Want to see HXL full AI Analyst Report?
Top Page
Hexcel
(NYSE:HXL)
Select Model
Select Model
Rating:73Outperform
Price Target:
$103.00
▲(10.01% Upside)
Action:Upgraded
Date:07/31/26
The score is driven primarily by solid financial performance (improving margins and healthy free cash flow) and a strong earnings update (raised guidance and expanding operating margins). Technicals are supportive with the stock trading above major moving averages. The main constraint is valuation, with a very high P/E and low dividend yield, alongside the ongoing leverage overhang highlighted in the fundamentals and call.
Positive Factors
Commercial aerospace growth
Strong commercial aerospace growth reflects rising demand across several aircraft platforms rather than reliance on one program alone. Increasing production volumes can support repeat material purchases, improve factory utilization, and provide a durable revenue foundation as OEM build rates recover.
Negative Factors
Leverage remains above target
Leverage remains above management’s target despite recent improvement, leaving less financial flexibility if aerospace demand weakens or investment needs rise. Debt reduction may also compete with shareholder returns and other uses of cash until the balance sheet moves into the targeted range.
Read all positive and negative factors
Positive Factors
Negative Factors
Commercial aerospace growth
Strong commercial aerospace growth reflects rising demand across several aircraft platforms rather than reliance on one program alone. Increasing production volumes can support repeat material purchases, improve factory utilization, and provide a durable revenue foundation as OEM build rates recover.
Read all positive factors
Hexcel Key Performance Indicators (KPIs)
Any
Revenue By Segment
Breaks down revenue by business segments, providing insight into which areas drive growth and profitability, and how the company is diversifying its income streams.
Breaks down revenue by business segments, providing insight into which areas drive growth and profitability, and how the company is diversifying its income streams.
Data provided by:
The Fly
The FlyHexcel (HXL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.96B
Dividend Yield0.77%
Average Volume (3M)859.16K
Price to Earnings (P/E)46.0
Beta (1Y)1.10
Revenue Growth4.63%
EPS Growth84.70%
CountryUS
Employees5,563
SectorGeneral
Sector StrengthN/A
IndustryAerospace & Defense
Share Statistics
EPS (TTM)2.00
Shares Outstanding75,623,450
10 Day Avg. Volume667,396
30 Day Avg. Volume859,162
Financial Highlights & Ratios
PEG Ratio-3.75
Price to Book (P/B)4.70
Price to Sales (P/S)3.10
P/FCF Ratio19.12
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$111.20Price Target Upside18.77% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)2.4
Revenue Forecast (FY)$2.10B
Hexcel Business Overview & Revenue Model
Company Description
Hexcel Corporation, operating through its various subsidiaries, focuses on the innovation, production, and sale of advanced structural materials. These specialized materials are essential across the commercial aviation, space and defense, and broa...
How the Company Makes Money
Hexcel makes money by producing and selling composite material inputs and, in some cases, engineered composite components that customers incorporate into aircraft, aircraft engines, and other high-performance applications. Revenue is generated pri...
Hexcel Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 26, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive and improving operating picture: solid top-line growth driven by commercial aerospace (sales +8% YoY; commercial aerospace +~18–19%), meaningful margin expansion (adjusted operating margin +280 bps YoY), stronger adjusted EBITDA (+25% YTD), improved cash generation and raised full-year guidance. Management acknowledged manageable near-term headwinds — seasonality, hiring and carbon-fiber line restart costs, FX and input-cost risks, and work to continue deleveraging — but provided a clear path to additional scale (potential $500M commercial / $200M defense upside) and a stated target of 18% adjusted operating margin by the end of the decade. Overall, the positives (growth, margin recovery, cash flow, guidance raise and operational actions) significantly outweigh the near-term and addressable lowlights.Positive Updates
Revenue Growth
Second quarter sales of $529 million, up ~8.1% year-over-year on a constant currency basis; commercial aerospace sales of ~$347 million (≈66% of sales) up ~18–19% YoY driven by A350 and 787 volume and increases across narrow-body platforms.
Negative Updates
Defense, Space & Other Sales Decline (Industrial Impact)
Defense, Space & Other market sales were $182.7 million (≈34% of sales), down ~7–8% YoY primarily due to divestiture of Austrian industrial business and winding down industrial operations at Leicester (∼$15M annual sales). Defense-only sales were unchanged YoY, but some programs (launchers, rocket motors) saw temporary softness.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Second quarter sales of $529 million, up ~8.1% year-over-year on a constant currency basis; commercial aerospace sales of ~$347 million (≈66% of sales) up ~18–19% YoY driven by A350 and 787 volume and increases across narrow-body platforms.
