Hexcel (HXL) posts Q1 2026 growth, higher margins and reaffirms full-year outlook
Rhea-AI Filing Summary
Hexcel Corporation reported strong first quarter 2026 results, with net sales rising to $501.5 million from $456.5 million, a 9.9% increase, driven mainly by commercial aerospace demand. Adjusted diluted EPS grew to $0.59 from $0.37, reflecting higher margins and operating leverage.
Commercial Aerospace sales climbed 18.8% to $332.7 million, while Defense, Space & Other sales declined 4.3% to $168.8 million following an industrial business divestiture. Gross margin improved to 26.9% from 22.4%, and adjusted operating income rose to $67.5 million, or 13.5% of sales.
Operating cash flow improved to $19.0 million from a use of $28.5 million, with free cash flow negative $6.2 million but much better than negative $54.6 million a year earlier. Hexcel reaffirmed its 2026 guidance, targeting $2.0–$2.1 billion in sales, adjusted EPS of $2.10–$2.30, free cash flow above $195 million, and capital expenditures under $100 million.
Positive
- Strong revenue and earnings growth: Q1 2026 net sales grew 9.9% to $501.5 million, while adjusted diluted EPS increased to $0.59 from $0.37, driven largely by an 18.8% rise in Commercial Aerospace sales.
- Margin expansion and better cash flow: Gross margin improved to 26.9% from 22.4%, adjusted operating margin rose to 13.5% of sales, and free cash flow improved to negative $6.2 million from negative $54.6 million.
- Guidance reaffirmed: The company maintained its 2026 outlook for $2.0–$2.1 billion in sales, adjusted EPS of $2.10–$2.30, free cash flow above $195 million, and capital expenditures under $100 million despite macro and supply chain challenges.
Negative
- None.
Insights
Hexcel posted strong Q1 growth, margin expansion and reaffirmed full-year 2026 guidance.
Hexcel delivered Q1 2026 net sales of $501.5 million, up 9.9% year over year, with Commercial Aerospace up 18.8% to $332.7 million. Defense, Space & Other declined 4.3% to $168.8 million, mainly reflecting a prior industrial divestiture.
Profitability strengthened: gross margin expanded from 22.4% to 26.9%, and adjusted operating income increased to $67.5 million, or 13.5% of sales, versus 9.9% a year earlier. Adjusted diluted EPS rose to $0.59 from $0.37, aided by operating leverage as production ramps into existing capacity.
Cash generation improved, with operating cash flow of $19.0 million and free cash flow of negative $6.2 million, much better than negative $54.6 million in Q1 2025. Management reaffirmed full-year 2026 guidance for $2.0–$2.1 billion in sales, adjusted EPS of $2.10–$2.30, free cash flow above $195 million, and capex below $100 million, despite geopolitical and supply chain headwinds.
8-K Event Classification
Key Figures
Key Terms
free cash flow financial
constant currency financial
adjusted operating income financial
senior unsecured revolving credit facility financial
restructuring expenses financial
Earnings Snapshot
For full-year 2026, Hexcel targets sales of $2.0–$2.1 billion, adjusted diluted EPS of $2.10–$2.30, free cash flow greater than $195 million, and capital expenditures less than $100 million.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
April 22, 2026 (
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Date of report (Date of earliest event reported)
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(Exact Name of Registrant as Specified in Charter)
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(Address of Principal Executive Offices and Zip Code)
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(Registrant's telephone number, including area code)
N/A
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Name of each exchange on which registered |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.□
Section 2 – Financial Information
Item 2.02 Results of Operations and Financial Condition
On April 22, 2026 Hexcel Corporation (the “Company”) issued a press release in which the Company announced its financial results for its fiscal quarter ended March 31, 2026. A copy of this earnings press release is being furnished as Exhibit 99.1 and is incorporated herein by reference.
Section 7 – Regulation FD
Item 7.01 Regulation FD Disclosure
The information contained in Item 2.02 of this Current Report on Form 8-K is incorporated by reference into this Item 7.01.
The information contained in Items 2.02 and 7.01 of this Current Report on Form 8-K (including Exhibit 99.1) shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, except as shall be expressly set forth by specific reference in such a filing.
