Honeywell is holding its profit forecast steady ahead of its aerospace spinoff

Honeywell expects full-year 2026 adjusted earnings of $10.35 to $10.65 per share and annual revenue of $38.8 billion to $39.8 billion. The guidance reaffirms the same ranges the company maintained after its first quarter.

Slated for a June 29 separation, Honeywell Aerospace covers aircraft engines, parts, and defense systems. The separation marks a central step in the company's previously announced three-way breakup. Last October, the advanced materials division was separated into an independent company now known as Solstice Advanced Materials, leaving the automation operations to carry on as Honeywell Technologies.

For Honeywell Technologies, the 2026 outlook calls for adjusted earnings between $3.95 and $4.15 per share, revenue landing somewhere in the $19.9 billion to $20.2 billion range, and free cash flow of roughly $2 billion on an annual basis.

Speaking to investors Monday, Honeywell CEO Vimal Kapur expressed "very high conviction" that the second half of 2026 would not be dragged down by Middle East tensions, provided there is "no significant re-escalation," and suggested the region could even generate a "tailwind" if customers ramp up outlays on energy security and rebuilding efforts.

That conflict has already weighed on Honeywell's recent results. The company reported first-quarter revenue of $9.14 billion, missing analyst expectations, as disruptions in its Process Automation and Technology segment slowed collections and cut into organic sales. Earlier in the year, Kapur had put the first-quarter revenue drag from regional instability at around 0.5%, with a steeper hit of roughly 1% anticipated for the second quarter, concentrated in the process automation and technology segment.

Despite the first-quarter shortfall, Honeywell maintained its full-year guidance at the time and held it again on Monday. The company has also been shedding non-core businesses in recent months, including agreements to sell its Warehouse and Workflow Solutions unit and its Productivity Solutions and Services business ahead of the broader breakup.