Read all positive updates
Company Guidance
Hexcel raised its full‑year 2026 guidance to sales of $2.025–$2.125 billion (from $2.0–$2.1B) and adjusted EPS to $2.30–$2.40 (from $2.10–$2.30), while keeping free cash flow guidance >$195 million and CapEx < $100 million; management expects interest expense in the low $50 million range, modeled back‑half tax rate ~20%, cash conversion to exceed 100% in 2026 and beyond, and a return to target net debt/adjusted EBITDA of 1.5–2.0x (current leverage 2.3x at June 30); they reiterated a path to 18% adjusted operating margin by the end of the decade, supported by incremental annual sales of roughly $500 million from commercial aero (when OEMs hit peak build rates) and ~$200 million from Defense & Space, affirmed at least 80 A350 shipsets in 2026 (Airbus producing 8–9 A350s/month), and highlighted recent results that underpin the guide: Q2 sales $529M (up 8%), Q2 adjusted operating margin 13.9% (vs. 11.1% prior year), gross margin 26.1% (vs. 22.8%), 6‑month adjusted EBITDA $216M (21% margin; TTM EBITDA $390M), YTD net cash from operations $97M, YTD free cash flow $52M, YTD CapEx $37M, working capital use $72M, with $381M remaining on the buyback authorization and a $0.18 quarterly dividend declared.Hexcel Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
64
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.97B | 1.89B | 1.90B | 1.79B | 1.58B | 1.32B |
| Gross Profit | 482.90M | 434.80M | 469.80M | 433.20M | 357.10M | 250.10M |
| EBITDA | 354.70M | 295.00M | 360.10M | 268.50M | 312.20M | 198.30M |
| Net Income | 153.50M | 109.40M | 132.10M | 105.70M | 126.30M | 16.10M |
Balance Sheet | ||||||
| Total Assets | 2.73B | 2.70B | 2.73B | 2.92B | 2.84B | 2.82B |
| Cash, Cash Equivalents and Short-Term Investments | 62.20M | 71.00M | 125.40M | 227.00M | 112.00M | 127.70M |
| Total Debt | 959.40M | 993.00M | 726.10M | 728.90M | 773.10M | 823.30M |
| Total Liabilities | 1.43B | 1.45B | 1.20B | 1.20B | 1.28B | 1.33B |
| Stockholders Equity | 1.30B | 1.25B | 1.53B | 1.72B | 1.55B | 1.49B |
Cash Flow | ||||||
| Free Cash Flow | 301.20M | 307.20M | 202.90M | 148.90M | 96.80M | 123.80M |
| Operating Cash Flow | 332.40M | 230.50M | 289.90M | 257.10M | 173.10M | 151.70M |
| Investing Cash Flow | -78.40M | -76.00M | -87.00M | -50.70M | -54.60M | -27.90M |
| Financing Cash Flow | -267.90M | -212.30M | -301.70M | -92.60M | -130.00M | -96.80M |
Hexcel Technical Analysis
Negative
93.63
Price Trends
100.33
Negative
95.85
Negative
88.32
Positive
Market Momentum
-2.63
Positive
33.53
Neutral
21.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HXL, the sentiment is Negative. The current price of 93.63 is below the 20-day moving average (MA) of 96.57, below the 50-day MA of 100.33, and above the 200-day MA of 88.32, indicating a neutral trend. The MACD of -2.63 indicates Positive momentum. The RSI at 33.53 is Neutral, neither overbought nor oversold. The STOCH value of 21.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HXL.
Hexcel Risk Analysis
Hexcel disclosed 21 risk factors in its most recent earnings report. Hexcel reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hexcel Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $11.78B | 31.21 | 18.00% | 0.32% | 15.65% | 78.52% | |
73 Outperform | $6.96B | 45.99 | 11.41% | 0.77% | 4.63% | 84.70% | |
72 Outperform | $6.36B | 94.24 | 5.77% | ― | 29.76% | 51.88% | |
72 Outperform | $4.90B | 24.17 | 4.44% | ― | 11.44% | 291.35% | |
70 Outperform | $3.28B | 37.38 | 51.97% | 23.34% | 14.49% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
HXL
Hexcel
91.28
28.93
46.40%
ATRO
Astronics
76.00
45.45
148.76%
MOG.A
Moog
369.61
178.68
93.58%
LOAR
Loar Holdings Inc.
67.70
-10.86
-13.82%
AMTM
Amentum Holdings, Inc.
20.14
-3.57
-15.06%
Hexcel Corporate Events
Business Operations and StrategyFinancial Disclosures
Hexcel Raises 2026 Outlook on Strong Aerospace Demand
Positive
Jul 29, 2026
In the second quarter of 2026, Hexcel reported net sales of $529.3 million, up 8.0% from a year earlier, with adjusted diluted EPS rising to $0.66 on the back of strong commercial aerospace demand. Sales growth was led by Airbus A350 and Boeing 78...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.