HEXCEL CORP /DE/
For the period ended Sep 30, 2026. Filed Oct 21, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Oct 21, 2026
HXL$80.40-0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-07-29.
0001193125-26-323941
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-21.
0001193125-26-427907
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 45 previous paragraphs and 44 current paragraphs.
24 unchanged; 20 reworded; 0 added; 1 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Removed paragraphs (1)
Previous report
On March 31, 2026, the Company entered into a new credit agreement (the “Credit Agreement”) to refinance its senior unsecured credit facility (the “Facility”). Under the terms of the Credit Agreement the borrowing capacity remained at $750 million. For further discussion, see Note 5, Debt, to the accompanying condensed consolidated financial statements.
Reworded paragraphs (20)
Previous wording
We are a global leader in advanced lightweight composites technology. We propel the future of flight and transportation through excellence in advanced material lightweighting solutions that create a better world for us all. Our broad and unrivaled product range includes carbon fiber, specialty reinforcements, prepregs and other fiber-reinforced matrix materials, honeycomb, resins, engineered core and composite structures for use in commercial aerospace, defense and space, and industrial applications.
Current wording
Hexcel Corporation is a global leader in advanced lightweight composites technology. We provide innovative, high-performance material solutions that are lighter, stronger, and tougher, shaping a world that moves farther, smarter, and more efficiently. Our broad and unrivaled product range includes carbon fiber, specialty reinforcements, prepregs and other fiber-reinforced matrix materials, honeycomb, resins, engineered core, and composite structures for use in commercial aerospace, defense and space, and industrial applications.
Previous wording
The following table summarizes net sales to third-party customers by segment and end market for the quarters and six months ended June 30, 2026 and 2025:
Current wording
The following table summarizes net sales to third-party customers by segment and end market for the quarters and nine months ended September 30, 2026 and 2025:
Previous wording
Composite Materials: Net sales of $421.5 million in the second quarter of 2026 increased by $28.3 million or 7.2% from the prior year quarter. Commercial Aerospace sales increased $39.3 million or 15.7% in the second quarter of 2026 as compared to the prior year quarter driven by higher sales to Boeing and Airbus. Defense, Space & Other net sales in the second quarter of 2026 decreased $11.0 million or 7.7% primarily driven by the September 30, 2025 divestment of the Austrian-based industrial business. Net sales for the segment in the first half of 2026 of $820.3 million increased 8.1% compared to the same period last year.
Current wording
Composite Materials: Net sales of $390.3 million in the third quarter of 2026 increased by $27.1 million or 7.4% from the prior year quarter. Commercial Aerospace sales increased $44.5 million or 19.3% in the third quarter of 2026 as compared to the same quarter in the prior year. Defense, Space & Other net sales in the third quarter of 2026 decreased $17.4 million or 13.1% versus the prior year period. Net sales of $1,210.6 million for the first nine months of 2026 increased 7.9% compared to the same period last year led by higher Commercial Aerospace sales. The decrease in Defense, Space & Other net sales for both the third quarter and nine months of 2026 reflected the September 30, 2025 divestment of the Austrian-based industrial business and the closure of a non-core industrial business in Leicester, UK earlier this year.
Previous wording
Engineered Products: For the second quarter of 2026, net sales of $107.8 million increased $11.1 million or 11.5% as compared to the prior year quarter driven by higher Commercial Aerospace sales. Net sales of $210.5 million for the first six months of 2026 increased 12.0%compared to the same period last year.
Current wording
Engineered Products: For the third quarter of 2026, net sales of $106.1 million increased $13.1 million or 14.1% as compared to the prior year quarter. Net sales of $316.6 million for the first nine months of 2026 increased 12.7%compared to the same period last year. The increase for both the third quarter and nine months ended September 30, 2026 over the respective periods in the prior year was driven by strong Commercial Aerospace sales.