Section 8 – Other Events
Item 8.01 Other Events
On April 22, 2026 the Company posted to its website a table which summarizes sales by segment and market for the quarters ended March 31, 2026 and 2025 and the quarter and year ended December 31, 2025. A copy of this information is being filed as Exhibit 99.2 and is incorporated herein by reference. Other information appearing on the Company’s website is not incorporated by reference herein.
Section 9 – Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
99.1 |
Press Release issued by the Company on April 22, 2026.
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99.2 |
Sales by segment and market for the quarters ended March 31, 2026 and 2025 and the quarter and year ended December 31, 2025.
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104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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HEXCEL CORPORATION |
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April 22, 2026 |
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/s/ Amy S. Evans |
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Amy S. Evans |
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Senior Vice President, |
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Chief Accounting Officer |
Hexcel Corporation Two Stamford Plaza | 281 Tresser Blvd., 16thFloor Stamford, CT 06901 USA www.hexcel.com |
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Exhibit 99.1
HEXCEL REPORTS 2026 FIRST QUARTER RESULTS
• Q1 2026 GAAP diluted EPS of $0.49 compared to Q1 2025 GAAP diluted EPS of $0.35. • Q1 2026 adjusted diluted EPS of $0.59 compared to Q1 2025 adjusted diluted EPS of $0.37 • Q1 2026 Sales were $502 million, an increase of 9.9% compared to Q1 2025 sales of $457 million. • Refinanced the $750 million syndicated Revolver and extended maturity to 2031 • 2026 guidance unchanged |
See Table C for reconciliation of GAAP and non-GAAP operating income, net income, earnings per share and operating cash flow to free cash flow. Free cash flow is cash from operations less capital expenditures.
Summary of Results from Operations |
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Quarters Ended |
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March 31, |
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(In millions, except per share data) |
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2026 |
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2025 |
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% Change |
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Net Sales |
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$ |
501.5 |
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$ |
456.5 |
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9.9 |
% |
Net sales change in constant currency |
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8.8 |
% |
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Operating Income |
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57.6 |
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44.2 |
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30.3 |
% |
Net Income |
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37.2 |
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28.9 |
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28.7 |
% |
Diluted net income per common share |
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$ |
0.49 |
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$ |
0.35 |
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40.0 |
% |
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Non-GAAP measures for year-over-year comparison (Table C) |
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Adjusted Operating Income |
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$ |
67.5 |
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$ |
45.3 |
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49.0 |
% |
As a % of sales |
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13.5 |
% |
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9.9 |
% |
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Adjusted Net Income |
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45.5 |
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30.1 |
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51.2 |
% |
Adjusted diluted net income per share |
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$ |
0.59 |
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$ |
0.37 |
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59.5 |
% |
STAMFORD, Conn. April 22, 2026 – Hexcel Corporation (NYSE: HXL) today reported first quarter 2026 results including net sales of $502 million and adjusted diluted EPS of $0.59 per share.
Chairman, CEO and President Tom Gentile said, “The Hexcel team delivered strong first quarter results on rising commercial aerospace build rates supported by the normalization of channel inventory. Our first quarter sales increased ten percent and earnings per share grew at a significantly higher rate, underscoring the benefit from significant operating leverage as we grow back into existing capacity. Our priorities remain centered on execution and operational discipline as we support the rate ramps of our customers."
Mr. Gentile continued, “We remain confident in our growth outlook and we are reaffirming our full year 2026 guidance despite geopolitical uncertainty in the Middle East and lingering commercial aerospace supply chain challenges. We continue to actively monitor the markets and remain in close contact with our suppliers and customers. At present, we believe we are well positioned to mitigate a substantial portion of the near-term impact of higher oil and energy prices to our cost base. Higher oil prices in the short-term places an even greater emphasis on
fuel efficiency in the aerospace industry, which further reinforces the value proposition of lightweight advanced composite material."
Markets
Sales in the first quarter of 2026 were $501.5 million compared to $456.5 million in the first quarter of 2025.
