Hexcel Q3 2026 earnings rise 87.4% to $38.6M
Commercial Aerospace sales rose 20.5% in the quarter, while Defense, Space & Other sales declined 8.7%.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Hexcel Corporation reported third-quarter 2026 net sales of $496.4 million, up 8.8% from a year earlier, while operating income increased 52.2% to $54.8 million and net income increased 87.4% to $38.6 million. Diluted earnings per share were $0.50, compared with $0.26. Commercial Aerospace sales grew 20.5% to $330.3 million; Defense, Space & Other sales declined 8.7% to $166.1 million, reflecting divestiture and closure activity and temporary softness in certain programs.
For the first nine months, net sales were $1,527.2 million, up 8.9%; operating cash flow was $171.1 million versus $105.0 million, and free cash flow was $102.5 million versus $49.9 million. The Board raised the share repurchase authorization to $750 million; no shares were repurchased in the third quarter. It declared a $0.18 quarterly dividend payable November 9, 2026, to holders of record November 2, and reaffirmed 2026 guidance: sales of $2.025 billion to $2.125 billion, adjusted diluted EPS of $2.30 to $2.40, free cash flow greater than $195 million, and capital expenditures less than $100 million.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter net income rose 87.4% to $38.6 million.
Negative
- Moderate pointDefense, Space & Other sales fell 8.7% in third-quarter 2026.
Filing Explained
The board raised Hexcel’s total buyback authorization to
8-K Event Classification
Key Figures
Key Terms
constant currency financial
Adjusted operating income financial
free cash flow financial
operating leverage financial
Earnings Snapshot
Reaffirmed 2026 guidance: sales of $2.025 billion to $2.125 billion; adjusted diluted earnings per share of $2.30 to $2.40; free cash flow greater than $195 million; capital expenditures less than $100 million.
FAQ
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What were HXL's third-quarter 2026 results?
What is HXL's 2026 financial guidance?
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): |
(Exact name of Registrant as Specified in Its Charter)
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(Address of Principal Executive Offices) |
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Registrant’s Telephone Number, Including Area Code: |
(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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Trading |
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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 October 21, 2026 Hexcel Corporation (the “Company”) issued a press release in which the Company announced its financial results for its fiscal quarter ended September 30, 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 October 21, 2026 the Company posted to its website a table which summarizes sales by segment and market for the quarters ended September 30, 2026 and 2025, June 30, 2026 and 2025 and the nine-month periods ended September 30, 2026 and 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.
On October 21, 2026 the Board of Directors of the Company approved an increase to the share repurchase authorization under the Company’s existing share repurchase plan approved on October 22, 2025 from the remaining authorized amount of $380.6 million to an amount equal to $750 million.
Section 9 – Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
99.1 |
Press Release issued by the Company on October 21, 2026.
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99.2 |
Sales by segment and market for the quarters ended September 30, 2026 and 2025, June 30, 2026 and 2025 and the nine-month periods ended September 30, 2026 and 2025.
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104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
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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October 21, 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 |
Exhibit 99.1
HEXCEL REPORTS 2026 THIRD QUARTER RESULTS
• Q3 2026 Sales were $496 million, an 8.8% increase compared to Q3 2025 sales of $456 million (9.2% increase in constant currency). • Q3 2026 GAAP diluted EPS of $0.50 compared to Q3 2025 GAAP diluted EPS of $0.26. • Q3 2026 adjusted diluted EPS of $0.50, compared to Q3 2025 adjusted diluted EPS of $0.37. • 2026 guidance unchanged. • Share repurchase authorization increased to $750 million.
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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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Nine Months Ended |
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September 30, |
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September 30, |
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(In millions, except per share data) |
2026 |
2025 |
% Change |
2026 |
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2025 |
% Change |
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Net Sales |
$496.4 |
$456.2 |
8.8 % |
$1,527.2 |
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$1,402.6 |
8.9 % |
Net sales change in constant currency |
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9.2 % |
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8.7 % |
Operating Income |
54.8 |
36.0 |
52.2 % |
185.0 |
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110.2 |
67.9 % |
Net Income |
38.6 |
20.6 |
87.4 % |
125.1 |
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63.0 |
98.6 % |
Diluted net income per common share |
$0.50 |
$0.26 |
92.3 % |
$1.63 |
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$0.78 |
109.0 % |
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Non-GAAP measures for year-over-year comparison (Table C) |
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Adjusted Operating Income |
$54.4 |
$44.8 |
21.4 % |
$195.5 |
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$144.3 |
35.5 % |
As a % of sales |
11.0% |
9.8 % |
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12.8% |
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10.3% |
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Adjusted Net Income |
38.2 |
29.8 |
28.2 % |
133.9 |
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100.4 |
33.4 % |
Adjusted diluted net income per share |
$0.50 |
$0.37 |
35.1 % |
$1.75 |
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$1.24 |
41.1 % |
STAMFORD, Conn. October 21, 2026 – Hexcel Corporation (NYSE: HXL) today reported third quarter 2026 results including net sales of $496 million and adjusted diluted EPS of $0.50 per share.
