Strength in Aerospace Technologies Unit Drives Honeywell: Can It Sustain?

Honeywell International Inc. HON is thriving on the back of persistent strength in its Aerospace Technologies segment. The company continues to witness strong momentum in its commercial aviation aftermarket business, driven by solid demand in the air transport market. In the second quarter of 2025, organic sales from its commercial aviation aftermarket business increased 7% year over year.

Strength in HON’s defense and space business, owing to stable U.S. and international defense spending volumes and sustained demand from the current geopolitical climate, has also been proving beneficial. In the second quarter, organic sales from its defense and space business surged 13% year over year. Driven by strength across these businesses, the Aerospace Technologies segment’s organic sales grew 6% year over year in the quarter.

In the quarters ahead, Honeywell expects the Aerospace Technologies segment to benefit from robust demand in commercial aviation, growth in air transport flight hours, higher shipset deliveries and strong defense spend volumes. For 2025, it expects sales in the Aerospace Technologies segment to be up in the high single digits, driven by continued momentum in both commercial aviation aftermarket and defense and space businesses.

Business Performance of HON's Peers

Among its major peers, Howmet Aerospace Inc.’s HWM defense aerospace market is playing an important role in driving its overall growth. In the second quarter of 2025, Howmet’s revenues from the defense aerospace market jumped 21% year over year, which accounted for 17% of its total sales. The surge in revenues was fueled by robust demand for Howmet’s engine spares, particularly related to the F-35 program and an increase in orders for new builds and legacy fighter jet parts.

Another peer, GE Aerospace GE, is gaining from strong demand for LEAP, GEnx & GE9X engines and services within the Commercial Engines & Services business. The Commercial Engines & Services business’ revenues and orders jumped 30% and 28%, respectively, on a year-over-year basis in the second quarter. GE Aerospace’s growth is also supported by increasing air traffic, fleet renewal and expansion activities. During the second quarter of 2025, GE Aerospace inked a deal with Qatar Airways to supply more than 400 GE9X and GEnx engines.

HON's Price Performance, Valuation and Estimates

Shares of Honeywell have gained 11.7% in the past year compared with the industry’s growth of 3.2%.

From a valuation standpoint, HON is trading at a forward price-to-earnings ratio of 20.08X, above the industry’s average of 16.55X. Honeywell carries a Value Score of D.

The Zacks Consensus Estimate for HON’s 2025 earnings has been on the rise over the past 60 days.

Honeywell currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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