Hexcel (HXL) AI Stock Analysis

• Market Cap: $5.81B
• Dividend Yield: 1.04%
• Average Volume (3M): 1.13M
• Price to Earnings (P/E): 85.6
• Beta (1Y): 1.24
• Revenue Growth: -0.37%
• EPS Growth: -34.97%
• Country: US
• Employees: 5,894
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.37
• Shares Outstanding: 79,605,870
• 10 Day Avg. Volume: 1,542,114
• 30 Day Avg. Volume: 1,131,044
• PEG Ratio: 1.36
• Price to Book (P/B): 3.38
• Price to Sales (P/S): 2.71
• P/FCF Ratio: 25.43
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 3.05
• Enterprise Value/Gross Profit: 13.19
• Enterprise Value/Ebitda: 27.17
• 1Y Price Target: $73.78
• Price Target Upside: 1.04% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 66 Neutral
• Price Target: $79.00 ▲(8.19% Upside)

Hexcel's overall stock score reflects a stable financial position with strong cash flow management and a solid balance sheet. The technical indicators show positive momentum, but the high P/E ratio suggests overvaluation. The earnings call highlights both growth opportunities and near-term challenges, balancing the outlook. The absence of significant corporate events further stabilizes the score.

Positive Factors

Strong Defense and Space Segment Growth

The growth in the Defense and Space segment highlights Hexcel's strong position in these markets, driven by demand for advanced materials in military and space applications. This provides a stable revenue stream and offsets challenges in other segments.

Positive Aerospace Outlook

The increased backlog for commercial aircraft suggests sustained demand for Hexcel's materials, supporting long-term growth as the aerospace industry recovers and expands post-pandemic.

Future Growth Expectations

The expectation of significant free cash flow generation indicates strong operational efficiency and financial health, enabling strategic investments and shareholder returns.

Negative Factors

Commercial Aerospace Destocking

The decline in commercial aerospace sales due to destocking reflects short-term challenges that could impact revenue and profitability until inventory levels normalize.

Gross Margin Decline

The decline in gross margin indicates pressure on profitability from tariffs and lower sales volumes, which could affect financial performance if not addressed.

Tariff and Foreign Exchange Headwinds

Ongoing tariff impacts and foreign exchange challenges pose risks to margin sustainability, potentially affecting Hexcel's competitive position and financial outcomes.

Hexcel Business Overview & Revenue Model

Company Description

Hexcel Corporation (HXL) is a global leader in advanced composite materials, specializing in the design and manufacture of lightweight, high-performance materials used primarily in the aerospace, defense, and industrial markets. The company’s core products include carbon fiber, honeycomb and prepreg composite materials, and engineered reinforcements, which are essential for applications that require high strength-to-weight ratios and enhanced performance. Hexcel's innovative solutions are integral to the production of aircraft, wind turbines, automotive components, and various industrial applications.

How the Company Makes Money

Hexcel generates revenue through the sale of its advanced composite materials and solutions across multiple sectors, with a significant focus on aerospace and defense. The company earns money primarily through direct sales to original equipment manufacturers (OEMs) and tiered suppliers in the aerospace industry, which account for a substantial portion of its revenue. Additionally, Hexcel has established key partnerships with major aerospace companies, including Boeing and Airbus, which enhance its market presence and provide a steady demand for its products. The company also sees revenue from industrial applications, where its materials are utilized in wind energy, automotive, and sporting goods industries. Hexcel's commitment to research and development further enables it to introduce innovative products, enhancing its competitive edge and contributing to its financial growth.

Hexcel Financial Statement Overview

Summary

Hexcel's financial performance is solid with strong profitability metrics and cash flow management. However, challenges in revenue growth and return on equity slightly dampen the overall score.

Income Statement

Hexcel demonstrates a solid income statement performance with a strong gross profit margin of 23.39% and a respectable net profit margin of 4.69% for TTM (Trailing-Twelve-Months). The net income has shown fluctuations, with a decline in revenue growth rate from 2024 to TTM, indicating potential challenges in maintaining revenue momentum. Nevertheless, the overall profitability metrics remain robust, showcasing the company's efficiency in managing its cost structures.

Balance Sheet

The balance sheet reflects a stable financial position with a moderate debt-to-equity ratio of 0.53 and an equity ratio of 54.64% for TTM. The return on equity has slightly decreased to 5.66% in the TTM period, indicating a potential area for improvement in generating returns for shareholders. However, the company maintains a healthy equity base, providing a strong cushion against liabilities.

