Honeywell cuts 2026 forecast

Honeywell Aerospace cut its 2026 forecast on August 5, saying persistent supply-chain problems were limiting its ability to serve strong aftermarket demand and forcing it to prioritize deliveries to planemakers Boeing and Airbus. The guidance cut came little more than a month after Honeywell Aerospace was separated from Honeywell Technologies in a June 29 spin-off. Airbus, by contrast, left its 2026 guidance unchanged on July 29 and said it still expected about 870 commercial aircraft deliveries this year. The European planemaker reported 351 commercial aircraft delivered in the first half, up from 306 a year earlier, and said commercial aircraft revenue rose 15% to 23.9 billion euros. ### Why did Honeywell Aerospace cut its outlook so soon after the spin-off? (globalbankingandfinance.com) Honeywell Aerospace said on August 5 that supply constraints were crimping its ability to convert demand into sales, especially in aftermarket activity, even as airlines and aircraft operators continued to seek parts and services. Reuters, in the report carried by Global Banking & Finance Review, said the company lowered its 2026 sales growth forecast and issued a weaker-than-expected earnings outlook because those bottlenecks were hurting margins and limiting fulfillment. (airbus.com) June 8 looked different. Honeywell had reaffirmed full-year 2026 guidance ahead of the aerospace separation and said investors would hear more at its June 11 investor day. That earlier outlook has now been overtaken by supply-chain conditions the company said were still unresolved in the newly independent aerospace business. (globalbankingandfinance.com) ### What exactly is getting squeezed — demand or production? Aftermarket demand remains strong, according to Honeywell Aerospace’s August 5 guidance cut, but the company said it could not fully meet that demand because parts shortages were constraining output and allocation. The report said Honeywell was prioritizing commercial original-equipment deliveries to Boeing and Airbus, a sign that available supply was being directed toward factory production commitments. (honeywell.com) A separate Reuters report from March showed the same pattern. Honeywell Aerospace and Howmet executives said then that commercial aerospace demand was strong and capacity could be expanded, but the sector was still dealing with supply-chain friction as manufacturers tried to raise output. ### Why is Airbus still holding to 870 deliveries? Airbus said on July 29 that its 2026 guidance was unchanged despite what it called a dynamic and complex environment. (globalbankingandfinance.com) The company reported 351 commercial aircraft deliveries for the first half and kept its target of around 870 for the full year. Avion Revue’s monthly delivery coverage showed Airbus delivered 60 aircraft in March, 67 in April and 89 in June, indicating a stronger second quarter after a weaker start to the year. (globalbankingandfinance.com) Airbus’s official orders-and-deliveries page says it updates those figures monthly. ### What does the gap between Honeywell and Airbus show about the industry? Honeywell Aerospace’s cut and Airbus’s unchanged target point to the same pressure point: demand is present, but conversion depends on whether suppliers can deliver parts on time. (airbus.com) Airbus’s own revenue growth in commercial aircraft came with unchanged guidance rather than a higher target, while Honeywell said supplier problems were directly limiting its ability to capture aftermarket sales. (avionrevue.com) An August 3 Reuters report on aircraft window shortages offered another example of the same problem. Airlines, repair shops and manufacturers were conserving windows after an incident at a key GKN Aerospace factory worsened shortages for both new aircraft and routine maintenance. ### Where will investors look next for confirmation? Airbus publishes monthly commercial orders and deliveries, and its July 29 half-year report is the company’s latest formal statement that the 870-aircraft goal is intact. (globalbankingandfinance.com) Honeywell Aerospace’s next investor updates will be watched for any change in how quickly supply-chain conditions ease after the June 29 separation from Honeywell Technologies. (airbus.com) (globalbankingandfinance.com)