Honeywell Aerospace Inc shares plummeted 5.21% intraday on Wednesday, as the newly spun-off company slashed its 2026 sales growth forecast and issued a weaker-than-expected earnings outlook, citing persistent supply-chain hurdles.

The company cut its 2026 organic sales growth forecast to 4%–5% from a prior 7%–9%, and projected annual adjusted earnings per share of $7.60–$7.90, well below the average analyst estimate of $8.86. Supply constraints are forcing Honeywell Aerospace to prioritize lower-margin commercial OEM deliveries to Boeing and Airbus, diverting output from its higher-margin aftermarket business, and to favor domestic defense programs over more profitable international contracts.

“Demand continues to be really robust. It’s really a supply challenge,” CFO Josh Jepsen said in an interview, while CEO Jim Currier noted that supply constraints limited output growth in the quarter. The downbeat outlook overshadowed second-quarter results, where adjusted profit fell 32% to $1.87 per share on sales of $4.52 billion.