Honeywell Aerospace declares $0.40 quarterly dividend
A $500 million Tempe plant is expected to open in late 2028, while the company begins a quarterly cash dividend.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Honeywell Aerospace Inc. reported third-quarter sales of $4.644 billion, up 2% year over year, and net income of $737 million, up 13%. Adjusted EBIT was $1.161 billion, up 1%, while backlog reached $19.324 billion, up 12%; trailing 12-month orders were up 9%. The company reported $668 million of operating cash flow and $500 million of free cash flow. Engines & Power Systems adjusted EBIT declined 16% to $250 million as unfavorable mix and higher costs more than offset price and tariff refunds.
It raised 2026 pro forma standalone adjusted earnings per share guidance to $7.85–$8.00 and second-half free cash flow guidance to $1.2–$1.4 billion, maintained its 4%–5% organic sales growth outlook, and narrowed full-year pro forma standalone adjusted EBIT guidance to $4.375–$4.425 billion. The board declared its first quarterly cash dividend as an independent public company, $0.40 per share, payable December 4, 2026, to shareholders of record November 13, 2026. The company also announced a $500 million, 300,000-square-foot Tempe facility expected to open in late 2028 and create approximately 600 jobs.
1 point · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointQuarterly net income rose 13% to $737 million.
Negative
- Moderate pointEngines & Power Systems adjusted EBIT fell 16% to $250 million.
Filing Explained
At
8-K Event Classification
4 items: 2.02, 7.01, 8.01, 9.01
4 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Sales: $4.644 billion
Net income: $737 million
Adjusted EBIT: $1.161 billion
+5 more
8 metrics
Sales
$4.644 billion
Third quarter ended September 26, 2026; up 2% year over year
Net income
$737 million
Third quarter ended September 26, 2026; up 13% year over year
Adjusted EBIT
$1.161 billion
Third quarter; up 1% year over year
Segment adjusted EBIT
$250 million
Engines & Power Systems, third quarter; down 16% year over year
Backlog
$19.324 billion
At quarter end; up 12% from the prior year
Pro forma standalone adjusted earnings per share guidance
$7.85–$8.00 per share
Full-year 2026 guidance
Quarterly cash dividend
$0.40 per share
First quarterly dividend as an independent public company
Tempe facility investment
$500 million
New manufacturing facility announced for Tempe, Arizona
Key Terms
Adjusted EBIT, organic sales growth, free cash flow, pro forma standalone adjusted earnings per share
4 terms
Adjusted EBIT financial
"Adjusted EBIT was up 1%"
Adjusted EBIT is a company’s operating profit before interest and taxes, but cleaned up by removing one-time or unusual items that can obscure ongoing performance. Investors use it like a tidied-up report card — it aims to show the underlying profitability of the business by excluding irregular gains, losses, or costs so comparisons across periods or companies are clearer and more meaningful for valuing operational strength.
organic sales growth financial
"maintained its full-year organic sales outlook"
Organic sales growth measures how much a company’s revenue rises from its regular business activity — like selling more products, charging higher prices, or selling to more customers — without counting money from buying other businesses or one-time currency effects. Investors watch it because it shows whether demand and the company’s core operations are genuinely getting stronger, similar to judging a garden by how much the plants you planted yourself are growing rather than by adding bought potted plants.
free cash flow financial
"second half 2026 free cash flow guidance"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Earnings Snapshot
Sales: $4.644 billion · Guidance included
Third quarter ended September 26, 2026
Sales
$4.644 billion
Up 2% year over year
Net income
$737 million
Up 13% year over year
Adjusted EBIT
$1.161 billion
Up 1% year over year
Guidance
Raised full-year 2026 pro forma standalone adjusted earnings per share guidance to $7.85–$8.00 and second-half free cash flow guidance to $1.2–$1.4 billion; maintained organic sales growth outlook at 4%–5%; narrowed full-year pro forma standalone adjusted EBIT guidance to $4.375–$4.425 billion.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were HONA's third-quarter 2026 sales and net income?
Sales were $4.644 billion, up 2% year over year, and net income was $737 million, up 13%.
How much is HONA's quarterly dividend and when is it payable?
The quarterly cash dividend is $0.40 per share, payable December 4, 2026, to shareholders of record November 13, 2026.
What changed in HONA's 2026 outlook?
Pro forma standalone adjusted earnings per share guidance rose from $7.60–$7.90 to $7.85–$8.00, and second-half free cash flow guidance changed from $1.0–$1.4 billion to $1.2–$1.4 billion. Organic sales growth remained at 4%–5%; the pro forma standalone adjusted EBIT range narrowed from $4.35–$4.45 billion to $4.375–$4.425 billion.
When will HONA's new Tempe facility open, and what will it include?
The 300,000-square-foot facility is expected to open in late 2028 and create approximately 600 jobs. It is planned to include an integrated digital production system, modular robotics, automated inspection and digital twins, and to add internal complex machining capability.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT – October 28, 2026
(Date of earliest event reported)
(Exact name of Registrant as specified in its Charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||||||
(Address of principal executive offices) | (Zip Code) | ||||
Registrant’s telephone number, including area code: (800 ) 601-3099
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging Growth Company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On October 28, 2026, Honeywell Aerospace Inc. (the “Company”) issued a press release announcing its financial results for the third quarter ended September 26, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated into this Item 2.02 by reference.
The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act.
