Honeywell Aerospace Inc. manufactures and supplies aircraft components, avionics, engines, and systems for airframe manufacturing, commercial airline, military and defense, business aviation, and space markets. Its products include actuation, air and thermal management, auxiliary power units, cabin management and entertainment, cockpit systems and displays, electric power, engines, health and usage monitoring, lighting, microelectronics, navigation and radios, recorders and transmitters, satellite communications, sensors, space products, terrain and traffic awareness, vehicle turbochargers, weather radars, and wheels and braking systems. The company also offers aerospace trading, asset availability, cabin connectivity, maintenance and service plans, certifications, training, and other flight services, as well as GoDirect Trade, an e-commerce platform for new and used air transport and business aircraft parts. Its platforms cover business jets, airlines/cargo planes, helicopters, defense, space, general aviation, and automotive, and it serves military fixed and rotary wing operators in South America, Latin America, Africa, and the Middle East. Founded in 1914 and based in Phoenix, Arizona, Honeywell Aerospace Inc. is a prior subsidiary of Honeywell International Inc.
Honeywell Aerospace Spinoff Nears Completion, Set to Join S&P 500
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Spinoff Approval and Distribution Date Honeywell's board approved the aerospace spinoff, with shares to be distributed on June 29. Shareholders get one HONA share for every two Honeywell shares. This creates a pure-play aerospace company, which can unlock value and drive the stock higher.
This is the core event that creates HONA as a standalone company, directly impacting its valuation and future.
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S&P 500 and S&P 100 Inclusion HONA will join the S&P 500 and S&P 100 on June 29, replacing Conagra and Honeywell International respectively. This inclusion forces index funds to buy the stock, increasing demand and potentially lifting the price.
Index inclusion is a major catalyst that broadens the investor base and typically supports higher valuations.
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Appointment of AT&T CFO as Director Honeywell Aerospace appointed AT&T CFO Pascal Desroches as an independent director and audit chair. This adds financial expertise to the board, which can boost investor confidence and support the stock price.
A strong board appointment signals good governance and can positively influence investor sentiment.
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Honeywell Aerospace: Supply Chain Woes, Index Exit, Defense Deal
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Supply chain problems trigger guidance cut and 28% stock plunge Honeywell Aerospace cut its full-year growth and profit outlook because supply chain constraints forced it to shift away from higher-margin aftermarket work. The stock fell nearly 28% as investors worried about execution and credibility. This is the main reason HONA is down.
This is the biggest negative driver and explains the sharp price drop.
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Madison Large Cap Fund initiates new position Madison Investments started a new stake in HONA, saying the spin-off will improve management incentives and capital allocation, and that the market underappreciates this. A notable fund buying can support the stock by signaling confidence.
Shows a positive counterweight from institutional buying.
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Removed from S&P 100 index HONA will be removed from the S&P 100 in a reshuffle, which forces index funds to sell the stock. This adds selling pressure and can weigh on the share price around the change date.
A new negative event that affects demand for the stock.
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State Department approves $750 million tank engine sale to Saudi Arabia Honeywell is the contractor for a $750 million sale of AGT-1500 tank engines to Saudi Arabia. While small, it supports Honeywell's defense propulsion business and adds to its international defense revenue, which is about 30% of defense and space sales.
A new positive demand signal for Honeywell's defense segment.
Q3 2026
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HONA's post-spinoff quarter marred by earnings miss, guidance cut, and sharp share decline
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Earnings miss and guidance cut Honeywell Aerospace missed its first earnings estimates as a standalone company and cut organic growth guidance to 4–5%, blaming supply constraints and a shift away from higher-margin aftermarket work. This disappointed investors and weighed heavily on the stock.
This is the primary new negative event that drove the stock down during the quarter.
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Sharp share price decline HONA shares fell over 20% and then nearly 28% more, reflecting a weak spinoff debut and negative market reaction to the earnings miss and guidance cut. The steep drop shows how volatile the new standalone stock has been.
This directly answers what moved the price during the quarter.
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Index removal and analyst downgrade HONA was removed from the S&P 100, which forced index funds to sell the stock, adding downward pressure. Morgan Stanley also cut its price target, further dampening investor sentiment.
These are new negative events that contributed to the stock's decline.
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Record order and defense sale Honeywell Aerospace won a record IndiGo order for 810 A320neo jets, extended its APU distribution deal with TAT through 2036, and secured a $750 million Saudi tank-engine sale. These support future revenue and defense growth.
These positive developments are new and show underlying demand despite the stock's fall.
News & notes movingHONA
United States
Aerospace & Aviation▲
Honeywell Aerospace Added to S&P Aerospace & Defense Select Industry Index
Honeywell Aerospace has been added to the S&P Aerospace & Defense Select Industry Index, a move that places the $51.9b aircraft components, avionics, engines and systems supplier inside a curated sector basket tracked by aerospace and defense specialists. Inclusion can raise the stock's visibility among institutional investors that reference or benchmark against sector-specific indices. The index entry arrives alongside mixed fundamentals: revenue grew 9.2% over the past year and the group reports no negative shareholders equity, but profit margins moved from 16.8% to 10.9% and debt is described as not well covered by operating cash flow. Investors will watch the next full-year results after 11 September 2026, particularly net profit margin relative to 10.9% and operating cash flow coverage of debt.