Chairman, CEO and President Tom Gentile said, “Consistent with what we communicated last quarter, our third quarter financial results reflected our typical summer sales seasonality, which impacted operating leverage. We also experienced near-term cost headwinds from accelerated hiring and training to support the strong demand signals we are receiving across our business for Q4 and 2027. In terms of market demand, commercial aerospace sales increased 21% year-over-year as the industry recovery continues to take hold, partially offset by temporary softness in a few fighter and space programs that impacted Defense, Space & Other sales. We are reaffirming our 2026 guidance and expect full year results to be within the sales and adjusted EPS ranges previously provided.”
Mr. Gentile continued, “We expect to return to our targeted leverage range by the end of 2026 as we have prioritized debt repayment following the accelerated share repurchase program we initiated last year at this time. Reflecting confidence in the strong cash generation profile of the business, the Board of Directors increased the share repurchase authorization to $750 million from $381 million.”
1
Markets
Sales in the third quarter of 2026 were $496.4 million compared to $456.2 million in the third quarter of 2025.
Commercial Aerospace
Defense, Space & Other
Consolidated Operations
Gross margin for the third quarter of 2026 was 23.3% compared to 21.9% in the third quarter of 2025 as higher volume drove operating leverage year over year. As a percentage of sales, selling, general and administrative expenses for the third quarter of 2026 was 9.0% compared to 9.0% for the third quarter of 2025. R&D expenses as a percentage of sales were 3.3% for the third quarter of 2026 compared to 3.1% for the third quarter of 2025. Adjusted operating income in the third quarter of 2026 was $54.4 million or 11.0% of sales, compared to $44.8 million, or 9.8% of sales in 2025. The impact of exchange rates on operating income as a percent of sales was unfavorable by approximately 30 basis points in the third quarter of 2026 compared to the third quarter of 2025.
Year-to-Date 2026 Results
Sales for the first nine months of 2026 were $1,527.2 million compared to $1,402.6 million, a 8.9% increase from the same period in 2025.
Commercial Aerospace (66% of YTD sales)
Defense, Space & Other (34% of YTD sales)
2
Consolidated Operations
Gross margin for the first nine months of 2026 was 25.4% compared to 22.4% in the prior year period as the current period benefited from higher sales leverage. As a percentage of sales, selling, general and administrative for the first nine months of 2026 was 9.3% compared to 9.1% for the first nine months of 2025. R&D expenses as a percentage of sales for the first nine months of 2026 was 3.4% compared to 3.0% for the first nine months of 2025. Adjusted operating income for the first nine months of 2026 was $195.5 million or 12.8% of sales, compared to $144.3 million or 10.3% of sales in 2025. The impact of exchange rates on operating income as a percent of sales was unfavorable by approximately 70 basis points in the first nine months of 2026 compared to the first nine months of 2025. Other operating expense for the first nine months of 2026 included restructuring expenses related to the shutdown of industrial-oriented manufacturing at the Leicester, UK facility and non-recurring professional fees. Other operating expense for the first nine months of 2025 primarily reflected charges for the divestiture of the Neumarkt, Austria business, closure of the Welkenraedt, Belgium facility and divestiture of the Hartford, Connecticut business.
Cash and other
2026 Guidance (unchanged)
*****
Hexcel will host a conference call at 9:30 a.m. ET, on October 22, 2026 to discuss third 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/512023355 The event can also be accessed by dialing
3
+1 (585)-542-9983. The conference ID is 512 023 355. Replays of the call and the Company’s third quarter results slide deck 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.