Item 7.01 Regulation FD Disclosure
On October 28, 2026, the Company issued a press release announcing plans for a significant expansion of its manufacturing facilities in Tempe, Arizona. A copy of the press release is furnished as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated into this Item 7.01 by reference.
The information furnished pursuant to this Item 7.01, including Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 8.01 Other Events
On October 28, 2026, the Company announced that its Board of Directors declared its first quarterly cash dividend on its common stock as an independent public company of $0.40 per share of its common stock. The dividend is payable on December 4, 2026, to shareholders of record as of the close of business on November 13, 2026.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit # | Description | |||||||
| 99.1 | Honeywell Aerospace Inc. Earnings Press Release dated October 28, 2026, announcing third quarter 2026 financial results. | |||||||
| 99.2 | Press Release of Honeywell Aerospace Inc., dated October 28, 2026, announcing the Tempe, Arizona facility expansion. | |||||||
104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document). | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: | October 28, 2026 | HONEYWELL AEROSPACE INC. | |||||||||||||||
By: /s/ John Donofrio | |||||||||||||||||
| John Donofrio | |||||||||||||||||
| Senior Vice President, General Counsel and Corporate Secretary | |||||||||||||||||
Exhibit 99.1
Contacts: | |||||
Media | Investor Relations | ||||
Brian Grace | Sean Meakim | ||||
| (602) 897-0205 | (623) 223-5980 | ||||
Brian.Grace@honeywellaerospace.us | Sean.Meakim@honeywellaerospace.us | ||||
Honeywell Aerospace reports third quarter results;
updates 2026 outlook
•Sales of $4.6 billion, reported and organic1 sales up 2% year over year
•Net income of $0.7 billion; adjusted EBIT1 of $1.2 billion, up 1% despite incremental standalone costs
•Raises full-year pro forma standalone adjusted earnings per share1 and second half free cash flow1 guidance
•Board declares inaugural quarterly dividend payment of $0.40 per share on the company’s common stock
PHOENIX, October 28, 2026 -- Honeywell Aerospace (Nasdaq: HONA) today announced results for the third quarter and declared its first quarterly dividend. The company also raised its full-year 2026 pro forma standalone adjusted earnings per share1 and second half 2026 free cash flow1 guidance ranges, maintained its full-year organic1 sales outlook, and narrowed its full-year pro forma standalone adjusted EBIT1 guidance range.
“Honeywell Aerospace delivered results above our expectations in its first quarter as a standalone company, increasing sales and adjusted EBIT sequentially and year over year as we accelerate investments to drive greater output and better serve our customers. Demand for our solutions remains robust with 9% orders growth over the last 12 months,” said Jim Currier, Chief Executive Officer of Honeywell Aerospace. “We are seeing encouraging signs from pacing suppliers as we deepen our commitment to enduring partnerships. This progress, combined with ongoing qualification of additional material sources, positions us for higher sales and output growth in 2027 and beyond.”
Initial dividend declaration
Honeywell Aerospace’s Board of Directors has approved a quarterly cash dividend of $0.40 per share of its common stock. The dividend is payable on December 4, 2026, to shareholders of record as of the close of business on November 13, 2026.
Currier added, “The Board’s decision to declare a regular dividend underscores the visibility into our durable free cash flow growth in the years ahead. Paying a competitive, growing dividend is a key component of our capital allocation strategy designed to deliver substantial shareholder value while maintaining financial flexibility and a strong investment-grade credit rating.”
Recent Honeywell Aerospace highlights
•Year to date, the company has secured more than $20 billion in new wins (estimated lifetime value) supported by the following announcements:
◦The U.S. Air Force advanced Honeywell Aerospace’s SkyShot 1600 engine, which is designed to meet all mission-critical performance parameters for collaborative combat aircraft and unmanned aircraft systems, into Preliminary Design Review as part of its Autonomous Collaborative Platform program.
◦Honeywell Aerospace secured over $2 billion in new awards to provide its advanced navigation and RF systems for several missiles and munitions programs, including some initial contracts on platforms prioritized by the Munitions Acceleration Council.
◦The City of Phoenix Aviation Department signed an agreement with Honeywell Aerospace to study how to translate the company’s Surface Alert (SURF-A) technology to ground vehicle operators on tarmacs, taxiways, and runways at three local airports, including Phoenix Sky Harbor International.
Honeywell Aerospace 3Q26 Results - 2
•The company announced a 300,000 square foot expansion of its Tempe, Arizona manufacturing facility, expected to open in late 2028. The new facility adds capacity, lean manufacturing, automation, and supply-chain resilience to support current Control Systems production, recent wins, and next generation platforms.
•Honeywell Aerospace presented an update on its supply chain transformation at a September investor conference. Key messages from the presentation included root causes and actions underway for the constraints from a small number of mechanical suppliers currently limiting output growth.
Summary financial results
Honeywell Aerospace sales for the third quarter increased 2% on a reported and organic¹ basis year over year. Backlog grew to $19.3 billion at quarter end, up 12% from the prior year, and trailing twelve-months orders were up 9%, led by Defense and Space. Adjusted EBIT1 was up 1%, including both an approximately $50 million net benefit from International Emergency Economic Powers Act (IEEPA) tariff refunds and new costs necessary as an independent public company.
