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Hexcel
(NYSE:HXL)
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Rating:60Neutral
Price Target:
$109.00
▲(22.96% Upside)
Action:Reiterated
Date:05/29/26
Overall score reflects solid but not exceptional fundamentals (steady growth, healthy cash generation, but higher leverage and some margin pressure), partially offset by a positive earnings outlook and improving aerospace demand. The main constraints are expensive valuation (high P/E, low yield) and neutral-to-soft near-term technical momentum.
Positive Factors
Strong cash generation
Hexcel's sizable TTM operating cash flow (~$278M) and free cash flow (~$251M), with very large FCF growth (+57%), create durable internal funding. That cash supports capex for capacity bring-up, dividend/ASR programs and deleveraging, improving resilience versus aerospace cyclicality.
Negative Factors
Elevated leverage post-ASR/refinancing
Leverage near ~2.6x LTM EBITDA exceeds management's 1.5–2.0x target, reducing financial flexibility. Higher net leverage increases interest and refinancing sensitivity, limits ability to pursue sizable M&A or absorb shocks, and requires sustained cash generation to hit the stated deleveraging timeline.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Hexcel's sizable TTM operating cash flow (~$278M) and free cash flow (~$251M), with very large FCF growth (+57%), create durable internal funding. That cash supports capex for capacity bring-up, dividend/ASR programs and deleveraging, improving resilience versus aerospace cyclicality.
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
$7.83B
Dividend Yield0.89%
Average Volume (3M)944.34K
Price to Earnings (P/E)68.3
Beta (1Y)1.11
Revenue Growth1.46%
EPS Growth-0.14%
CountryUS
Employees5,563
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)1.52
Shares Outstanding75,427,185
10 Day Avg. Volume959,540
30 Day Avg. Volume944,338
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
$96.20Price Target Upside8.52% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)2.3
Revenue Forecast (FY)$2.07B
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 manufacturing and selling composite material products and related technologies, with the bulk of revenue historically tied to aerospace platforms. Its key revenue streams generally include: (1) Carbon fiber and reinforcement ...
Hexcel Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call communicated a clear recovery trajectory driven by strong commercial aerospace demand, meaningful margin expansion, improved EBITDA and cash flow, and strengthened liquidity actions — balanced by some one-time inventory benefits, FX and oil/ geopolitical risks, divestment-related sales headwinds in Defense/Other, and elevated leverage after last year's accelerated buyback. Management reaffirmed full-year guidance and emphasized disciplined, measured capacity bring-up and a focus on reducing leverage before pursuing M&A.Positive Updates
Total Sales Growth
Q1 2026 sales of $502 million, up ~10% year-over-year (8.8% in constant currency), reflecting a return of commercial aerospace demand and higher production levels.
Negative Updates
Defense, Space & Other Sales Decline (Impact of Divestment)
Segment sales of $169 million (≈34% of sales) decreased ~6.9% YoY, primarily due to the September 2025 divestment of the Austrian industrial business and the planned cessation of industrial operations at Leicester (annual sales ~ $15 million) which will weigh on year-over-year comparisons.
Read all updates
Q1-2026 Updates
Positive
Negative
Total Sales Growth
Q1 2026 sales of $502 million, up ~10% year-over-year (8.8% in constant currency), reflecting a return of commercial aerospace demand and higher production levels.
