Hexcel is higher today after releasing first-quarter 2026 results showing faster growth and stronger profitability than a year ago. The company posted Q1 2026 GAAP diluted EPS of $0.49 and adjusted diluted EPS of $0.59, alongside sales of $501.5 million ($502 million), representing a 9.9% year-over-year increase, while reaffirming its full-year 2026 outlook.

Profitability improved sharply: gross margin rose to 26.9% from 22.4% in the prior-year quarter, and adjusted operating income climbed to $67.5 million (13.5% margin) from $45.3 million (9.9% margin). Hexcel also reported free cash flow of negative $6.2 million versus negative $54.6 million a year earlier, reflecting better operating performance and working-capital dynamics.

Commercial Aerospace, which represented 66% of year-to-date sales, increased 18.8% year over year to $332.7 million. Sales rose across each of the four major programs cited: Airbus A350 and A320, and Boeing 787 and 737 MAX—supporting the market narrative that higher build rates and normalized channel inventory are lifting volumes and expanding operating leverage.

Hexcel left 2026 guidance unchanged, maintaining sales of $2.0 billion to $2.1 billion and adjusted diluted EPS of $2.10 to $2.30, along with free cash flow expected to exceed $195 million. The company also refinanced its $750 million revolving credit facility and extended maturity to 2031, and declared a quarterly dividend of $0.18 per share (record date May 4, 2026; payable May 11, 2026).