Previous wording
For the second quarter of 2026, Commercial Aerospace sales of $346.6 million increased by 18.3% as compared to the second quarter of 2025. Sales growth was driven by the Airbus A350 and Boeing 787 widebodies. Narrowbody sales, which include Boeing's 737 MAX and Airbus' A320neo and A220, also increased year over year. Other Commercial Aerospace sales for the second quarter of 2026 increased compared to the prior year quarter due to growth in regional jets. Sales of $679.3 million increased 18.5% for the first six months of 2026 compared to the first six months of 2025 due to growth in all four major platforms which included the Airbus A350 and A320neo and the Boeing 787 and 737 MAX. Other Commercial Aerospace sales increased 9.2% for the first six months of 2026 compared to the same period in 2025 with sales increasing for both regional and business jets.
Current wording
For the third quarter of 2026, Commercial Aerospace sales of $330.3 million increased 20.5% compared to the third quarter of 2025. Both widebodies, including the Airbus A350 and Boeing 787, and narrowbodies, including the Airbus A320 and Boeing MAX, grew year over year. Other Commercial Aerospace sales for the third quarter of 2026 increased 1.3% compared to the third quarter of 2025. Sales of $1,009.6 million increased 19.1% for the first nine months of 2026 compared to the first nine months of 2025, with growth led by the A350, 787 and MAX platforms. Other Commercial Aerospace increased 6.4% for the first nine months of 2026 compared to the same period in 2025 from higher regional jet sales.
Previous wording
Defense, Space & Other sales of $182.7 million decreased 7.2% in the second quarter of 2026 as compared to the second quarter of 2025. Sales of $351.5 million decreased 5.8% for the first six months of 2026 as compared to the first six months of 2025. Both the quarter and six months ended June 30, 2026 decreased over the respective prior year periods which reflected the September 30, 2025 divestment of the Austrian-based industrial business.
Current wording
Defense, Space & Other sales of $166.1 million in the third quarter of 2026 decreased 8.7% as compared to the third quarter of 2025. Sales of $517.6 million decreased 6.8% for the first nine months of 2026 as compared to the first nine months of 2025. The sales decrease for both the quarter and nine months ended September 30, 2026 reflected the September 30, 2025 divestment of the Austrian-based industrial business as well as softness in launchers and rocket motors.
Previous wording
Gross margin for the second quarter of 2026 was 26.1% compared to 22.8% in the second quarter of 2025 and was 26.5% and 22.6% for the first six months of 2026 and 2025, respectively. The higher margins for both the second quarter and six months of 2026 compared to the prior year periods benefited from higher sales leverage.
Current wording
Gross margin for the third quarter of 2026 was 23.3% compared to 21.9% in the third quarter of 2025 and 25.4% and 22.4% for the first nine months of 2026 and 2025, respectively. The higher margins for both the third quarter and nine months of 2026 compared to the prior year periods was primarily due to higher sales leverage.
Previous wording
Selling, general and administrative expenses were higher for both the second quarter and six months ended June 30, 2026 as compared to the prior year periods primarily due to higher employee-related costs. Research and development expenses for the second quarter and first six months of 2026 increased compared to the same periods of 2025 primarily due to higher employee-related expenses and material and supplies costs.
Current wording
Selling, general and administrative expenses were higher for both the third quarter and the first nine months of 2026 as compared to the respective periods in 2025. The increase in selling, general and administrative expenses compared to the prior year periods was primarily driven by higher employee-related costs. Research and development expenses for the third quarter and first nine months of 2026 were higher than the comparable periods in 2025, primarily due to higher employee-related expenses and production qualification material costs.
Previous wording
Other operating expense for the second quarter of 2026 reflected restructuring charges related to the shutdown of industrial-related manufacturing at the Leicester, UK facility. For the six months ended June 30,2026, other operating expense included restructuring charges related to the Leicester, UK facility and non-recurring professional fees. Other operating expense for the second quarter and first six months of 2025 included restructuring charges related to the closure of the Welkenraedt, Belgium facility. The six months ended June 30, 2025 also included a loss for the divestiture of the Hartford, Connecticut business.
Current wording
Other operating income for the quarter ended September 30, 2026 reflected an adjustment to restructuring expenses related to the shutdown of industrial-oriented manufacturing at the Leicester, UK facility. For the third quarter of 2025, other operating expenses included a loss related to the divestiture of our Neumarkt, Austria plant, a non-income tax charge related to the net value of a foreign entity and restructuring charges primarily related to the previously announced closure of our facility in Belgium. Other operating expenses for the nine months ended September 30, 2026, included restructuring expenses related to the shutdown of industrial-oriented manufacturing at the Leicester, UK facility and non-recurring professional fees. The nine months ended September 30, 2025 also included restructuring charges related to the closure of the facility in Belgium and a loss for the divestiture of the Hartford, Connecticut business.