($ in millions, except per share amounts) | 3Q 2026 | 3Q 2025 | % Change | |||||||||||||||||
| Backlog | $19,324 | $17,255 | 12% | |||||||||||||||||
| Sales | $4,644 | $4,533 | 2% | |||||||||||||||||
| Net income | $737 | $654 | 13% | |||||||||||||||||
Adjusted EBIT1 | $1,161 | $1,151 | 1% | |||||||||||||||||
Earnings per share2,3 | $2.29 | |||||||||||||||||||
Adjusted earnings per share1,2,3 | $2.21 | |||||||||||||||||||
Cash flow from operations2 | $668 | |||||||||||||||||||
Free cash flow1,2 | $500 | |||||||||||||||||||
End market sales
Commercial Original Equipment sales were up 7% on a reported basis and 8% organically1 to $0.7 billion as commercial air transport build rates and selectable equipment volumes increased. Commercial Aftermarket sales of $2.1 billion grew 2% year over year, driven by healthy underlying demand limited by mechanical component availability. Defense and Space sales of $1.8 billion expanded 1%, as strong growth led by the CAES and Civitanavi acquisitions was partially offset by lower international volumes due to supply constraints and the wind-down of a non-aerospace restricted government program.
($ in millions) | 3Q 2026 | 3Q 2025 | % Change | % Organic1 | ||||||||||||||||||||||
| Commercial Original Equipment | $690 | $642 | 7% | 8% | ||||||||||||||||||||||
| Commercial Aftermarket | $2,126 | $2,084 | 2% | 2% | ||||||||||||||||||||||
| Defense and Space | $1,828 | $1,807 | 1% | 1% | ||||||||||||||||||||||
2026 outlook
Based on third quarter results and current outlook, Honeywell Aerospace updated its prior full-year and second half guidance ranges.
| Previous guidance | Current guidance | |||||||||||||
Organic1,4 growth | 4% - 5% | 4% - 5% | ||||||||||||
Pro forma standalone adjusted EBIT1,4 | $4.35B - $4.45B | $4.375B - $4.425B | ||||||||||||
Year-over-year growth1,4 | Flat - 3% | Up 1% - 2% | ||||||||||||
Pro forma standalone adjusted earnings per share1,3,4 | $7.60 - $7.90 | $7.85 - $8.00 | ||||||||||||
Second half free cash flow1,4 | $1.0B - $1.4B | $1.2B - $1.4B | ||||||||||||
1.See additional information at the end of this release regarding non-GAAP financial measures.
2.Comparisons to prior year pre-separation results are not presented as they are not considered meaningful.
3.Earnings per share and adjusted earnings per share for all periods prior to the spin-off is calculated using 317 million common shares based on the shares of Honeywell Aerospace common stock outstanding as of the spin-off date, June 29, 2026. It is assumed there are no dilutive equity instruments as there were no equity awards of Honeywell Aerospace outstanding prior to the spin-off.
4.Organic growth, pro forma standalone adjusted EBIT, pro forma standalone adjusted EPS and free cash flow are non-GAAP financial measures. We are unable to provide a reconciliation of these forward-looking measures to the most directly comparable GAAP measures without unreasonable effort because we cannot reliably predict the amount and timing of certain items that may be material to our GAAP results. The magnitude of these items may be material to the comparable GAAP measures.
Honeywell Aerospace 3Q26 Results - 3
Segment results
Electronic Solutions sales grew 4% year over year on a reported basis and 5% organically¹, led by strength in Commercial Original Equipment and Defense and Space. Segment adjusted EBIT¹ increased by 11% year over year as tariff refunds and pricing more than offset unfavorable mix and higher costs.
| ($ in millions) | 3Q 2026 | 3Q 2025 | % Change | % Organic1 | ||||||||||||||||||||||
| Sales | $1,784 | $1,708 | 4% | 5% | ||||||||||||||||||||||
Segment profit/segment adjusted EBIT1 | $564 | $510 | 11% | |||||||||||||||||||||||
Engines and Power Systems sales increased 3% year over year on a reported basis and 2% organically¹, led by higher Commercial Aftermarket volumes. Segment adjusted EBIT¹ decreased 16% year over year as unfavorable mix and higher costs more than offset price and the impact of tariff refunds.
| ($ in millions) | 3Q 2026 | 3Q 2025 | % Change | % Organic1 | ||||||||||||||||||||||
| Sales | $1,515 | $1,478 | 3% | 2% | ||||||||||||||||||||||
Segment profit/segment adjusted EBIT1 | $250 | $299 | (16)% | |||||||||||||||||||||||
Control Systems sales were flat year over year on a reported and organic¹ basis as Defense and Space growth was offset by a decline in Commercial Aftermarket. Segment adjusted EBIT¹ increased 2% year over year as price more than offset higher costs and unfavorable mix.
| ($ in millions) | 3Q 2026 | 3Q 2025 | % Change | % Organic1 | ||||||||||||||||||||||
| Sales | $1,345 | $1,347 | —% | —% | ||||||||||||||||||||||
Segment profit/segment adjusted EBIT1 | $382 | $376 | 2% | |||||||||||||||||||||||
Conference call details
Honeywell Aerospace will discuss its third quarter results and full-year 2026 guidance during an investor conference call starting at 5:00 pm EDT today. A live webcast of the investor call as well as related presentation materials will be available through the Investor Relations section of the company’s website (investor.honeywellaerospace.com). A replay of the webcast will be available for 30 days following the presentation.
