Hexcel is moving higher after reporting first-quarter 2026 earnings that highlighted faster commercial aerospace demand and substantial operating leverage. The company posted net sales of $501.5 million (about $502 million), up 9.9% year over year, and adjusted diluted EPS of $0.59 versus $0.37 in the prior-year quarter, alongside GAAP EPS of $0.49 versus $0.35.

Profitability improved meaningfully as the company scaled into higher volumes. Gross margin rose to 26.9% from 22.4% a year earlier, and adjusted operating income increased to $67.5 million (13.5% of sales) from $45.3 million (9.9% of sales), reflecting improved absorption and sales leverage.

Commercial Aerospace—roughly two-thirds of year-to-date sales—grew strongly, with sales of $332.7 million up 18.8% year over year. Hexcel cited higher sales across major programs including Airbus A350 and A320 and Boeing 787 and 737 MAX, reinforcing investor confidence that composite content demand is tracking upward with build rates.

Hexcel kept its full-year 2026 outlook unchanged (sales of $2.0 billion to $2.1 billion and adjusted EPS of $2.10 to $2.30). The company also refinanced its $750 million revolving credit facility and extended maturity to 2031, and declared a $0.18 quarterly dividend payable May 11, 2026.