Honeywell CEO Calls GE's $11.75 Billion CPP Deal Positive for Aerospace
Honeywell Aerospace CEO Jim Currier called GE Aerospace's planned $11.75 billion acquisition of Consolidated Precision Products positive for the industry overall, while noting Honeywell does not directly compete with CPP because the parts it sources differ from GE's. CPP supplies roughly a quarter of GE's casting requirements, and GE expects the business to generate about $2 billion of revenue in 2027. Currier said Honeywell could bring additional outsourced capabilities back in-house through smaller, complementary acquisitions, after the company cut its 2026 organic sales-growth outlook to 4%-5% from 7%-9% and quadrupled spending on multi-sourcing and in-sourcing initiatives this year. Honeywell deployed skilled workers into supplier factories, which Currier said helped increase production 30% year over year during the preceding 30-45 days. In the second quarter, sales rose 5% to $4.52 billion, but adjusted EPS fell 32% to $1.87, with supply constraints and an unfavorable mix weighing on profitability.
Aerospace & Aviation › Avionics & Aircraft Systems Supply
GE · Capital · Positive GE Aerospace's planned $11.75 billion acquisition of Consolidated Precision Products secures roughly a quarter of its casting requirements and is expected to generate about $2 billion of revenue in 2027.
Consolidated Precision Products · Capital · Positive Consolidated Precision Products is being acquired by GE Aerospace for $11.75 billion and is expected to generate about $2 billion of revenue in 2027.
HON · Capital · Negative Honeywell cut its 2026 organic sales-growth outlook to 4%-5% from 7%-9% and Q2 adjusted EPS fell 32% to $1.87 on supply constraints and unfavorable mix.
HONA · Supply · Neutral Honeywell Aerospace CEO commented on the GE-CPP deal and said Honeywell may bring outsourced capabilities in-house via smaller acquisitions after quadrupling multi-sourcing/in-sourcing spending.
State Department Approves $5.75 Billion in Potential Arms Sales to Saudi Arabia
The State Department has approved two potential arms sales to Saudi Arabia totaling $5.75 billion, split between a $5 billion package of JDAM-ER guidance kits and bombs and a separate $750 million deal for AGT-1500 tank engines. The JDAM package consists of 5,004 KMU-572 and 5,000 KMU-556 JDAM guidance kits and 5,004 BLU-111 and 5,000 BLU-117 bombs, with Boeing identified as principal contractor for the JDAM-ERs and Honeywell handling the engines. The State Department said the sales would strengthen Saudi Arabia's airborne defense capabilities and improve interoperability with U.S. and Gulf partner forces. For Boeing, the deal is modest against its roughly $85 billion Defense, Space and Security backlog, of which international orders already account for 27%, and the segment reported a second-quarter operating loss largely on charges tied to the VC-25B Air Force One program. For Honeywell Aerospace, the smaller AGT-1500 contract fits its established defense propulsion business and adds to an international defense business that makes up about 30% of its total Defense and Space revenue. Neither potential sale is large enough to meaningfully affect either company's short-term results on its own.
GE Aerospace to Buy Consolidated Precision Products for $11.75 Billion
GE Aerospace has agreed to acquire Consolidated Precision Products, a producer of cast components for jet engines and other high-stress applications, for $11.75 billion. The deal will be funded with $7 billion in cash and the balance through new debt, and is expected to close in the second half of 2027 pending regulatory approval. Honeywell Aerospace's chief executive said the planned castings acquisition could be positive for the broader aerospace supply chain, a rare vote of confidence from a rival, according to Reuters. GE shares climbed approximately 3.1% to $316.59, up from an earlier $312.42 reading, and now trade 16.74% above the $271.20 GF Value. GE generated $3 billion of free cash flow in the second quarter, putting the acquisition value at roughly 3.9 times that single quarter's cash generation, though investors still have to weigh integration risk, additional leverage and the premium already embedded in the stock.
GE · Capital · Positive GE Aerospace agreed to acquire Consolidated Precision Products for $11.75 billion, funded with cash and new debt.
Consolidated Precision Products · Capital · Positive Consolidated Precision Products is being acquired by GE Aerospace for $11.75 billion.
HONA · Competition · Neutral Honeywell Aerospace's CEO said the castings acquisition could be positive for the broader aerospace supply chain, a rival's comment.
Trump Refuses to Allow Bombardier Jet Sales in the US
President Trump said on the 7th that he would not allow Canada's Bombardier to sell its private jets in the US unless the company produces them in the country. In a post on his social media platform Truth Social, he wrote, "We will no longer allow Bombardier to sell in the US! The quality of their products is not good enough!" He added, "If they want access to our market, they must manufacture here and stop treating America like a piggy bank." The remarks came as Canada was set to impose retaliatory tariffs on US goods on the 8th in response to US tariffs. The White House declined to comment on any measures to block sales of Bombardier aircraft that have received FAA type certification. Aerospace analyst Richard Aboulafia noted that most of the engines for Bombardier jets are made by US firms Honeywell Aerospace and GE Aerospace, making customer cancellations or sales bans unlikely. Bombardier employs 3,500 people in the US and has 2,800 suppliers, and produces wings for its flagship Global 8000 jet in Texas.
Bombardier Inc. · Tariff · Negative Trump said he would not allow Bombardier to sell its private jets in the US unless it manufactures them in the country.
GE · Tariff · Neutral Analyst notes most Bombardier jet engines are made by GE Aerospace, so a US sales ban could hurt engine demand, but the article says such a ban is unlikely.
HONA · Tariff · Neutral Analyst notes Honeywell Aerospace makes many Bombardier jet engines, so a US sales ban could hurt engine demand, but the article says such a ban is unlikely.
