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Honeywell Aerospace shares tumble more than 20% after guidance cut as Evercore lowers price forecast

Honeywell Aerospace shares tumble more than 20% after guidance cut as Evercore lowers price forecast

The newly independent aerospace company kept second-quarter revenue growth at 5% but cut 2026 organic sales and EBITDA guidance on supply chain constraints, while Evercore ISI maintained an In-Line rating and reduced its forecast to $210.

Fact Check
All three sources confirm the core claim. Benzinga specifically reports the 10.43% after-hours decline, the 2026 guidance cut on supply chain constraints, spinoff-related context, and 5% Q2 revenue growth. CNBC corroborates a ~11% drop and the same guidance cut and supply chain cause. Reuters independently verifies the forecast cut on supply-chain woes. The precise 10.43% is an after-hours figure and matches Benzinga exactly.
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Summary

Honeywell Aerospace shares extended their post-earnings slide on Thursday, falling 20.43% to $162.04 after a 10.43% after-hours drop as the newly independent company cut 2026 guidance and Evercore ISI Group maintained an In-Line rating while lowering its price forecast to $210. The company now expects organic revenue growth of 4% to 5%, down from 7% to 9%, adjusted earnings per share of $7.60 to $7.90 versus an $8.86 analyst estimate compiled by LSEG, and pro forma standalone adjusted EBITDA of $4.35 billion to $4.45 billion, down from $4.65 billion to $4.75 billion. Second-quarter revenue rose 5% year over year to $4.52 billion, while adjusted earnings per share fell 32% to $1.87, pressured by about $100 million in separation-related costs and inventory obsolescence charges tied to the June spinoff from Honeywell. Technical indicators cited in Thursday trading showed the stock 20.8% below its 20-day SMA at $205.94 and down 25.86% over 12 months, reinforcing investor concern that supply-chain constraints could keep the shares under pressure until execution improves.

Terms & Concepts
  • organic revenue growth: Revenue growth measured from the core business, excluding acquisitions, divestitures and some currency effects.
  • adjusted EBITDA: A profitability measure that excludes interest, taxes, depreciation, amortization and selected one-off items.
  • 20-day SMA: The 20-day simple moving average, a technical indicator that tracks a stock's average closing price over the last 20 trading sessions.