Previous wording
Operating income for the second quarters of 2026 and 2025 was $72.6 million and $30.0 million, respectively. Operating income for the first six months of 2026 was $130.2 million compared to $74.2 million for the same period last year. Overall, operating income for both the second quarter and six months of 2026 was favorably impacted by the higher sales and gross margins.
Current wording
Operating income for the third quarters of 2026 and 2025 was $54.8 million and $36.0 million, respectively. Operating income for the first nine months of 2026 was $185.0 million compared to $110.2 million for the same period last year. Overall, operating income for both the third quarter and nine months of 2026 was favorably impacted by higher sales and improved margins as compared to prior year periods.
Previous wording
Interest expense for both the quarter and six months ended June 30, 2026 was higher compared to the prior year periods due to higher average borrowings for the first six months of 2026.
Current wording
Interest expense for both the quarter and nine months ended September 30, 2026 was higher compared to the respective prior year periods as a result of higher average borrowings for the first nine months of 2026.
Previous wording
Tax expense for the quarter and six months ended June 30, 2026 was $11.4 million and $19.7 million, respectively, as compared to $8.3 million and $15.4 million for the comparative periods in 2025, respectively. The quarter and six months ended June 30, 2025 included a tax charge of approximately $3.4 million for a valuation allowance related to the closure of our Welkenraedt, Belgium facility.
Current wording
Tax expense for the quarter ended September 30, 2026 was $4.1 million as compared to $6.2 million for the quarter ended September 30, 2025. Tax expense for the nine months ended September 30, 2026 was $23.8 million compared to $21.6 million for the comparative period in 2025. The nine months ended September 30, 2025 included discrete tax charges for valuation allowance related to the closure of our facility in Belgium.
Previous wording
Liquidity: Cash on hand at June 30, 2026 was $62.2 million as compared to $71.0 million at December 31, 2025. As of June 30, 2026, total debt was $959.4 million as compared to $993.0 million at December 31, 2025
Current wording
Liquidity: Cash on hand at September 30, 2026 was $77.8 million as compared to $71.0 million at December 31, 2025. As of September 30, 2026, total debt was $934.9 million as compared to $993.0 million at December 31, 2025.
Previous wording
Under the Facility, total borrowings at June 30, 2026 were $265.0 million, which approximated fair value. The Credit Agreement permits us to issue letters of credit up to an aggregate amount of $50.0 million. As of June 30, 2026, there were no issued letters of credit under the Facility, resulting in undrawn availability under the Facility of $485.0 million. The weighted average interest rate for the Facility was 4.77% for the three months ended June 30, 2026.
Current wording
Under the Facility, total borrowings at September 30, 2026 were $240.0 million, which approximated fair value. The Credit Agreement permits us to issue letters of credit up to an aggregate amount of $50.0 million. As of September 30, 2026, there were no issued letters of credit under the Facility, resulting in undrawn availability under the Facility of $510.0 million. The weighted average interest rate for the Facility was 4.79% for the six months from entering into the Credit Agreement for the Facility in March 2026 through September 30, 2026.
Previous wording
Short-term liquidity requirements consist primarily of normal recurring operating expenses and working capital needs, capital expenditures, dividend payments, debt obligations and debt service requirements. We expect to meet our short-term liquidity requirements through net cash from operating activities, cash on hand and the Facility. We do not have any significant required debt repayments until March 2031 when the Facility matures. For further information regarding debt, including the Facility, see Note 5, Debt, to the accompanying condensed consolidated financial statements of this Form 10-Q.
Current wording
Short-term liquidity requirements consist primarily of normal recurring operating expenses and working capital needs, capital expenditures, dividend payments, debt obligations and debt service requirements. We expect to meet our short-term liquidity requirements (including capital expenditures) through net cash from operating activities, cash on hand and the Facility. As of September 30, 2026, long-term liquidity requirements consisted primarily of obligations under our long-term debt obligations. We do not have any significant required debt repayments until March 2031 when the Facility matures. For further information regarding debt, including our Facility, see Note 5, Debt, to the accompanying condensed consolidated financial statements of this Form 10-Q.