S&P 500 Adds Bloom Energy, Everpure, Illumina in Shake-Up
S&P Dow Jones Indices announced that Bloom Energy, Everpure, and Illumina will join the S&P 500 before trading begins Monday, September 21, replacing Molson Coors Beverage, Trade Desk, and Builders FirstSource. Bloom Energy, the largest incoming company with a market capitalization of $74 billion, supplies fuel-cell systems for data centers and industrial facilities, offering exposure to AI-driven power demand. Everpure provides data-storage systems and software, while Illumina makes gene-sequencing tools. All three stocks have gained at least 40% in 2026. Index funds and ETFs tracking the benchmark must buy the new constituents and sell the departing companies, potentially boosting volume and price moves near the effective date. A parallel S&P 100 reshuffle will add Dell, Palo Alto Networks, Arista Networks, and SanDisk, while removing Honeywell Aerospace, Nike, Simon Property Group, and Colgate-Palmolive.
Madison Large Cap Fund Adds Honeywell Aerospace as New Holding
Madison Investments' Large Cap Fund initiated a new position in Honeywell Aerospace Inc. during the second quarter of 2026, following the company's spin-off from Honeywell International in June 2026. The fund returned 8.4% in the quarter, underperforming the S&P 500's 15.2% gain, which was driven largely by a narrow group of AI-related stocks. Honeywell Aerospace closed at $164.73 per share on August 21, 2026, with a market capitalization of $52.21 billion and a one-month return of -21.87%. Madison believes the separation will enhance the business through better-tailored management compensation and capital allocation, and that the combination of attractive growth outlook, improved incentives, and optimized capital allocation is underappreciated.
Honeywell Aerospace validates satellite antenna for drone operations
Honeywell Aerospace has validated a satellite communications antenna designed to maintain command-and-control links with unmanned aircraft flying beyond an operator’s visual line of sight. The antenna was developed at the company’s research and development center in Brno, Czechia, through the European Space Agency’s Iris Global program, and Honeywell tested the technology with Viasat’s satellite network during flights at Budkovice Airport. The system switches between satellite and terrestrial networks to help operators maintain contact with an aircraft, and during the tests operators changed flight paths after detecting potential conflicts, including another drone crossing a planned route. The demonstrations also tested operations within Europe’s U-space framework for managing unmanned aircraft alongside crewed aviation, with Frequentis supplying traffic-management software and a Honeywell ground station using telemetry from a drone and a crewed aircraft to identify conflicts and recommend route changes. Honeywell said it is preparing the antenna for commercial production and evaluating Czech suppliers for its manufacturing network, with the project co-funded by the European Space Agency and supported by two Czech government ministries.
Jim Cramer Criticizes Honeywell Aerospace's First Post-Spinoff Earnings Miss
Jim Cramer said Honeywell Aerospace Inc. (NASDAQ:HONA) mishandled its first earnings report as a standalone company by waiting until the release to disclose supply chain problems that caused a miss. The company reported second quarter results on August 5th that missed analyst revenue and earnings estimates and lowered its full year 2026 organic sales growth forecast to 4% to 5% from an earlier 7% to 9%. Cramer called the lack of a preannouncement a rookie mistake that put the company's credibility in question, though he said it was not dishonesty. CEO Jim Currier admitted the supply chain had not ramped as expected, while CFO Joshua Jepsen said investments to meet spares market capacity would dampen near-term financial performance in the back half. Despite the issues, Honeywell Aerospace reported an $18.5 billion backlog and 8% growth in its aftermarket business to $1.8 billion, and BMO kept an Outperform rating.
Odysight.ai Reports First Half 2026 Results and Business Update
Odysight.ai reported financial results for the first half of 2026 and provided a business update, highlighting a backlog of $16.45 million as of the release date, up from $14.1 million as of June 30, 2026. The company received its first purchase order from Boeing to showcase its AI-powered predictive maintenance solution at two Boeing sites, marking the start of a direct OEM relationship with potential for broader integration across Boeing's rotorcraft and defense portfolio. Additional purchase orders were received from Elbit Systems on behalf of the Israeli Ministry of Defense and from Honeywell Aerospace APU Division for a proof-of-concept collaboration. Revenues for the first half of 2026 were $0.5 million, compared to approximately $2.4 million in the same period of 2025, with the decrease primarily attributable to $1.86 million in first quarter 2025 revenues from a Fortune 500 medical company customer. Net loss was approximately $9.5 million, compared to approximately $8.3 million in the prior year period, and the company ended the half with approximately $17.6 million in cash and no debt.
ODYS · Demand · Positive Company reports increased backlog and new purchase orders from Boeing, Elbit Systems, and Honeywell, indicating growing demand for its products.
BA · Demand · Positive Odysight.ai received its first purchase order from Boeing, indicating potential future business for Boeing's predictive maintenance solutions.
HONA · Demand · Positive Honeywell Aerospace APU Division placed a purchase order for a proof-of-concept collaboration with Odysight.ai, indicating potential future business.
Jim Cramer Dumps Honeywell Aerospace After Guidance Cut Triggers 28% Plunge
Jim Cramer revealed on Mad Money that his Charitable Trust sold its entire position in Honeywell Aerospace at the opening bell after the company slashed its full-year outlook, triggering a nearly 28% stock collapse between August 4 and August 6. Management cut organic growth guidance to 4% to 5% from 7% to 9%, lowered pro forma standalone adjusted EBIT to a range of $4.35 billion to $4.45 billion from $4.65 billion to $4.75 billion, and revised year-over-year adjusted EBIT growth to flat to 3% from 7% to 10%, citing persistent supply-chain constraints that forced a shift away from higher-margin aftermarket operations. Second-quarter revenue came in at $4.52 billion, up 5% year-over-year, but adjusted earnings of $1.87 per share missed consensus estimates, weighed down by roughly $100 million in separation-related costs and inventory obsolescence charges. Cramer called the situation very suboptimal and a rookie mistake, stating the company should have been much more forthcoming, while Jefferies slashed its price target to $175 from $235 and kept a Hold rating, warning that fixing supply chains and rebuilding trust will take time.
