Excel Corporation Q3 2026 Earnings Recap

Hexcel’s shares fell 9.5% after earnings. While the company reaffirmed full-year guidance, investors may have focused on near-term margin pressure from restarting production lines and hiring, alongside softness across several defense and space programs.

Key Takeaways

• Third-quarter sales were $496 million, up 9% year over year; adjusted diluted EPS was $0.50, versus $0.37 a year earlier.
• Adjusted operating margin was 11.0%, up from 9.8% a year earlier, but management said production-line restarts and hiring are pressuring margins in the short term.
• Commercial aerospace sales rose 21% to $330 million, with higher volumes across major Airbus and Boeing platforms.
• Defense and space sales were $166 million. Management cited temporary softness in U.S. space launchers and rocket motors, timing-related F-35 weakness, and a slower Rafale quarter; the year-over-year decline also reflected industrial business exits.
• Hexcel reaffirmed 2026 guidance: revenue of $2.025 billion–$2.150 billion, diluted EPS of $2.30–$2.40, and free cash flow above $195 million.