Honeywell Aerospace Posts Higher Q3 Sales and Profit as Mechanical Parts Shortages Hold Back Output

Honeywell Aerospace reported higher sales and profit in its first full quarter as an independent company, but shortages of mechanical parts kept it from filling more orders. The aircraft engine, avionics and systems supplier posted third-quarter 2026 sales of $4.64 billion, up 2% from a year earlier. Net income rose 13% to $737 million, in results released on October 28, 2026.

Unfilled orders reached $19.3 billion, up 12% from a year earlier, while new orders over the past 12 months increased 9%, led by defense and space customers. CEO Jim Currier said the company performed better than management expected in its first full quarter after the split, citing encouraging signs from pacing suppliers. The company said a small number of mechanical parts suppliers were limiting production, and it is working with them and qualifying additional material sources to raise output.

Sales of equipment for new commercial aircraft rose 7% to $690 million as aircraft manufacturers increased production. Sales of replacement parts and services for commercial aircraft grew 2% to $2.13 billion. Honeywell said demand remained strong but the mechanical component shortage held back growth. Defense and space sales increased 1% to $1.83 billion; growth from the CAES and Civitanavi businesses was partly offset by supply shortages affecting international sales and the wind-down of a government program outside aerospace.

Honeywell raised its full-year adjusted earnings forecast while keeping its underlying sales growth forecast at 4% to 5%. Currier said progress with suppliers and additional material sources should allow production and sales to grow faster in 2027 and beyond. The company declared its first quarterly dividend of 40 cents per share, payable on December 4, 2026, to shareholders of record on November 13.