Aerospace & Aviation › Avionics & Aircraft Systems ▼Supply
HONA · Supply · Negative Supply-chain constraints forced a shift away from higher-margin aftermarket operations, leading to a guidance cut and earnings miss.
Wall Street rallies after July jobs loss kills Fed rate-hike case
The U.S. economy shed 23,000 nonfarm payrolls in July, triggering Wall Street's best week since April as investors concluded the Federal Reserve's next move would no longer be a rate increase. Private employers added 30,000 jobs, well short of the 78,000 expected, while May and June figures were revised down by a combined 103,000, and average hourly earnings rose just 3.2% year-over-year, the slowest pace since 2021. The S&P 500 rallied 3.5% for the week and the Nasdaq 100 jumped 4.8%, while gold surged 7.5% to $4,347.70 an ounce, its strongest week in seven months. Among individual stocks, Coherent Corp. soared 43.5% on peer results and a JPMorgan price-target increase, Palantir Technologies rose about 29% after second-quarter revenue climbed 93% to $1.94 billion and full-year guidance was raised to $8.15 billion, and Zebra Technologies posted a 45% earnings beat with adjusted earnings of $6.35 a share. On the downside, The Trade Desk lost roughly a quarter of its value after third-quarter guidance of at least $650 million fell far below the $805 million expected, Honeywell Aerospace cut its full-year organic sales growth outlook to 4%-5% from 7%-9%, and DaVita fell 17% despite beating estimates because it reaffirmed an outlook whose midpoint sat below consensus. Attention now turns to the July consumer price index on August 12, with economists expecting headline inflation to ease to 3.4% and core inflation to slow to 2.5%.
Wall Street falls as Middle East tensions and soft earnings weigh
U.S. stocks closed lower on Thursday as investors awaited a permanent settlement of Middle East conflicts and digested disappointing earnings from Axon Enterprise and Honeywell Aerospace. The Dow Jones Industrial Average fell 464 points, or 0.9%, to 53,885.10, snapping a five-day winning streak, while the S&P 500 slipped 0.2% to 7,709.96 and the Nasdaq Composite edged down 0.1% to 26,363.44. Crude oil prices rose after Iran’s Fars news agency reported a parliamentary committee is reviewing a bill to bar U.S., Israeli and other hostile ships from the Strait of Hormuz, with West Texas Intermediate settling up 2.8% at $77.29 per barrel and Brent rising 3.8% to $82.49. Axon Enterprise shares tumbled 14.3% after adjusted earnings of $1.88 per share missed the Zacks Consensus Estimate of $1.89, while Honeywell Aerospace plunged 23.2% as adjusted earnings of $1.87 per share fell short of the $2.07 estimate. Initial jobless claims decreased by 1,000 to 199,000 for the week ended August 1, slightly above the consensus estimate of 198,000.
Honeywell Aerospace misses Q2 estimates, slashes full-year outlook
Honeywell Aerospace reported second-quarter results that missed Wall Street expectations and cut its full-year financial guidance, citing supply chain constraints. The company posted sales of $4.5 billion and adjusted EBIT of $995 million, below analyst projections of $4.6 billion and $1.1 billion, respectively. Adjusted earnings per share fell to $1.87 from $2.75 a year earlier. For the full year, Honeywell Aerospace now expects organic sales growth of 4% to 5%, down from its prior guidance of 7% to 9%, and trimmed its pro forma standalone adjusted EBIT target to $4.35 billion–$4.45 billion from $4.65 billion–$4.75 billion. The company also issued full-year adjusted earnings per share guidance of $7.60 to $7.90. Honeywell Aerospace began trading on Nasdaq under the ticker HONA in late June after completing its spinoff from Honeywell Technologies.
Honeywell Aerospace Stock Plunges 20.8% After First Post-Spin Earnings Miss
Honeywell Aerospace stock crashed 20.8% in early trading Thursday after the company missed earnings expectations in its first quarterly report since spinning off from Honeywell in June. The aerospace supplier posted pro forma earnings of $1.87 per share on revenue of $4.5 billion, falling short of the $2.13 per share analysts had forecast. Sales rose 5% year-over-year on a pro forma basis, but pro forma earnings dropped 32% and GAAP earnings tumbled 71% to just $0.78 per diluted share. CEO Jim Currier cited strong secular trends and significant customer demand, though supply constraints are limiting sales growth, and the company lowered its second-half guidance to no more than 5% sales growth with earnings of about $7.75 per share and free cash flow between $1 billion and $1.5 billion.
Paycom jumps premarket after earnings beat; data storage stocks fall
U.S. stock index futures were little changed on Thursday as investors weighed a potential Strait of Hormuz reopening and renewed AI spending concerns. Paycom Software surged 13.1% after reporting adjusted earnings of $2.78 per share, well above the $2.38 estimate, on revenue of $531.2 million. Data storage companies declined sharply, with Western Digital slumping 14.6% and Sandisk falling 9.2%, as their results failed to meet elevated AI-driven expectations. LegalZoom plunged 23% after cutting its full-year revenue forecast, citing a slowdown in Google Search traffic. Honeywell Aerospace fell 13.1% after slashing its full-year outlook in its first report as an independent company.
Honeywell Aerospace Set to Report Q2 Earnings After Spin-Off
Honeywell Aerospace is scheduled to release its second-quarter 2026 results on August 5 after market close, marking its first quarterly report as an independent company following its June 29 spin-off from Honeywell International. The Zacks Consensus Estimate for earnings stands at $2.07 per share on revenues of $4.67 billion. Results are expected to benefit from strong commercial aviation demand across original equipment and aftermarket businesses, with sustained maintenance, repair and overhaul services providing high-margin recurring revenue, while defense and space performance may have improved if supply-chain challenges eased. Zacks does not predict an earnings beat, citing an Earnings ESP of 0.00% and a Zacks Rank of 3. The stock has lost 13% over the past month, compared with a 9.9% decline for the industry.
