Honeywell Aerospace Inc. (HONA) AI Stock Analysis

Honeywell Aerospace Inc. manufactures and supplies aircraft components, avionics, engines, and systems for airframe makers, commercial airlines, business aviation, defense, and space markets. Its portfolio spans cockpit systems and displays, navigation products, auxiliary power units, propulsion engines, actuation, air and thermal management, satellite communications, sensors, and braking systems. The company also delivers aftermarket flight services, maintenance plans, cabin connectivity, and the GoDirect Trade parts marketplace. Tracing its roots to 1914, Honeywell Aerospace became an independent public company in June 2026.

Honeywell Aerospace grew annual revenue from $13.79B in FY2023 to $15.45B in FY2024, up 12.0%, and reached $17.40B in FY2025, reflecting a 12.7% growth rate and a 2-year revenue CAGR of 12.3%. However, profitability decreased over the period. Gross margin contracted from 38.3% in FY2023 to 35.6% in FY2024 and 34.8% in FY2025. Operating margin dropped from 25.8% in FY2023 to 18.7% in FY2025, while net income fell from $2.89B to $1.78B. For the latest quarter ended June 30, 2026, quarterly revenue growth was 5.4% year-over-year, while quarterly earnings growth fell 70.9% year-over-year. TTM revenue stood at $17.92B with an operating margin of 14.7%.

As of June 30, 2026, Honeywell Aerospace held $1.06B in cash and short-term investments against $15.89B in total debt, resulting in net debt of $14.83B. Total assets stood at $19.37B and shareholders' equity was -$5.70B, reflecting negative equity. The company reported a current ratio of 1.53. In FY2025, operating cash flow was $3.71B and free cash flow was $3.20B, while capital expenditures totaled $504.0M.

Honeywell Aerospace trades at a trailing P/E of 51.2x, above the 28.5x median of its Nasdaq-100 Industrials peers. Its forward P/E is 18.3x, compared to the peer median of 27.3x, and its PEG ratio is 1.04. The stock has a price-to-sales ratio of 3.0x, below the peer median of 6.3x, and an EV/EBITDA of 21.6x versus the peer median of 19.9x. At its last close of $168.09 on October 16, 2026, HONA traded between its 52-week low of $149.19 and 52-week high of $297.50, while the S&P 500 (SPY) generated a 1-year return of 16.8% and a 5-year return of 83.0%.

Analyst coverage consists of 4 Strong Buy, 2 Buy, 11 Hold, 0 Sell, and 0 Strong Sell recommendations. The mean price target is $199.20, representing an 18.5% upside compared to the last close of $168.09. For the current fiscal year ending January 31, 2027, consensus estimates project revenue of $18.37B and EPS of $6.65. For the next fiscal year, 14 analysts project revenue of $19.81B, indicating 7.8% revenue growth, and EPS of $8.92, representing 15.1% EPS growth. The company is scheduled to report its next earnings on October 28, 2026.

This page is an AI-written research summary of Honeywell Aerospace Inc. (HONA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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