Honeywell Aerospace (HONA.V) Jefferies Global Industrials Conference 2026 summary

Recent company transition and market position

• Became an independent, publicly traded company as of June 29, focusing solely on aerospace and defense.

• Achieved over $17.5 billion in sales last year and secured $105 billion in lifetime contract wins.

• Backlog exceeds $18 billion, with 90% of aircraft in the free world containing its products.

• Experiencing unprecedented demand across commercial, business aviation, and defense markets.

• Book-to-bill ratio is over 1.1, with backlog up 9% year-on-year.

Supply chain challenges and transformation

• Historical reliance on single-source suppliers and limited CapEx investments led to current supply constraints.

• Since August 2023, over $1 billion invested in supply base recovery, focusing on electronics and mechanical portfolios.

• Out of 3,000 suppliers, about 70 are critical or constrained, mainly in complex machining, castings, forgings, and bearings.

• Intensive management engagement and weekly follow-ups with the most constrained suppliers.

• Action plans address root causes such as skilled labor shortages, tooling, and capital needs.

Progress and proof points in supply chain recovery

• Bearings remain the most constrained, but 35% of annual output was delivered in the last three months.

• Second sourcing and capacity investments are unlocking revenue growth and reducing past due orders.

• Direct intervention in complex machining suppliers led to a 20% year-on-year output improvement.

• Confident in improved output growth for 2027 and beyond, with accelerated CapEx planned for 2026.