Jim Cramer sees Honeywell Aerospace as overlooked winner after industrial split
Jim Cramer says Honeywell Aerospace may be the overlooked piece of Honeywell's breakup into three separate public companies, comparing the move to General Electric's multiyear restructuring. Honeywell Aerospace began trading separately on June 29, while the automation business became Honeywell Technologies and the advanced-materials unit was spun off as Solstice Advanced Materials in October 2025. Cramer argues that focused aviation and defense firms often command premium valuations, and Honeywell Aerospace had 2025 sales of $17.4 billion with an $18 billion backlog. He cautions that it may take several clean quarters for the market to recognize the sum-of-the-parts value, with Honeywell Aerospace's first independent earnings report due August 5.
TAT Technologies Expands Exclusive Honeywell APU Parts Deal Through 2036
TAT Technologies Ltd. has become the sole global authorized distributor of GTCP 331-200/250 APU spare parts, with certain regional and OEM exceptions, and extended its MRO licenses for this platform until 2036 under an expanded agreement with Honeywell Aerospace. The deal also includes the acquisition of three 131-9A APUs to grow its trading and leasing activity. This positions TAT as a one-stop provider for MRO services and aftermarket parts on the 331-200/250 APU platform, potentially simplifying vendor coordination for operators and deepening its reach across the global operator community. The agreement reinforces TAT's investment narrative as a focused aerospace MRO and thermal solutions provider with long-term, contract-backed revenue, though near-term risks such as exposure to discretionary maintenance spending and supply chain constraints remain. A separate March 2026 contract with a global cargo carrier for GTCP331-200/250 and GTCP331-500 APU MRO work, valued at about US$36 million over up to four years, further underscores the company's deepening presence on the 331 platform.
Honeywell Aerospace unveils IndiGo avionics deal, new navigation system, and Aeromexico runway safety plan at Farnborough
Honeywell Aerospace announced a major avionics agreement with IndiGo, introduced a new military navigation system, and disclosed plans to supply runway safety software to Aeromexico at the Farnborough International Airshow. IndiGo selected Honeywell avionics, auxiliary power units, and other systems for 810 Airbus A320neo family aircraft on order, marking the largest original equipment selection in Honeywell Aerospace's history. Honeywell also launched the iTALIN 550 navigation platform for military and commercial ground vehicles, jointly developed by its Czech Republic operations and subsidiary Civitanavi Systems in Italy, with limited availability expected in the fourth quarter of 2026 and full production in early 2027. Aeromexico intends to install Honeywell's SURF-A runway safety software across its fleet of more than 100 Boeing 737 Next Generation and 737 Max aircraft, with FAA certification anticipated to begin in the fourth quarter of 2026. Financial terms of the IndiGo and Aeromexico agreements were not disclosed.
Honeywell Aerospace wins avionics and APU order for IndiGo's 810 Airbus fleet
Honeywell Aerospace has been selected by low-cost airline group IndiGo to supply avionics and power systems for its fleet of 810 Airbus A320neo family aircraft. Under the agreement, Honeywell will provide its 131-9A Auxiliary Power Units, advanced weather radar systems, traffic collision avoidance systems, and flight management systems. The deal also includes a comprehensive aftermarket support program to optimize fleet performance throughout the aircraft's operational life.
Aeromexico to Deploy Honeywell SURF-A Runway Safety Tech on Over 100 Boeing 737s
Aeromexico intends to deploy Honeywell Aerospace's SURF-A runway safety technology across its entire Boeing 737 NG and 737 MAX fleet, covering more than 100 aircraft. The airline aims to become the launch customer for the system, which provides pilots with real-time aural and visual alerts when on a potential collision course with another aircraft on the runway. FAA certification of SURF-A on several Boeing aircraft is expected to begin in the fourth quarter of 2026 and continue into 2027. The technology uses GPS data, ADS-B equipment, and software analytics to warn pilots about 30 and 15 seconds before a potential impact, and is available as a software upgrade to Honeywell's Enhanced Ground Proximity Warning System and Traffic Collision Avoidance System already installed on Aeromexico's 737 fleet.
Aerospace & Aviation › Avionics & Aircraft Systems ▲Technology
HONA · Demand · Positive Aeromexico intends to deploy Honeywell's SURF-A runway safety technology across its entire Boeing 737 fleet, making Honeywell the supplier and launch customer for the system.
BA · Demand · Positive Aeromexico's deployment of Honeywell's SURF-A on over 100 Boeing 737s signals continued demand for Boeing aircraft, as the system is integrated into the 737 fleet.
Honeywell Aerospace Growth Tied to Air Travel and Aftermarket Demand
Honeywell Aerospace is positioned to benefit from rising air travel demand and a shift toward aftermarket services. The International Air Transport Association expects global air passenger demand to grow 2.1% year over year in 2026, supporting both original equipment and service activity. The company's large installed base across commercial, business, defense, and space platforms generates recurring revenue from spare parts, repairs, and long-term service agreements, which can be more stable than new aircraft sales. Honeywell is also expanding its digital aviation tools, such as Honeywell Forge, adding software-linked recurring revenue. The stock currently carries a Zacks Rank #3 (Hold), reflecting a measured near-term outlook despite credible long-term secular trends.
HONA · Demand · Positive Article directly discusses Honeywell Aerospace benefiting from rising air travel demand and aftermarket services, with recurring revenue from installed base and digital tools.
GE · Demand · Positive Rising air travel demand benefits aerospace OEMs and aftermarket services, supporting GE Aerospace's engine and service business.
