Hexcel meets Q3 profit view; keeps FY forecast
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: ID:nBw7pNPVwa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Miss | $496.40 mln | $502.76 mln (15 Analysts) |
Q3 Adjusted EPS | Meet | $0.50 | $0.50 (16 Analysts) |
Q3 EPS |
| $0.50 |
|
Q3 Adjusted operating income | Miss | $54.40 mln | $61.007 mln (14 Analysts) |
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.)