Honeywell Aerospace (NASDAQ: HONA) has just received a high-profile endorsement from CNBC’s Jim Cramer following its spinoff from Honeywell Technologies (NASDAQ: HON).
The newly independent company began trading after Honeywell completed its separation on June 29, 2026, creating a standalone aerospace pure-play with a long operational history.
Cramer spotlighted HONA during a Mad Dash segment, making clear he intends to hold both the new aerospace unit and the parent automation business in his charitable trust.
His investment case was blunt and direct: “People want a new aerospace play. They love aerospace. They don’t like Boeing,” Cramer said on air.
The comment positions HONA as a beneficiary of investor frustration with Boeing (NYSE: BA), as commercial aviation recovery and defense spending continue to drive sector interest in 2026.
Cramer also drew a comparison to GE Aerospace (NYSE: GE), suggesting HONA carries more re-rating potential as a freshly independent company not yet fully discovered by institutional investors.
Spinoff dynamics often create mechanical selling pressure in early weeks as former conglomerate shareholders who do not want pure-play aerospace exposure exit their positions, temporarily depressing valuations.
Cramer called the aerospace operation “top flight” and pushed back against Jefferies, which rates HONA a hold, saying he personally disagrees with that cautious assessment.
Honeywell Aerospace is led by President and CEO Jim Currier, with Josh Jepsen serving as CFO, and the company generated as much as $15 billion in annual revenue in 2024 from a balanced mix of commercial and military contracts.
Currier noted in a recent CNBC report that HONA has “record” backlog orders from both Airbus and Boeing, placing the company at the center of the two most important commercial aircraft production ramps in the world.
The parent Honeywell reported a backlog approaching $38 billion at the start of 2026, with orders up 7% year over year, according to the Q1 2026 earnings release.
Management has outlined a framework targeting 6% to 8% organic annual sales growth through 2030, alongside 9% annual earnings growth over the same period.
Cramer said he would “go a little bit higher than that,” framing the official long-term guidance as conservative and suggesting the market has not yet priced in the full upside.
In its final quarter as a segment inside the parent, Aerospace Technologies generated $4.322 billion in Q1 2026 revenue, with 4% organic growth, a 1.1x book-to-bill ratio, and 6% order growth.
Reuters reported that Honeywell Aerospace plans to prioritize investment in production capacity and supply chain over dividends or share buybacks in the near term, with Currier stating those investments will help drive organic growth.
The company is also participating in a $500 million investment as part of a March agreement with the Pentagon, RTX (NYSE: RTX), and Lockheed Martin (NYSE: LMT) to increase production of precision-guided missiles and munitions.
U.S. defense budget trends also support the aerospace unit, with the Department of War’s FY 2027 budget request including a $3 billion increase for Weapon System Sustainment and a $14.9 billion investment in munitions.
The remaining Honeywell Technologies entity, focused on automation and led by CEO Vimal Kapur, remains in Cramer’s charitable trust alongside HONA, reflecting confidence in both sides of the separation.
Honeywell delivered Q1 2026 adjusted EPS of $2.45 against a $2.32 consensus, marking its fourth straight earnings beat, with segment margin expanding 90 basis points to 23.3%.
The split follows a broader industrial trend of breaking conglomerates into more focused businesses, with Reuters noting that Honeywell Aerospace follows GE Aerospace in that strategic pattern.