Commercial Aerospace (66% of YTD Sales)
Defense, Space & Other (34% of YTD Sales)
Consolidated Operations
Gross margin for the first quarter of 2026 was 26.9% compared to 22.4% in the prior year, benefiting from higher sales leverage. As a percentage of sales, selling, general and administrative expenses for the first quarter of 2026 were 9.9% compared to 9.5% for the first quarter of 2025. R&D expenses as a percentage of sales for the first quarter of 2026 were 3.5% compared to 3.0% for the first quarter of 2025. Adjusted operating income in the first quarter of 2026 was $67.5 million or 13.5% of sales, compared to $45.3 million or 9.9% of sales in 2025. The impact of exchange rates on operating income as a percentage of sales was unfavorable by approximately 80 basis points in the first quarter of 2026 compared to the first quarter of 2025. Other operating expense for the first quarter of 2026 included restructuring expenses related to the expected shutdown of industrial-oriented manufacturing at the Leicester, UK facility and non-recurring professional fees.
Cash and other
2
2026 Guidance- Unchanged
*****
Hexcel will host a conference call at 9:30 a.m. ET, on April 23, 2026 to discuss first quarter 2026 results. The live webcast will be available on the Investor Relations section of the Hexcel website via the following link: https://events.q4inc.com/attendee/224695473. The event can also be accessed by dialing +1 (646) 307-1963. The conference ID is 2360739. Replays of the call will be available on the website Replays of the call will be available on the website.
*****
About Hexcel
Hexcel Corporation is a global leader in advanced lightweight composites technology. We provide innovative, high-performance material solutions that are lighter, stronger and tougher, shaping a world that moves farther, smarter and more efficiently. Our broad and unrivaled product range includes carbon fiber, specialty reinforcements, prepregs and other fiber-reinforced matrix materials, honeycomb, resins, engineered core, and composite structures for use in commercial aerospace, defense and space, and industrial applications.
*****
3
Disclaimer on Forward Looking Statements
This news release contains statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to the estimates and expectations based on aircraft production rates provided by Airbus, Boeing and others, and the revenues we may generate from an aircraft model or program; expectations with regard to the impact of regulatory activity related to the Boeing 737 MAX on our revenues; expectations with regard to raw material cost and availability, including any impact associated with quotas, duties, tariffs, taxes or other similar restrictions upon the import or export of materials or the Middle East conflict; expectations of composite content on new commercial aircraft programs and our share of those requirements; expectations regarding revenues from defense and space applications, including whether certain programs might be curtailed or discontinued, and government funding opportunities; expectations regarding sales for industrial applications; expectations regarding cash generation, working capital trends, and inventory levels; expectations as to the level of research and development investment, capital expenditures, capacity, including the timing of completion of capacity expansions, and qualification of new products; expectations regarding our ability to improve or maintain margins; expectations regarding our ability to attract, motivate, and retain the workforce necessary to execute our business strategy; projections regarding our tax rate; expectations with regard to the continued impact of macroeconomic factors or geopolitical issues or conflicts, including the Middle East conflict; expectations regarding our strategic initiatives, including our sustainability goals or restructuring or alignment activities; expectations with regard to the effectiveness of cybersecurity measures; expectations regarding the outcome of legal matters or the impact of changes in laws or regulations; expectations relating to our share repurchase program and dividends; and our expectations of financial results for 2026 and beyond. Actual results may differ materially from the results anticipated in the forward-looking statements due to a variety of factors, including but not limited to uncertainty regarding the amount and timing of future share repurchases and the source of funds used for such repurchases; the extent of the impact of macroeconomic factors or geopolitical issues or conflicts, including U.S. trade policy and retaliatory actions taken in response and the Middle East conflict; reductions in sales to any significant customers, particularly Airbus or Boeing, including related to regulatory activity or public scrutiny impacting the Boeing 737 MAX; our ability to effectively adjust production and inventory levels to align with customer demand; our ability to effectively motivate, retain and hire the necessary workforce; the availability and cost of raw materials, including the impact of supply disruptions, inflation, tariffs and the Middle East conflict; our ability to successfully implement or realize our strategic initiatives, including our sustainability goals or any restructuring or alignment activities in which we may engage; changes in sales mix; changes in current pricing due to cost levels; changes in aerospace build or delivery rates; any impact from a prolonged shutdown of the U.S. federal government; changes in government defense procurement or investment budgets; timely new product development or introduction; our ability to install, staff and qualify necessary capacity or complete capacity expansions to meet customer demand; our ability to execute future share repurchases or dividends and the source of funds used for such repurchases or dividends; cybersecurity-related risks, including the potential impact of breaches or intrusions; currency exchange rate fluctuations; uncertainty related to governmental actions and changes in political, social and economic conditions, including the effect of change in global trade policies, tariff rates, economic sanctions and embargoes; work stoppages or other labor disruptions; our ability to successfully complete any strategic acquisitions, investments or dispositions; compliance with environmental, health, safety and other related laws and regulations, including those related to climate change; the effects of natural disasters or other severe weather events, which may be worsened by the impact of climate change, and other severe catastrophic events, including any public health crisis; and the unexpected outcome of legal matters or impact of changes in laws or regulations. Additional risk factors are described in our filings with the Securities and Exchange Commission. We do not undertake an obligation to update our forward-looking statements to reflect future events.
