Honeywell Aerospace: An A&D Supplier in Transition; Initiating Coverage With a Neutral Rating

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Honeywell Aerospace: An A&D Supplier in Transition; Initiating Coverage With a Neutral Rating

J P M O R G A N North America Equity Research

10 July 2026

Initiation

Honeywell Aerospace Neutral

HONA, HONA US

An A&D Supplier in Transition; Initiating Coverage With Price (09 Jul 26):$223.12

a Neutral Rating Price Target (Dec-27):$255.00

We are initiating coverage on Honeywell Aerospace (HONA) with a Neutral rating Aerospace & Defense

ACand a Dec-27 price target of $255. HONA is a highly diversified A&D supplier and Seth M. Seifman, CFA

a leader in several areas, including avionics, navigation, control systems, APUs (1-212) 622-5597

and bizjet/helicopter engines. This provides exposure to growing markets, but seth.m.seifman@jpmorgan.com

executing on that growth will require investment, particularly in its supply chain, Alexander Ladd

and this likely limits near-term upside. (1-212) 622-0077

alex.ladd@jpmorgan.com

• We see sales growing ~7% annually to ~$25b by 2030 with potential Rocco J Barbero

Defense upside. This contemplates slightly faster growth in the Comm’l OE (1-212) 622-8140

and Defense/Space markets and slightly slower growth in Comm’l AM. rocco.j.barbero@jpmorgan.com

Defense has been growing faster, and exposure to ramping missile production, J.P. Morgan Securities LLC

a HSD percentage of HONA sales, could drive continued strength. With less

content growth on current gen aircraft, HON should face more pressure from Quarterly Forecasts (FYE Dec)

retirements vs peers; however, comm’l AM is only ~30% of the mix – even if Adj. EPS ($)

it is exceptionally profitable – and expected retirements could continue 2025A 2026E 2027E

slipping out as well. Q1 1.59A 2.12

Q2 2.12 2.31

• Margin expansion likely modest near term. HONA’s 2025 standalone pro- Q3 2.30 2.49