Hexcel Corporation HXL reported third-quarter 2026 adjusted earnings of 50 cents per share, which improved 35.1% from the year-ago quarter’s figure of 37 cents. The bottom line also surpassed the Zacks Consensus Estimate of 48 cents by 4.2%.
The company reported GAAP earnings of 50 cents per share, which surpassed the year-ago quarter’s earnings of 26 cents.
HXL’s Total Sales
The company’s net sales totaled $496.4 million, which missed the Zacks Consensus Estimate of $500 million by 0.8%. The top line, however, witnessed an improvement of 8.8% from the year-ago quarter’s figure of $456.2 million.
Hexcel Corporation Price, Consensus and EPS Surprise
Hexcel Corporation price-consensus-eps-surprise-chart | Hexcel Corporation Quote
Hexcel’s Operational Update
Hexcel's gross margin was 23.3%, which increased 140 basis points from the prior-year quarter. The improvement can be attributed to higher sales volume and favorable operating leverage.
Selling, general and administrative expenses increased 9.2% year over year to $44.9 million.
Meanwhile, research and development expenses rose 15.7% year over year to $16.2 million.
HXL’s adjusted operating income was $54.4 million compared with $44.8 million in the year-ago period.
Contribution From Different Markets
Commercial Aerospace: Net sales increased 20.5% year over year to $330.3 million, driven by growth in the Airbus A350 and Boeing 787 widebody programs, as well as the Airbus A320 and Boeing MAX narrowbody programs. This market contributed 66.5% to total revenues in the third quarter of 2026.
Defense, Space & Other: Net sales decreased 8.7% year over year to $166.1 million due to the divestment of the Austrian-based industrial business and the closure of a non-core industrial business in Leicester, UK. Temporary softness in the F-35 and an international fighter program, along with lower launcher and rocket motor sales, also weighed on performance. This market contributed 33.5% to total revenues in the third quarter of 2026.
HXL’s Financial Details
As of Sept. 30, 2026, Hexcel’s cash and cash equivalents were $77.8 million compared with $71 million as of Dec. 31, 2025.
The company’s long-term debt totaled $934.9 million as of Sept. 30, 2026, down from $993 million at 2025-end.
HXL’s cash flow from operating activities was $171.1 million for the first nine months of 2026 compared with $105 million in the prior-year period.
Hexcel’s 2026 Guidance
Hexcel expects to generate sales in the range of $2.03-$2.13 billion for 2026. The Zacks Consensus Estimate is pegged at $2.08 billion, which lies above the midpoint of the company’s sales guidance.
HXL also expects its adjusted earnings per share to be in the range of $2.30-$2.40 for 2026. The Zacks Consensus Estimate is currently pegged at $2.37 per share, which lies above the midpoint of the company’s guided range.
Hexcel expects to generate a free cash flow of more than $195 million in 2026. It also expects capital expenditure to be less than $100 million.
HXL’s Zacks Rank
Hexcel currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Defense Releases
The Boeing Company BA is set to report third-quarter 2026 earnings on Oct. 27, 2026, before market open.
The Zacks Consensus Estimate for BA’s loss is pegged at 14 cents per share. The consensus estimate for its sales is pegged at $24.53 billion, indicating year-over-year growth of 5.4%.
Huntington Ingalls Industries HII is set to report third-quarter 2026 earnings on Oct. 29, 2026, before market open.
The consensus estimate for HII’s earnings is pegged at $4.45 per share. The consensus estimate for its sales is pegged at $3.39 billion, indicating year-over-year growth of 6.1%.
General Dynamics Corporation GD is set to report third-quarter 2026 results on Oct. 30, 2026, before the market opens.
The Zacks Consensus Estimate for GD’s earnings is pegged at $4.14 per share. The consensus estimate for its sales is pegged at $13.71 billion, indicating year-over-year growth of 6.2%.
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Hexcel Corporation (HXL): Free Stock Analysis Report
The Boeing Company (BA): Free Stock Analysis Report
General Dynamics Corporation (GD): Free Stock Analysis Report
Huntington Ingalls Industries, Inc. (HII): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).