About Honeywell Aerospace
Honeywell Aerospace (Nasdaq: HONA) is an independent global aerospace and defense company whose critical technologies are broadly deployed on the world’s leading commercial air transport, business aviation, defense and space platforms. These integrated solutions enable safer, more efficient, and more reliable missions. Headquartered in Phoenix, Arizona, the company employs more than 36,000 people globally and supports more than 10,000 customers. With a broad portfolio spanning avionics and navigation systems, engines and power systems, and control systems for aircraft, Honeywell Aerospace combines commitment and deep engineering expertise to drive innovation and long-term value for the aerospace industry. For more information, visit www.honeywellaerospace.com or follow Honeywell Aerospace on LinkedIn.
Additional information
Honeywell Aerospace uses our Investor Relations website, investor.honeywellaerospace.com, as a means of disclosing information which may be of interest or material to our investors and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, webcasts, public conference calls, and webcasts.
Forward-looking statements
We describe many of the trends and other factors that drive our business and future results in this release. These discussions contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements are those that address activities, events, or developments that management intends, expects, projects, believes, estimates, forecasts, or anticipates will or may occur in the future. They are based on management's assumptions and assessments in light of past experience and trends, current economic and industry conditions, expected future developments, and other relevant factors, many of which are difficult to predict and outside of our control.
Forward-looking statements are not guarantees of future performance, and actual results may differ materially from those reflected in such statements. Important factors that could cause Honeywell Aerospace's actual results to differ materially from those projected in any forward-looking statements include, but are not limited to: (i) risks relating to Honeywell Aerospace's spin-off from Honeywell International Inc., including our ability to realize the anticipated benefits of operating as an independent public company;
Honeywell Aerospace 3Q26 Results - 4
(ii) supply chain disruptions, including constraints on or changes in the price or availability of raw materials and components; (iii) our ability to successfully develop new technologies and introduce new products; (iv) our ability to compete successfully in the markets in which we operate; (v) changes in demand for our products and services, including conditions in the commercial aerospace, business aviation, and defense and space markets; (vi) changes in government spending and risks associated with our government contracts; (vii) other economic, business, competitive, regulatory, geopolitical, and market factors described in our filings with the Securities and Exchange Commission ("SEC"); (viii) the impact of tariffs, including the amount and timing of any tariff refunds; (ix) adverse outcomes of litigation matters and government and other proceedings; and (x) our ability to declare and pay dividends in future periods.
These forward-looking statements should be considered in light of the information included in this release, our Registration Statement on Form 10-12B, as amended (File No. 001-43173), including the final Information Statement dated June 15, 2026 furnished as Exhibit 99.1 to our Current Report on Form 8-K filed on June 15, 2026, our Quarterly Reports on Form 10-Q for the quarters ended June 27, 2026 and September 26, 2026, and our other filings with the SEC. In addition, no assurance can be given that any plan, initiative, projection, goal, commitment, expectation, or prospect set forth in this release can or will be achieved. Any forward-looking plans described herein are not final and may be modified or abandoned at any time. We do not undertake to update or revise any of our forward-looking statements, except as required by applicable securities law.
This release contains financial measures presented on a non-GAAP basis. Honeywell Aerospace’s non-GAAP financial measures used in this release are as follows:
Organic sales growth,
Adjusted EBIT,
Pro forma standalone adjusted EBIT,
Adjusted earnings per share,
Pro forma standalone adjusted earnings per share,
Free cash flow, and
Segment adjusted EBIT.
Management believes that, when considered together with reported amounts, these measures are useful to investors and management in understanding our ongoing operations and in the analysis of ongoing operating trends. These measures should be considered in addition to, and not as replacements for, the most comparable GAAP measure. Certain measures presented on a non-GAAP basis represent the impact of adjusting items net of tax. The tax-effect for adjusting items is determined individually and on a case-by-case basis. Refer to the Appendix attached to this release for reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures.
Honeywell Aerospace 3Q26 Results - 5
Honeywell Aerospace Inc.
Consolidated Statements of Operations (Unaudited)
(Dollars in millions, except per share amounts)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | September 26, 2026 | September 27, 2025 | ||||||||||||||||||||
| Product sales | $ | 2,690 | $ | 2,533 | $ | 7,723 | $ | 7,191 | |||||||||||||||
| Service sales | 1,954 | 2,000 | 5,795 | 5,705 | |||||||||||||||||||
| Net sales | 4,644 | 4,533 | 13,518 | 12,896 | |||||||||||||||||||
| Costs, expenses and other | |||||||||||||||||||||||
| Cost of products sold | 1,985 | 1,950 | 5,805 | 5,422 | |||||||||||||||||||
| Cost of services sold | 944 | 926 | 2,787 | 2,730 | |||||||||||||||||||
| Total cost of products and services sold | 2,929 | 2,876 | 8,592 | 8,152 | |||||||||||||||||||
| Research and development expenses | 216 | 186 | 586 | 520 | |||||||||||||||||||
| Selling, general and administrative expenses | 471 | 441 | 1,757 | 1,189 | |||||||||||||||||||
| Interest expense (income), net | 187 | (5) | 404 | (14) | |||||||||||||||||||
| Other (income) expense, net | (60) | 294 | 100 | 375 | |||||||||||||||||||
| Total costs, expenses and other | 3,743 | 3,792 | 11,439 | 10,222 | |||||||||||||||||||
| Income before taxes | 901 | 741 | 2,079 | 2,674 | |||||||||||||||||||
| Income tax expense | 164 | 87 | 444 | 382 | |||||||||||||||||||
| Net income | 737 | 654 | 1,635 | 2,292 | |||||||||||||||||||
| Less: Net income attributable to noncontrolling interests | 11 | 10 | 29 | 27 | |||||||||||||||||||
| Net income attributable to Aerospace | $ | 726 | $ | 644 | $ | 1,606 | $ | 2,265 | |||||||||||||||
| Earnings per share of common stock - basic | $ | 2.29 | $ | 2.03 | $ | 5.07 | $ | 7.15 | |||||||||||||||
| Earnings per share of common stock - diluted | $ | 2.29 | $ | 2.03 | $ | 5.06 | $ | 7.15 | |||||||||||||||
Honeywell Aerospace 3Q26 Results - 6
Honeywell Aerospace Inc.