*****
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 or restructuring or alignment activities; 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 and 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, 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 and 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
4
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
*****
5
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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Nine Months Ended |
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September 30, |
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September 30, |
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(In millions, except per share data) |
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2026 |
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2025 |
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2026 |
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2025 |
Net sales |
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$496.4 |
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$456.2 |
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$1,527.2 |
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$1,402.6 |
Cost of sales |
|
380.9 |
|
356.3 |
|
1,138.9 |
|
1,088.8 |
Gross margin |
|
115.5 |
|
99.9 |
|
388.3 |
|
313.8 |
% Gross Margin |
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23.3% |
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21.9% |
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25.4% |
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22.4% |
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Selling, general and administrative expenses |
|
44.9 |
|
41.1 |
|
141.5 |
|
127.4 |
Research and development expenses |
|
16.2 |
|
14.0 |
|
51.3 |
|
42.1 |
Other operating expense |
|
(0.4) |
|
8.8 |
|
10.5 |
|
34.1 |
Operating income |
|
54.8 |
|
36.0 |
|
185.0 |
|
110.2 |
Interest expense, net |
|
12.1 |
|
9.2 |
|
35.9 |
|
26.1 |
Other expense (income) |
|
- |
|
- |
|
0.2 |
|
(0.5) |
Income before income taxes |
|
42.7 |
|
26.8 |
|
148.9 |
|
84.6 |
Income tax expense |
|
4.1 |
|
6.2 |
|
23.8 |
|
21.6 |
Net income |
|
$38.6 |
|
$20.6 |
|
$125.1 |
|
$63.0 |
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Basic net income per common share: |
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$0.51 |
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$0.26 |
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$1.65 |
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$0.78 |
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|
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Diluted net income per common share: |
|
$0.50 |
|
$0.26 |
|
$1.63 |
|
$0.78 |
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|
|
|
|
|
|
|
|
Weighted-average common shares: |
|
|
|
|
|
|
|
|
Basic |
|
75.8 |
|
79.8 |
|
75.8 |
|
80.4 |
Diluted |
|
76.7 |
|
80.3 |
|
76.6 |
|
80.9 |
6
Hexcel Corporation and Subsidiaries |
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Condensed Consolidated Balance Sheets |
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Unaudited |
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|||||
|
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September 30, |
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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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|
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Cash and cash equivalents |
|
$ |
77.8 |
|
|
$ |
71.0 |
|
Accounts receivable, net |
|
|
271.6 |
|
|
|
249.3 |
|
Inventories, net |
|
|
357.4 |
|
|
|
328.8 |
|
Contract assets |
|
|
41.7 |
|
|
|
35.9 |
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Prepaid expenses and other current assets |