RTX · Demand · Positive Growing air passenger demand and aftermarket shift benefit RTX's Pratt & Whitney engines and Collins Aerospace services.
Honeywell Aerospace Debuts as Standalone Public Company with $18.4 Billion Backlog
Honeywell Aerospace Inc. began trading as an independent public company, offering investors direct exposure to a scaled aerospace supplier with an approximately $18.4 billion backlog. The company’s portfolio spans avionics, propulsion, flight control, and connected aerospace software across commercial aviation, business aviation, defense, and space. The spin-off from Honeywell International allows management to focus capital allocation and product development solely on aerospace and defense, supported by a large installed base that generates recurring aftermarket revenue. However, the stock faces risks from aircraft-cycle volatility, supply-chain constraints, and geopolitical pressures, and currently carries a Zacks Rank #3 (Hold) while trading at 23.1 times forward earnings.
HON · Capital · Negative Honeywell International spun off its aerospace division, losing a major business segment and its associated revenue and backlog.
HONA · Capital · Positive Honeywell Aerospace begins trading as a standalone public company with an $18.4 billion backlog and focused management.
Morgan Stanley stays bullish on aerospace and defense ahead of Q2 earnings
Morgan Stanley maintained a constructive outlook on the aerospace and defense sector ahead of second-quarter earnings, citing resilient commercial aerospace demand, improving aircraft production, and favorable long-term defense spending trends, while becoming more selective after recent stock volatility and valuation shifts. The brokerage reiterated positive views on commercial aerospace, defense, and space, highlighting durable aftermarket demand driven by sustained fleet utilization, low aircraft retirement rates, constrained maintenance capacity, and continued engine maintenance needs. It also said Boeing's production recovery is gaining momentum, with the 737 MAX running at 47 aircraft per month and further certification milestones expected to support the commercial aerospace outlook. In defense, Morgan Stanley said investors continue to underestimate the likelihood of a roughly $1.1 trillion U.S. fiscal 2027 base defense budget, arguing that supply-chain improvements and expanding missile production capacity should provide further upside for the sector. The firm also expects space companies to benefit from upcoming launch milestones, improving order trends, and NASA's commercial International Space Station procurement. Reflecting changing valuations rather than weakening fundamentals, Morgan Stanley downgraded Loar Holdings and TransDigm to Equal-weight, while cutting CAE and Voyager Technologies to Underweight. At the same time, it named FTAI Aviation as its top commercial aerospace pick, Northrop Grumman as its preferred defense stock, and HawkEye 360 as its top space investment. The brokerage also revised several price targets, lowering targets for companies including Honeywell Aerospace, VSE, Textron, StandardAero, Loar, and TransDigm, while raising targets for Heico, Curtiss-Wright, and Moog. It said the expanding universe of publicly traded aerospace and defense companies has increased investment opportunities but also requires greater selectivity.
FTAI · Demand · Positive Named top commercial aerospace pick by Morgan Stanley, citing resilient aftermarket demand.
NOC · Demand · Positive Morgan Stanley names Northrop Grumman as its preferred defense stock, citing favorable long-term defense spending trends and supply-chain improvements.
CAE · Capital · Negative Morgan Stanley downgraded CAE to Underweight, reflecting valuation concerns.
HAWK · Demand · Positive Named as top space investment; expected to benefit from launch milestones and improving order trends.
LOAR · Capital · Negative Downgraded to Equal-weight and price target lowered by Morgan Stanley.
TDG · Capital · Negative Morgan Stanley downgraded TransDigm to Equal-weight and lowered its price target, citing valuation shifts.
Global M&A hits $609.7 billion in June, up 67% year-on-year, led by the US and Europe
According to LSEG data, global M&A deal value in June 2026 reached 609.72418 billion dollars, a 67.6 percent increase from the same month a year earlier, driven by large transactions in the United States and Europe. By region, the US recorded 360.1051 billion dollars, a 2.5-fold jump, including the listing of Honeywell Aerospace and SpaceX's acquisition of Enysphere. Europe saw a 2.3-fold surge to 128.73231 billion dollars, featuring Intesa Sanpaolo's takeover bid for Monte dei Paschi di Siena. Asia-Pacific rose 31.6 percent to 91.17135 billion dollars, while Japan plunged 92.7 percent to 5.57996 billion dollars. M&A via SPACs soared 1,028.6 percent to 10.71164 billion dollars. For the first half of 2026, cumulative global M&A reached 2.87192934 trillion dollars, up 51.6 percent from the same period a year earlier.
Morgan Stanley initiates Honeywell Aerospace with Equal-weight rating and $255 target
Morgan Stanley initiated coverage of Honeywell Aerospace with an Equal-weight rating and a $255 price target on July 8, 2026. The rating aligns with a market consensus that views the newly independent company as a high-quality business trading at a fair price with limited immediate growth potential. Analyst Kristine Liwag projects revenue and operating profit growth of about 8% annually by 2028, below peer averages of roughly 10.5% and 12.5%, while adjusted operating margins are expected to remain flat near 25.3%. The bank's bull case of $355 assumes 10% revenue growth and margin expansion, while the bear case of $175 reflects slower growth and supply chain pressures. Honeywell Aerospace began trading on the Nasdaq under ticker HONA on June 29, 2026, following its separation from Honeywell International.
Honeywell completes breakup into four standalone companies
Honeywell International has completed its portfolio transformation, splitting into four separate entities: the legacy industrial automation business trading as HON, Honeywell Aerospace as HONA, Solstice Advanced Materials as SOLS, and quantum computing venture Quantinuum as QNT. The aerospace unit is now one of the largest pure-play aerospace suppliers, while Solstice focuses on specialty materials like refrigerants and uranium fluorination. Quantinuum, still majority-owned by Honeywell, remains a pre-revenue quantum computing play. The breakup aims to eliminate the conglomerate discount and allow each management team to pursue tailored capital allocation strategies.
