Hexcel meets Q3 profit view; keeps FY forecast

Overview

• U.S. composites maker's Q3 sales rose 8.8% yr/yr but missed analyst expectations

• Adjusted EPS for Q3 met analyst expectations

• Company increased share repurchase authorization to $750 mln

Outlook

• Hexcel maintains 2026 sales guidance of $2.025 bln to $2.125 bln

• Company expects 2026 adjusted diluted EPS of $2.30 to $2.40

• Hexcel sees 2026 free cash flow above $195 mln and capital expenditures below $100 mln

Result Drivers

• COMMERCIAL AEROSPACE GROWTH - Sales rose sharply in commercial aerospace, with gains across both widebody and narrowbody programs

• COST HEADWINDS - Company faced higher costs from accelerated hiring and training to meet anticipated demand, per CEO Tom Gentile

• DEFENSE, SPACE & OTHER DECLINE - Segment sales fell due to divestitures, site closures, and temporary softness in certain defense and space programs

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 12 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy."

• Wall Street's median 12-month price target for Hexcel Corporation is $104.50, about 14.4% above its October 20 closing price of $91.32

• The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 37 three months ago

Reuters Recommended Reads

• Oct 20 - Aerospace and military contractors raise 2026 profit forecasts

• Oct 20 - GE Aerospace raises profit outlook as engine repairs defy fuel shock, Boeing costs loom

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)