|
|
49.5 |
|
|
|
45.7 |
|
Total current assets |
|
|
798.0 |
|
|
|
730.7 |
|
|
|
|
|
|
|
|
||
Property, plant and equipment |
|
|
3,344.5 |
|
|
|
3,322.4 |
|
Less accumulated depreciation |
|
|
(1,769.5 |
) |
|
|
(1,710.9 |
) |
Net property, plant and equipment |
|
|
1,575.0 |
|
|
|
1,611.5 |
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|
|
|
|
|
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Goodwill and other intangible assets, net |
|
|
233.9 |
|
|
|
239.8 |
|
Investments in affiliated companies |
|
|
5.0 |
|
|
|
5.0 |
|
Other assets |
|
|
117.3 |
|
|
|
117.0 |
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Total assets |
|
$ |
2,729.2 |
|
|
$ |
2,704.0 |
|
|
|
|
|
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Liabilities and Stockholders' Equity |
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Liabilities: |
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|
|
|
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|
||
Accounts payable |
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$ |
139.4 |
|
|
$ |
146.6 |
|
Accrued compensation and benefits |
|
|
79.6 |
|
|
|
79.0 |
|
Accrued liabilities |
|
|
91.7 |
|
|
|
97.1 |
|
Total current liabilities |
|
|
310.7 |
|
|
|
322.7 |
|
|
|
|
|
|
|
|
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Long-term debt |
|
|
934.9 |
|
|
|
993.0 |
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Retirement obligations |
|
|
28.6 |
|
|
|
28.4 |
|
Other non-current liabilities |
|
|
130.6 |
|
|
|
109.2 |
|
Total liabilities |
|
$ |
1,404.8 |
|
|
$ |
1,453.3 |
|
|
|
|
|
|
|
|
||
Stockholders' equity: |
|
|
|
|
|
|
||
Common stock, $0.01 par value, 200.0 shares authorized, 113.0 shares issued at September 30, 2026 and 112.1 shares |
|
$ |
1.1 |
|
|
$ |
1.1 |
|
Additional paid-in capital |
|
|
1,009.7 |
|
|
|
994.9 |
|
Retained earnings |
|
|
2,391.1 |
|
|
|
2,307.0 |
|
Accumulated other comprehensive loss |
|
|
(49.9 |
) |
|
|
(12.9 |
) |
|
|
|
3,352.0 |
|
|
|
3,290.1 |
|
|
|
|
|
|
|
|
||
Less – Treasury stock, at cost, 37.3 shares at September 30, 2026 and 36.4 shares at December 31, 2025 |
|
|
(2,027.6 |
) |
|
|
(2,039.4 |
) |
Total stockholders' equity |
|
|
1,324.4 |
|
|
|
1,250.7 |
|
Total liabilities and stockholders' equity |
|
$ |
2,729.2 |
|
|
$ |
2,704.0 |
|
7
Hexcel Corporation and Subsidiaries |
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|||||||
Condensed Consolidated Statements of Cash Flows |
|
|||||||
|
|
Unaudited |
|
|||||
|
|
Nine Months Ended |
|
|||||
|
|
September 30, |
|
|||||
(In millions) |
|
2026 |
|
|
2025 |
|
||
|
|
|
|
|
|
|
||
Cash flows from operating activities |
|
|
|
|
|
|
||
Net income |
|
$ |
125.1 |
|
|
$ |
63.0 |
|
Reconciliation to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
90.5 |
|
|
|
91.5 |
|
Amortization related to financing |
|
|
1.1 |
|
|
|
0.1 |
|
Deferred income taxes |
|
|
22.5 |
|
|
|
7.8 |
|
Stock-based compensation |
|
|
18.4 |
|
|
|
13.4 |
|
Restructuring expenses, net of payments |
|
|
0.3 |
|
|
|
10.7 |
|
Debt extinguishment costs |
|
|
0.7 |
|
|
|
0.4 |
|
Loss on divestiture of assets |
|
|
- |
|
|
|
4.9 |
|
|
|
|
|
|
|
|
||
Changes in assets and liabilities: |
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|
|
|
|
|
||
Increase in accounts receivable |
|
|
(23.9 |
) |
|
|
(8.0 |
) |
(Increase) decrease in inventories |
|
|
(35.5 |
) |
|
|
16.5 |
|
Increase in prepaid expenses and other current assets |
|
|
(14.3 |
) |
|
|
(16.8 |
) |
Decrease in accounts payable/accrued liabilities |
|
|
(4.4 |
) |
|
|
(55.5 |
) |
Other - net |
|
|
(9.4 |
) |
|
|
(23.0 |
) |
Net cash provided by operating activities (a) |
|
|
171.1 |
|
|
|
105.0 |
|
|
|
|
|
|
|
|
||
Cash flows from investing activities |
|
|
|
|
|
|
||
Capital expenditures (b) |
