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
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
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
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
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