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

Core Insights - Honeywell International Inc. (HON) is experiencing strong growth driven by its Aerospace Technologies segment, particularly in the commercial aviation aftermarket business, which saw a 7% year-over-year increase in organic sales in Q2 2025 [1][7] - The defense and space business also contributed positively, with organic sales surging 13% year-over-year, supported by stable U.S. and international defense spending [2][7] - Honeywell anticipates continued growth in the Aerospace Technologies segment, projecting high single-digit sales growth for 2025, fueled by increased flight hours and shipset deliveries [3][7] Business Performance of Peers - Howmet Aerospace Inc. (HWM) reported a 21% year-over-year revenue increase in its defense aerospace market, which accounted for 17% of total sales, driven by demand for engine spares related to the F-35 program [4] - GE Aerospace experienced a 30% increase in revenues and a 28% increase in orders within its Commercial Engines & Services business, supported by rising air traffic and fleet expansion [5] Financial Performance - Honeywell's shares have increased by 11.7% over the past year, outperforming the industry average growth of 3.2% [6] - The company is currently trading at a forward price-to-earnings ratio of 20.08X, above the industry average of 16.55X, and holds a Value Score of D [9] - The Zacks Consensus Estimate for Honeywell's 2025 earnings has been rising over the past 60 days, indicating positive market sentiment [10]