Honeywell Aerospace Raises 2026 EPS Outlook and Declares First Dividend

Honeywell Aerospace Inc. (HONA ) reported third-quarter 2026 results on October 28, 2026, posting sales of $4,644 million for the quarter ended September 26, 2026, up 2% from $4,533 million a year earlier on both a reported and organic basis, and net income of $737 million, up 13% from $654 million. In its first quarter as a standalone company following its June 29, 2026 spin-off, the company also raised its full-year pro forma standalone adjusted earnings per share guidance, and its board declared Honeywell Aerospace’s first quarterly cash dividend of $0.40 per share.

Adjusted EBIT, a non-GAAP measure, was $1,161 million, up 1% from $1,151 million. The company said the figure included an approximately $50 million net benefit from tariff refunds under the International Emergency Economic Powers Act alongside new costs necessary as an independent public company. Net income attributable to Honeywell Aerospace was $726 million.

Diluted earnings per share were $2.29. Adjusted EPS of $2.21 excluded $0.18 per share of pension income and added back $0.06 per share of acquisition-related intangible amortization and $0.04 per share of transaction costs, according to the company’s reconciliation. The company does not present prior-year per-share comparisons, stating they are not meaningful; per-share amounts for periods before the spin-off are calculated using 317 million common shares outstanding as of the spin-off date, and third-quarter adjusted EPS used 317.7 million weighted average shares.

Cash flow from operations was $668 million, and free cash flow was $500 million after $168 million of capital expenditures. The company defines free cash flow, a non-GAAP measure, as cash from operations less capital expenditures, excluding cash payments for settlement of Flexjet-related litigation matters. Backlog ended the quarter at $19,324 million, up 12% from $17,255 million a year earlier, and trailing twelve-month orders rose 9%, led by Defense and Space, the company said.

For the nine months ended September 26, 2026, sales were $13,518 million versus $12,896 million a year earlier, and net income was $1,635 million versus $2,292 million. The nine-month cash flow statement shows $15,843 million of proceeds from long-term debt issuance and $15,080 million of net transfers to the company’s former parent; long-term debt stood at $15,853 million at September 26, 2026, against $4 million at December 31, 2025, and cash and cash equivalents ended the quarter at $1,558 million.

Chief Executive Officer Jim Currier said the company delivered results above its expectations in its first quarter as a standalone company, increasing sales and adjusted EBIT sequentially and year over year. “Demand for our solutions remains robust with 9% orders growth over the last 12 months,” Currier said. He said the company is seeing encouraging signs from pacing suppliers and that this progress, combined with ongoing qualification of additional material sources, positions the company for higher sales and output growth in 2027 and beyond.

End-Market and Segment Results

Commercial Original Equipment sales rose 7% on a reported basis and 8% organically to $690 million as commercial air transport build rates and selectable equipment volumes increased. Commercial Aftermarket sales grew 2% to $2,126 million, which the company described as healthy underlying demand limited by mechanical component availability. Defense and Space sales rose 1% to $1,828 million, with growth led by the CAES and Civitanavi acquisitions partially offset by lower international volumes due to supply constraints and the wind-down of a non-aerospace restricted government program. The company defines organic sales change as the year-over-year change in reported net sales excluding foreign currency translation, acquisitions net of divestitures for the first 12 months following a transaction, and other unusual or non-recurring items.

Electronic Solutions segment sales grew 4% reported and 5% organically to $1,784 million, and segment adjusted EBIT rose 11% to $564 million as tariff refunds and pricing more than offset unfavorable mix and higher costs, the company said. Engines and Power Systems sales rose 3% reported and 2% organically to $1,515 million, while segment adjusted EBIT fell 16% to $250 million as unfavorable mix and higher costs more than offset price and tariff refunds. Control Systems sales were flat on a reported and organic basis at $1,345 million, and segment adjusted EBIT rose 2% to $382 million as price more than offset higher costs and unfavorable mix. Segment adjusted EBIT is among the non-GAAP measures identified in the release.

2026 Guidance and First Dividend

Honeywell Aerospace maintained full-year 2026 organic sales growth guidance of 4% to 5%. It narrowed pro forma standalone adjusted EBIT guidance to a range of $4.375 billion to $4.425 billion from $4.35 billion to $4.45 billion, with the year-over-year growth range moving to up 1% to 2% from a prior range of flat to up 3%, and raised pro forma standalone adjusted EPS guidance to $7.85 to $8.00 from $7.60 to $7.90. Second-half 2026 free cash flow guidance was raised to $1.2 billion to $1.4 billion from $1.0 billion to $1.5 billion. The company said it cannot reconcile these forward-looking non-GAAP measures to the most directly comparable GAAP measures without unreasonable effort because it cannot reliably predict the amount and timing of certain items.

The board’s dividend of $0.40 per share of common stock is payable on December 4, 2026, to shareholders of record as of the close of business on November 13, 2026. “The Board’s decision to declare a regular dividend underscores the visibility into our durable free cash flow growth in the years ahead,” Currier said, adding that paying a competitive, growing dividend is a key component of the company’s capital allocation strategy while maintaining financial flexibility and a strong investment-grade credit rating.

The company said it has secured more than $20 billion in new wins year to date on an estimated lifetime value basis. Among the announcements supporting that figure, the U.S. Air Force advanced the company’s SkyShot 1600 engine into Preliminary Design Review under the Autonomous Collaborative Platform program for collaborative combat aircraft and unmanned aircraft systems, and the company secured over $2 billion in new awards to provide navigation and RF systems for several missiles and munitions programs, including initial contracts on platforms prioritized by the Munitions Acceleration Council.

Honeywell Aerospace also announced a 300,000-square-foot expansion of its Tempe, Arizona manufacturing facility, expected to open in late 2028 to support current Control Systems production, recent wins, and next generation platforms. At a September investor conference, the company presented a supply chain update addressing constraints from a small number of mechanical suppliers that it said are currently limiting output growth.

The company completed its spin-off from Honeywell Technologies and began trading on the Nasdaq Stock Market on June 29, 2026. Former parent Honeywell Technologies reported its own third-quarter results on October 22, 2026, posting sales of $5.0 billion and adjusted earnings per share of $2.27.

Honeywell Aerospace scheduled an investor conference call for 5:00 pm EDT on October 28, 2026, with a webcast replay available for 30 days.