Consolidated Balance Sheets (Unaudited)
(Dollars in millions, except per share amounts)
| September 26, 2026 | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 1,558 | $ | 213 | |||||||
Accounts receivable, less allowances of $54 and $33, respectively | 2,324 | 2,156 | |||||||||
Inventories | 4,624 | 4,311 | |||||||||
Current contract assets | 1,462 | 1,366 | |||||||||
Other current assets | 544 | 344 | |||||||||
Total current assets | 10,512 | 8,390 | |||||||||
| Property, plant and equipment, net | 2,318 | 2,101 | |||||||||
| Goodwill | 3,035 | 3,025 | |||||||||
| Other intangible assets, net | 2,239 | 2,177 | |||||||||
| Deferred tax assets | 72 | 412 | |||||||||
| Pension assets | 3,039 | 13 | |||||||||
Other assets | 1,817 | 1,567 | |||||||||
Total assets | $ | 23,032 | $ | 17,685 | |||||||
| LIABILITIES | |||||||||||
| Current liabilities: | |||||||||||
Accounts payable | $ | 2,931 | $ | 2,883 | |||||||
Current contract liabilities | 1,612 | 1,589 | |||||||||
Accrued liabilities | 1,857 | 2,105 | |||||||||
Total current liabilities | 6,400 | 6,577 | |||||||||
| Long-term debt | 15,853 | 4 | |||||||||
| Contract liabilities | 1,075 | 1,091 | |||||||||
| Deferred tax liabilities | 679 | 61 | |||||||||
| Other liabilities | 1,514 | 1,456 | |||||||||
Total liabilities | 25,521 | 9,189 | |||||||||
| EQUITY | |||||||||||
| Preferred stock, par value $0.01 per share; 40.0 million shares authorized; no shares issued and outstanding | — | — | |||||||||
Common stock, par value $0.01 per share; 1.0 billion shares authorized; 317.0 million shares issued and outstanding as of September 26, 2026; no shares issued and outstanding as of December 31, 2025 | 3 | — | |||||||||
| Additional paid-in capital | 29 | — | |||||||||
| Accumulated deficit | (1,804) | — | |||||||||
| Net Parent investment | — | 8,609 | |||||||||
| Accumulated other comprehensive loss | (800) | (210) | |||||||||
Total (deficit) equity attributable to Aerospace | (2,572) | 8,399 | |||||||||
| Noncontrolling interests | 83 | 97 | |||||||||
Total (deficit) equity | (2,489) | 8,496 | |||||||||
Total liabilities and (deficit) equity | $ | 23,032 | $ | 17,685 | |||||||
Honeywell Aerospace 3Q26 Results - 7
Honeywell Aerospace Inc.
Consolidated Statements of Cash Flows (Unaudited)
(Dollars in millions)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | September 26, 2026 | September 27, 2025 | ||||||||||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||||||
| Net income | $ | 737 | $ | 654 | $ | 1,635 | $ | 2,292 | |||||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||
| Depreciation | 69 | 70 | 214 | 204 | |||||||||||||||||||
| Amortization | 53 | 21 | 141 | 99 | |||||||||||||||||||
| Pension (income) expense | (76) | 1 | (72) | 4 | |||||||||||||||||||
| Stock compensation expense | 28 | 16 | 89 | 62 | |||||||||||||||||||
| Deferred income taxes | (44) | (57) | (8) | (186) | |||||||||||||||||||
| Other | 13 | 13 | (45) | 33 | |||||||||||||||||||
| Changes in assets and liabilities: | |||||||||||||||||||||||
| Accounts receivable | 134 | (179) | (231) | (390) | |||||||||||||||||||
| Inventories | (158) | 5 | (323) | (262) | |||||||||||||||||||
| Contract assets | (47) | (49) | (95) | (76) | |||||||||||||||||||
| Other assets | (100) | 40 | (185) | 78 | |||||||||||||||||||
| Accounts payable | 156 | 13 | 23 | (57) | |||||||||||||||||||
| Contract liabilities | (15) | 85 | 14 | 4 | |||||||||||||||||||
| Other liabilities | (82) | 206 | (143) | 59 | |||||||||||||||||||
| Net cash provided by operating activities | 668 | 839 | 1,014 | 1,864 | |||||||||||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||||
| Capital expenditures | (168) | (138) | (428) | (372) | |||||||||||||||||||
| Increase in investments, net | — | — | (5) | (1) | |||||||||||||||||||
| Amounts advanced for related party loans receivable | — | (12) | (7) | (19) | |||||||||||||||||||
| Payments received from related party loans receivable | — | — | 51 | — | |||||||||||||||||||
| Other | 4 | — | 4 | — | |||||||||||||||||||
| Net cash used for investing activities | (164) | (150) | (385) | (392) | |||||||||||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||||
| Proceeds from issuance of long-term debt | — | — | 15,843 | — | |||||||||||||||||||
| Net transfers from (to) Parent | 7 | (622) | (15,080) | (1,224) | |||||||||||||||||||
| Other | (12) | (16) | (24) | (41) | |||||||||||||||||||
Net cash (used for) provided by financing activities | (5) | (638) | 739 | (1,265) | |||||||||||||||||||
| Effect of foreign exchange rate changes on cash and cash equivalents | 2 | — | (23) | 19 | |||||||||||||||||||
Net increase in cash and cash equivalents | 501 | 51 | 1,345 | 226 | |||||||||||||||||||
Cash and cash equivalents at beginning of period | 1,057 | 419 | 213 | 244 | |||||||||||||||||||
Cash and cash equivalents at end of period | $ | 1,558 | $ | 470 | $ | 1,558 | $ | 470 | |||||||||||||||
Honeywell Aerospace 3Q26 Results - 8
Honeywell Aerospace Inc.