Previous wording
There were no repurchases of shares during the second quarter of 2026. The remaining authorization under the 2025 Share Repurchase Plan at June 30, 2026 was $380.6 million. On July 29, 2026, our Board of Directors declared a quarterly dividend of $0.18 per share payable to stockholders of record as of August 10, 2026, with a payment date of August 17, 2026.
Current wording
There were no repurchases of shares during the third quarter of 2026. The remaining authorization under the 2025 Share Repurchase Plan at September 30, 2026 was $380.6 million. On October 21, 2026, the Board approved an increase to the share repurchase authorization under the 2025 Share Repurchase Plan from the remaining $380.6 million to $750 million and additionally, declared a quarterly dividend of $0.18 per share payable to stockholders of record as of November 2, 2026, with a payment date of November 9, 2026.
Previous wording
Operating Activities: Net cash provided by operating activities for the first six months of 2026 was $96.7 million compared to cash use of $5.2 million for the same period last year. The improvement compared to the prior year period was due to the higher net income and lower working capital cash use during the first six months of 2026. Working capital was a $72.2 million use of cash for the first six months of 2026 as compared to a use of $124.5 million for the same period in 2025. The 2026 decrease in use of working capital as compared to 2025 was driven by higher payables and accruals, partially offset by higher accounts receivable and inventory balances.
Current wording
Operating Activities: Net cash provided by operating activities for the first nine months of 2026 was $171.1 million compared to $105.0 million for the same period last year. Working capital was a cash use of $78.1 million for the first nine months of 2026 as compared to a use of $63.8 million in the same period in 2025 with the variance primarily attributable to higher accounts receivable and inventory balances, partially offset by higher payables and accruals.
Previous wording
Investing Activities: Net cash used for investing activities was $44.9 million and $42.5 million in the first six months of 2026 and 2025, respectively. Capital expenditures for the first six months of 2026 were $44.9 million as compared to $41.4 million for the same period last year. Payments related to the divestiture of the Hartford facility were $1.1 million in the first six months of 2025.
Current wording
Investing Activities: Net cash used for investing activities was $68.6 million and $57.8 million in the first nine months of 2026 and 2025, respectively. Capital expenditures for the first nine months of 2026 were $68.6 million as compared to $55.1 million for the same period last year. Payments related to the divestiture of the Neumarkt and Hartford facilities were $2.7 million in the first nine months of 2025.
Previous wording
Financing Activities: Net cash used for financing activities was $59.7 million for first six months of 2026 compared to net cash used of $4.1 million in the same period in 2025. Borrowings under the Facilities during the first six months of 2026 were $595.0 million compared to $160.0 million in the prior year period. Repayments during the first six months of 2026 were $625 million compared to $30.0 million in the prior year period. During the six months ended June 30, 2025, repurchases of common stock totaled $100.9 million.
Current wording
Financing Activities: Net cash used for financing activities was $94.5 million for first nine months of 2026 compared to a net cash use of $85.5 million in the same period in 2025. Borrowings under the credit facility during the first nine months of 2026 and 2025 were $595.0 million and $160.0 million, respectively. Repayments were $650.0 million during the first nine months of 2026 compared to $100.0 million in the prior year period. Quarterly dividend payments to shareholders were $40.9 million during the first nine months of 2026 compared to $41.0 million in the prior year period. During the nine months ended September 30, 2025, repurchases of common stock totaled $100.9 million.
Previous wording
Financial Obligations and Commitments: The next significant scheduled debt maturity will not occur until 2031, when both the Facility and the 4.9% Senior Unsecured Notes mature. Certain sales and administrative offices, data processing equipment, vehicles and manufacturing equipment, and facilities are leased under operating leases.
Current wording
Financial Obligations and Commitments: The next significant scheduled debt maturity will not occur until 2031, when both the Facility and the 4.9% Senior Unsecured Notes mature. Certain sales and administrative offices, data processing equipment and manufacturing facilities are leased under operating leases.