Hexcel Corporation

Latest Results (15.09.2026):

Hexcel Corporation — Q2 2026: Hexcel reported Q2 2026 GAAP diluted EPS of $0.64 (Q2 2025: $0.17) and adjusted diluted EPS of $0.66 (Q2 2025: $0.50) on net sales of $529.3 million, up 8.0% year‑over‑year (8.1% in constant currency). Management raised full‑year 2026 guidance to sales of $2.025–$2.125 billion and adjusted EPS of $2.30–$2.40, while maintaining free cash flow guidance of greater than $195 million and capex below $100 million.

Earnings & Sales

Q2 2026 adjusted operating income was $73.6 million (13.9% of sales) vs. $54.2 million (11.1%) in Q2 2025; GAAP operating income was $72.6 million. Gross margin improved to 26.1% from 22.8% a year ago, reflecting stronger sales leverage.

Guidance Update

Hexcel increased FY2026 sales and adjusted EPS guidance: sales $2.025–$2.125B (previously $2.0–$2.1B) and adjusted EPS $2.30–$2.40 (previously $2.10–$2.30). Free cash flow target remains >$195M and capex guidance unchanged at < $100M.

Market Drivers

Commercial aerospace led growth: Commercial Aerospace sales rose 18.3% in the quarter to $346.6M, driven by strong build rates on Airbus A350 and Boeing 787 (highest quarterly sales for those platforms since before the pandemic); Defense, Space & Other declined 7.2% to $182.7M (partly reflecting a 2025 divestment).

Cash Flow & Liquidity

Net cash provided by operating activities for the six months was $96.7M vs. a $5.2M use a year ago; free cash flow for the six months was $51.8M (vs. -$46.6M). Cash declined modestly to $62.2M at June 30, 2026; working capital was a cash use of $72.2M YTD.

Debt & Capital Actions

During Q2 2026 Hexcel issued $400M of 4.9% senior notes due 2031 and used proceeds to redeem $400M of 3.95% notes due 2027. The company did not repurchase shares in the quarter and has roughly $380.6M remaining authorization under its repurchase program; the Board declared a $0.18 quarterly dividend.

Segment & Operational Notes

Composite Materials and Engineered Products both contributed to growth (Composite Materials $421.5M sales). The company is adding headcount and restarting previously idle assets to support multi‑year aerospace growth. Q2 included a $1.0M restructuring charge (Leicester shutdown); Q2 2025 had larger restructuring charges tied to the Welkenraedt closure.

Profitability Details & FX

Adjusted net income for Q2 was $50.2M (adjusted EPS $0.66), up 24.3% vs. adjusted net income of $40.4M a year ago. Foreign exchange was modestly unfavorable to operating income (approx. 90 basis points in the quarter).