The significant revenue and EPS miss vs consensus, combined with defense/space weakness and sequential margin compression, suggests Q4 needs to be exceptionally strong to hit the high end of guidance. Monitor the Q4 2026 earnings call for commercial aerospace build rate updates and any guidance revision.
Price Chart
Executive Summary
Hexcel reported Q3 2026 revenue of $496.4M (+8.8% YoY) and GAAP diluted EPS of $0.50, missing consensus estimates of $0.66 EPS and $561.1M revenue. Commercial aerospace sales grew 20.5% YoY, but defense/space sales declined 8.7% and gross margin compressed sequentially to 23.3%. Full-year 2026 guidance was reaffirmed, and the board increased the share repurchase authorization to $750M.
Key Financial Metrics
Key Facts
- Q3 2026 revenue $496.4M vs consensus $561.1M (-11.5% miss)
- GAAP diluted EPS $0.50 vs consensus $0.66 (-24.2% miss)
- Adjusted diluted EPS $0.50 vs $0.37 YoY (+35.1%)
- Commercial aerospace sales +20.5% YoY to $330.3M
- Defense, Space & Other sales -8.7% YoY to $166.1M
- Gross margin 23.3% vs 21.9% YoY, down from 26.9% in Q1 2026
- 2026 guidance unchanged: sales $2.025B-$2.125B, adj. EPS $2.30-$2.40
- Share repurchase authorization increased to $750M from $380.6M
- Free cash flow YTD $102.5M vs $49.9M YoY
- Net debt $857.1M vs $922.0M at year-end 2025
Financial Impact
Revenue miss of ~$64.7M vs consensus; EPS miss of $0.16 vs consensus
Risk Factors
- Defense/space sales declining 8.7% YoY with temporary softness in F-35 and fighter programs
- Sequential gross margin compression from 26.9% in Q1 to 23.3% in Q3
- Revenue miss of 11.5% vs consensus could trigger negative EPS revisions
- Seasonal summer sales seasonality may persist into Q4
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-427875 |
| Document: hxl-ex99_2.htm | 0001193125-26-427875 |
| Document: hxl-20261021.htm | 0001193125-26-427875 |
| Document: 0001193125-26-427875-index-headers.html | 0001193125-26-427875 |
| Document: 0001193125-26-427875-index.html | 0001193125-26-427875 |
| Document: 0001193125-26-427875.txt | 0001193125-26-427875 |
| 8-K Data (Synthetic) | 0001193125-26-427875 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 5d ago | 8-K | $81.27 $79.62 | ▲ +2.03% | ▲ +1.51% | $77.74 (+4.35%) |
May 28, 2026 21w ago | 8-K | $89.79 $88.61 | ▼ −1.31% | ▼ −1.57% | $77.74 (−13.43%) |
May 15, 2026 23w ago | 8-K | $88.65 $89.28 | ▲ +0.71% | ▲ +0.77% | $77.74 (−12.31%) |
Apr 27, 2026 26w ago | 424B5 | $92.12 $93.06 | ▲ +1.02% | ▲ +1.51% | $77.74 (−15.62%) |
Apr 22, 2026 26w ago | 8-K | $91.14 $89.39 | ▼ −1.92% | ▼ −2.71% | $77.74 (−14.71%) |
Apr 22, 2026 26w ago | DEFA14A | $91.14 $89.39 | ▼ −1.92% | ▼ −2.71% | $77.74 (−14.71%) |
Apr 1, 2026 29w ago | DEFA14A | $82.43 $79.21 | ▼ −3.90% | ▼ −3.98% | $77.74 (−5.69%) |
US Market Status
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