Honeywell Aerospace's Growth Picks Up: Can the Momentum Sustain?

Honeywell International Inc. HON is benefiting from strong momentum in the Aerospace Technologies segment. The segment’s organic revenues surged 13.2% year over year in the first nine months of 2025, constituting more than 42% of its business.

The segment’s revenues were augmented by sustained strength in its commercial aviation aftermarket business due to solid demand in the air transport market and supply-chain improvements. Notably, organic sales from its commercial aviation aftermarket business surged 13.1% year over year in the first nine months of the year. Also, the company is witnessing recovery in the commercial aviation original equipment (OEM) business, supported by increased production and reduced customer destocking.

Also, strength in Honeywell’s defense and space business, owing to robust U.S. and international defense spending volumes and sustained demand from the current geopolitical climate, has also been driving its results.

HON is poised to maintain strong demand momentum in the quarters ahead, with both commercial and military aircraft programs benefiting from strong air travel activities and defense budgets. For 2025, it expects organic sales in the Aerospace Technologies segment to be up in the high-single-digit to low double-digit range, driven by continued momentum in both commercial aviation and defense and space businesses.

HON's Peers in the Aerospace Market

Among its major peers, Howmet Aerospace Inc.’s HWM defense aerospace market is playing an important role in driving its overall growth. In the third quarter of 2025, Howmet’s revenues from the defense aerospace market jumped 24% 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.

Its another peer, Textron Inc.’s TXT Aviation business unit has been witnessing improving commercial air passenger traffic. Evidently, strong fleet utilization, backed by improving commercial air travel, contributed to Textron Aviation unit’s revenue growth of 10% on a year-over-year basis in the third quarter of 2025. Thanks to growing air travel, Textron has also been witnessing strong order activity, which resulted in a backlog of $7.7 billion for the company’s Aviation segment.

HON's Price Performance, Valuation and Estimates

Shares of Honeywell have lost 3.8% in the past year compared with the industry’s decline of 0.5%.

From a valuation standpoint, HON is trading at a trailing price-to-earnings ratio of 18.94X, above the industry’s average of 14.22X. Honeywell carries a Value Score of D.

The Zacks Consensus Estimate for HON’s 2025 earnings has inched up 0.2% 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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