Honeywell Aerospace reported a higher third quarter profit on Wednesday, with net income attributable to the company rising to $726 million from $644 million a year earlier. Sales rose 2 percent to $4.64 billion from $4.53 billion. Diluted earnings per share rose to $2.29 from $2.03, and adjusted earnings per share were $2.21.
Honeywell Aerospace was spun off from Honeywell International in June 2026, so the quarter was one of its first as a standalone business. Total net income was $737 million, up from $654 million a year earlier. Adjusted earnings before interest and taxes edged up 1 percent to $1,161 million from $1,151 million. Backlog, the value of orders waiting to be filled, rose 12 percent to $19.32 billion from $17.26 billion.
Honeywell Aerospace sales by business line
Defense and space sales rose 1 percent to $1.83 billion. Strong growth from the CAES and Civitanavi acquisitions was partly offset by lower international volumes caused by supply constraints and the wind down of a non-aerospace restricted government program. Honeywell Aerospace said supplier labor, capacity and delivery constraints persisted through the quarter.
Commercial original equipment sales rose 7 percent on a reported basis and 8 percent organically to $690 million, as commercial air transport build rates and volumes of selectable equipment increased. Commercial aftermarket sales, the business of supplying parts and services for aircraft already in service, rose 2 percent to $2.13 billion, driven by healthy underlying demand limited by availability of mechanical components.
Honeywell Aerospace year to date results
For the first nine months of 2026, Honeywell Aerospace sales were $13.52 billion, up from $12.90 billion a year earlier. Net sales rose 5 percent year to date, led by the commercial aftermarket, followed by defense and space and commercial original equipment. Net income attributable to the company for the nine months was $1.61 billion, down from $2.27 billion a year earlier.
Honeywell Aerospace outlook after spin off
Honeywell Aerospace said it updated its prior full year and second half guidance ranges based on third quarter results and its current outlook. The company did not repeat the full detail of the new ranges in the summary release, but it said the update followed a quarter in which demand held up across its main markets.
As a new public company, Honeywell Aerospace is replacing transitional services it received from its former parent and expects separation and public company setup costs to continue through at least 2027. Those costs sit alongside the operating work of clearing supplier constraints and filling a backlog that grew by more than $2 billion from a year earlier.
Demand for air travel and for defense equipment has kept orders flowing to aerospace suppliers through 2026, even as parts shortages limited how fast some of them could deliver. Honeywell Aerospace ended September with cash and cash equivalents of $1.56 billion, up from $213 million at the end of 2025, and inventories of $4.62 billion. The company will report fourth quarter results in early 2027, when investors will see whether the backlog converts into faster sales growth.