Honeywell Aerospace (HONA.V) Q2 2026 earnings summary

Executive summary

• Completed spin-off from Honeywell on June 29, 2026, becoming an independent public company listed on Nasdaq under the symbol HONA.

• Achieved Q2 2026 sales of $4.5–$4.52 billion, up 5% year-over-year, with backlog up 9% to $18.2 billion, driven by strong order growth in Defense and Space.

• Net income for Q2 2026 was $246–$256 million, down sharply year-over-year due to separation-related and transaction costs.

• Secured $15 billion in new wins year-to-date, including major contracts with IndiGo and Aeromexico.

• Strategic focus on supply chain transformation and operational investments to unlock output growth and meet long-term targets.

Financial highlights

• Q2 2026 organic sales up 5% year-over-year to $4.5–$4.52 billion; backlog at $18.2 billion (+9% y/y); book-to-bill ratio of 1.1.

• Adjusted EBIT was $995 million–$1 billion, down 2–7% year-over-year, impacted by unfavorable mix and ~$50 million inventory obsolescence charges.

• Adjusted EPS was $1.78–$1.87, down from the prior year due to higher taxes, lower EBIT, and transaction costs.

• Commercial OE sales up 6%, aftermarket up 8%, defense and space up 3% year-over-year.

• Gross margin for Q2 2026 was approximately 35%, down from 36% in Q2 2025.

Outlook and guidance

• Full-year 2026 organic sales growth guidance revised to 4–5%, down from previous 7–9%.

• Pro forma standalone adjusted EBIT guidance: $4.35–$4.45 billion; EPS: $7.60–$7.90.

• Second half 2026 free cash flow expected at $1.0–$1.5 billion; capex of ~$650 million.

• Commercial OE projected to grow mid-single digits; aftermarket low-to-mid-single digits; defense and space up mid-single digits.

• Guidance reset to prioritize long-term growth, with accelerated growth expected from 2027 as supply chain investments take effect.