10-Q · April 22, 2026
Hexcel reported Q1 revenue of $501.5M (up $45.0M vs. Q1 2025) and GAAP diluted EPS of $0.49 (up $0.14 YoY). Gross margin expanded to 26.9% and operating margin to 11.5%, driven by stronger Composite Materials and…
Earnings analysis · 10-Q
HXL earnings analysis
Filed October 21, 2026 · Our reading of the company's report
The latest report
Hexcel delivered Q3 2026 revenue of $496.4 million, approximately 8.9% above Q3 2025 but 6.2% below Q2 2026 and below consensus. Diluted EPS of $0.50 beat the $0.49 estimate and improved from $0.26 a year earlier, while…
Read full summary
Hexcel delivered Q3 2026 revenue of $496.4 million, approximately 8.9% above Q3 2025 but 6.2% below Q2 2026 and below consensus. Diluted EPS of $0.50 beat the $0.49 estimate and improved from $0.26 a year earlier, while Commercial Aerospace growth was partly offset by an 8.7% decline in Defense, Space & Other. Full-year 2026 sales and adjusted EPS guidance was maintained, and the board increased the repurchase authorization to $750 million.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.5
- Segment
- Commercial Aerospace: revenue increased; exact segment revenue was not disclosed in the provided filing text.
- Segment
- Defense, Space & Other: sales declined 8.7% year over year.
What stood out
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Year-over-year growth, sequential revenue decline
Q3 2026 revenue was $496.4 million, up approximately 8.9% from $456 million in Q3 2025 but down approximately 6.2% from $529 million in Q2 2026. Revenue was below the $502.1 million consensus estimate.
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EPS beat estimates and improved year over year
Diluted EPS was $0.50 versus $0.49 estimated, a $0.01 beat or approximately 2.0%. EPS increased from $0.26 in Q3 2025.
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Commercial Aerospace offsets defense softness
Commercial Aerospace grew, while Defense, Space & Other sales declined 8.7% year over year, indicating continued uneven demand across end markets.
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Full-year guidance maintained
Full-year 2026 sales guidance remained $2.025 billion-$2.125 billion and adjusted EPS guidance remained $2.30-$2.40, with expected free cash flow greater than $195 million and capital expenditures below $100 million.
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Repurchase authorization doubled
The board increased the remaining share-repurchase authorization from $380.6 million to $750 million on October 21, 2026, materially expanding potential capital returns.
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No reported control weaknesses
Management reported effective disclosure controls as of September 30, 2026 and stated there were no material changes in internal control over financial reporting during the quarter.
What to watch
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Defense program softness
Defense, Space & Other sales declined 8.7% year over year, creating a material offset to Commercial Aerospace growth and highlighting program-specific demand risk.
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Revenue execution below expectations
Q3 revenue of $496.4 million missed the $502.1 million consensus estimate by $5.7 million, while revenue also declined from $529 million in Q2 2026.
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No material risk-factor updates
The company stated there had been no material changes to the risk factors in its December 31, 2025 Form 10-K; therefore, no new filing-specific risk-factor change was identified.
Management's outlook
Full-year 2026 guidance was maintained at sales of $2.025 billion-$2.125 billion and adjusted EPS of $2.30-$2.40. Management also expects free cash flow greater than $195 million and capital expenditures below $100 million.
Earlier filings 4
10-Q · October 22, 2025
Hexcel reported Q3 2025 net sales of $456.2M (essentially flat vs Q3 2024 $456.5M) but experienced notable margin and earnings pressure. Gross margin declined to 21.9% and operating income fell to $36.0M, driving…
10-K · February 5, 2025
Hexcel reported full-year net sales of $1,903.0 million in 2024, up 6.4% versus 2023, with gross margin improving to 24.7% and net income of $132.1 million. Growth was driven by Commercial Aerospace (63% of sales) and…
10-K · February 7, 2024
Hexcel reported 2023 net sales of $1,789.0 million, up 13.4% vs. 2022, driven by a 17.2% increase in Commercial Aerospace and 17.1% growth in Space & Defense. Gross margin expanded to 24.2% (from 22.6%) and operating…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.