The company’s adjusted EBIT for the quarter fell 7% to $995 million, weighed down by $100 million in separation-related expenses and inventory obsolescence charges. While demand for its mission-critical portfolio remains high, CEO Jim Currier noted that supply chain bottlenecks limited output growth. Consequently, Honeywell Aerospace reduced its 2026 organic sales growth guidance to a range of 4%–5%, down from its previous 7%–9% estimate.

Despite the immediate operational headwinds, the company’s backlog expanded to $18.2 billion, reflecting a 9% increase over the previous year. To address output limitations, management is qualifying 100 new suppliers this year and increasing investment in tooling by 20% during the second half of 2026. These tactical adjustments are intended to position the newly independent entity for improved performance in 2027 and beyond, adhering to the long-term targets established during the company’s June investor day.