Hexcel Q2 sales rise on commercial aerospace demand 

Overview

• U.S. composites maker's Q2 sales rose 8%, a slight beat versus analyst expectations

• Adjusted EPS for Q2 was $0.66, beating analyst expectations

• Company raised 2026 sales and adjusted EPS guidance on strong commercial aerospace demand

Outlook

• Hexcel raises FY 2026 sales guidance to $2.025 bln-$2.125 bln from $2.0 bln-$2.1 bln

• Company increases FY 2026 adjusted EPS guidance to $2.30-$2.40 from $2.10-$2.30

• Hexcel maintains FY 2026 free cash flow guidance above $195 mln and capex below $100 mln

Result Drivers

• COMMERCIAL AEROSPACE DEMAND - Co said rising build rates at commercial aerospace customers, especially Airbus A350 and Boeing 787, drove strong sales growth

• OPERATING LEVERAGE - Higher sales volumes generated operating leverage, contributing to improved gross margin and earnings

• DEFENSE, SPACE OTHER DECLINE - Sales in defense, space and other markets fell due to the divestment of the Austrian-based industrial business

Company press release: ID:nBw13mxfza

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "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 Corp is $97.00, about 11.8% below its July 28 closing price of $110.03

• The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 33 three months ago

Reuters Recommended Reads

• July 29 - Airbus upbeat on deliveries after strong Q2, softens tone in engine dispute

• July 28 - Boeing misses Q2 core loss per share estimates as VC-25B charges weigh

• July 28 - France's MEMSCAP Q2 revenue rises on aerospace and medical strength

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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.)