HONA changes
Pick any two versions below to diff them.
- Balance sheet
- Honeywell Aerospace started life with debt that it did not use for its own business. In March 2026, it issued $16.0 billion of senior unsecured notes in nine series. It paid $15.1 billion of the proceeds to Honeywell as part of the spin-off. Thus total equity was negative $5.6 billion at June 27, 2026. This comes from that payment to the former parent, not from losses, so it is not a sign of distress by itself. The notes have an average coupon of about 5.0% and mature from 2028 to 2066. Only $1.25 billion is due before 2029, and almost all of the notes are at fixed rates. Cash was $1.06 billion, so net debt was about $15.0 billion. This is about 3.4 times the guided 2026 adjusted EBIT of $4.35 to $4.45 billion. S&P rates the company BBB+ with a positive outlook. Fitch rates it A- and Moody's rates it A3, both stable. Liquidity comes from $4.0 billion of undrawn revolving credit lines that back a $4.0 billion commercial paper program. The company also owes Honeywell $1.125 billion over less than five years for the right to use the Honeywell name. This works like extra debt. Interest costs are about $200 million a quarter, and guided second-half free cash flow is $1.0 to $1.5 billion. This leaves limited room for buybacks or a dividend until earnings recover from the parts shortage. As of 2026-06-27.
- Checkpoints
- Oct 28, 2026: Q3 2026 earnings: parts supply and aftermarket shipments. Pending. Watch: Better supplier output, guidance held at 4% to 5% organic growth and H2 free cash flow of $1.0 to $1.5 billion pass; a second guidance cut fails. Nov 23, 2026: Securities class action lead-plaintiff deadline. Pending. Watch: A slow, routine case with no new disclosures passes; new facts about the DOJ cybersecurity matter or supplier problems fail. Feb 2027 (estimate): Full-year 2026 results and first 2027 guidance. Pending. Watch: 2027 guidance with higher aftermarket sales, margin recovery and a plan for debt reduction or a dividend passes; flat earnings and no deleveraging path fail.