Jim Cramer Says Honeywell Aerospace Is Starting Its Take Off
Jim Cramer stated that Honeywell Aerospace Inc. is starting its take off, noting that the stock reversed after a very good run and has the most upside among pure-play aerospace companies. Honeywell Aerospace began trading in June as a spinoff of Honeywell's aerospace business. Following the spinoff, Morgan Stanley set an Equal Weight rating with a $255 price target, Jefferies set a Hold rating with a $235 target, and Wolfe Research set a Peer Perform rating. Cramer previously expressed enthusiasm for the spinoff, citing a 6.4% stock jump after a bullish analyst meeting and describing the company as not expensive with a great growth path.
Jim Cramer Is Impressed By Catch Up In Boeing Shares
Jim Cramer noted an impressive catch-up move by Boeing shares after a big run in airlines. Boeing's stock is up 4.2% over the past year and flat year-to-date. Jefferies reiterated a Buy rating with a $295 price target, while Wells Fargo kept an Overweight rating and a $250 target. Cramer also highlighted Honeywell Aerospace starting its take-off and suggested buying HONA, which he sees as having the most upside among pure-play aerospace names.
Stifel upgrades Shopify to Buy, Citi downgrades PepsiCo to Neutral
Stifel upgraded Shopify to Buy from Hold with a price target of $150, up from $110, citing the company's share-gaining playbook in e-commerce and leadership in agentic commerce. Citi downgraded PepsiCo to Neutral from Buy with a price target of $145, down from $170, due to continued weakness in North America despite strategic actions. Among other notable calls, Wells Fargo upgraded Seagate to Overweight, Stifel upgraded Twilio to Buy, and Citi upgraded Toll Brothers to Buy, while Evercore ISI downgraded Travelers to In Line, Barclays downgraded Public Storage to Equal Weight, and Citi downgraded both Lamar Advertising and Ryder to Neutral. New initiations included Susquehanna starting IBM at Neutral, Truist starting Travelers at Buy, BTIG starting Equinix and Digital Realty at Buy, JPMorgan starting Honeywell Aerospace at Neutral, and BMO Capital starting Roper Technologies at Market Perform.
Honeywell Completes Aerospace Spinoff, Creating Four Publicly Traded Entities
Honeywell has completed the spinoff of its aerospace business, resulting in four separate publicly traded companies: Honeywell Technologies, Honeywell Aerospace, Solstice Advanced Materials, and Quantinuum. Honeywell Technologies, now an industrial automation pure play, reported 3.5% revenue growth and 7% earnings per share growth in 2025, with management guiding for potential double-digit earnings growth. Honeywell Aerospace trades at around 27 times forward earnings, while Solstice Advanced Materials, which offers exposure to AI-related industries and nuclear energy, has surged nearly 66% since its spinoff nine months ago and trades at 30 times forward earnings against forecasted earnings growth exceeding 20%. Quantinuum, a quantum computing company taken public by Honeywell, has a market cap of $19.5 billion, with Honeywell Technologies retaining a 48.1% stake worth approximately $9.4 billion.
HON · Capital · Positive Honeywell completed spinoff, creating value and retaining 48.1% stake in Quantinuum worth $9.4B.
HONA · Capital · Positive Honeywell Aerospace now a separate public entity, trading at 27x forward earnings.
QNT · Capital · Positive Quantinuum taken public with $19.5B market cap, benefiting from spinoff and Honeywell's retained stake.
SOLS · Demand · Positive Solstice Advanced Materials surged 66% since spinoff, with exposure to AI and nuclear energy, and trades at 30x earnings with >20% growth.
Deutsche Bank Raises Honeywell Price Target to $263 After Spin-Off
Deutsche Bank raised its price target on Honeywell International to $263 from $250 while maintaining a Buy rating, following the company's spin-off and reverse stock split. The update came as Honeywell completed its planned Aerospace spinoff on June 29, transferring a 21-megawatt solar portfolio to Honeywell Aerospace. Abundant Solar Power Inc., a wholly owned subsidiary of PowerBank, will provide ongoing operations and maintenance services for the three solar projects under a newly executed agreement.
Wall Street upgrades Palantir, Chevron, Adobe; downgrades SkyWest, Greenbrier
HSBC upgraded Adobe to Buy from Hold with a price target of $308, up from $282, arguing the market overestimates the adverse impact of AI-based design tools. DA Davidson upgraded Palantir to Buy from Neutral with a price target of $175, up from $165, noting the company has grown into its valuation as profits rose significantly and the stock's multiple contracted. Wolfe Research upgraded Chevron to Outperform from Peer Perform with a $210 price target, citing incremental production options that extend the free cash flow growth outlook beyond 2030. Needham upgraded Silicom to Buy from Hold with a $60 price target after the company announced material progress with a new AI inference customer, resulting in initial production orders. TD Securities upgraded BCE to Buy from Hold with an unchanged price target of C$37, calling the 13% selloff since early June unjustified and an attractive entry point. On the downgrade side, Goldman Sachs cut SkyWest to Neutral from Buy with a price target of $108, down from $126, citing downside risk to block hours. Susquehanna downgraded Greenbrier to Neutral from Positive with an unchanged price target of $52, pointing to a lack of visibility on improved builds and tariffs. Barclays downgraded Dana to Equal Weight from Overweight with a price target of $33, down from $41, believing the path to a higher valuation multiple will take time. DA Davidson downgraded AGNT Inc. to Neutral from Buy with a price target of $6.50, down from $10.25, as checks suggest core U.S. agent count trends resumed their downward trajectory midway through Q2. China Renaissance downgraded Trip.com to Hold from Buy with a $42 price target. Among new initiations, BMO Capital started Honeywell Aerospace with an Outperform rating and $276 price target, implying 21% upside. JPMorgan resumed coverage of On Holding with an Overweight rating and $51 price target, placing the shares on Positive Catalyst Watch. RBC Capital initiated NiSource with an Outperform rating and $52 price target, highlighting a rare combination of above-peer EPS growth and a favorable data center setup in Indiana. RBC Capital also initiated PSEG with a Sector Perform rating and $81 price target, noting the New Jersey regulatory overhang is potentially alleviating but wanting more clarity. KeyBanc initiated Waystar with an Overweight rating and $30 price target, seeing a large valuation disconnect given the company's high-margin growth story with large moats.