|
|
(68.6 |
) |
|
|
(55.1 |
) |
Payments on divestiture of assets |
|
|
- |
|
|
|
(2.7 |
) |
Net cash used for investing activities |
|
|
(68.6 |
) |
|
|
(57.8 |
) |
|
|
|
|
|
|
|
||
Cash flows from financing activities |
|
|
|
|
|
|
||
Borrowings from senior unsecured credit facilities |
|
|
595.0 |
|
|
|
160.0 |
|
Repayments of senior unsecured credit facilities |
|
|
(650.0 |
) |
|
|
(100.0 |
) |
Redemption of 4.7% senior notes due 2025 |
|
|
- |
|
|
|
(300.0 |
) |
Redemption of 3.95% senior notes due 2027 |
|
|
(400.0 |
) |
|
|
- |
|
Proceeds from issuance of 4.9% senior notes due 2031 |
|
|
400.0 |
|
|
|
- |
|
Proceeds from issuance of 5.875% senior notes due 2035 |
|
|
- |
|
|
|
300.0 |
|
Repurchases of common stock |
|
|
- |
|
|
|
(100.9 |
) |
Issuance costs related to senior unsecured credit facilities |
|
|
(2.3 |
) |
|
|
(4.1 |
) |
Issuance costs related to senior notes |
|
|
(4.6 |
) |
|
- |
|
|
Repayment of finance lease obligation and other debt, net |
|
|
0.2 |
|
|
- |
|
|
Dividends paid |
|
|
(40.9 |
) |
|
|
(41.0 |
) |
Activity under stock plans |
|
|
8.1 |
|
|
|
0.5 |
|
Net cash used for financing activities |
|
|
(94.5 |
) |
|
|
(85.5 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
(1.2 |
) |
|
|
3.4 |
|
Net increase (decrease) in cash and cash equivalents |
|
|
6.8 |
|
|
|
(34.9 |
) |
Cash and cash equivalents at beginning of period |
|
|
71.0 |
|
|
|
125.4 |
|
Cash and cash equivalents at end of period |
|
$ |
77.8 |
|
|
$ |
90.5 |
|
|
|
|
|
|
|
|
||
Supplemental data: |
|
|
|
|
|
|
||
Free Cash Flow (a)+(b) |
|
$ |
102.5 |
|
|
$ |
49.9 |
|
Accrual basis additions to property, plant and equipment |
|
$ |
61.2 |
|
|
$ |
49.9 |
|
8
Hexcel Corporation and Subsidiaries |
|
|||||||||||||||||||||||
Net Sales to Third-Party Customers by Market |
|
|||||||||||||||||||||||
Quarters Ended September 30, 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 |
|
$ |
330.3 |
|
|
$ |
274.2 |
|
|
|
20.5 |
|
|
$ |
(1.3 |
) |
|
$ |
272.9 |
|
|
|
21.0 |
|
Defense, Space & Other |
|
|
166.1 |
|
|
|
182.0 |
|
|
|
(8.7 |
) |
|
|
(0.2 |
) |
|
|
181.8 |
|
|
|
(8.6 |
) |
Consolidated Total |
|
$ |
496.4 |
|
|
$ |
456.2 |
|
|
|
8.8 |
|
|
$ |
(1.5 |
) |
|
$ |
454.7 |
|
|
|
9.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Consolidated % of Net Sales |
|
% |
|
|
% |
|
|
|
|
|
|
|
|
% |
|
|
|
|
||||||
Commercial Aerospace |
|
|
66.5 |
|
|
|
60.1 |
|
|
|
|
|
|
|
|
|
60.0 |
|
|
|
|
|||
Defense, Space & Other |
|
|
33.5 |
|
|
|
39.9 |
|
|
|
|
|
|
|
|
|
40.0 |
|
|
|
|
|||
Consolidated Total |
|
|
100.0 |
|
|
|
100.0 |
|
|
|
|
|
|
|
|
|
100.0 |
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Nine Months Ended September 30, 2026 and 2025 |
Unaudited |
|
|
|
|
|
|
|
||||||||||||||||
(In millions) |
|
As Reported |
|
|
Constant Currency (a) |
|
||||||||||||||||||
|
|
|
|
|
|
|
|
B/(W) |
|
|
FX |
|
|
|
|
|
B/(W) |
|
||||||
Market |
|
2026 |
|
|
2025 |
|
|
% |
|
|
Effect (b) |
|
|
2025 |
|
|
% |
|
||||||
Commercial Aerospace |
|
$ |
1,009.6 |
|
|
$ |
847.4 |
|
|
|
19.1 |
|
|
$ |
(3.3 |
) |
|
$ |
844.1 |
|
|
|
19.6 |
|
Defense, Space & Other |
|
|
517.6 |
|
|
|
555.2 |
|
|
|
(6.8 |
) |
|
|
5.8 |
|
|
|
561.0 |
|
|
|
(7.7 |
) |
Consolidated Total |
|
$ |
1,527.2 |
|
|
$ |
1,402.6 |
|
|
|
8.9 |
|
|
$ |
2.5 |
|
|
$ |
1,405.1 |
|
|
|
8.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Consolidated % of Net Sales |
|
% |
|
|
% |
|
|
|
|
|
|
|
|
% |
|
|
|
|
||||||
Commercial Aerospace |
|
|
66.1 |
|
|
|
60.4 |
|
|
|
|
|
|
|
|
|
60.1 |
|
|
|
|
|||
Defense, Space & Other |
|
|
33.9 |
|
|
|
39.6 |
|
|
|
|
|
|
|
|
|
39.9 |
|
|
|
|
|||
Consolidated Total |
|
|
100.0 |
|
|
|
100.0 |
|
|
|
|
|
|
|
|
|
100.0 |
|
|
|
|
|||
9
Hexcel Corporation and Subsidiaries |
|
|||||||||||||||
Segment Information |
|
Unaudited |
|
|
Table B |
