Can Honeywell Sustain Aerospace Momentum With Robust Market Demand?

The strongest driver of Honeywell International Inc.’s HON business at the moment is the Aerospace Technologies segment. Organic revenues from the segment increased 6% year over year in the second quarter of 2025, constituting more than 40% of its business. Also, in the first quarter, organic revenues from this market increased 9%.The revenues were driven by sustained strength in its commercial aviation aftermarket business, due to solid demand in the air transport market and supply-chain improvements. After witnessing an increase of 15% in first-quarter 2025, organic sales from its commercial aviation aftermarket increased 7% year over year in the second quarter.Strong momentum in Honeywell’s defense and space business, owing to stable U.S. and international defense spending volumes and sustained demand from the current geopolitical climate, has also been proving beneficial. In the first and second quarters, organic sales from its defense and space business surged 10% and 13%, respectively, on a year-over-year basis.With both commercial and military aircraft programs expected to continue benefiting from strength in air travel and defense budgets, HON is poised to maintain strong demand momentum in the quarters ahead. For 2025, Honeywell expects organic sales in the Aerospace Technologies segment to be up in the high single-digit percentage.HON's Peers in the Aerospace MarketAmong its major peers, Howmet Aerospace Inc.’s HWM defense aerospace market is playing an important role in driving its overall growth. In the second quarter of 2025, Howmet’s revenues from the defense aerospace market jumped 21% 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, RTX Corporation RTX is benefiting from strength in the commercial aerospace market, with growth in both aftermarket and OEM verticals. RTX reported 9% sales growth in the second quarter, driven by solid momentum in the Collins Aerospace and Pratt & Whitney segments. Rising aircraft utilization and demand for sustainable technologies are supporting RTX Corp.’s growth.HON's Price Performance, Valuation and EstimatesShares of Honeywell have gained 3% in the past six months compared with the industry’s growth of 8%.Image Source: Zacks Investment ResearchFrom a valuation standpoint, HON is trading at a forward price-to-earnings ratio of 18.07X, above the industry’s average of 11.37X. Honeywell carries a Value Score of D.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for HON’s third-quarter 2025 earnings has declined a penny over the past 30 days.Image Source: Zacks Investment ResearchHoneywell currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Honeywell International Inc. (HON): Free Stock Analysis Report Howmet Aerospace Inc. (HWM): Free Stock Analysis Report RTX Corporation (RTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks