Hexcel Corporation Q1 Net Income Jumps 29% to $37.2M on Revenue Gains

Hexcel Corporation (NYSE: HXL), a manufacturer of advanced composite materials for aerospace and industrial markets, reported net income of $37.2 million for the three months ending March 31, 2026, a 29% increase from $28.9 million in the same period of 2025. Read more earnings reports.

Revenue for the quarter rose 9.9% to $501.5 million from $456.5 million a year earlier. Operating income reached $57.6 million, up 30% from $44.2 million in the first quarter of fiscal 2025.

Gross profit expanded to $134.7 million from $102.4 million, driven by higher sales volume and improved margins. Gross margin climbed to 26.9% from 22.4% in the prior-year quarter.

Cost Structure and Profitability

Cost of goods sold increased to $366.8 million from $354.1 million, while selling, general and administrative expenses rose to $49.4 million from $43.3 million. Research and development spending climbed to $17.8 million from $13.8 million.

Interest expense jumped to $11.8 million from $7.8 million in the year-ago period. Income tax expense totaled $8.3 million compared to $7.1 million.

Cash Flow and Balance Sheet

Cash from operations turned positive at $19.0 million, a sharp reversal from negative $28.5 million in the first quarter of fiscal 2025. Cash used in investing activities totaled $25.2 million, while cash used in financing activities amounted to $10.3 million.

The company ended the quarter with cash and cash equivalents of $54.1 million, down from $71.0 million at the end of December 2025. Total assets stood at $2.72 billion compared to $2.70 billion three months earlier.

Long-term debt increased to $998.1 million from $993.0 million at year-end 2025. Total stockholders' equity rose to $1.27 billion from $1.25 billion.

Working Capital Position

Accounts receivable climbed to $291.0 million from $249.3 million at December 31, 2025. Inventory increased to $339.8 million from $328.8 million. Accounts payable decreased to $140.7 million from $146.6 million.

Current assets totaled $769.7 million versus $730.7 million at the prior quarter-end, while current liabilities declined to $313.7 million from $322.7 million.

The company had 75.4 million shares outstanding at the end of the quarter. Diluted weighted average shares totaled 76.7 million for the three-month period, down from 81.7 million in the year-ago quarter.