Hexcel Corporation reported third quarter 2026 results with sales of $496.4 million, missing consensus estimates, though adjusted EPS of $0.50 slightly exceeded expectations. Strong demand in the commercial aerospace segment, which saw double-digit growth across both widebody and narrowbody platforms, helped drive margin expansion despite seasonal headwinds and costs associated with accelerated hiring.

Key Highlights

  • Commercial Aerospace sales grew 20.5% to $330.3 million, led by production ramps for the Airbus A350, Boeing 787, and Boeing 737 MAX programs.
  • Defense, Space & Other sales declined 8.7% to $166.1 million, primarily due to the divestment of a non-core industrial business and temporary softness in F-35 and rocket motor programs.
  • Gross margins expanded to 23.3% from 21.9% in the prior-year period as higher sales volumes improved manufacturing operating leverage.
  • The Board of Directors increased the share repurchase authorization to $750 million, up from the remaining balance of $380.6 million.