Hexcel guidance for 2026 remained unchanged in its October 21, 2026 earnings release, with sales expected at $2.025 billion–$2.125 billion and adjusted diluted earnings per share at $2.30–$2.40. The advanced-composites manufacturer maintained those targets as third-quarter commercial aerospace growth outweighed weaker defense, space and other sales.
Key Takeaways
- Hexcel maintained its full-year sales and adjusted diluted earnings forecasts.
- Third-quarter sales rose 8.8%, led by commercial aircraft programs.
- The board increased the share repurchase authorization to $750 million, while management prioritized debt repayment.
Table of Contents
- Hexcel guidance stays unchanged after stronger quarterly results
- Commercial aircraft growth offsets weaker defense and space sales
- Cash generation supports a larger buyback authorization
- Conclusion
Hexcel guidance stays unchanged after stronger quarterly results
Hexcel’s third-quarter 2026 results announcement reported sales of $496.4 million, up from $456.2 million a year earlier. GAAP diluted earnings per share increased to $0.50 from $0.26, while adjusted diluted earnings rose to $0.50 from $0.37.
The full-year earnings forecast is specifically for adjusted diluted EPS, a non-GAAP measure, rather than unqualified reported earnings. Both the sales and adjusted EPS ranges remain management expectations, not completed annual results.
Chairman, Chief Executive and President Tom Gentile said typical summer sales seasonality affected operating leverage. Accelerated hiring and training also created near-term cost pressures as the company prepared for the strong demand signals it was receiving for the fourth quarter and 2027.
Despite those pressures, adjusted operating margin improved to 11.0% from 9.8% a year earlier. Higher sales therefore translated into stronger quarterly operating profitability, although management did not raise its annual targets.
| Item | Details |
|---|---|
| Nine-month 2026 sales | $1.5272 billion, up 8.9% year over year. |
| Nine-month operating cash flow | $171.1 million, compared with $105.0 million a year earlier. |
| Nine-month free cash flow | $102.5 million, compared with $49.9 million a year earlier. |
| 2026 free-cash-flow guidance | Greater than $195 million; unchanged. |
| 2026 capital-expenditure guidance | Less than $100 million; unchanged. |
Commercial aircraft growth offsets weaker defense and space sales
Commercial Aerospace sales increased 20.5% to $330.3 million in the third quarter. Hexcel reported growth across widebody programs, including the Airbus A350 and Boeing 787, and narrowbody programs, including the Airbus A320 and Boeing MAX.
Defense, Space & Other sales fell 8.7% to $166.1 million. Hexcel attributed the decline partly to the earlier divestment of an Austrian industrial business and the closure of an industrial business in Leicester, UK, alongside temporary softness in fighter, launcher and rocket-motor programs.
The contrasting segment results show that the sales recovery was uneven. Commercial aerospace supplied the growth, while business exits and softer demand in selected defense and space programs reduced the overall increase.
Cash generation supports a larger buyback authorization
The board increased Hexcel’s share repurchase authorization to $750 million from approximately $381 million. That authorization does not mean the company has already spent the money: Hexcel repurchased no shares during the third quarter.
Gentile said debt repayment remained a priority following the accelerated share repurchase program initiated a year earlier. Management expects to return to its targeted leverage range by the end of 2026.
The company also declared a quarterly dividend of $0.18 per share, payable November 9, 2026, to shareholders of record on November 2.
Conclusion
Fourth-quarter performance will determine whether Hexcel meets its unchanged annual targets and year-end leverage objective. The next scheduled shareholder payment is the $0.18 dividend on November 9, 2026.
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