HXL Q3 FY26 earnings call: key takeaways

• HXL reported third-quarter 2026 EPS of $0.50, beating the $0.48 consensus estimate (14:41)
• Revenue of $496 million missed the $502.13 million consensus estimate
• The company reaffirmed its 2026 financial guidance. (4:00)

Results vs expectations

EPS basis: GAAP diluted EPS, company press release (8-K EX-99.1)

The stock moved -9.5% over the report window (S&P 500 ETF -1.2%). Earnings history

What changed since last quarter

• HXL reaffirmed its 2026 financial guidance, including revenue between $2.025 billion and $2.15 billion, diluted EPS of $2.30 to $2.40, and free cash flow greater than $195 million. (4:00)
• The company expects to achieve 18% adjusted operating margins by the end of the decade, with potential upside from pricing initiatives. (5:59)
• HXL increased its share repurchase authorization to $750 million from $381 million. (7:29)

What analysts pressed on

• Whether the A350 production ramp could lead to a de-stocking situation. (20:44)
• Questions about the potential impact of Chinese carbon fiber production on HXL's future competitiveness. (52:00)

In their words

• We are reaffirming our financial guidance for 2026, with revenues between $2.025 billion and $2.15 billion, diluted EPS of $2.30 to $2.40, and free cash flow greater than $195 million. (4:00)
• We see the production rate ramp up continuing into 2027 with very strong demand. Tom (18:25)
• We are confident in HXL's ability to convert this growth into stronger margins, cash generation, and long-term value for our stockholders. (19:29)