|
||||||||||
(In millions) |
|
Composite Materials |
|
|
Engineered Products |
|
|
Corporate |
|
|
Total |
|
||||
Third Quarter 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net sales to external customers |
|
$ |
390.3 |
|
|
$ |
106.1 |
|
|
$ |
- |
|
|
$ |
496.4 |
|
Intersegment sales |
|
|
26.5 |
|
|
|
1.6 |
|
|
|
(28.1 |
) |
|
|
- |
|
Total sales |
|
|
416.8 |
|
|
|
107.7 |
|
|
|
(28.1 |
) |
|
|
496.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other operating expense |
|
|
(0.4 |
) |
|
|
- |
|
|
|
- |
|
|
|
(0.4 |
) |
Operating income (loss) |
|
|
61.1 |
|
|
|
12.7 |
|
|
|
(19.0 |
) |
|
|
54.8 |
|
% Operating margin |
|
|
14.7 |
% |
|
|
11.8 |
% |
|
|
|
|
|
11.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
26.9 |
|
|
|
3.1 |
|
|
|
- |
|
|
|
30.0 |
|
Stock-based compensation expense |
|
|
1.0 |
|
|
|
0.4 |
|
|
|
2.5 |
|
|
|
3.9 |
|
Accrual based additions to capital expenditures |
|
|
22.3 |
|
|
|
1.7 |
|
|
|
- |
|
|
|
24.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Third Quarter 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net sales to external customers |
|
$ |
363.2 |
|
|
$ |
93.0 |
|
|
$ |
- |
|
|
$ |
456.2 |
|
Intersegment sales |
|
|
18.9 |
|
|
|
1.4 |
|
|
|
(20.3 |
) |
|
|
- |
|
Total sales |
|
|
382.1 |
|
|
|
94.4 |
|
|
|
(20.3 |
) |
|
|
456.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other operating expense |
|
|
2.8 |
|
|
|
1.0 |
|
|
|
5.0 |
|
|
|
8.8 |
|
Operating income (loss) |
|
|
39.9 |
|
|
|
13.6 |
|
|
|
(17.5 |
) |
|
|
36.0 |
|
% Operating margin |
|
|
10.4 |
% |
|
|
14.4 |
% |
|
|
|
|
|
7.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
27.7 |
|
|
|
3.2 |
|
|
|
- |
|
|
|
30.9 |
|
Stock-based compensation expense |
|
|
0.6 |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
1.0 |
|
Accrual based additions to capital expenditures |
|
|
16.7 |
|
|
|
1.4 |
|
|
|
- |
|
|
|
18.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
First Nine Months 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net sales to external customers |
|
$ |
1,210.6 |
|
|
$ |
316.6 |
|
|
$ |
- |
|
|
$ |
1,527.2 |
|
Intersegment sales |
|
|
82.1 |
|
|
|
4.7 |
|
|
|
(86.8 |
) |
|
|
- |
|
Total sales |
|
|
1,292.7 |
|
|
|
321.3 |
|
|
|
(86.8 |
) |
|
|
1,527.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other operating expense |
|
|
6.3 |
|
|
|
- |
|
|
|
4.2 |
|
|
|
10.5 |
|
Operating income (loss) |
|
|
205.0 |
|
|
|
44.3 |
|
|
|
(64.3 |
) |
|
|
185.0 |
|
% Operating margin |
|
|
15.9 |
% |
|
|
13.8 |
% |
|
|
|
|
|
12.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
81.1 |
|
|
|
9.4 |
|
|
|
- |
|
|
|
90.5 |
|
Stock-based compensation expense |
|
|
5.6 |
|
|
|
1.5 |
|
|
|
11.3 |
|
|
|
18.4 |
|
Accrual based additions to capital expenditures |
|
|
55.2 |
|
|
|
6.0 |
|
|
|
- |
|
|
|
61.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
First Nine Months 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net sales to external customers |
|
$ |
1,121.7 |
|
|
$ |
280.9 |
|
|
$ |
- |
|
|
$ |
1,402.6 |
|
Intersegment sales |
|
|
58.4 |
|
|
|
2.1 |
|
|
|
(60.5 |
) |
|
|
- |
|
Total sales |
|
|
1,180.1 |
|
|
|
283.0 |
|
|
|
(60.5 |
) |
|
|
1,402.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other operating expense |
|
|
2.8 |
|
|
|
26.3 |
|
|
|
5.0 |
|
|
|
34.1 |
|
Operating income (loss) |
|
|
152.8 |
|
|
|
5.1 |
|
|
|
(47.7 |
) |
|
|
110.2 |
|
% Operating margin |
|
|
12.9 |
% |
|
|
1.8 |
% |
|
|
|
|
|
7.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
81.8 |
|
|
|
9.7 |
|
|
|
- |
|
|
|
91.5 |
|
Stock-based compensation expense |
|
|
4.5 |
|
|
|
1.2 |
|
|
|
7.7 |
|
|
|
13.4 |
|
Accrual based additions to capital expenditures |
|
|
45.3 |
|
|
|
4.6 |
|
|
|
- |
|
|
|
49.9 |
|
(a) Hexcel does not allocate corporate expenses to the operating segments.
