Honeywell Aerospace Reports Q3 Results, Raises FY26 Outlook & Initiates $0.40 Dividend

Executive Summary

Honeywell Aerospace Inc. (NASDAQ: HONA) filed a Form 8-K covering its third quarter 2026 earnings release, an increase in full-year earnings guidance, an inaugural dividend declaration, and a planned manufacturing facility expansion.

Key Financial & Operational Highlights

• Third Quarter 2026 Performance:

  • Sales: $4,644 million, up 2% year-over-year (reported and organic).
  • Net Income: $737 million, up 13% year-over-year compared to $654 million in Q3 2025.
  • Adjusted EBIT: $1,161 million, up 1% year-over-year, supported by an approximate $50 million net benefit from IEEPA tariff refunds.
  • Earnings Per Share: GAAP EPS of $2.29; Adjusted EPS of $2.21.
  • Cash Flow: Operating cash flow of $668 million; Free cash flow of $500 million.
  • Backlog: Expanded 12% year-over-year to $19.32 billion, driven by 9% growth in trailing 12-month orders.

• Updated Fiscal 2026 Outlook:

  • Organic Sales Growth: Maintained at 4% – 5%.
  • Pro Forma Standalone Adjusted EBIT: Tightened to $4.375B – $4.425B (from $4.35B – $4.45B).
  • Pro Forma Standalone Adjusted EPS: Raised to $7.85 – $8.00 (from prior $7.60 – $7.90).
  • Second Half Free Cash Flow: Raised to $1.2B – $1.4B (from prior $1.0B – $1.4B).

Corporate & Capital Allocation Events

• Inaugural Dividend: The Board declared a quarterly cash dividend of $0.40 per share of common stock, payable December 4, 2026, to shareholders of record as of November 13, 2026.
• Facility Expansion: Announced a 300,000 square foot expansion of its Tempe, Arizona facility slated to open in late 2028, aimed at scaling capacity for Control Systems and next-generation platforms.