Cash Flow

Cash flow analysis reveals a strong operating cash flow to net income ratio of 2.81, indicating excellent cash generation capability relative to net income. The free cash flow to net income ratio stands at 1.94, further emphasizing the company's ability to convert earnings into cash effectively. Despite a decline in free cash flow growth rate, the overall cash flow strength supports ongoing operations and potential future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.87B	1.90B	1.79B	1.58B	1.32B	1.50B
Gross Profit	432.30M	469.80M	433.20M	357.10M	250.10M	239.70M
EBITDA	209.90M	310.10M	268.50M	312.20M	198.30M	155.00M
Net Income	68.80M	132.10M	105.70M	126.30M	16.10M	31.70M
Balance Sheet
Total Assets	2.76B	2.73B	2.92B	2.84B	2.82B	2.92B
Cash, Cash Equivalents and Short-Term Investments	90.50M	125.40M	227.00M	112.00M	127.70M	103.30M
Total Debt	757.90M	726.10M	699.50M	773.10M	874.00M	926.40M
Total Liabilities	1.19B	1.20B	1.20B	1.28B	1.33B	1.41B
Stockholders Equity	1.57B	1.53B	1.72B	1.55B	1.49B	1.51B
Cash Flow
Free Cash Flow	193.90M	202.90M	148.90M	96.80M	123.80M	213.70M
Operating Cash Flow	267.60M	289.90M	257.10M	173.10M	151.70M	264.30M
Investing Cash Flow	-76.40M	-87.00M	-50.70M	-54.60M	-27.90M	-50.60M
Financing Cash Flow	-199.40M	-301.70M	-92.60M	-130.00M	-96.80M	-178.50M

Hexcel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 73.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 73.02 is above the 20-day moving average (MA) of 65.83, above the 50-day MA of 64.00, and above the 200-day MA of 59.24, indicating a bullish trend. The MACD of 2.46 indicates Negative momentum. The RSI at 72.23 is Negative, neither overbought nor oversold. The STOCH value of 91.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HXL.

Hexcel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MOG.A	―	$6.67B	32.00	11.32%	0.54%	4.77%	4.50%
VSEC	―	$3.73B	140.82	5.28%	0.22%	9.22%	65.05%
HXL	―	$5.81B	85.59	4.36%	1.04%	-0.37%	-34.97%
KTOS	―	$15.40B	978.65	0.88%	―	7.76%	40.33%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MRCY	―	$4.65B	―	-2.57%	―	9.19%	72.88%
SPR	―	$4.47B	-1.90	―	―	-2.60%	-94.76%

Hexcel Corporate Events

Hexcel Corporation Navigates Mixed Earnings Landscape

The recent earnings call for Hexcel Corporation painted a picture of mixed sentiment. While there is optimism stemming from robust growth in the Defense and Space segment and a positive long-term outlook for the aerospace market, the company faces immediate challenges. These include commercial aerospace destocking and margin pressures due to tariffs and inventory adjustments. Despite these hurdles, Hexcel’s strategic actions, such as share repurchases, reflect a confidence in future growth, although near-term headwinds remain significant.

Hexcel Corporation Reports Q3 2025 Financial Results

Hexcel Corporation is a leading global provider of advanced lightweight composites technology, specializing in high-performance material solutions for industries such as aerospace, defense, and industrial applications. In its third-quarter earnings report for 2025, Hexcel Corporation announced sales of $456 million, which remained relatively flat compared to the same period in 2024. The company reported a GAAP diluted EPS of $0.26, down from $0.49 in the previous year, and an adjusted diluted EPS of $0.37, compared to $0.47 in 2024.

Hexcel Announces $350 Million Share Buyback Program

On October 22, 2025, Hexcel Corporation announced a new share repurchase program, involving agreements with Bank of America and Goldman Sachs to buy back $350 million of its common stock. This initiative, approved by the Board, is part of a broader $600 million authorization for share repurchases, enhancing Hexcel’s capital return strategy and potentially impacting its stock market performance. The repurchase will be funded by borrowing $350 million under an existing revolving credit facility, with the final settlement expected by the first quarter of 2026.

The most recent analyst rating on (HXL) stock is a Sell with a $60.00 price target. To see the full list of analyst forecasts on Hexcel stock, see the HXL Stock Forecast page.

Hexcel Announces $350 Million Accelerated Share Repurchase

Hexcel Corporation reported its third quarter 2025 results, showing net sales of $456 million, a slight decrease from the previous year. The company experienced a drop in commercial aerospace sales due to inventory destocking, particularly affecting the Airbus A350, while defense and space sales saw growth. Hexcel revised its 2025 guidance due to tariffs and announced a $350 million accelerated share repurchase. Looking forward, Hexcel anticipates benefiting from increased commercial aerospace orders and expects to generate over $1 billion in free cash flow over the next four years, with an additional $600 million authorized for stock repurchases.

The most recent analyst rating on (HXL) stock is a Hold with a $67.00 price target. To see the full list of analyst forecasts on Hexcel stock, see the HXL Stock Forecast page.

Hexcel Announces CFO Resignation Effective November 2025

On October 20, 2025, Hexcel Corporation announced the resignation of its Executive Vice President and Chief Financial Officer, Patrick Winterlich, effective November 30, 2025. The resignation was amicable and not due to any disagreements with the company’s operations or policies. The Board of Directors has begun the search for a successor.

The most recent analyst rating on (HXL) stock is a Hold with a $67.00 price target. To see the full list of analyst forecasts on Hexcel stock, see the HXL Stock Forecast page.

Hexcel’s Earnings Call: Mixed Sentiment with Strong Defense Sales

The recent earnings call for Hexcel Corporation presented a mixed sentiment, highlighting robust defense sales and a positive long-term outlook for commercial aerospace, but also acknowledging immediate challenges such as declining commercial aerospace sales, destocking in the A350 program, and margin pressures due to tariffs and production issues.