10
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 |
|
|
Nine Months Ended |
|
|
||||||||||
|
|
September 30, |
|
|
September 30, |
|
|
||||||||||
(In millions) |
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
|
||||
GAAP operating income |
|
$ |
54.8 |
|
|
$ |
36.0 |
|
|
$ |
185.0 |
|
|
$ |
110.2 |
|
|
Other operating (income) expense (a) |
|
|
(0.4 |
) |
|
|
8.8 |
|
|
|
10.5 |
|
|
|
34.1 |
|
|
Non-GAAP operating income |
|
$ |
54.4 |
|
|
$ |
44.8 |
|
|
$ |
195.5 |
|
|
$ |
144.3 |
|
|
|
|
Unaudited |
||||||
|
|
Quarters Ended September 30, |
||||||
|
|
2026 |
|
2025 |
||||
(In millions, except per diluted share data) |
|
Net Income |
|
EPS |
|
Net Income |
|
EPS |
GAAP |
|
$38.6 |
|
$0.50 |
|
$20.6 |
|
$0.26 |
Other operating (income) expense, net of tax (a) |
|
(0.4) |
|
- |
|
8.7 |
|
0.11 |
Tax expense (c) |
|
- |
|
- |
|
0.5 |
|
- |
Non-GAAP |
|
$38.2 |
|
$0.50 |
|
$29.8 |
|
$0.37 |
|
|
Unaudited |
||||||
|
|
Nine Months Ended September 30, |
||||||
|
|
2026 |
|
2025 |
||||
(In millions, except per diluted share data) |
|
Net Income |
|
EPS |
|
Net Income |
|
EPS |
GAAP |
|
$125.1 |
|
$1.63 |
|
$63.0 |
|
$0.78 |
Other operating expense, net of tax (a) |
|
8.5 |
|
0.12 |
|
33.8 |
|
0.42 |
Other expense (income), net of tax (b) |
|
0.1 |
|
- |
|
(0.4) |
|
- |
Tax expense (c) |
|
0.2 |
|
- |
|
3.9 |
|
0.04 |
Non-GAAP |
|
$133.9 |
|
$1.75 |
|
$100.4 |
|
$1.24 |
|
|
Unaudited |
|
|||||
|
|
Nine Months Ended September 30 |
|
|||||
(In millions) |
|
2026 |
|
|
2025 |
|
||
Net cash provided by operating activities |
|
$ |
171.1 |
|
|
$ |
105.0 |
|
Less: Capital expenditures |
|
|
(68.6 |
) |
|
|
(55.1 |
) |
Free cash flow (non-GAAP) |
|
$ |
102.5 |
|
|
$ |
49.9 |
|
11
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.