Read all positive updates
Company Guidance
Hexcel reaffirmed its 2026 guidance with adjusted EPS of $2.10–$2.30 and a roughly even split between the first and second halves of the year, following a strong Q1 that featured sales of $502M (≈+8.8% constant currency), adjusted EPS $0.59, adjusted EBITDA $107M, adjusted operating income $68M (13.5% of sales), and gross margin of 26.9% (vs. 22.4% LY). Management reiterated program-level assumptions: A350 ~80 units (possible upside), A320 volumes now at the low end of the low‑700s, 737 MAX previously forecast mid‑400s (Q1 production ≈40/month with Boeing targeting ~47/month later), and 787 at 90–100 units; Commercial Aerospace sales were ~$333–334M (~66% of Q1 sales) and Defense, Space & Other $169M (~34%). Balance‑sheet and cash targets were reiterated: Q1 operating cash +$19M, free cash flow -$6M, capex $18M, working capital use $63M, net debt/LTM adjusted EBITDA 2.6x (target 1.5–2.0x in 2026), $750M revolver refinanced to 2031, ASR of ~4.5M shares (~6% of float) completed with $381M remaining authorization, and a $0.18 quarterly dividend—while noting near‑term risks from Middle East developments, higher oil/shipping costs and an FX headwind (~80 bps in Q1).Hexcel Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
58
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.93B | 1.89B | 1.90B | 1.79B | 1.58B | 1.32B |
| Gross Profit | 456.30M | 434.80M | 469.80M | 433.20M | 357.10M | 250.10M |
| EBITDA | 312.40M | 295.00M | 360.10M | 268.50M | 312.20M | 198.30M |
| Net Income | 117.70M | 109.40M | 132.10M | 105.70M | 126.30M | 16.10M |
Balance Sheet | ||||||
| Total Assets | 2.72B | 2.70B | 2.73B | 2.92B | 2.84B | 2.82B |
| Cash, Cash Equivalents and Short-Term Investments | 54.10M | 71.00M | 125.40M | 227.00M | 112.00M | 127.70M |
| Total Debt | 998.10M | 993.00M | 726.10M | 728.90M | 773.10M | 823.30M |
| Total Liabilities | 1.46B | 1.45B | 1.20B | 1.20B | 1.28B | 1.33B |
| Stockholders Equity | 1.27B | 1.25B | 1.53B | 1.72B | 1.55B | 1.49B |
Cash Flow | ||||||
| Free Cash Flow | 251.20M | 307.20M | 202.90M | 148.90M | 96.80M | 123.80M |
| Operating Cash Flow | 278.00M | 230.50M | 289.90M | 257.10M | 173.10M | 151.70M |
| Investing Cash Flow | -74.00M | -76.00M | -87.00M | -50.70M | -54.60M | -27.90M |
| Financing Cash Flow | -240.80M | -212.30M | -301.70M | -92.60M | -130.00M | -96.80M |
Hexcel Technical Analysis
Positive
88.65
Price Trends
94.68
Positive
90.22
Positive
82.53
Positive
Market Momentum
2.24
Negative
65.11
Neutral
83.28
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HXL, the sentiment is Positive. The current price of 88.65 is below the 20-day moving average (MA) of 99.28, below the 50-day MA of 94.68, and above the 200-day MA of 82.53, indicating a bullish trend. The MACD of 2.24 indicates Negative momentum. The RSI at 65.11 is Neutral, neither overbought nor oversold. The STOCH value of 83.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $6.55B | 97.21 | 5.86% | ― | 26.33% | 88.70% | |
71 Outperform | $12.46B | 43.75 | 14.06% | 0.46% | 13.79% | 37.64% | |
65 Neutral | $2.89B | 53.38 | 26.60% | ― | 8.64% | ― | |
64 Neutral | $5.05B | 34.47 | 3.27% | ― | 26.11% | 801.19% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $7.83B | 68.30 | 8.35% | 0.89% | 1.46% | -0.14% |
* Industrials Sector Average
HXL
Hexcel
103.81
44.24
74.27%
ATRO
Astronics
67.26
39.65
143.63%
MOG.A
Moog
393.31
203.49
107.20%
LOAR
Loar Holdings Inc.
69.99
-5.35
-7.10%
AMTM
Amentum Holdings, Inc.
20.68
-4.06
-16.41%
Hexcel Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Hexcel Refinances Debt, Extends Senior Notes Maturity
Positive
May 28, 2026
Hexcel Corporation has refinanced part of its debt structure by issuing $400 million of 4.900% Senior Notes due 2031 and using the proceeds, along with cash on hand, to redeem its existing 3.950% Senior Notes due 2027. The transaction, completed o...
Executive/Board ChangesShareholder Meetings
Hexcel Shareholders Back Governance, Name New Lead Director
Positive
May 15, 2026
At Hexcel’s 2026 annual meeting, shareholders elected all board nominees, approved on an advisory basis the 2025 compensation for named executive officers, ratified Ernst Young LLP as independent auditor for 2026, and endorsed the company&#...
Business Operations and StrategyPrivate Placements and Financing
Hexcel Issues New Senior Notes to Refinance 2027 Debt
Positive
Apr 30, 2026
On April 30, 2026, Hexcel issued $400 million of 4.900% unsecured senior notes maturing May 15, 2031, under its existing shelf registration, with estimated net proceeds of about $395.2 million. The notes, sold to a syndicate of underwriters for re...
Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
Hexcel Delivers Strong Q1 2026 Results and Outlook
Positive
Apr 22, 2026
Hexcel on April 22, 2026 reported strong first‑quarter 2026 results, with net sales rising 9.9% year over year to about $502 million and adjusted diluted EPS jumping to $0.59 from $0.37, driven by higher commercial aerospace build rates and ...
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.