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Hexcel
(NYSE:HXL)
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Rating:63Neutral
Price Target:
$87.00
▼(-7.08% Downside)
Action:Reiterated
Date:10/23/26
The score is driven primarily by improving financial performance and a constructive earnings call (reaffirmed guidance, strengthening commercial aerospace demand, and long-term margin expansion targets). This is tempered by weak technicals (price below major moving averages with negative MACD) and a demanding valuation (high P/E and low dividend yield).
Positive Factors
Commercial aerospace growth
Commercial aerospace is the company’s main growth engine, and volume gains across multiple Airbus and Boeing platforms support durable program demand. Rising aircraft production should drive recurring purchases of qualified composite materials, improving revenue visibility over the next several quarters.
Negative Factors
Higher balance-sheet leverage
The higher debt-to-equity ratio leaves Hexcel with a less conservative capital cushion than in prior years. If aerospace demand or earnings weaken, elevated leverage could reduce financial flexibility, increase sensitivity to operating volatility, and constrain investment or shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Commercial aerospace growth
Commercial aerospace is the company’s main growth engine, and volume gains across multiple Airbus and Boeing platforms support durable program demand. Rising aircraft production should drive recurring purchases of qualified composite materials, improving revenue visibility over the next several quarters.
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
$6.04B
Dividend Yield0.89%
Average Volume (3M)1.19M
Price to Earnings (P/E)35.4
Beta (1Y)1.07
Revenue Growth7.52%
EPS Growth163.84%
CountryUS
Employees5,563
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)2.25
Shares Outstanding75,701,920
10 Day Avg. Volume1,683,255
30 Day Avg. Volume1,185,661
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 Cap1.21
Enterprise Value/Revenue3.63
Enterprise Value/Gross Profit14.63
Enterprise Value/Ebitda19.81
Forecast
1Y Price Target
$100.58Price Target Upside7.43% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)2.39
Revenue Forecast (FY)$2.08B
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:Oct 21, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 27, 2027
Earnings Call Sentiment Positive
The call was broadly positive. Strong commercial aerospace growth, improving earnings and cash flow, reaffirmed guidance, strengthening demand signals, capacity investments, and significant long-term margin and revenue opportunities outweighed the lower defense and space sales, temporary program softness, foreign exchange headwind, and near-term hiring-related inefficiencies.Positive Updates
Strong Third-Quarter Revenue and Earnings Growth
Third-quarter sales were $496 million, up 9% year over year, while adjusted operating margin increased to 11.0% from 9.8%. Adjusted diluted EPS was $0.50 versus $0.37 in the comparable prior-year period, a 35% increase supported by volume, price, and a lower tax rate.
Negative Updates
Defense, Space, and Other Sales Declined
Defense, space, and other sales were $166 million, approximately 33% of total sales, and decreased 9% year over year. The decline reflected lower space volume, softness in two fighter programs, and the absence of sales from industrial businesses exited in 2025 and 2026.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Third-Quarter Revenue and Earnings Growth
Third-quarter sales were $496 million, up 9% year over year, while adjusted operating margin increased to 11.0% from 9.8%. Adjusted diluted EPS was $0.50 versus $0.37 in the comparable prior-year period, a 35% increase supported by volume, price, and a lower tax rate.
Read all positive updates
Company Guidance
Hexcel reaffirmed unchanged 2026 financial guidance for revenues between $2.025 billion and $2.150 billion, diluted EPS of $2.30 to $2.40 per share, and free cash flow greater than $195 million; it expects at least 80 A350 ship sets in 2026 and around 100 A350 ship sets in 2027, with Airbus targeting 12 aircraft per month by 2028, while Q4 is still targeting at least mid range of our guidance and possibly slightly above that, with a normal 65/35 split between commercial and defense. The company expects about 13% operating margin for the full year, incrementals in the range of mid thirties to 30s, a path to approximately 18% adjusted operating margins before the end of the decade, and the opportunity to approach somewhere closer to 20%; it is targeting 6.5% to 7.0% SG&A as a percent of total sales at full production rates, leverage of 1.5x to 2.0x net debt to adjusted EBITDA during the fourth quarter of 2026 and less than 2.0x net debt to EBITDA, capital expenditures in the range of $100 million to $125 million over the next few years, and a fourth-quarter tax rate in the 17% to 18% range with the full-year rate maybe slightly north of 16%.Hexcel Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
60
Neutral
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.01B | 1.89B | 1.90B | 1.79B | 1.58B | 1.32B |
| Gross Profit | 498.50M | 434.80M | 469.80M | 433.20M | 357.10M | 250.10M |
| EBITDA | 368.10M | 295.00M | 360.10M | 268.50M | 312.20M | 198.30M |
| Net Income | 171.50M | 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 | 77.80M | 71.00M | 125.40M | 227.00M | 112.00M | 127.70M |
| Total Debt | 934.90M | 993.00M | 726.10M | 728.90M | 773.10M | 823.30M |
| Total Liabilities | 1.40B | 1.45B | 1.20B | 1.20B | 1.28B | 1.33B |
| Stockholders Equity | 1.32B | 1.25B | 1.53B | 1.72B | 1.55B | 1.49B |
Cash Flow | ||||||
| Free Cash Flow | 255.40M | 307.20M | 202.90M | 148.90M | 96.80M | 123.80M |
| Operating Cash Flow | 296.60M | 230.50M | 289.90M | 257.10M | 173.10M | 151.70M |
| Investing Cash Flow | -86.80M | -76.00M | -87.00M | -50.70M | -54.60M | -27.90M |
| Financing Cash Flow | -221.30M | -212.30M | -301.70M | -92.60M | -130.00M | -96.80M |
Hexcel Technical Analysis
Negative
93.63
Price Trends
89.39
Negative
94.91
Negative
90.49
Negative
Market Momentum
-1.56
Positive
30.98
Neutral
14.64
Positive
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 above the 20-day moving average (MA) of 85.98, above the 50-day MA of 89.39, and above the 200-day MA of 90.49, indicating a bearish trend. The MACD of -1.56 indicates Positive momentum. The RSI at 30.98 is Neutral, neither overbought nor oversold. The STOCH value of 14.64 is Positive, 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 (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $11.33B | 30.08 | 18.00% | 0.33% | 15.65% | 78.52% | |
72 Outperform | $5.91B | 87.60 | 5.77% | ― | 29.76% | 51.88% | |
72 Outperform | $5.40B | 26.59 | 4.44% | ― | 11.44% | 291.35% | |
68 Neutral | $2.57B | 29.34 | 51.97% | 23.34% | 14.49% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $6.04B | 35.44 | 13.35% | 0.89% | 7.52% | 163.84% |
* Industrials Sector Average
HXL
Hexcel
79.74
7.70
10.69%
ATRO
Astronics
59.86
19.37
47.82%
MOG.A
Moog
358.27
148.45
70.75%
LOAR
Loar Holdings Inc.
63.07
-16.93
-21.16%
AMTM
Amentum Holdings, Inc.
22.07
0.19
0.87%
Hexcel Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Hexcel boosts buyback as aerospace drives Q3 growth
Positive
Oct 21, 2026
On October 21, 2026, Hexcel reported that third-quarter 2026 net sales rose 8.8% year on year to $496.4 million, with adjusted diluted EPS climbing to $0.50 from $0.37. Commercial aerospace remained the growth engine, with Q3 sales up about 21% in...
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.