Honeywell Aerospace Forecasts Earnings Growth Post-Separation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Source: Newsfilter
- Operational Independence: Honeywell Aerospace CEO Jim Currier emphasizes that post-separation, the company will focus on a single strategy, targeting annual revenues of at least $6.5 billion and free cash flow of at least $4 billion by 2030, indicating strong growth potential.
- Profitability Goals: As a standalone entity, Honeywell Aerospace anticipates adjusted EBIT of $4.65 billion to $4.75 billion in 2026, with second-half free cash flow projected between $1 billion and $1.5 billion, reflecting robust performance in the aviation and defense sectors.
- Strong Market Demand: Currier highlights significant growth opportunities in commercial transport and defense, asserting that Honeywell Aerospace's technological and product advantages will help it stand out in a competitive market, particularly with record backlogs from Airbus and Boeing.
- Supply Chain Challenges Addressed: Despite facing supplier issues in Q1, Currier assures that these challenges have been resolved, and management will work to communicate supply chain stability to investors, aiming to bolster market confidence.
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Analyst Views on HON
Wall Street analysts forecast HON stock price to rise
15 Analyst Rating
8 Buy
6 Hold
1 Sell
Moderate Buy
Current: 213.970
Low
195.00
Averages
235.07
High
262.00
Current: 213.970
Low
195.00
Averages
235.07
High
262.00
About HON
Honeywell International Inc. is an integrated operating company serving a range of industries and geographies around the world, with a portfolio that is underpinned by its Honeywell Accelerator operating system and Honeywell Forge platform. The Company provides actionable solutions for aerospace, building automation, industrial automation, process automation, and process technology. The Company supplies products, software, and services for aircrafts that it sells to original equipment manufacturers (OEM) and other customers in a variety of end markets. The Company’s portfolio of solutions and services is used in buildings worldwide for fire prevention, controls, access and security. Its offerings serve as the fundamental building blocks of industrial automation. Its sensor technologies and value-added smart edge devices offer connectivity across a variety of sensing and measurement applications. The Company offers a comprehensive portfolio of end-to-end process automation solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Spin-Off Strategy: The planned aerospace spinoff aims to create a more focused industrial business, providing investors with clearer growth prospects, with expectations of 2% to 3% organic sales growth for the remaining business by 2026.
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