Business
Honeywell Aerospace CEO forecasts big growth ahead of standalone debut
SCOTTSDALE, ARIZONA — For Honeywell Aerospace CEO Jim Currier, it’s time to show investors what his company can do as a standalone business.
“We have a purpose-built management team just solely focused on one strategy, one mission as opposed to disparate missions of a conglomerate,” Currier told CNBC at his company’s investor day.
When it’s officially spun off from its parent company later this month, Honeywell Aerospace will be aggressively pushing its advantages in avionics, engine control systems and a host of technologies from the nose to tail of commercial airplanes, business jets and military aircraft.
The hope is to accelerate growth.
As a standalone company, Honeywell Aerospace expects to generate full-year 2026 adjusted earnings before interest and taxes of $4.65 billion to $4.75 billion with free cash flow in the second half of the year of between $1 billion and $1.5 billion.
By 2030 Honeywell is targeting annual earnings of at least $6.5 billion and full-year free cash flow of at least $4 billion.
“The greatest growth for us is occurring in the commercial transport market and in defense and space,” Currier said Wednesday. “We have opportunities where we are well positioned in our products and technologies.”
Currier added Honeywell has “record” backlog orders from Airbus and Boeing.
Why separate Honeywell
As a part of Honeywell International over the last several decades, the aerospace division became one of the largest manufacturers and suppliers in the commercial and business aviation markets as well as in the defense industry.
From flight management systems in the cockpit to engine controls under the wing to the auxiliary power unit in the tail, its technology and components are in thousands of planes.
Last year the business generated profits topping $4.2 billion with margins of 24.5%.
Those results failed to impress investors, however, because they were clouded by the overall results of Honeywell, a conglomerate struggling to generate the stock returns enjoyed by the market and competing companies in the last several years.
Since June 2023, Honeywell shares have gained about 20%, compared to the S&P 500’s roughly 77% gains.
That underperformance is a primary reason Honeywell decided in 2024 to eventually break up operations into three separate companies: Solstice Advanced Materials, Honeywell Technologies and Honeywell Aerospace.
“Essentially, on the other side of the separation … each business is positioned so well for the market it serves,” Honeywell CEO Vimal Kapur told CNBC last month.
Converting aerospace skeptics
For investors, Honeywell Aerospace represents a pure play on the growth of commercial aviation and the defense industry.
That focus on aviation and defense has paid off for GE Aerospace, which has seen its stock jump about 125% since it became a standalone company in April 2024, easily outpacing the S&P 500 — up almost 45% over the same timeframe — and Honeywell, which is up almost 20%.
Currier believes Honeywell Aerospace has the team and technologies to capitalize on the expected continued demand for air travel worldwide.
The company is targeting organic annual sales growth of 6% to 8% through 2030, with annual earnings growth of 9%.
While Currier is optimistic about growing profits as a standalone company, Honeywell Aerospace has faced a number of questions about recent challenges with key suppliers during the first quarter.
The company says the temporary issues were tied to the war in the Middle East, which weighed on its engines and control systems divisions in January and February.
Since then, Honeywell Aerospace executives say the problems with some of its suppliers have been corrected.
Nonetheless, analysts will likely push Currier for a greater understanding of the state of the Honeywell Aerospace supply chain.
“Bottom line: This is an opportunity for management to convert a generally skeptical crowd of aerospace specialists,” said Wolfe Research analyst Nigel Coe in a recent note.
In an exchange filing released on Monday, GIC announced that the government aims to sell up to 3.51 crore shares, representing a 2% equity stake, as part of the base offer which opens for non-retail investors today (June 16). The government can also exercise the oversubscription option to additionally sell another 5.26 crore shares, representing another 3% stake in the company for the OFS that opens for retail investors and employees on Wednesday (June 17).
This collectively brings the total offer size to 8.77 crore shares, or a 5% equity stake in the general insurance company. At the floor price of Rs 352 per share, this would be worth more than Rs 3,087.74 crore.
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The latest stake sale comes as the government recently ramped up its disinvestment efforts. Recently, the government offloaded some of its stake in Coal India, NHPC, NLC India and other PSU companies.
The government planned to sell 10% of its stake in the insurer in tranches to meet the market regulator’s minimum public shareholding norm, Reuters reported in 2024. Of this, the government already sold a 3.4% shareholding in September 2024.
GIC shareholding pattern
The President of India owned more than 82% stake in GIC as of March 31, 2026, according to data on the company’s shareholding pattern on NSE. Life Insurance Corporation of India (LIC) meanwhile held around 10% stake, while 22 mutual funds held around 1.5% stake.
Around 2.07 lakh retail investors collectively owned a 1.4% stake in the company.
GIC share price
GIC shares have fallen around 1% in one week but are up nearly 2% in 2026 so far. The shares of the company have rallied 103% in three years and 92% in five years.The company has a market capitalisation of more than Rs 67,588 crore.
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(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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