HONA Investor Day Preview

研报英文原文证据摘录

HONA Investor Day Preview

Industry Update Equity Research

Investment Summary

HONA is hosting an investor day June 2-3, in front of its June 29 spin, where we expect it to unveil

an updated financial framework. We expect it to lean into a strong defense and bizjet growth outlook

to offset what we expect will continue to be undergrowth in commercial aero. HON has previously

targeted MSD-HSD A&D CAGR with revenue increasing to $30B in the 2030s from $18B in 2025

along with ~300bps margin improvement.

While HON will operate and report in three segments, the company has indicated that it will provide

guidance by end market (aero OE/AM and defense) along with total company revenue and EBIT target.

We estimate that HONA has lagged peer average growth on average over the last several years, at

12% as compared to 15% for peers. This includes 11% in aero OE vs peers 18%, 19% in aero AM vs

peers 21% and 6% in defense vs peers 10%. In comm aero (60% total aero), HONA appears to have less

exposure to current gen platforms (MAX/787) than prior gen (NG/777).

We estimate that HONA’s relatively higher exposure to older out of warranty commercial aircraft will

be a headwind relative to peers as its installed base ages. At same time we expect HONA to forecast

above market growth in bizjet (40% total aero) and defense. In bizjet, HONA is primarily exposed to the

super midsize segment that we forecast to outgrow. In defense, HONA is primarily exposed to aircraft

and ground while with increasing leverage to high growth missiles (MSD % revenue now).

Company Overview

HONA is a supplier to the commercial aerospace aftermarket (44% of 2025 revenue), commercial

aerospace OE (15%), and defense and space (41%) with $18B in annual revenue and $19B in backlog.