Contact
Kurt Goddard | Vice President Investor Relations | Kurt.Goddard@Hexcel.com | +1 (203)-352-6826
*****
4
Hexcel Corporation and Subsidiaries |
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Condensed Consolidated Statements of Operations |
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Unaudited |
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Quarters Ended |
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March 31, |
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(In millions, except per share data) |
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2026 |
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2025 |
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Net sales |
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$ |
501.5 |
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$ |
456.5 |
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Cost of sales |
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366.8 |
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354.1 |
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Gross margin |
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134.7 |
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102.4 |
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% Gross Margin |
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26.9 |
% |
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22.4 |
% |
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Selling, general and administrative expenses |
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49.4 |
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43.3 |
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Research and development expenses |
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17.8 |
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13.8 |
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Other operating expense |
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9.9 |
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1.1 |
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Operating income |
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57.6 |
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44.2 |
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Interest expense, net |
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11.8 |
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7.8 |
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Other expense |
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0.3 |
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0.4 |
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Income before income taxes |
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45.5 |
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36.0 |
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Income tax expense |
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8.3 |
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7.1 |
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Net income |
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$ |
37.2 |
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$ |
28.9 |
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Basic net income per common share: |
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$ |
0.49 |
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$ |
0.36 |
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Diluted net income per common share: |
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$ |
0.49 |
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$ |
0.35 |
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Weighted-average common shares: |
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Basic |
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75.9 |
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81.1 |
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Diluted |
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76.7 |
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81.7 |
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5
Hexcel Corporation and Subsidiaries |
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Condensed Consolidated Balance Sheets |
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Unaudited |
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March 31, |
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December 31, |
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(In millions) |
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2026 |
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2025 |
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Assets |
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Cash and cash equivalents |
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$ |
54.1 |
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$ |
71.0 |
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Accounts receivable, net |
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291.0 |
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249.3 |
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Inventories, net |
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339.8 |
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328.8 |
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Contract assets |
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40.4 |
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35.9 |
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Prepaid expenses and other current assets |
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44.4 |
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45.7 |
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Total current assets |
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769.7 |
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730.7 |
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Property, plant and equipment |
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3,311.7 |
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3,322.4 |
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Less accumulated depreciation |
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(1,718.9 |
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(1,710.9 |
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Net property, plant and equipment |
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1,592.8 |
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1,611.5 |
