
reconciliation is attached to the most directly comparable financial measures
calculated and presented in accordance with generally accepted accounting
principles (GAAP).
Management believes that, when considered together with reported amounts, these
measures are useful to investors and management in understanding our ongoing
operations and in the analysis of ongoing operating trends. Management believes
these non‑GAAP financial measures provide investors with useful supplemental
information related to our performance period to period, align the measures to
how management evaluates performance internally, and make it easier for
investors to compare our performance to peers. These measures should be
considered in addition to, and not as replacements for, the most comparable GAAP
measure. Certain measures presented on a non-GAAP basis represent the impact of
adjusting items net of tax. The tax-effect for adjusting items is determined
individually and on a case-by-case basis. Other companies may calculate these
non-GAAP measures differently, limiting the usefulness of these measures for
comparative purposes.
Management does not consider these non-GAAP measures in isolation or as an
alternative to financial measures determined in accordance with GAAP. The
principal limitations of these non-GAAP financial measures are that they exclude
significant expenses and income that are required by GAAP to be recognized in
the consolidated financial statements. In addition, they are subject to inherent
limitations as they reflect the exercise of judgments by management about which
expenses and income are excluded or included in determining these non-GAAP
financial measures. Investors are urged to review the reconciliation of the non-
GAAP financial measures to the comparable GAAP financial measures and not to
rely on any single financial measure to evaluate Honeywell Aerospace’s business.
Information reconciling forward-looking GAAP financial measures to non-GAAP
financial measures related to full-year 2026 guidance, including organic sales
growth, pro forma standalone adjusted EBIT, pro forma standalone adjusted
earnings per share, and second half free cash flow, is not available because
management cannot reliably predict or estimate certain items without
unreasonable effort. These items include fluctuations in global currency
markets; the timing, occurrence and impact of acquisition and divestiture
transactions; pension mark-to-market expense as it is dependent on macroeconomic
factors, such as interest rates and the return generated on invested pension
plan assets; and the timing of working capital cash flows and capital
expenditures. The information that is unavailable to provide a quantitative
reconciliation could have a significant impact on our reported financial
results.
Honeywell Aerospace 3Q26 Results - 10
Honeywell Aerospace Inc.
Reconciliation of Organic Sales Percent Change for Total Company and by Segment
(Unaudited)
3Q 2026 v. 3Q 2025
Honeywell Aerospace
Reported sales percent change 2 %
Less: Foreign currency translation — %
Less: Acquisitions — %
Less: Other — %
Organic sales percent change 2 %
Electronic Solutions
Reported sales percent change 4 %
Less: Foreign currency translation -1 %
Less: Acquisitions — %
Less: Other — %
Organic sales percent change 5 %
Engines & Power Systems
Reported sales percent change 3 %
Less: Foreign currency translation 1 %
Less: Acquisitions — %
Less: Other — %
Organic sales percent change 2 %
Control Systems
Reported sales percent change — %
Less: Foreign currency translation — %
Less: Acquisitions — %
Less: Other — %
Organic sales percent change — %
We define organic sales percent change as the year-over-year change in reported
Net sales relative to the comparable period, excluding the impact on sales from
foreign currency translation and acquisitions, net of divestitures, for the
first 12 months following the transaction date, and other items that are unusual
and non-recurring in nature (e.g., impact of comprehensive settlement related to
Flexjet litigation). We believe this measure is useful to investors and
management in understanding our ongoing operations and in analysis of ongoing
operating trends.
Honeywell Aerospace 3Q26 Results - 11
Honeywell Aerospace Inc.
Reconciliation of Organic Sales Percent Change by End Market
(Unaudited)
3Q 2026 v. 3Q 2025
Commercial Original Equipment
Reported sales percent change 7 %
Less: Foreign currency translation -1 %
Less: Acquisitions — %
Less: Other — %
Organic sales percent change 8 %
Commercial Aftermarket
Reported sales percent change 2 %
Less: Foreign currency translation — %
Less: Acquisitions — %
Less: Other — %
Organic sales percent change 2 %
Defense and Space
Reported sales percent change 1 %
Less: Foreign currency translation — %
Less: Acquisitions — %
Less: Other — %
Organic sales percent change 1 %
We define organic sales percentage as the year-over-year change in reported Net
sales relative to the comparable period, excluding the impact on sales from
foreign currency translation and acquisitions, net of divestitures, for the
first 12 months following the transaction date, and other items that are unusual
and non-recurring in nature (e.g., impact of comprehensive settlement related to
Flexjet litigation). We believe this measure is useful to investors and
management in understanding our ongoing operations and in analysis of ongoing
operating trends.
