Honeywell Aerospace (HONA) Q3 2026 earnings summary

Executive summary

• Q3 sales were $4.644B, up 2.4% organically; adjusted EBIT was $1.161B, up 4% versus prior-year pro forma standalone adjusted EBIT, including a ~$50M net tariff-refund benefit.

• Backlog reached $19.324B, up 12% YoY; trailing-12-month orders rose 9%, with book-to-bill of 1.3 in Q3 and 1.1 over 12 months.

• Manufacturing output rose 5% QoQ and 2% YoY as supplier constraints continued to limit deliveries against strong demand.

• The June 2026 spin-off established standalone operations, adding debt interest, transition costs and operating expenses.

Financial highlights

• Q3 net sales were $4.644B versus $4.533B; net income was $737M versus $654M, and diluted EPS was $2.29 versus $2.03.

• Adjusted EPS was $2.21; operating cash flow was $668M and free cash flow was $500M after $168M of capital expenditures.

• Nine-month sales were $13.518B versus $12.896B; net income was $1.635B versus $2.292B, and operating cash flow was $1.014B versus $1.864B.

• Net IEEPA tariff refunds of ~$50M supported adjusted EBIT growth and added more than 100 bps to Q3 margin.

• Manufacturing output increased 5% QoQ and 2% YoY; backlog grew 12% to $19.324B.

Outlook and guidance

• FY26 organic sales growth guidance remained 4%–5%; pro forma standalone adjusted EBIT guidance narrowed to $4.375B–$4.425B.

• FY26 pro forma standalone adjusted EPS guidance increased to $7.85–$8.00 from $7.60–$7.90.

• H2 free cash flow guidance rose to $1.2B–$1.4B; FY26 capital expenditures remain ~$650M.

• Q4 margin is expected to fall more than 100 bps sequentially, with no tariff refunds anticipated and unfavorable mix continuing.

• Supplier improvements and additional material-source qualifications are expected to support faster output and sales growth in 2027 and beyond.