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Goodwill and other intangible assets, net |
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237.4 |
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239.8 |
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Investments in affiliated companies |
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5.0 |
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5.0 |
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Other assets |
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119.0 |
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117.0 |
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Total assets |
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$ |
2,723.9 |
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$ |
2,704.0 |
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Liabilities and Stockholders' Equity |
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Liabilities: |
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Accounts payable |
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$ |
140.7 |
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$ |
146.6 |
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Accrued compensation and benefits |
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67.2 |
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79.0 |
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Accrued liabilities |
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105.8 |
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97.1 |
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Total current liabilities |
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313.7 |
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322.7 |
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Long-term debt |
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998.1 |
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993.0 |
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Retirement obligations |
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27.8 |
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28.4 |
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Other non-current liabilities |
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118.1 |
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109.2 |
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Total liabilities |
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$ |
1,457.7 |
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$ |
1,453.3 |
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Stockholders' equity: |
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Common stock, $0.01 par value, 200.0 shares authorized, |
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$ |
1.1 |
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$ |
1.1 |
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Additional paid-in capital |
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992.5 |
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994.9 |
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Retained earnings |
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2,330.5 |
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2,307.0 |
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Accumulated other comprehensive loss |
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(30.5 |
) |
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(12.9 |
) |
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3,293.6 |
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3,290.1 |
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Less – Treasury stock, at cost, 37.1 shares at March 31, 2026 and 36.4 shares at December 31, 2025 |
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(2,027.4 |
) |
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(2,039.4 |
) |
Total stockholders' equity |
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1,266.2 |
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1,250.7 |
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Total liabilities and stockholders' equity |
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$ |
2,723.9 |
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$ |
2,704.0 |
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6
Hexcel Corporation and Subsidiaries |
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Condensed Consolidated Statements of Cash Flows |
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Unaudited |
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Quarters Ended |
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March 31, |
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(In millions) |
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2026 |
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2025 |
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Cash flows from operating activities |
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Net income |
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$ |
37.2 |
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$ |
28.9 |
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Reconciliation to net cash used for operating activities: |
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Depreciation and amortization |
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30.4 |
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29.8 |
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Amortization related to financing |
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0.4 |
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- |
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Deferred income taxes |
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3.5 |
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2.7 |
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Stock-based compensation |
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9.3 |
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9.7 |
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Restructuring expenses, net of payments |
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3.6 |
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(0.3 |
) |
Debt extinguishment costs |
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- |
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0.4 |
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Loss on divestiture of assets |
