Honeywell Projects Record Business Jet Deliveries In Next Decade: Which Stocks Could Benefit?

Industrial giant Honeywell International Inc. (HON) projected a record number of new business jet deliveries over the next decade in a report published on Monday.

The company said that 8,500 new business jets, with a projected value of $283 billion, will be delivered over the next 10 years, with an average annual growth rate of 3%.

"Operators are increasing their usage rates, and in turn, manufacturers are continuing to ramp up production to keep pace with growing demand. Over the next decade, we expect these record-setting levels of deliveries and usage to continue," said Heath Patrick from Honeywell Aerospace Technologies.

The forecast bodes well for business jet makers such as Brazil’s Embraer, Canada’s Bombardier, and General Dynamics unit Gulfstream Aerospace, as the growth of business jet flights stagnated after a jump during the pandemic.

Retail sentiment on Stocktwits about Embraer (ERJ) and Bombardier was in ‘neutral’ territory at the time of writing, while traders were slightly ‘bearish’ about aerospace firm General Dynamics (GD).

As per the report, 91% of those surveyed expect to fly more or about the same in 2026 compared to this year. Trump’s signature tax law is also likely to spur purchases due to the presence of a federal tax incentive that allows businesses to deduct a large portion of the cost of certain assets, including business jets, in the year they are put into use.

North America is expected to receive roughly 70% of new jet deliveries over the next three years, while Europe is expected to receive about 14% during the same period.

Embraer expects to deliver between 145 and 155 business jets this year, while Bombardier and Gulfstream also expect to deliver over 150 aircraft. On Monday, the Canadian firm Bombardier also signed the first order for its Global 8000 series of business jets, billed as the world’s fastest in the category.

Embraer’s stock has gained over 57% this year, while Bombardier and General Dynamics shares have each risen over 26%, compared with the 43% gains in the iShares US Aerospace & Defense ETF.

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