Hexcel Q1 Earnings Surpass Estimates, Revenues Improve Y/Y

Hexcel Corporation HXL reported first-quarter 2026 adjusted earnings of 59 cents per share, which improved 59.5% from the year-ago quarter’s figure of 37 cents. The bottom line also surpassed the Zacks Consensus Estimate of 42 cents by 40.5%.

The company reported GAAP earnings of 49 cents per share, which surpassed the year-ago quarter’s earnings of 35 cents.

HXL’s Total Sales

The company’s net sales totaled $501.5 million, which beat the Zacks Consensus Estimate of $487 million by 3%. The top line also witnessed an improvement of 9.9% from the year-ago quarter’s figure of $456.5 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 26.9%, which increased 450 basis points from the prior-year quarter. The improvement can be attributed to favorable cost leverage driven by higher sales.

Selling, general and administrative expenses increased 14.1% year over year to $49.4 million.

Meanwhile, research and technology expenses rose 29% year over year to $17.8 million.

HXL’s adjusted operating income was $57.6 million compared with $44.2 million in the year-ago period.

Contribution From Different Markets

Commercial Aerospace: Net sales increased 18.8% year over year to $332.7 million, driven by sales growth from Airbus A350 and A320, as well as Boeing 787 and 737 programs. This market contributed 66% to total revenues in the quarter.

Defense, Space & Other: Net sales decreased 4.3% year over year to $168.8 million, due to the divestment of the Austrian-based industrial business and lower sales of launchers and rocket motors. This market contributed 34% to total revenues in the quarter.

HXL’s Financial Details

As of March 31, 2026, Hexcel’s cash and cash equivalents were $54.1 million compared with $71 million as of Dec. 31, 2025.

The company’s long-term debt totaled $998.1 million as of March 31, 2026, up from $993 million as of 2025-end.

HXL’s cash flow from operating activities was $19 million, in contrast to a cash outflow of $28.5 million in the prior year.

Hexcel’s 2026 Guidance

Hexcel expects to generate sales in the range of $2.00-$2.10 billion for 2026. The Zacks Consensus Estimate is pegged at $2.07 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 $2.10-$2.30 for 2026. The Zacks Consensus Estimate is currently pegged at $2.22 per share, which is 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 #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

RTX Corporation’s RTX first-quarter 2026 adjusted earnings per share (EPS) of $1.78 beat the Zacks Consensus Estimate of $1.52 by 17%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.47.

Quarterly revenues came in at $22.08 billion, up 8.7% from $20.31 billion in the year-ago period. Sales also beat the consensus mark of $21.56 billion by 2.43%.

Northrop Grumman Corporation NOC reported first-quarter 2026 adjusted earnings of $6.14 per share, which beat the Zacks Consensus Estimate of $6.08 by 1%. The bottom line also improved 1.3% from the year-ago quarter’s level of $6.06.

NOC’s total sales of $9.88 billion in the first quarter beat the Zacks Consensus Estimate of $9.79 billion by 1%. The top line also improved 4.4% from $9.47 billion reported in the year-ago quarter.

The Boeing Company BA incurred an adjusted loss of 20 cents per share in the first quarter of 2026, narrower than the Zacks Consensus Estimate of a loss of 95 cents. The bottom line improved from the year-ago quarter’s reported loss of 49 cents.

Revenues amounted to $22.22 billion, which outpaced the Zacks Consensus Estimate of $21.87 billion by 3.5%. The top line also surged 14% from the year-ago quarter’s reported figure of $19.5 billion.

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