Thursday’s Top Analyst Calls: Adobe, Palantir Upgraded; Dana, SkyWest Downgraded
Wall Street analysts issued several notable rating changes on Thursday. HSBC upgraded Adobe to Buy and raised its price target to $308 from $282, while DA Davidson upgraded Palantir Technologies to Buy with a $175 target. Wolfe Research upgraded Chevron to Outperform with a $210 target. On the downgrade side, Barclays cut Dana to Equal Weight with a $32 target, and Goldman Sachs downgraded SkyWest to Neutral, trimming its target to $108 from $126. New coverage initiations included BMO Capital starting Honeywell Aerospace with an Outperform rating and a $276 target, and Daiwa initiating Space Exploration Technologies with a Neutral rating and a $175 target.
Honeywell Aerospace completes spin-off, begins trading on Nasdaq with new leadership and major index entry
Honeywell Aerospace has completed its spin-off from Honeywell International and is now trading independently on the Nasdaq under the ticker HONA. The company has joined several major stock indices, including the S&P 500, NASDAQ Composite, and a range of Russell and FTSE indices. New leadership appointments include President and CEO Jim Currier and Board Chair Craig Arnold. The stock is priced at $227.29, up 13.6% year to date but down 7.2% over the past week. Analysts note that the company carries a high level of debt and negative shareholders' equity, while shares are currently highly illiquid, though earnings are forecast to grow 11.38% per year.
HONA · Capital · Neutral The spin-off and listing are capital events, but the article notes high debt, negative equity, illiquidity, and mixed price performance, making the net impact unclear.
HON · Capital · Neutral Honeywell International completed the spin-off of its aerospace unit, which is a capital event, but the article focuses on the new entity, not the parent.
Honeywell Technologies Debuts as Public Pure-Play Automation Company
Honeywell Technologies has emerged as a separate public company following the spin-off of the Aerospace Technologies business from Honeywell International. The separation became effective on June 29, 2026, with shareholders of record as of June 15, 2026, receiving one share of Honeywell Aerospace for every two shares of Honeywell Technologies common stock held. As a result, every two outstanding shares were combined into one, reducing outstanding shares from about 634 million to approximately 317 million, while authorized shares were cut from 2 billion to 1 billion and par value remained unchanged. The spin-off completes Honeywell's portfolio transformation into three independent companies: Honeywell Technologies, Honeywell Aerospace, and Solstice Advanced Materials. Honeywell Technologies, focused on industrial automation, provides automation solutions, software, and services for building, process, and industrial sectors.
HON · Capital · Neutral Honeywell International completed the spin-off of Honeywell Technologies and Honeywell Aerospace, but the article focuses on the new entities, not the parent.
HONA · Capital · Neutral Honeywell Aerospace was spun off as a separate public company, but the article provides no information on its prospects or performance.
BNP Paribas initiates Honeywell Aerospace with Neutral rating and $245 price target
BNP Paribas Equity Research initiated coverage of Honeywell Aerospace with a Neutral rating and a $245 price target, implying roughly 11% upside from the stock's June 29 closing price of $220.20. Analyst Matt Akers said the company retains strong positions across multiple aerospace markets and that investors may be overlooking the value of its defense business, but he expects profit growth to trail many aerospace peers over the next several years. BNP estimates that large commercial avionics aftermarket revenue accounts for just 5% to 10% of Honeywell Aerospace's business, while the company has maintained or improved its competitive position in auxiliary power units, business jet avionics and business jet engines. Defense-related products are expected to account for approximately 41% of Honeywell Aerospace's 2025 sales, and much of its defense portfolio is derived from commercially developed technologies with significant international exposure. Despite those strengths, BNP cited product mix changes, increased investment spending and lingering market-share pressures as factors likely to weigh on earnings growth through at least 2027.
Jim Cramer calls Honeywell Aerospace the new aerospace play for investors avoiding Boeing
Jim Cramer highlighted Honeywell Aerospace as a new standalone aerospace investment for those steering clear of Boeing, which was last quoted near $216.95. Cramer plans to own both Honeywell Aerospace and Honeywell Technologies in his charitable trust, calling management's 9% annual growth target through 2030 conservative and expecting higher returns. He pushed back on Jefferies' hold rating on the aerospace unit, noting he intends to own it personally. Honeywell Technologies posted its fourth straight earnings beat at $2.45 versus a $2.32 consensus and reaffirmed full-year sales guidance in a range of $38.8 billion to $39.8 billion.
Honeywell Aerospace CEO Discusses Spin-Off and Defense Demand
Honeywell Aerospace began trading as a standalone aerospace and defense firm following its spin-off from Honeywell International. CEO Jim Currier emphasized the company's embedded role within the aerospace and defense ecosystem, highlighting its mission-critical products and services across major commercial and defense platforms. He spoke with Romaine Bostick and Katie Greifeld on The Close.
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