Finance
Honeywell, Howmet Juggle Rising Defense Demand and Commercial Aerospace Boom
Published by Global Banking & Finance Review®
Posted on March 17, 2026
3 min readLast updated: March 17, 2026
Quick Summary
Honeywell Aerospace and Howmet Aerospace are navigating surging commercial aircraft and defense demand driven by geopolitical instability. Honeywell targets high single‑ to low double‑digit defense growth and high single‑digit commercial growth, while Howmet sees narrow‑body ramp feasible but long‑h
Honeywell and Howmet Navigate Surging Defense and Aerospace Demand
Rising Demand and Strategic Responses in the Aerospace Sector
Capacity Growth Amid Geopolitical Tensions
March 17 (Reuters) - Executives from Honeywell Aerospace and Howmet Aerospace said on Tuesday they could grow capacity to meet strong commercial demand for plane parts and munitions as the defense sector ramps up due to geopolitical strife.
U.S. aerospace suppliers are benefiting from strong demand from jetmakers Boeing and Airbus, which are increasing production of new aircraft. And governments around the world are investing in their defense capabilities, as the wars in Ukraine and Iran deplete missile stockpiles.
Impact of Global Conflicts on Supply Chains
Planemakers are speaking with suppliers and customers as they try to gauge the impact of the U.S.-Israeli war on Iran, which has pushed oil prices to around $100 a barrel and disrupted flights and shipping.
Howmet Aerospace: Meeting Production Targets
Howmet CEO John Plant said the supplier of castings and fasteners could meet targets from Boeing and Airbus to ramp up narrowbody output, but immediately meeting additional demand from growth in production of large long-haul jets would be a challenge.
Challenges in Scaling for Long-Haul Jets
"I don't think we could support all of that at the moment," Plant told the Bank of America Global Industrials Conference in London. "My suspicion is that we would actually have to put more capacity down to achieve that level of production."
Honeywell Aerospace: Growth Projections and Strategic Moves
Honeywell Aerospace, which is being spun off during the third quarter of 2026, expects high single- to low double-digit growth for defense and high single-digit growth for commercial planemakers this year.
Defense Demand Remains Strong
“We don’t see the defense demand ... waning at all,” Honeywell Aerospace CEO Jim Currier told the J.P. Morgan Industrials Conference in Washington, D.C.
Geopolitical Concerns Fueling Investment
“The heightened geopolitical concerns and conflicts that are happening around the world, and have been for quite some time, are fueling a substantial amount of investment in the defense sector,” he said.
Business Segments and Corporate Restructuring
Honeywell Aerospace makes engines for business jets, and navigational products, along with other parts for both the commercial sector, which makes up about 60% of its business, and defense, which accounts for the remaining 40%.
Honeywell said last year it would separate its aerospace and automation businesses into separate entities, alongside its previously announced spin-off of the advanced materials unit.
Reporting Credits
(Reporting By Allison Lampert in Montreal and Aishwarya Jain in Bengaluru; Editing by Joe Bavier)
Key Takeaways
- •Honeywell Aerospace spin‑off is set for Q3 2026 ahead of its own financing and restructuring efforts (honeywell.com)
- •Honeywell sees sustained defense demand amid global conflicts, with 60% commercial and 40% defense revenue split (time.com)
- •Howmet can meet narrow‑body ramp targets for Boeing and Airbus but capacity constraints hinder rapid long‑haul expansion (honeywell.com)
References
- Honeywell Reports Fourth Quarter 2025 Results, With Adjusted Sales and Adjusted Earnings Above High End of Guidance; Issues 2026 Outlook
- Trump's Iran War Is Burning Through US Weapons Stockpiles, Raising Concerns From Ukraine to Taiwan
- Honeywell Announces Updated Business Segment Structure Ahead of Aerospace Spin-Off
Frequently Asked Questions about Honeywell, Howmet juggle rising defense demand and commercial aerospace boom
1Why are Honeywell and Howmet seeing increased demand?
Soaring demand stems from rising commercial aircraft production and governments boosting defense investments amid global conflicts.
2How are global conflicts influencing the aerospace sector?
Wars in regions like Ukraine and Iran are increasing missile use and prompting countries to enhance their defense capabilities, driving demand for aerospace supplies.
3Can Howmet meet surging demand for large aircraft parts?
Howmet can meet targets for narrowbody planes, but meeting additional demand for large jets would require expanding production capacity.
4What percentage of Honeywell Aerospace business is defense related?
Approximately 40% of Honeywell Aerospace’s business is related to the defense sector.
5What growth does Honeywell Aerospace expect this year?
Honeywell expects high single- to low double-digit growth in defense, and high single-digit growth from commercial planemakers.
