Honeywell Aerospace Inc. (HONA)

Honeywell Aerospace is a leading global tier-1 aerospace and defense supplier, being spun off from Honeywell International as an independent, publicly traded company (planned to trade on Nasdaq under "HONA") after incorporation in Delaware to hold the Aerospace Business. The company designs, manufactures, and services mission-critical systems and technologies that enable the production, maintenance, and safe operation of aerospace and defense platforms, organized into three segments: Electronic Solutions (ES), Engines & Power Systems (E&PS), and Control Systems (CS). It employs approximately 36,000 people across more than 90 engineering, manufacturing, and MRO facilities globally, and its installed base covers approximately 90% of the in-service aircraft fleet, with systems specified into over 250 in-production aerospace and defense platforms.

The company serves three end markets: Commercial Air Transport (39% of 2025 revenue), Business Aviation (20%), and Defense and Space (41%), providing systems such as engines, APUs, avionics, navigation, power and thermal management, electronic warfare, satellite communication, and environmental control systems. Its customer base includes major OEMs such as Boeing, Airbus, Embraer, Gulfstream, Bombardier, Dassault, and Textron; defense primes and international defense companies including BAE Systems, Lockheed Martin, Northrop Grumman, Leonardo, and RTX Corporation; and aircraft operators and airlines such as Lufthansa, United Airlines, Emirates, and Delta. Beyond original equipment sales, the company generates significant recurring revenue through aftermarket services including new and Honeywell-certified used replacement parts, MRO activities, and retrofit, modification, and upgrade (RMU) offerings, which delivered $1.6 billion in revenue in 2025 (9% of total revenue) and have grown at an approximately 18% CAGR since 2021.

The company has recently strengthened its portfolio through acquisitions including Civitanavi Systems and CAES Systems Holdings, adding capabilities in alternative navigation, electronic warfare, and expanding its European defense footprint, while competing against companies such as Collins Aerospace, GE Aerospace, Pratt & Whitney, Rolls Royce, Safran, L3Harris, Garmin, Thales, Teledyne, Liebherr, Parker Hannifin, and Woodward across its various product lines and end markets.