Hexcel shares fall 10% as third-quarter revenue misses forecasts

what happened

According to Seeking Alpha, shares of aerospace composites maker Hexcel slid about 10% in extended trading on Wednesday. Third-quarter revenue rose 8.8% to $496.4 million from $456.2 million a year earlier, but came in $5.73 million short of the analyst consensus of $502.1 million. Adjusted earnings per share were $0.50, up from $0.37 and in line with Wall Street expectations.

Commercial aerospace revenue climbed 20.5% to $330.3 million, driven by demand for widebody jets such as the Airbus A350 and Boeing 787 and narrowbody models including the A320 family and the 737 MAX. Defense, space and other revenue fell 8.7% to $166.1 million, reflecting temporary softness in the F-35 program and launcher and rocket motor applications. Hexcel kept its 2026 revenue forecast at $2.025 billion to $2.125 billion, against a consensus of $2.09 billion, and its adjusted EPS outlook at $2.30 to $2.40.

why it matters

Hexcel shares had gained 22% year to date through Wednesday's close, ahead of the S&P 500's 13% rise, so the reaction reflects disappointment with the revenue miss and unchanged guidance. Investors are weighing strong growth in commercial aircraft output against higher hiring and training costs and a weaker defense and space business.

market impact

Aerospace suppliers and jet makers: the revenue miss and unchanged guidance weigh on Hexcel shares

tags

instruments