Honeywell Aerospace Inc (HONA) shares plummeted 12.39% in after-hours trading on Wednesday, extending a sharp decline that began during the regular session. The sell-off followed the company's release of second-quarter results and a significant downward revision to its full-year outlook.

The newly spun-off aerospace firm cut its 2026 organic sales growth forecast to 4%–5% from a prior 7%–9%, and projected adjusted earnings per share of $7.60–$7.90, well below the average analyst estimate of $8.86. Management cited persistent supply-chain constraints that are forcing the company to prioritize lower-margin commercial OEM deliveries to Boeing and Airbus over higher-margin aftermarket business, and to favor domestic defense programs over more profitable international contracts. CFO Josh Jepsen noted that demand remains robust, but supply challenges are limiting output.

Second-quarter results also disappointed, with adjusted profit falling 32% to $1.87 per share, missing the consensus estimate of $2.27, while sales of $4.52 billion came in slightly below expectations. The combination of the guidance cut and earnings miss triggered intense selling pressure in the extended session.