Hexcel Corporation and Subsidiaries |
|
|||||||||||
Schedule of Total Debt, Net of Cash |
Table D |
|
||||||||||
|
|
Unaudited |
|
|||||||||
|
|
September 30, |
|
|
December 31, |
|
|
September 30, |
|
|||
(In millions) |
|
2026 |
|
|
2025 |
|
|
2025 |
|
|||
Senior unsecured credit facility |
|
$ |
240.0 |
|
|
$ |
295.0 |
|
|
$ |
60.0 |
|
3.95% senior notes due 2027 |
|
|
- |
|
|
|
400.0 |
|
|
|
400.0 |
|
5.875% senior notes due 2035 |
|
|
300.0 |
|
|
|
300.0 |
|
|
|
300.0 |
|
4.9% senior notes due 2031 |
|
|
400.0 |
|
|
|
- |
|
|
|
- |
|
Senior notes original issue discounts |
|
|
(0.4 |
) |
|
|
- |
|
|
|
(0.3 |
) |
Senior notes deferred financing costs |
|
|
(6.8 |
) |
|
|
(4.2 |
) |
|
|
(4.1 |
) |
Other debt |
|
|
2.1 |
|
|
|
2.2 |
|
|
|
2.3 |
|
Total long-term debt |
|
|
934.9 |
|
|
|
993.0 |
|
|
|
757.9 |
|
Total Debt |
|
|
934.9 |
|
|
|
993.0 |
|
|
|
757.9 |
|
Less: Cash and cash equivalents |
|
|
(77.8 |
) |
|
|
(71.0 |
) |
|
|
(90.5 |
) |
Total debt, net of cash |
|
$ |
857.1 |
|
|
$ |
922.0 |
|
|
$ |
667.4 |
|
12
EXHIBIT 99.2
Hexcel Corporation and Subsidiaries |
|
|||||||||||
Net Sales by Segment and Market |
|
|||||||||||
For the Quarters Ended September 30, 2026 and 2025, June 30, 2026 and 2025 |
|
|||||||||||
and the Nine-Months Ended September 30, 2026 and 2025 |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|||
|
|
Unaudited |
|
|||||||||
|
|
Commercial |
|
|
Defense, Space |
|
|
|
|
|||
(In millions) |
|
Aerospace |
|
|
& Other |
|
|
Total |
|
|||
|
|
|
|
|
|
|
|
|
|
|||
Third Quarter 2026 |
|
|
|
|
|
|
|
|
|
|||
Composite Materials |
|
$ |
275.1 |
|
|
$ |
115.2 |
|
|
$ |
390.3 |
|
Engineered Products |
|
|
55.2 |
|
|
|
50.9 |
|
|
|
106.1 |
|
Total |
|
$ |
330.3 |
|
|
$ |
166.1 |
|
|
$ |
496.4 |
|
|
|
|
67 |
% |
|
|
33 |
% |
|
|
100 |
% |
Second Quarter 2026 |
|
|
|
|
|
|
|
|
|
|||
Composite Materials |
|
$ |
289.2 |
|
|
$ |
132.3 |
|
|
$ |
421.5 |
|
Engineered Products |
|
|
57.4 |
|
|
|
50.4 |
|
|
|
107.8 |
|
Total |
|
$ |
346.6 |
|
|
$ |
182.7 |
|
|
$ |
529.3 |
|
|
|
|
65 |
% |
|
|
35 |
% |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|||
Third Quarter 2025 |
|
|
|
|
|
|
|
|
|
|||
Composite Materials |
|
$ |
249.9 |
|
|
$ |
143.3 |
|
|
$ |
393.2 |
|
Engineered Products |
|
|
43.2 |
|
|
|
53.5 |
|
|
|
96.7 |
|
Total |
|
$ |
293.1 |
|
|
$ |
196.8 |
|
|
$ |
489.9 |
|
|
|
|
60 |
% |
|
|
40 |
% |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|||
Second Quarter 2025 |
|
|
|
|
|
|
|
|
|
|||
Composite Materials |
|
$ |
249.9 |
|
|
$ |
143.3 |
|
|
$ |
393.2 |
|
Engineered Products |
|
|
43.2 |
|
|
|
53.5 |
|
|
|
96.7 |
|
Total |
|
$ |
293.1 |
|
|
$ |
196.8 |
|
|
$ |
489.9 |
|
|
|
|
60 |
% |
|
|
40 |
% |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|||
Year to date September 30, 2026 |
|
|
|
|
|
|
|
|
|
|||
Composite Materials |
|
$ |
845.5 |
|
|
$ |
365.1 |
|
|
$ |
1,210.6 |
|
Engineered Products |
|
|
164.1 |
|
|
|
152.5 |
|
|
|
316.6 |
|
Total |
|
$ |
1,009.6 |
|
|
$ |
517.6 |
|
|
$ |
1,527.2 |
|
|
|
|
66 |
% |
|
|
34 |
% |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|||
Year to date September 30, 2025 |
|
|
|
|
|
|
|
|
|
|||
Composite Materials |
|
$ |
722.3 |
|
|
$ |
399.4 |
|
|
$ |
1,121.7 |
|
Engineered Products |
|
|
125.1 |
|
|
|
155.8 |
|
|
|
280.9 |
|
Total |
|
$ |
847.4 |
|
|
$ |
555.2 |
|
|
$ |
1,402.6 |
|
|
|
|
60 |
% |
|
|
40 |
% |
|
|
100 |
% |