Honeywell Aerospace CEO Jim Currier outlined financial targets at the company's investor day in Scottsdale, Arizona, as the business prepares to spin off from Honeywell International later this month. The standalone company expects full-year 2026 adjusted earnings of $4.65 billion to $4.75 billion. The spinoff addresses investor concerns over the parent company's underperformance - Honeywell shares gained about 20% since June 2023 compared to the S&P 500's roughly 77% gains.
Honeywell Aerospace Announces 2026 and 2030 Financial Targets
The company expects to generate full-year 2026 adjusted earnings before interest and taxes of $4.65 billion to $4.75 billion with free cash flow in the second half of the year of between $1 billion and $1.5 billion. By 2030 Honeywell is targeting annual earnings of at least $6.5 billion and full-year free cash flow of at least $4 billion.
The company is targeting organic annual sales growth of 6% to 8% through 2030, with annual earnings growth of 9%. Last year the business generated profits topping $4.2 billion with margins of 24.5%.
"We have a purpose-built management team just solely focused on one strategy, one mission as opposed to disparate missions of a conglomerate," Currier told CNBC at the investor day.
Company Focuses on Commercial Transport and Defense Markets
"The greatest growth for us is occurring in the commercial transport market and in defense and space," Currier said Wednesday. "We have opportunities where we are well positioned in our products and technologies."
Currier added Honeywell has "record" backlog orders from Airbus and Boeing. The company supplies technology and components including flight management systems, engine controls, and auxiliary power units for commercial airplanes, business jets, and military aircraft.
Company Addressed First Quarter Supplier Challenges
Honeywell Aerospace faced questions about recent challenges with key suppliers during the first quarter. The company says the temporary issues were tied to the war in the Middle East, which weighed on its engines and control systems divisions in January and February.
Honeywell Aerospace executives say the problems with some of its suppliers have been corrected since then.
GE Aerospace Stock Gained 125% Since April 2024 Spinoff
GE Aerospace stock jumped about 125% since it became a standalone company in April 2024, easily outpacing the S&P 500 - up almost 45% over the same timeframe - and Honeywell, which is up almost 20%.
Honeywell decided in 2024 to break up operations into three separate companies: Solstice Advanced Materials, Honeywell Technologies and Honeywell Aerospace. "Essentially, on the other side of the separation ... each business is positioned so well for the market it serves," Honeywell CEO Vimal Kapur told CNBC last month.
"Bottom line: This is an opportunity for management to convert a generally skeptical crowd of aerospace specialists," said Wolfe Research analyst Nigel Coe in a recent note.
FAQ
What financial targets did Honeywell Aerospace announce for 2026?
Honeywell Aerospace expects to generate full-year 2026 adjusted earnings before interest and taxes of $4.65 billion to $4.75 billion with free cash flow in the second half of the year of between $1 billion and $1.5 billion.
What supplier challenges did Honeywell Aerospace face in the first quarter?
The company faced temporary issues with key suppliers tied to the war in the Middle East, which weighed on its engines and control systems divisions in January and February. Honeywell Aerospace executives say the problems with some of its suppliers have been corrected since then.
How has GE Aerospace stock performed since becoming a standalone company?
GE Aerospace stock jumped about 125% since it became a standalone company in April 2024, easily outpacing the S&P 500 which was up almost 45% over the same timeframe.