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- |
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1.1 |
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Changes in assets and liabilities: |
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Increase in accounts receivable |
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(43.0 |
) |
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(42.5 |
) |
Increase in inventories |
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(14.3 |
) |
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(16.8 |
) |
Increase in prepaid expenses and other current assets |
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(6.6 |
) |
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(5.7 |
) |
Decrease (increase) in accounts payable/accrued liabilities |
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0.8 |
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(32.7 |
) |
Other - net |
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(2.3 |
) |
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(3.1 |
) |
Net cash provided by (used for) operating activities (a) |
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19.0 |
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(28.5 |
) |
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Cash flows from investing activities |
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Capital expenditures (b) |
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(25.2 |
) |
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(26.1 |
) |
Payments on divestiture of assets |
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- |
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(1.1 |
) |
Net cash used for investing activities |
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(25.2 |
) |
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(27.2 |
) |
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Cash flows from financing activities |
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Borrowings, net from senior unsecured credit facilities |
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5.0 |
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|
90.0 |
|
Redemption of 4.7% senior notes due 2025 |
|
|
- |
|
|
|
(300.0 |
) |
Proceeds from issuance of 5.875% senior notes due 2035 |
|
|
- |
|
|
|
300.0 |
|
Repurchases of common stock |
|
|
- |
|
|
|
(50.4 |
) |
Issuance costs related to senior unsecured credit facilities |
|
|
(1.9 |
) |
|
|
- |
|
Repayment of finance lease obligation and other debt, net |
|
|
- |
|
|
|
(4.2 |
) |
Dividends paid |
|
|
(13.7 |
) |
|
|
(13.8 |
) |
Activity under stock plans |
|
|
0.3 |
|
|
|
(3.4 |
) |
Net cash (used for) provided by financing activities |
|
|
(10.3 |
) |
|
|
18.2 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
(0.4 |
) |
|
|
1.3 |
|
Net decrease in cash and cash equivalents |
|
|
(16.9 |
) |
|
|
(36.2 |
) |
Cash and cash equivalents at beginning of period |
|
|
71.0 |
|
|
|
125.4 |
|
Cash and cash equivalents at end of period |
|
$ |
54.1 |
|
|
$ |
89.2 |
|
|
|
|
|
|
|
|
||
Supplemental data: |
|
|
|
|
|
|
||
Free Cash Flow (a)+(b) |
|
$ |
(6.2 |
) |
|
$ |
(54.6 |
) |
Accrual basis additions to property, plant and equipment |
|
$ |
17.7 |
|
|
$ |
17.1 |
|
7
Hexcel Corporation and Subsidiaries |
|
|||||||||||||||||||||||
Net Sales to Third-Party Customers by Market |
|
|||||||||||||||||||||||
Quarters Ended March 31, 2026 and 2025 |
Unaudited |
|
|
|
|
|
Table A |
|
||||||||||||||||
(In millions) |
|
As Reported |
|
|
Constant Currency (a) |
|
||||||||||||||||||
|
|
|
|
|
|
|
|
B/(W) |
|
|
FX |
|
|
|
|
|
B/(W) |
|
||||||
Market |
|
2026 |
|
|
2025 |
|
|
% |
|
|
Effect (b) |
|
|
2025 |
|
|
% |
|
||||||
Commercial Aerospace |
|
$ |
332.7 |
|
|
$ |
280.1 |
|
|
|
18.8 |
|
|
$ |
(0.6 |
) |
|
$ |
279.5 |
|
|
|
19.0 |
|
Defense, Space & Other |
|
|
168.8 |
|
|
|
176.4 |
|
|
|
(4.3 |
) |
|
|
4.9 |
|
|
|
181.3 |
|
|
|
(6.9 |
) |
Consolidated Total |
|
$ |
501.5 |
|
|
$ |
456.5 |
|
|
|
9.9 |
|
|
$ |
4.3 |
|
|
$ |
460.8 |
|
|
|
8.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Consolidated % of Net Sales |
|
% |
|
|
% |
|
|
|
|
|
|
|
|
% |
|
|
|
|
||||||
Commercial Aerospace |
|
|
66.3 |
|
|
|
61.4 |
|
|
|
|
|
|
|
|
|
60.7 |
|
|
|
|
|||
Defense, Space & Other |
|
|
33.7 |
|
|
|
38.6 |
|
|
|
|
|
|
|
|
|
39.3 |
|
|
|
|
|||
Consolidated Total |
|
|
100.0 |
|
|
|
100.0 |
|
|
|
|
|
|
|
|
|
100.0 |
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Hexcel Corporation and Subsidiaries |
|
|||||||||||||||
Segment Information |
|
Unaudited |
|
|
Table B |
|
||||||||||
(In millions) |
|
Composite Materials |
|
|
Engineered Products |
|
|
Corporate |
|
|
Total |
|
||||
First Quarter 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net sales to external customers |
|
$ |
398.8 |
|
|
$ |
102.7 |
|
|
$ |
- |
|
|
$ |
501.5 |
|
Intersegment sales |
|
|
28.4 |
|
|
|
1.6 |
|
|
|
(30.0 |
) |
|
|
- |
|
Total sales |
|
|
427.2 |
|
|
|
104.3 |
|
|
|
(30.0 |
) |
|
|
501.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other operating expense |
|
|
5.7 |
|
|
|
- |
|
|
|
4.2 |
|
|
|
9.9 |
|
Operating income (loss) |
|
|
69.7 |
|
|
|
15.2 |
|
|
|
(27.3 |
) |
|
|
57.6 |
|
% Operating margin |
|
|
16.3 |
% |
|
|
14.6 |
% |
|
|
|
|
|
11.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
27.2 |
|
|
|
3.2 |
|
|
|
- |
|
|
|
30.4 |
|
Stock-based compensation expense |
|
|
3.4 |
|
|
|
0.8 |
|
|
|
5.1 |
|
|
|
9.3 |
|
Accrual based additions to capital expenditures |
|
|
16.0 |
|
|
|
1.7 |
|
|
|
- |
|
|
|
17.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
First Quarter 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net sales to external customers |
|
$ |
365.3 |
|
|
$ |
91.2 |
|
|
$ |
- |
|
|
$ |
456.5 |
|
Intersegment sales |
|
|
20.1 |
|
|
|
0.3 |
|
|
|
(20.4 |
) |
|
|
- |
|
Total sales |
|
|
385.4 |
|
|
|
91.5 |
|
|
|
(20.4 |
) |
|
|
456.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other operating expense |
|
|
- |
|
|
|
1.1 |
|
|
|
- |
|
|
|
1.1 |
|
Operating income (loss) |
|
|
54.6 |
|
|
|
5.1 |
|
|
|
(15.5 |
) |
|
|
44.2 |
|
% Operating margin |
|
|
14.2 |
% |
|
|
5.6 |
% |
|
|
|
|
|
9.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
26.6 |
|
|
|
3.2 |
|
|
|
- |
|
|
|
29.8 |
|
Stock-based compensation expense |
|
|
3.0 |
|
|
|
0.8 |
|
|
|
5.9 |
|
|
|
9.7 |
|
Accrual based additions to capital expenditures |
|
|
15.5 |
|
|
|
1.6 |
|
|
|
- |
|
|
|
17.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(a) Hexcel does not allocate corporate expenses to the operating segments.
