Hexcel Raises 2026 Sales and Earnings Outlook

The Tip Desk · July 30, 2026 · 3 min read

Second-quarter sales were $529.3 million, up 8.0%, as Airbus A350 and Boeing 787 volumes hit pre-pandemic highs.

Hexcel Corporation (HXL) raised its 2026 sales outlook to $2.025 billion to $2.125 billion from $2.0 billion to $2.1 billion, and lifted adjusted diluted earnings guidance to $2.30 to $2.40 a share from $2.10 to $2.30, after commercial aerospace build rates produced a second straight quarter of double-digit growth in that market.

The advanced lightweight composites maker reported second-quarter net sales of $529.3 million, up 8.0% from $489.9 million a year earlier, or 8.1% in constant currency. GAAP diluted earnings were $0.64 a share versus $0.17 a year earlier; adjusted diluted earnings were $0.66 a share versus $0.50.

Chairman, CEO and President Tom Gentile said rising build rates at commercial aerospace customers drove the sales increase, with quarterly sales on the Airbus A350 and Boeing 787 reaching their highest levels since before the pandemic. He said the company is adding headcount and restarting previously idle assets after lagging hiring last year while seeking greater certainty on demand, and that strengthening demand signals prompted the higher 2026 sales and adjusted EPS guidance.

Commercial Aerospace sales were $346.6 million, up 18.3% (18.8% in constant currency), led by those two widebodies. Narrowbody sales also increased year over year, including the Boeing 737 MAX, Airbus A320neo and Airbus A220. Other Commercial Aerospace sales rose 3.7% on regional jets. Commercial Aerospace accounted for 65.5% of sales, versus 59.8% a year earlier.

Defense, Space & Other sales were $182.7 million, down 7.2% (7.7% in constant currency), reflecting the September 30, 2025 divestment of the Austrian-based industrial business. That market was 34.5% of sales.

Gross margin expanded to 26.1% from 22.8% a year earlier as the period benefited from higher sales leverage. Adjusted operating income was $73.6 million, or 13.9% of sales, versus $54.2 million, or 11.1%. GAAP operating income was $72.6 million versus $30.0 million. Exchange rates were unfavorable by about 90 basis points on operating income as a percent of sales. Other operating expense included $1.0 million of restructuring related to the shutdown of industrial-oriented manufacturing at the Leicester, UK facility, compared with $24.2 million of Welkenraedt, Belgium closure charges a year earlier.

Composite Materials external sales were $421.5 million, with a 16.5% operating margin. Engineered Products external sales were $107.8 million; that segment swung to a 15.0% operating margin from a 14.0% loss a year earlier.

For the six months ended June 30, sales were $1,030.8 million, up 8.9% from $946.4 million. Commercial Aerospace was $679.3 million, or 66% of year-to-date sales, with growth in all four major platforms. Defense, Space & Other was $351.5 million. Adjusted operating income for the six months was $141.1 million, or 13.7% of sales. Free cash flow was $51.8 million in the first half, versus a $46.6 million outflow a year earlier.

In the second quarter the company issued $400 million of 4.9% unsecured senior notes due May 2031 to redeem $400 million of 3.95% notes due February 2027, and did not repurchase shares, leaving about $380.6 million of remaining authorization. Long-term debt was $959.4 million at June 30, 2026. Gentile said Hexcel will continue to pay down debt following the borrowing for the accelerated share repurchase executed in late 2025.

Free cash flow guidance of greater than $195 million and capital expenditures of less than $100 million were unchanged. The board declared a quarterly dividend of $0.18 a share, payable August 17, 2026.