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 reported sales of $4.64 billion for the third quarter of 2026, up 2% from a year earlier. Net income rose 13% to $737 million, according to results released on October 28, 2026.
Unfilled orders reached $19.3 billion, up 12% from a year earlier. New orders over the past 12 months increased 9%, led by defense and space customers.
Honeywell Aerospace separated from Honeywell International on June 29, 2026. CEO Jim Currier said the company performed better than management expected during its first full quarter following the split.
“We are seeing encouraging signs from pacing suppliers as we deepen our commitment to enduring partnerships,” Currier said.
The company said a small number of mechanical parts suppliers were limiting production. It is working with those suppliers and qualifying additional sources of materials to increase output.
Honeywell said sales of equipment for new commercial aircraft rose 7% to $690 million as aircraft manufacturers increased production and customers bought more equipment.
Sales of replacement parts and services for commercial aircraft grew 2% to $2.13 billion. Honeywell said demand remained strong, but the shortage of mechanical components held back growth.
Defense and space sales increased 1% to $1.83 billion for the quarter. Growth from the company’s 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, though it kept 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 also declared its first quarterly dividend of 40 cents per share, payable on December 4, 2026, to shareholders of record on November 13.
Honeywell said it has won business this year with an estimated value of more than $20 billion over the life of the programs involved.
Recent awards include more than $2 billion for navigation and radio-frequency systems used in missiles and munitions.
The US Air Force also advanced Honeywell’s SkyShot 1600 engine into preliminary design review under its Autonomous Collaborative Platform program. The engine is being developed for collaborative combat aircraft and other unmanned aircraft.
Honeywell is also adding 300,000-square-feet of space in an expansion of its Tempe, Arizona, facility, expected to open in late 2028 to support production of aircraft control systems.