Hexcel | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 529.3 M

Revenue: As of FY2026 Q2, the actual value is USD 529.3 M, beating the estimate of USD 528.81 M.

EPS: As of FY2026 Q2, the actual value is USD 0.64, beating the estimate of USD 0.5802.

EBIT: As of FY2026 Q2, the actual value is USD 72.7 M.

Q2 2026 Financial Performance

Hexcel Corporation (赫氏) reported net sales of $529.3 million for Q2 2026, an 8.0% increase over $489.9 million in Q2 2025, and an 8.1% increase in constant currency. Operating income rose by 142.0% to $72.6 million from $30.0 million in Q2 2025. Adjusted operating income was $73.6 million, up 35.8% from $54.2 million in Q2 2025, resulting in an adjusted operating margin of 13.9% of sales, compared to 11.1% in Q2 2025. Net income increased by 265.2% to $49.3 million from $13.5 million in Q2 2025, while adjusted net income was $50.2 million, up 24.3% from $40.4 million. The gross margin improved to 26.1% from 22.8% in Q2 2025. Selling, general and administrative expenses were 8.9% of sales in Q2 2026 (8.8% in Q2 2025), and R&D expenses were 3.3% of sales (2.9% in Q2 2025). Other operating expense was $1.0 million, significantly lower than $24.2 million in Q2 2025, which included restructuring charges.

Q2 2026 Segment Revenue

Total net sales for Q2 2026 were $529.3 million, an 8.04% increase from $489.9 million in Q2 2025. Commercial Aerospace sales increased by 18.3% to $346.6 million (18.8% in constant currency) compared to Q2 2025, driven by Airbus A350 and Boeing 787 widebodies, and narrowbody sales. Defense, Space & Other sales decreased by 7.2% to $182.7 million (7.7% in constant currency) compared to Q2 2025, primarily due to the divestment of the Austrian-based industrial business.

Within the Composite Materials segment, net sales for Q2 2026 were $421.5 million, up 7.20% from $393.2 million in Q2 2025. Commercial Aerospace sales for this segment were $289.2 million in Q2 2026, compared to $249.9 million in Q2 2025, while Defense, Space & Other sales were $132.3 million, down from $143.3 million. The Engineered Products segment reported net sales of $107.8 million, an 11.48% increase from $96.7 million in Q2 2025. Commercial Aerospace sales for this segment were $57.4 million in Q2 2026, compared to $43.2 million in Q2 2025, and Defense, Space & Other sales were $50.4 million, down from $53.5 million.

Q2 2026 Segment Operating Income

Operating income for the Composite Materials segment was $74.2 million, with an operating margin of 16.5%. The Engineered Products segment recorded an operating income of $16.4 million, with an operating margin of 15.0%.

First Six Months 2026 Financial Performance

For the first six months of 2026, Hexcel Corporation (赫氏) reported net sales of $1,030.8 million, an 8.9% increase over $946.4 million in the first six months of 2025, and an 8.5% increase in constant currency. Operating income grew by 75.5% to $130.2 million from $74.2 million in the first six months of 2025. Adjusted operating income was $141.1 million, up 41.8% from $99.5 million, leading to an adjusted operating margin of 13.7% of sales, compared to 10.5% in the prior year period. Net income increased by 104.0% to $86.5 million from $42.4 million, and adjusted net income was $95.7 million, up 35.7% from $70.5 million. Gross margin improved to 26.5% from 22.6% in the prior year period. Selling, general and administrative expenses were 9.4% of sales (YTD 2026) compared to 9.1% (YTD 2025), and R&D expenses were 3.4% of sales (YTD 2026) compared to 3.0% (YTD 2025). Other operating expense was $10.9 million, lower than $25.3 million in the first six months of 2025.

First Six Months 2026 Cash Flow

Net cash provided by operating activities was $96.7 million, a significant improvement from net cash used of -$5.2 million in the first six months of 2025. Capital expenditures on a cash basis were $44.9 million, compared to $41.4 million in the first six months of 2025. Free cash flow was $51.8 million, a substantial increase from -$46.6 million in the first six months of 2025. Working capital was a cash use of $72.2 million, compared to a use of $124.5 million in the comparable period of 2025.

First Six Months 2026 Segment Revenue

Total net sales for the six months ended June 30, 2026, were $1,030.8 million, an 8.92% increase from $946.4 million for the same period in 2025. Commercial Aerospace sales increased by 18.5% to $679.3 million (18.9% in constant currency) compared to the first six months of 2025, with growth across major platforms. Defense, Space & Other sales decreased by 5.8% to $351.5 million (7.3% in constant currency) compared to the first six months of 2025, due to the divestment of the Austrian-based industrial business.

Within the Composite Materials segment, net sales for the six months ended June 30, 2026, were $820.3 million, an 8.15% increase from $758.5 million for the same period in 2025. Commercial Aerospace sales for this segment were $570.4 million, compared to $491.7 million, while Defense, Space & Other sales were $249.9 million, down from $266.8 million. The Engineered Products segment reported net sales of $210.5 million, a 12.03% increase from $187.9 million for the same period in 2025. Commercial Aerospace sales for this segment were $108.9 million, compared to $81.5 million, and Defense, Space & Other sales were $101.6 million, down from $106.4 million.

First Six Months 2026 Segment Operating Income

Operating income for the Composite Materials segment was $143.9 million, with an operating margin of 16.4%. The Engineered Products segment recorded an operating income of $31.6 million, with an operating margin of 14.8%.

Other Financial Information

During Q2 2026, Hexcel Corporation (赫氏) issued $400 million of 4.9% unsecured senior notes due May 2031, using the proceeds to redeem $400 million of 3.95% unsecured senior notes due February 2027. No shares were repurchased in Q2 2026, with approximately $380.6 million remaining authorization as of June 30, 2026. A quarterly dividend of $0.18 per share was declared.

2026 Guidance

Hexcel Corporation (赫氏) increased its full-year 2026 sales guidance to a range of $2.025 billion to $2.125 billion, up from the previous $2.0 billion to $2.1 billion. Adjusted diluted earnings per share guidance was also raised to $2.30 to $2.40, from $2.10 to $2.30. Free cash flow is projected to be greater than $195 million, and capital expenditures are expected to be less than $100 million, both unchanged from prior guidance.