A month has gone by since the last earnings report for Hexcel (HXL Quick QuoteHXL - Free Report) . Shares have lost about 7.2% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Hexcel due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.

Hexcel Q1 Earnings Surpass Estimates, Revenues Improve Y/Y

Hexcel Corporation reported first-quarter 2026 adjusted earnings of 59 cents per share, which improved 59.5% from the year-ago quarter’s figure of 37 cents. The bottom line also surpassed the Zacks Consensus Estimate of 42 cents by 40.5%.

The company reported GAAP earnings of 49 cents per share, which surpassed the year-ago quarter’s earnings of 35 cents.

HXL’s Total Sales

The company’s net sales totaled $501.5 million, which beat the Zacks Consensus Estimate of $487 million by 3%. The top line also witnessed an improvement of 9.9% from the year-ago quarter’s figure of $456.5 million.

Hexcel’s Operational Update

Hexcel's gross margin was 26.9%, which increased 450 basis points from the prior-year quarter. The improvement can be attributed to favorable cost leverage driven by higher sales.

Selling, general and administrative expenses increased 14.1% year over year to $49.4 million.

Meanwhile, research and technology expenses rose 29% year over year to $17.8 million.

HXL’s adjusted operating income was $57.6 million compared with $44.2 million in the year-ago period.

Contribution From Different Markets

Commercial Aerospace: Net sales increased 18.8% year over year to $332.7 million, driven by sales growth from Airbus A350 and A320, as well as Boeing 787 and 737 programs. This market contributed 66% to total revenues in the quarter.

Defense, Space & Other: Net sales decreased 4.3% year over year to $168.8 million, due to the divestment of the Austrian-based industrial business and lower sales of launchers and rocket motors. This market contributed 34% to total revenues in the quarter.

HXL’s Financial Details

As of March 31, 2026, Hexcel’s cash and cash equivalents were $54.1 million compared with $71 million as of Dec. 31, 2025.

The company’s long-term debt totaled $998.1 million as of March 31, 2026, up from $993 million as of 2025-end.

HXL’s cash flow from operating activities was $19 million, in contrast to a cash outflow of $28.5 million in the prior year.

Hexcel’s 2026 Guidance

Hexcel expects to generate sales in the range of $2.00-$2.10 billion for 2026. The Zacks Consensus Estimate is pegged at $2.07 billion, which lies above the midpoint of the company’s sales guidance.

HXL also expects its adjusted earnings per share to be in the range of $2.10-$2.30 for 2026. The Zacks Consensus Estimate is currently pegged at $2.22 per share, which is above the midpoint of the company’s guided range.

Hexcel expects to generate a free cash flow of more than $195 million in 2026. It also expects capital expenditure to be less than $100 million.

 

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in estimates review.

VGM Scores

Currently, Hexcel has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Following the exact same course, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Hexcel has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.