8
Hexcel Corporation and Subsidiaries |
|
|
|||||||
Reconciliation of GAAP to Non-GAAP Operating Income Net Income, EPS and Operating Cash Flow to Free Cash Flow |
|
Table C |
|||||||
|
|
Unaudited |
|||||||
|
|
Quarters Ended |
|
|
|||||
|
|
March 31, |
|
|
|||||
(In millions) |
|
2026 |
|
|
2025 |
|
|
||
GAAP operating income |
|
$ |
57.6 |
|
|
$ |
44.2 |
|
|
Other operating expense (a) |
|
|
9.9 |
|
|
|
1.1 |
|
|
Adjusted operating income (Non-GAAP} |
|
$ |
67.5 |
|
|
$ |
45.3 |
|
|
|
|
Unaudited |
|
|||||||||||||
|
|
Quarters Ended March 31, |
|
|||||||||||||
|
|
2026 |
|
|
2025 |
|
||||||||||
(In millions, except per diluted share data) |
|
Net Income |
|
|
EPS |
|
|
Net Income |
|
|
EPS |
|
||||
GAAP |
|
$ |
37.2 |
|
|
$ |
0.49 |
|
|
$ |
28.9 |
|
|
$ |
0.35 |
|
Other operating expense, net of tax (a) |
|
|
8.1 |
|
|
|
0.10 |
|
|
|
0.9 |
|
|
|
0.01 |
|
Other expense, net of tax (b) |
|
|
0.2 |
|
|
|
- |
|
|
|
0.3 |
|
|
|
0.01 |
|
Non-GAAP |
|
$ |
45.5 |
|
|
$ |
0.59 |
|
|
$ |
30.1 |
|
|
$ |
0.37 |
|
|
|
Unaudited |
|
|||||
|
|
Quarters Ended March 31, |
|
|||||
(In millions) |
|
2026 |
|
|
2025 |
|
||
Net cash used for operating activities |
|
$ |
19.0 |
|
|
$ |
(28.5 |
) |
Less: Capital expenditures |
|
|
(25.2 |
) |
|
|
(26.1 |
) |
Free cash flow (Non-GAAP) |
|
$ |
(6.2 |
) |
|
$ |
(54.6 |
) |
NOTE: Management believes that adjusted operating income, adjusted net income, adjusted diluted net income per share and free cash flow, which are non-GAAP measures, are meaningful to investors because they provide a view of Hexcel with respect to the underlying operating results excluding special items. Special items represent significant charges or credits that are important to an understanding of Hexcel’s overall operating results in the periods presented. Non-GAAP measurements are not recognized in accordance with generally accepted accounting principles and should not be viewed as an alternative to GAAP measures of performance.
