Earnings Call
Aug 5, 2026
Q2 FY2026
EPS Estimate
2.12
EPS Actual
1.87
Post-Earnings Close
$156.47
Earnings Reaction
-23.2%
Honeywell Aerospace's first earnings call as an independent public company, spun off from Honeywell on June 29, 2026, was dominated by a significant guidance reset driven by persistent supply chain constraints that have prevented the company from converting robust demand into revenue. Organic sales grew 5% year-over-year to $4.5 billion in Q2, but this trailed management's own expectations, and adjusted EPS of $1.78 came in well below the $2.12 consensus estimate, weighed down by a $50 million inventory obsolescence charge concentrated in the Engines & Power Systems segment and an unfavorable mix shift away from higher-margin commercial aftermarket and international defense toward OE and domestic defense. Adjusted EBIT of approximately $1 billion declined 2% year-over-year; excluding the obsolescence charge, it would have grown 3%.
Report generated on Aug 6, 2026
AI-generated earnings analysis. Not investment advice.
Chief Executive Officer
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
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