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Honeywell Aerospace (HONA) AI Stock Analysis
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Honeywell Aerospace
(NASDAQ:HONA)
The score is driven primarily by strong financial strength (notably the very low leverage and improved free cash flow) and a constructive earnings call with raised EPS/FCF guidance and strong backlog/order momentum. These positives are moderated by the 2025 margin/ROE deterioration, supply-chain and near-term margin headwinds highlighted on the call, and a valuation that looks moderately expensive on a 24.184 P/E with no dividend yield data provided.
Honeywell Aerospace (HONA) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $48.87B
- Dividend Yield
- ―
- Average Volume (3M)
- 3.94M
- Price to Earnings (P/E)
- 25.7
- Beta (1Y)
- -0.52
- Revenue Growth
- 8.36%
- EPS Growth
- -32.92%
- Country
- US
- Employees
- 30,000
- Sector
- General
- Sector Strength
- 55
- Industry
- Aerospace & Defense
Honeywell Aerospace Business Overview & Revenue Model
Company Description
Honeywell Aerospace, Inc. engages in the provision of aerospace and defense critical systems and technologies. It operates through the following segments: Electronic Solutions, Engines & Power Systems, and Control Systems. The Electronic Solutions se...
How the Company Makes Money
Honeywell Aerospace primarily makes money by selling aerospace products and by providing recurring aftermarket services tied to the installed base of its equipment. 1) Original equipment (OEM) sales - The business generates revenue by supplying compo...
Honeywell Aerospace Earnings Call Summary
The call was predominantly positive, supported by strong customer demand, more than $20 billion of year-to-date lifetime wins, a backlog above $19 billion, improved manufacturing output, robust defense and aftermarket orders, raised EPS and free cash flow guidance, and the initiation of a quarterly dividend. However, supply-chain constraints continue to limit the conversion of orders into sales, defer international defense revenue, pressure product mix, and create a fourth-quarter margin headwind from the absence of tariff refunds. Management remained confident that ongoing supply-chain investments will drive stronger output and sales growth in 2027 and beyond.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Honeywell Aerospace is maintaining 2026 organic growth guidance of 4% to 5%, with fourth quarter organic sales expected to be “modestly below the full year range”; fourth quarter output growth is expected to be “consistent with levels seen in the first 3 quarters of the year,” while the benefits of supply chain actions will “step up in 2027.” The company is narrowing its 2026 pro forma standalone adjusted EBIT guidance range around the same midpoint of $4.4 billion, raising pro forma standalone adjusted EPS guidance to $7.85 to $8, and raising second half free cash flow guidance to $1.2 billion to $1.4 billion, with capital expenditures of about $650 million for the year. No IEEPA tariff refunds are currently anticipated in the fourth quarter, creating a more than 100 basis point sequential margin headwind, and fourth quarter margin should be more similar to the first half of the year; the company expects to exit this year in the mid-23s. For 2027, output growth is expected to ramp throughout the year, with higher output growth translating to accelerating sales growth and healthier allocations across all end markets, while investments will run through the P&L and CapEx, next year’s CapEx is expected to step up, and mix is expected to remain a headwind.
Honeywell Aerospace Financial Statement Overview
Summary
Strong overall financial quality supported by a very conservative balance sheet (debt-to-equity ~0.03) and robust free cash flow generation (2025 FCF $3.2B, improved vs 2024). The key offset is weakening profitability in 2025, with net margin falling to 10.2% from 18.2% and ROE down to 21.2% from 32.2%.
Income Statement
78PositiveBalance Sheet
91Very PositiveCash Flow
74Positive| Breakdown | TTM | Dec 2025 | Dec 2024 |
|---|---|---|---|
Income Statement | |||
| Total Revenue | 18.34B | 17.40B | 15.45B |
| Gross Profit | 6.62B | 6.06B | 5.50B |
| EBITDA | 3.88B | 3.59B | 3.85B |
| Net Income | 1.90B | 1.78B | 2.82B |
Balance Sheet | |||
| Total Assets | 23.03B | 17.68B | 16.84B |
| Cash, Cash Equivalents and Short-Term Investments | 1.56B | 213.00M | 244.00M |
| Total Debt | 15.85B | 271.00M | 237.00M |
| Total Liabilities | 25.52B | 9.19B | 8.02B |
| Stockholders Equity | -2.57B | 8.40B | 8.74B |
Cash Flow | |||
| Free Cash Flow | 2.29B | 3.20B | 2.05B |
| Operating Cash Flow | 2.85B | 3.71B | 2.54B |
| Investing Cash Flow | -518.00M | -525.00M | -2.60B |
| Financing Cash Flow | -1.24B | -3.25B | 164.00M |
Honeywell Aerospace Peers Comparison
Overall Rating
HONA77Outperform
HEI76.4Outperform
LHX75Outperform
GE71Outperform
RTX71Outperform
TDG58Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| 77Outperform | $48.87B | 25.73 | -221.47% | ― | 8.36% | -32.92% | |
| 76Outperform | $37.93B | 52.85 | 18.30% | 0.04% | 20.69% | 31.56% | |
| 75Outperform | $51.69B | 25.75 | 10.17% | 1.78% | 7.33% | 15.31% | |
| 71Outperform | $311.87B | 34.66 | 50.64% | 0.59% | 19.62% | 15.45% | |
| 71Outperform | $269.62B | 32.07 | 12.77% | 1.41% | 11.63% | 26.50% | |
| 58Neutral | $63.39B | 34.79 | -22.31% | ― | 16.64% | 9.48% | |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HONA | Honeywell Aerospace Inc | 154.15 | -45.85 | -22.92% | |
| GE | Ge Aerospace | 301.80 | -5.17 | -1.68% | |
| LHX | L3harris Technologies | 277.61 | -6.27 | -2.21% | |
| HEI | HEICO Corporation | 321.36 | 6.77 | 2.15% | |
| TDG | Transdigm | 1146.81 | -153.19 | -11.78% | |
| RTX | Rtx Corporation | 199.80 | 25.35 | 14.53% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 29, 2026