Hexcel Q2 Earnings Surpass Estimates, Revenues Improve Y/Y

HXL’s Total Sales

The company’s net sales totaled $529.3 million, which beat the Zacks Consensus Estimate of $522 million by 1.5%. The top line also witnessed an improvement of 8% from the year-ago quarter’s figure of $489.9 million.

Hexcel’s Operational Update

Hexcel's gross margin was 26.1%, which increased 330 basis points from the prior-year quarter. The improvement can be attributed to favorable cost leverage driven by higher sales.

Selling, general and administrative expenses increased 9.8% year over year to $47.2 million.

Meanwhile, research and development expenses rose 21% year over year to $17.3 million.

HXL’s adjusted operating income was $72.6 million compared with $30 million in the year-ago period.

Contribution From Different Markets

Commercial Aerospace: Net sales increased 18.3% year over year to $346.6 million, driven by sales growth from Airbus A350, as well as Boeing 787 programs. This market contributed 66% to total revenues in the first half of 2026.

Defense, Space & Other: Net sales decreased 7.2% year over year to $182.7 million due to the divestment of the Austrian-based industrial business. This market contributed 34% to total revenues in the first half of 2026.

HXL’s Financial Details

As of June 30, 2026, Hexcel’s cash and cash equivalents were $62.2 million compared with $71 million as of Dec. 31, 2025.

The company’s long-term debt totaled $959.4 million as of June 30, 2026, down from $993 million as of 2025-end.

HXL’s cash flow from operating activities was $96.7 million against a cash outflow of $5.2 million in the prior year.

Hexcel’s 2026 Guidance

Hexcel expects to generate sales in the range of $2.03-$2.13 billion for 2026. The Zacks Consensus Estimate is pegged at $2.08 billion, which lies above the midpoint of the company’s sales guidance.

HXL also expects its adjusted earnings per share to be in the range of $2.30-$2.40 for 2026. The Zacks Consensus Estimate is currently pegged at $2.26 per share, which is below the company’s guided range.

Hexcel expects to generate a free cash flow of more than $195 million in 2026. It also expects capital expenditure to be less than $100 million.

HXL’s Zacks Rank

Hexcel currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

Teledyne Technologies Inc. TDY reported second-quarter 2026 adjusted earnings of $6.28 per share, which surpassed the Zacks Consensus Estimate of $5.78 by 8.7%. The bottom line also improved 20.8% from $5.20 recorded in the year-ago quarter.

Total sales were $1.66 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 5.9%. The top line also jumped 9.8% from $1.51 billion reported in the year-ago quarter.

Northrop Grumman Corporation NOC reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.

NOC’s total sales of $10.88 billion in the second quarter beat the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.

AAR Corp. AIR reported fourth-quarter fiscal 2026 adjusted earnings of $1.53 per share, which topped the Zacks Consensus Estimate of $1.41 by 8.5%. The bottom line also improved 31.9% from the year-ago quarter’s level of $1.16.

In the fourth quarter, AAR generated net sales of $928 million. The reported figure beat the Zacks Consensus Estimate of $892 million by 4%. The figure also increased 23% from $754.5 million recorded in the year-ago quarter.

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