9
Hexcel Corporation and Subsidiaries |
|
|||||||||||
Schedule of Total Debt, Net of Cash |
Table D |
|
||||||||||
|
|
Unaudited |
|
|||||||||
|
|
March 31, |
|
|
December 31, |
|
|
December 31, |
|
|||
(In millions) |
|
2026 |
|
|
2025 |
|
|
2024 |
|
|||
|
|
|
|
|
|
|
|
|
|
|||
Current portion finance lease |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
0.1 |
|
Total current debt |
|
|
- |
|
|
|
- |
|
|
|
0.1 |
|
|
|
|
|
|
|
|
|
|
|
|||
Senior unsecured credit facility |
|
|
300.0 |
|
|
|
295.0 |
|
|
|
- |
|
4.7% senior notes due 2025 |
|
|
- |
|
|
|
- |
|
|
|
300.0 |
|
3.95% senior notes due 2027 |
|
|
400.0 |
|
|
|
400.0 |
|
|
|
400.0 |
|
5.875% senior notes due 2035 |
|
|
300.0 |
|
|
|
300.0 |
|
|
|
- |
|
Senior notes original issue discounts |
|
|
(0.2 |
) |
|
|
- |
|
|
|
(0.4 |
) |
Senior notes deferred financing costs |
|
|
(3.7 |
) |
|
|
(4.2 |
) |
|
|
(0.9 |
) |
Other debt |
|
|
2.0 |
|
|
|
2.2 |
|
|
|
1.9 |
|
Total long-term debt |
|
|
998.1 |
|
|
|
993.0 |
|
|
|
700.6 |
|
Total Debt |
|
|
998.1 |
|
|
|
993.0 |
|
|
|
700.7 |
|
Less: Cash and cash equivalents |
|
|
(54.1 |
) |
|
|
(71.0 |
) |
|
|
(125.4 |
) |
Total debt, net of cash |
|
$ |
944.0 |
|
|
$ |
922.0 |
|
|
$ |
575.3 |
|
10
EXHIBIT 99.2
Hexcel Corporation and Subsidiaries |
|
|||||||||||
Net Sales by Segment and Market |
|
|||||||||||
For the Quarters Ended March 31, 2026 and 2025 |
|
|||||||||||
and the Quarter and Year Ended December 31, 2025 |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|||
|
|
Unaudited |
|
|||||||||
|
|
Commercial |
|
|
Defense, Space |
|
|
|
|
|||
(In millions) |
|
Aerospace |
|
|
& Other |
|
|
Total |
|
|||
|
|
|
|
|
|
|
|
|
|
|||
First Quarter 2026 |
|
|
|
|
|
|
|
|
|
|||
Composite Materials |
|
$ |
281.2 |
|
|
$ |
117.6 |
|
|
$ |
398.8 |
|
Engineered Products |
|
|
51.5 |
|
|
|
51.2 |
|
|
|
102.7 |
|
Total |
|
$ |
332.7 |
|
|
$ |
168.8 |
|
|
$ |
501.5 |
|
|
|
|
66 |
% |
|
|
34 |
% |
|
|
100 |
% |
Fourth Quarter 2025 |
|
|
|
|
|
|
|
|
|
|||
Composite Materials |
|
|
257.9 |
|
|
|
136.6 |
|
|
$ |
394.5 |
|
Engineered Products |
|
|
41.6 |
|
|
|
55.2 |
|
|
|
96.8 |
|
Total |
|
|
299.5 |
|
|
|
191.8 |
|
|
$ |
491.3 |
|
|
|
|
61 |
% |
|
|
39 |
% |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|||
First Quarter 2025 |
|
|
|
|
|
|
|
|
|
|||
Composite Materials |
|
|
241.8 |
|
|
|
123.5 |
|
|
$ |
365.3 |
|
Engineered Products |
|
|
38.3 |
|
|
|
52.9 |
|
|
|
91.2 |
|
Total |
|
280.1 |
|
|
|
176.4 |
|
|
$ |
456.5 |
|
|
|
|
|
61 |
% |
|
|
39 |
% |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|||
Fiscal Year 2025 |
|
|
|
|
|
|
|
|
|
|||
Composite Materials |
|
$ |
980.2 |
|
|
$ |
536.0 |
|
|
$ |
1,516.2 |
|
Engineered Products |
|
|
166.7 |
|
|
|
211.0 |
|
|
|
377.7 |
|
Total |
|
$ |
1,146.9 |
|
|
$ |
747.0 |
|
|
$ |
1,893.9 |
|
|
|
|
61 |
% |
|
|
39 |
% |
|
|
100 |
% |