Segment Data (Unaudited)
(Dollars in millions)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| Net sales | September 26, 2026 | September 27, 2025 | September 26, 2026 | September 27, 2025 | |||||||||||||||||||
| Electronic Solutions | $ | 1,784 | $ | 1,708 | $ | 5,299 | $ | 4,903 | |||||||||||||||
| Engines & Power Systems | 1,515 | 1,478 | 4,341 | 4,142 | |||||||||||||||||||
| Control Systems | 1,345 | 1,347 | 3,878 | 3,851 | |||||||||||||||||||
| Total Net sales | $ | 4,644 | $ | 4,533 | $ | 13,518 | $ | 12,896 | |||||||||||||||
Reconciliation of Segment Profit to Income Before Taxes
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| Segment profit | September 26, 2026 | September 27, 2025 | September 26, 2026 | September 27, 2025 | |||||||||||||||||||
| Electronic Solutions | $ | 564 | $ | 510 | $ | 1,533 | $ | 1,395 | |||||||||||||||
| Engines & Power Systems | 250 | 299 | 705 | 748 | |||||||||||||||||||
| Control Systems | 382 | 376 | 1,098 | 1,184 | |||||||||||||||||||
| Corporate and All Other | (35) | (34) | (85) | (70) | |||||||||||||||||||
| Total Segment profit | 1,161 | 1,151 | 3,251 | 3,257 | |||||||||||||||||||
Amortization of acquisition-related intangibles1 | (28) | (3) | (72) | (37) | |||||||||||||||||||
Stock compensation expense2 | (28) | (16) | (89) | (62) | |||||||||||||||||||
Transaction costs3 | (18) | (143) | (540) | (160) | |||||||||||||||||||
Environmental expenses4 | (19) | (258) | (61) | (363) | |||||||||||||||||||
Honeywell trademark license expense2 | (54) | — | (54) | — | |||||||||||||||||||
Pension income (expense)5 | 76 | (1) | 72 | (4) | |||||||||||||||||||
| Interest (expense) income, net | (187) | 5 | (404) | 14 | |||||||||||||||||||
Other, net6 | (2) | 6 | (24) | 29 | |||||||||||||||||||
| Income before taxes | $ | 901 | $ | 741 | $ | 2,079 | $ | 2,674 | |||||||||||||||
1.Amounts included in Cost of products and services sold and Selling, general and administrative expenses.
2.Amounts included in Selling, general and administrative expenses.
3.Amounts included in Selling, general and administrative expenses and Other (income) expense, net.
4.Amounts included in Cost of products and services sold and Other (income) expense, net.
5.Amounts included in Cost of product and services sold, Selling, general and administrative, Research and development, and Other (income) expense, net.
6.Amounts include repositioning charges and other expenses.
Honeywell Aerospace 3Q26 Results - 9
Non-GAAP Financial Measures
The following information provides definitions and reconciliations of certain non-GAAP financial measures presented in this press release to which this reconciliation is attached to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP).
Management believes that, when considered together with reported amounts, these measures are useful to investors and management in understanding our ongoing operations and in the analysis of ongoing operating trends. Management believes these non‑GAAP financial measures provide investors with useful supplemental information related to our performance period to period, align the measures to how management evaluates performance internally, and make it easier for investors to compare our performance to peers. These measures should be considered in addition to, and not as replacements for, the most comparable GAAP measure. Certain measures presented on a non-GAAP basis represent the impact of adjusting items net of tax. The tax-effect for adjusting items is determined individually and on a case-by-case basis. Other companies may calculate these non-GAAP measures differently, limiting the usefulness of these measures for comparative purposes.
Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitations of these non-GAAP financial measures are that they exclude significant expenses and income that are required by GAAP to be recognized in the consolidated financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Investors are urged to review the reconciliation of the non-GAAP financial measures to the comparable GAAP financial measures and not to rely on any single financial measure to evaluate Honeywell Aerospace’s business.
Information reconciling forward-looking GAAP financial measures to non-GAAP financial measures related to full-year 2026 guidance, including organic sales growth, pro forma standalone adjusted EBIT, pro forma standalone adjusted earnings per share, and second half free cash flow, is not available because management cannot reliably predict or estimate certain items without unreasonable effort. These items include fluctuations in global currency markets; the timing, occurrence and impact of acquisition and divestiture transactions; pension mark-to-market expense as it is dependent on macroeconomic factors, such as interest rates and the return generated on invested pension plan assets; and the timing of working capital cash flows and capital expenditures. The information that is unavailable to provide a quantitative reconciliation could have a significant impact on our reported financial results.
Honeywell Aerospace 3Q26 Results - 10
Honeywell Aerospace Inc.
