The EPS beat and raised guidance are positive, but the Engines & Power Systems segment profit decline of 16% YoY and flat Control Systems sales warrant monitoring. The $500M facility expansion signals confidence in long-term demand but adds capex. Watch the Q4 2026 earnings for execution on supply chain improvements and margin recovery in Engines & Power Systems.
Price Chart
Executive Summary
Honeywell Aerospace reported Q3 2026 sales of $4.644B (+2% YoY) and GAAP diluted EPS of $2.29, beating the consensus estimate of $1.86. The company raised its full-year pro forma standalone adjusted EPS guidance to $7.85-$8.00 (from $7.60-$7.90) and second-half free cash flow guidance to $1.2B-$1.4B. The Board declared an inaugural quarterly dividend of $0.40/share, and the company announced a $500M Tempe manufacturing facility expansion.
Key Financial Metrics
Key Facts
- Q3 2026 sales of $4.644B, up 2% YoY reported and organic
- GAAP diluted EPS of $2.29 vs consensus $1.86 (beat of +23.1%)
- Adjusted EPS of $2.21 (non-GAAP)
- Net income of $737M, up 13% YoY
- Adjusted EBIT of $1.161B, up 1% YoY
- Backlog grew to $19.3B, up 12% YoY
- Trailing twelve-month orders up 9%
- Full-year pro forma standalone adjusted EPS guidance raised to $7.85-$8.00 from $7.60-$7.90
- Full-year organic sales growth guidance maintained at 4%-5%
- Second-half free cash flow guidance raised to $1.2B-$1.4B from $1.0B-$1.4B
- Inaugural quarterly dividend declared at $0.40 per share
- $500M Tempe manufacturing facility expansion announced, expected to open in late 2028
- Year-to-date new wins exceed $20B in estimated lifetime value
- Electronic Solutions segment profit up 11% YoY; Engines & Power Systems segment profit down 16% YoY
Financial Impact
Q3 revenue $4.644B, GAAP EPS $2.29, adjusted EPS $2.21; guidance raised for full-year adjusted EPS to $7.85-$8.00 and 2H FCF to $1.2B-$1.4B; $500M facility capex
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Electronic Solutions | $1.8B | +4.0% |
| Engines and Power Systems | $1.5B | +3.0% |
| Control Systems | $1.3B | 0.0% |
Risk Factors
- Engines & Power Systems segment profit declined 16% YoY due to unfavorable mix and higher costs
- Supply chain constraints from mechanical suppliers continue to limit output growth
- Control Systems sales were flat YoY
- Incremental standalone public company costs are a headwind
- The company carries $15.853B in long-term debt post-spin, with a negative equity position of ($2.489B)
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0002089271-26-000031 |
| Exhibit: exhibit992projectarisepres.htm | 0002089271-26-000031 |
| Document: hona-20261028.htm | 0002089271-26-000031 |
| Document: 0002089271-26-000031-index-headers.html | 0002089271-26-000031 |
| Document: 0002089271-26-000031-index.html | 0002089271-26-000031 |
| Document: 0002089271-26-000031.txt | 0002089271-26-000031 |
| 8-K Data (Synthetic) | 0002089271-26-000031 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 28, 2026 2d ago | 8-K | $188.01 | awaiting T+60 | awaiting T+60 | $154.15 (−18.01%) |
Oct 28, 2026 2d ago | Press Release | $176.10 | awaiting T+60 | awaiting T+60 | $154.15 (−12.46%) |
Oct 21, 2026 9d ago | Institutional Cluster | $163.02 | awaiting T+60 | awaiting T+60 | $154.15 (−5.44%) |
Sep 3, 2026 8w ago | Insider Buy | $161.01 | awaiting T+60 | awaiting T+60 | $154.15 (−4.26%) |
Aug 2, 2026 12w ago | Institutional Cluster | $208.27 $168.27 | ▼ −19.21% | ▼ −20.99% | $154.15 (−25.99%) |
Jul 17, 2026 15w ago | Press Release | $211.63 $157.27 | ▼ −25.68% | ▼ −30.37% | $154.15 (−27.16%) |
Jul 14, 2026 15w ago | EFFECT | $207.51 $153.07 | ▼ −26.23% | ▼ −29.61% | $154.15 (−25.71%) |
Jul 6, 2026 16w ago | S-4 | $238.14 $154.97 | ▼ −34.92% | ▼ −36.92% | $154.15 (−35.27%) |
Jun 29, 2026 17w ago | 3 | $221.08 $163.33 | ▼ −26.12% | ▼ −28.94% | $154.15 (−30.27%) |
Jun 29, 2026 17w ago | 3 | $221.08 $163.33 | ▼ −26.12% | ▼ −28.94% | $154.15 (−30.27%) |
US Market Status
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