Honeywell Aerospace revealed to investors Wednesday its projection of reaching $6.5 billion in adjusted earnings by 2030, driven by robust demand from aircraft manufacturers and defense clients, combined with increased operational focus following its upcoming separation from Honeywell International.
The aircraft engine, components and defense systems company, which will begin trading under the ticker HONA following the June 29 split, plans to concentrate investment dollars on expanding production capacity and strengthening its supply chain instead of emphasizing dividend payments or stock repurchases, according to Honeywell Aerospace CEO Jim Currier in a Reuters interview.
“We have so much to make that just driving capital allocation into factories, suppliers, the business itself is going to provide a tremendous (return on investment capital) that’s going to drive the organic growth of the business,” he said.
The aerospace division’s separation mirrors GE Aerospace’s approach to conglomerate breakups, wagering that streamlined, specialized companies can achieve superior performance. During 2025, industrial giant Honeywell announced intentions to establish three standalone companies concentrating on automation, aerospace and advanced materials. The corporate divisions are scheduled for completion this year.
“All of the distractions that occur as part of a conglomerate are eliminated,” Currier said.
During its time within Honeywell International, there existed a “lack of synergies that exist between aerospace and the rest of the portfolio (and) you don’t see a lot of that efficiency gain by being a part of this industrial conglomerate,” he said.
A March partnership with the Pentagon, RTX and Lockheed Martin to boost precision-guided missiles and munitions manufacturing demonstrates how operating as a leaner organization enables Honeywell Aerospace to act more rapidly, Currier explained.
The partnership demands a $500 million company investment. Prior to the breakup, “that would have been a very difficult thing to do as part of an industrial conglomerate, (but) we were able to get that deal done in record time,” he said.
The organization anticipates 7% to 9% sales growth this year, earnings before interest and taxes of $4.6 billion to $4.7 billion and free cash flow in the second half of the year of $1 billion to $1.5 billion.
Throughout the remainder of the decade, the company projects annual sales increases of 6% to 8%, with more than $4 billion in free cash flow by 2030. This growth stems from increasing demand from commercial aircraft manufacturers, the aftermarket sector, defense and space industries. Honeywell Aerospace’s backlog has expanded to $19 billion, representing a 20% increase from the previous year.
Supply chain challenges impacted key products, including engines, during the first quarter of the year, but those represented temporary issues, Currier stated.
Investors and analysts remain interested in learning additional details about Honeywell Aerospace’s supply chain management approach. Jefferies investment analyst Sheila Kahyaoglu mentioned in a May 31 research note that concerns exist regarding the company potentially receiving less favorable treatment from essential suppliers, including castings and forgings providers.
The company’s investment amounts have also fallen behind those of its competitors, including RTX, she observed.
Honeywell Aerospace intends to invest in its suppliers, along with its own capacity, Currier stated.
“If I need to buy equipment for suppliers, smaller suppliers that are providing critical components for us, we will go ahead and do that as well, where necessary and where required,” he said. “So, when I think of capital deployment, it’s not just within our own four walls.”
Similar to other companies, the organization monitors potential supply chain constraints in castings, forgings, bearings, specialty materials, coatings and complex machining.
Last month, individuals from the company’s marketing team visited Currier’s office at its Phoenix, Arizona, headquarters, carrying a sample golf shirt featuring the Honeywell Aerospace logo and the phrase “established in 2026.”
Currier placed the shirt on his conference table.
“That’s when it really hit me … this is a brand-new aerospace and defense company, you know, out from underneath Honeywell, and so, it actually gave me some goosebumps,” Currier said.