Reconciliation of Organic Sales Percent Change for Total Company and by Segment
(Unaudited)
3Q 2026 v. 3Q 2025 | |||||
| Honeywell Aerospace | |||||
| Reported sales percent change | 2 | % | |||
| Less: Foreign currency translation | — | % | |||
| Less: Acquisitions | — | % | |||
| Less: Other | — | % | |||
| Organic sales percent change | 2 | % | |||
| Electronic Solutions | |||||
| Reported sales percent change | 4 | % | |||
| Less: Foreign currency translation | (1) | % | |||
| Less: Acquisitions | — | % | |||
| Less: Other | — | % | |||
| Organic sales percent change | 5 | % | |||
| Engines & Power Systems | |||||
| Reported sales percent change | 3 | % | |||
| Less: Foreign currency translation | 1 | % | |||
| Less: Acquisitions | — | % | |||
| Less: Other | — | % | |||
| Organic sales percent change | 2 | % | |||
| Control Systems | |||||
| Reported sales percent change | — | % | |||
| Less: Foreign currency translation | — | % | |||
| Less: Acquisitions | — | % | |||
| Less: Other | — | % | |||
| Organic sales percent change | — | % | |||
We define organic sales percent change as the year-over-year change in reported Net sales relative to the comparable period, excluding the impact on sales from foreign currency translation and acquisitions, net of divestitures, for the first 12 months following the transaction date, and other items that are unusual and non-recurring in nature (e.g., impact of comprehensive settlement related to Flexjet litigation). We believe this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.
Honeywell Aerospace 3Q26 Results - 11
Honeywell Aerospace Inc.
Reconciliation of Organic Sales Percent Change by End Market
(Unaudited)
3Q 2026 v. 3Q 2025 | |||||
| Commercial Original Equipment | |||||
| Reported sales percent change | 7 | % | |||
| Less: Foreign currency translation | (1) | % | |||
| Less: Acquisitions | — | % | |||
| Less: Other | — | % | |||
| Organic sales percent change | 8 | % | |||
| Commercial Aftermarket | |||||
| Reported sales percent change | 2 | % | |||
| Less: Foreign currency translation | — | % | |||
| Less: Acquisitions | — | % | |||
| Less: Other | — | % | |||
| Organic sales percent change | 2 | % | |||
| Defense and Space | |||||
| Reported sales percent change | 1 | % | |||
| Less: Foreign currency translation | — | % | |||
| Less: Acquisitions | — | % | |||
| Less: Other | — | % | |||
| Organic sales percent change | 1 | % | |||
We define organic sales percentage as the year-over-year change in reported Net sales relative to the comparable period, excluding the impact on sales from foreign currency translation and acquisitions, net of divestitures, for the first 12 months following the transaction date, and other items that are unusual and non-recurring in nature (e.g., impact of comprehensive settlement related to Flexjet litigation). We believe this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.
Honeywell Aerospace 3Q26 Results - 12
Honeywell Aerospace Inc.
Reconciliation of Net Income to Segment Profit and Adjusted EBIT
(Unaudited)
(Dollars in millions)
| Three Months Ended | |||||||||||
| September 26, 2026 | September 27, 2025 | ||||||||||
| Net income | $ | 737 | $ | 654 | |||||||
| Income tax expense | 164 | 87 | |||||||||
Amortization of acquisition-related intangibles(1) | 28 | 3 | |||||||||
Stock compensation expense(2) | 28 | 16 | |||||||||
Environmental expense(3) | 19 | 258 | |||||||||
Transaction costs(4) | 18 | 143 | |||||||||
Honeywell trademark license expense(2) | 54 | — | |||||||||
Pension (income) expense(5) | (76) | 1 | |||||||||
| Interest expense (income), net | 187 | (5) | |||||||||
Other, net(6) | 2 | (6) | |||||||||
| Total Segment Profit/Adjusted EBIT | $ | 1,161 | $ | 1,151 | |||||||
1.Amounts included in Cost of products and services sold and Selling, general and administrative.
2.Amounts included in Selling, general and administrative expenses.
3.Amounts included in Cost of products and services sold and Other (income) expense, net.
4.Amounts included in Selling, general and administrative expenses and Other (income) expense, net.
5.Amounts included in Cost of products and services sold, Selling, general and administrative, Research and development, and Other (income) expense, net.
6.Amounts include repositioning and other charges.
We define Total segment profit as Net income excluding taxes, interest, amortization of acquisition-related intangibles, stock compensation expense, environmental expense, pension (income) expense, repositioning and other charges, transaction costs, expenses associated with the Honeywell trademark license, and other items within Other (income) expense, net. We define adjusted EBIT as Net income excluding taxes, excluding interest, amortization-related intangibles, stock compensation expense, environmental expense, pension (income) expense, repositioning and other charges, transaction costs, expenses associated with the Honeywell trademark license, other items within Other (income) expense, net, and other items that are unusual or non-recurring in nature, including but not limited to impairment charges and litigation charges (e.g., comprehensive settlement related to Flexjet litigation). We believe these measures are useful to investors as they provide greater transparency with respect to supplemental information used by management in its financial and operational decision making, as well as understanding ongoing operating trends.
Honeywell Aerospace 3Q26 Results - 13
Honeywell Aerospace Inc.