Honeywell Aerospace 3Q26 Results - 12
Honeywell Aerospace Inc.
Reconciliation of Net Income to Segment Profit and Adjusted EBIT
(Unaudited)
(Dollars in millions)
Three Months September 26, September 27,
Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net income $ 737 $ 654
Income tax 164 87
expense
Amortization of
acquisition-re… 28 3
intangibles(1)
Stock
compensation 28 16
expense(2)
Environmental 19 258
expense(3)
Transaction 18 143
costs(4)
Honeywell
trademark 54 —
license
expense(2)
Pension
(income) -76 1
expense(5)
Interest
expense 187 -5
(income), net
Other, net(6) 2 -6
Total Segment
Profit/Adjusted $ 1,161 $ 1,151
EBIT
1. Amounts included in Cost of products and services sold and Selling, general
and administrative.
2. Amounts included in Selling, general and administrative expenses.
3. Amounts included in Cost of products and services sold and Other (income)
expense, net.
4. Amounts included in Selling, general and administrative expenses and Other
(income) expense, net.
5. A mounts included in Cost of products and services sold, Selling, general and
administrative, Research and development, and Other (income) expense, net.
6. Amounts include repositioning and other charges.
We define Total segment profit as Net income excluding taxes, interest,
amortization of acquisition-related intangibles, stock compensation expense,
environmental expense, pension (income) expense, repositioning and other
charges, transaction costs, expenses associated with the Honeywell trademark
license, and other items within Other (income) expense, net. We define adjusted
EBIT as Net income excluding taxes, excluding interest, amortization-related
intangibles, stock compensation expense, environmental expense, pension (income)
expense, repositioning and other charges, transaction costs, expenses associated
with the Honeywell trademark license, other items within Other (income) expense,
net, and other items that are unusual or non-recurring in nature, including but
not limited to impairment charges and litigation charges (e.g., comprehensive
settlement related to Flexjet litigation). We believe these measures are useful
to investors as they provide greater transparency with respect to supplemental
information used by management in its financial and operational decision making,
as well as understanding ongoing operating trends.
Honeywell Aerospace 3Q26 Results - 13
Honeywell Aerospace Inc.
Reconciliation of Earnings per Share to Adjusted Earnings per Share
(Unaudited)
Three Months Ended
September 26, 2026
──────────────────────────────────────────────────────────────────────────────
Earnings per share of common stock - diluted1 $ 2.29
Amortization of acquisition-related 0.06
intangibles2
Transaction costs3 0.04
Pension income4 -0.18
Adjusted earnings per share of common stock - $ 2.21
diluted
1. For the three months ended September 26, 2026, adjusted earnings per share
utilizes weighted average shares of 317.7 million.
2. For the three months ended September 26, 2026, acquisition-related
intangibles amortization was $21 million, net of tax benefit of $7 million.
3. For the three months ended September 26, 2026, transaction related costs were
$14 million, net of tax benefit of $4 million.
4. For the three months ended September 26, 2026, pension income was $58
million, net of tax expense of $18 million.
We define adjusted earnings per share as diluted earnings per share adjusted to
exclude various charges as listed above. We believe adjusted earnings per share
is a measure that is useful to investors and management in understanding our
ongoing operations and in analysis of ongoing operating trends.
Honeywell Aerospace 3Q26 Results - 14
Honeywell Aerospace Inc.
Reconciliation of Cash Provided by Operating Activities to Free Cash Flow
(Unaudited)
(Dollars in millions)
Three Months Ended,
September 26, 2026
────────────────────────────────────────────────────────────────────
Cash provided by operating activities $ 668
Capital expenditures -168
Free cash flow $ 500
We define free cash flow as cash provided by operating activities less cash for
capital expenditures and excluding the cash payments for settlement of Flexjet-
related litigation matters.
We believe this measure is useful to investors and management as a measure of
cash generated by operations that will be used to repay scheduled debt
maturities and can be used to invest in future growth through new business
development activities or acquisitions, pay dividends, repurchase stock, or
repay debt obligations prior to their maturities. This measure can also be used
to evaluate our ability to generate cash flow from operations and the impact
that this cash flow has on our liquidity.