Reconciliation of Earnings per Share to Adjusted Earnings per Share
(Unaudited)
| Three Months Ended | |||||
| September 26, 2026 | |||||
Earnings per share of common stock - diluted1 | $ | 2.29 | |||
Amortization of acquisition-related intangibles2 | 0.06 | ||||
Transaction costs3 | 0.04 | ||||
Pension income4 | (0.18) | ||||
| Adjusted earnings per share of common stock - diluted | $ | 2.21 | |||
1.For the three months ended September 26, 2026, adjusted earnings per share utilizes weighted average shares of 317.7 million.
2.For the three months ended September 26, 2026, acquisition-related intangibles amortization was $21 million, net of tax benefit of $7 million.
3.For the three months ended September 26, 2026, transaction related costs were $14 million, net of tax benefit of $4 million.
4.For the three months ended September 26, 2026, pension income was $58 million, net of tax expense of $18 million.
We define adjusted earnings per share as diluted earnings per share adjusted to exclude various charges as listed above. We believe adjusted earnings per share is a measure that is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.
Honeywell Aerospace 3Q26 Results - 14
Honeywell Aerospace Inc.
Reconciliation of Cash Provided by Operating Activities to Free Cash Flow
(Unaudited)
(Dollars in millions)
| Three Months Ended, | |||||
| September 26, 2026 | |||||
| Cash provided by operating activities | $ | 668 | |||
| Capital expenditures | (168) | ||||
| Free cash flow | $ | 500 | |||
We define free cash flow as cash provided by operating activities less cash for capital expenditures and excluding the cash payments for settlement of Flexjet-related litigation matters.
We believe this measure is useful to investors and management as a measure of cash generated by operations that will be used to repay scheduled debt maturities and can be used to invest in future growth through new business development activities or acquisitions, pay dividends, repurchase stock, or repay debt obligations prior to their maturities. This measure can also be used to evaluate our ability to generate cash flow from operations and the impact that this cash flow has on our liquidity.
Exhibit 99.2
Contacts: | |||||
Media | |||||
Adam Kress | |||||
(602) 760-6252 | |||||
Adam.Kress@honeywellaerospace.com | |||||
Honeywell Aerospace to build new state-of-the-art manufacturing facility in Arizona to support growing commercial and defense demand
New facility planned for Tempe campus will create approximately 600 jobs, and support current and next-generation aviation technologies and high-priority defense programs
PHOENIX, October 28, 2026 – Honeywell Aerospace (NASDAQ: HONA) today announced a major expansion of its manufacturing facilities, strengthening the company's ability to meet growing demand across current and next-generation commercial aviation and defense programs.
The new $500 million, 300,000 square foot Tempe, Arizona facility will include an integrated digital production system, modular robotics, automated inspection, digital twins, and be powered by an end-to-end digital thread. This Honeywell Aerospace from-the-ground-up manufacturing facility investment will support the largest commercial and defense customers in aerospace and defense.
"Demand for Honeywell Aerospace technologies continues to accelerate across both commercial and defense markets, and this major investment ensures we can continue delivering for our customers while unlocking long-term growth for our shareholders," said Jim Currier, president and chief executive officer of Honeywell Aerospace. “This is an example of how our recent spin into an independent, publicly-traded Honeywell Aerospace allows us to make decisions and investments that support our growth and the future of aviation and defense.”
The new facility, near the company’s global headquarters, will create supply chain resilience by adding internal complex machining capability – a key area of the supply base that is currently constrained – while establishing a more vertically integrated production system for the next generation of products including Assure advanced actuation systems and Attune vapor cycle cooling subsystems.
Opening in late 2028, the advanced manufacturing facility will support customers’ growth on current programs, $15 billion in Control Systems new program wins, and the future of aviation. The expansion will also provide critical capacity growth to support priority production of critical defense technologies included in the supplier framework agreement the company signed with the Department of War in March.
The facility will create approximately 600 jobs, increasing the company’s engineering depth and its skilled workforce.
"Arizona has been at the heart of our innovation and manufacturing operations for decades,” Currier continued. “Expanding on our existing Tempe campus with this state-of-the-art new facility reinforces our commitment to this great state, our employees and the Arizona workforce, as well as the customers around the world who depend on Honeywell Aerospace technologies every day."
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About Honeywell Aerospace
Honeywell Aerospace (Nasdaq: HONA) is an independent global aerospace and defense company whose critical technologies are broadly deployed on the world’s leading commercial air transport, business aviation, defense and space platforms. These integrated solutions enable safer, more efficient and more reliable missions. Headquartered in Phoenix, Arizona, the company employs more than 36,000 people globally and supports more than 10,000 customers. With a broad portfolio spanning avionics and navigation systems, engines and power systems, and control systems for aircraft, Honeywell Aerospace combines commitment and deep engineering expertise to drive innovation and long-term value for the aerospace industry. For more information, visit www.honeywellaerospace.com or follow Honeywell Aerospace on LinkedIn
Forward-looking statements
The discussions in the release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements are those that address activities, events, or developments that management intends, expects, projects, believes, estimates, forecasts, or anticipates will or may occur in the future. They are based on management's assumptions and assessments in light of past experience and trends, current economic and industry conditions, expected future developments, customer demand, and other relevant factors, many of which are difficult to predict and outside of our control.
These forward-looking statements should be considered in light of the information included in this release with our filings with the Securities and Exchange Commission. In addition, no assurance can be given that any plan, initiative, projection, goal, commitment, expectation, or prospect set forth in this release can or will be achieved. Any forward-looking plans described herein are not final and may be modified or abandoned at any time. We do not undertake to update or revise any of our forward-looking statements, except as required by applicable securities law.