TipRanks
Go Ultimate55% OFF

Hexcel (HXL) AI Stock Analysis

HXL

Hexcel

(NYSE:HXL)

Select Model
Rating:63Neutral
Price Target:$87.00â–²(11.77% Upside)
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 growthCommercial 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 leverageThe 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.

Hexcel Key Performance Indicators (KPIs)

Revenue By SegmentBreaks down revenue by business segments, providing insight into which areas drive growth and profitability, and how the company is diversifying its income streams.

-$100.00M$0.00$100.00M$200.00M$300.00M$400.00M$500.00MMar 21Jun 21Sep 21Dec 21Mar 22Jun 22Sep 22Dec 22Mar 23Jun 23Sep 23Dec 23Mar 24Jun 24Sep 24Dec 24Mar 25Jun 25Sep 25Dec 25Mar 26Jun 26Sep 26
Chart Insights

Composite Materials is the clear growth engine—accelerating with OEM build‑rate ramps and driving most of the margin recovery—while Engineered Products is a steady, higher‑margin recovery that reinforces operating leverage. That upside is being partially offset by a meaningful rise in Corporate & Other costs tied to hiring, carbon‑fiber line restarts and startup expenses, which explains management’s caution on H2 seasonality. The raised guidance and margin targets assume these restarts reach utilization and pricing/overhead gains persist; failure to hit full utilization or sustained input‑cost pressure would mute upside.

Data provided by:The Fly

Hexcel (HXL) vs. SPDR S&P 500 ETF (SPY)

-10%0%10%20%30%40%50%60%HXL+11.96%SPY+11.79%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
$5.89B
Dividend Yield
0.91%
Average Volume (3M)
1.01M
Price to Earnings (P/E)
34.6
Beta (1Y)
1.07
Revenue Growth
7.52%
EPS Growth
163.84%
Country
US
Employees
5,563
Sector
Industrials
Sector Strength
63
Industry
Aerospace & Defense

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 broader...

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 primar...

Hexcel Earnings Call Summary

Earnings Call Date:Oct 20, 2026(Q3-2026)|% Change Since:-13.36%|Next Earnings Date:Jan 26, 2027
Earnings Call SentimentPositive

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.

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

Operating performance is recovering, with materially improved TTM profitability versus 2025 and modest positive TTM revenue growth. Offsetting this, leverage has risen meaningfully (higher debt-to-equity versus 2023–2024) and TTM free cash flow declined year over year despite still-solid cash conversion.

Income Statement

78Positive

Balance Sheet

60Neutral

Cash Flow

66Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.01B1.89B1.90B1.79B1.58B1.32B
Gross Profit498.50M434.80M469.80M433.20M357.10M250.10M
EBITDA368.10M295.00M360.10M268.50M312.20M198.30M
Net Income171.50M109.40M132.10M105.70M126.30M16.10M
Balance Sheet
Total Assets2.73B2.70B2.73B2.92B2.84B2.82B
Cash, Cash Equivalents and Short-Term Investments77.80M71.00M125.40M227.00M112.00M127.70M
Total Debt934.90M993.00M726.10M728.90M773.10M823.30M
Total Liabilities1.40B1.45B1.20B1.20B1.28B1.33B
Stockholders Equity1.32B1.25B1.53B1.72B1.55B1.49B
Cash Flow
Free Cash Flow255.40M307.20M202.90M148.90M96.80M123.80M
Operating Cash Flow296.60M230.50M289.90M257.10M173.10M151.70M
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

Technical Analysis SentimentNegative
Last Price77.84

Price Trends

50DMA87.75Negative
100DMA94.45Negative
200DMA90.43Negative

Market Momentum

MACD-2.65Positive
RSI31.04Neutral
STOCH9.07Positive

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 77.84 is below the 20-day moving average (MA) of 84.63, below the 50-day MA of 87.75, and below the 200-day MA of 90.43, indicating a bearish trend. The MACD of -2.65 indicates Positive momentum. The RSI at 31.04 is Neutral, neither overbought nor oversold. The STOCH value of 9.07 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.

Higher RiskSector Avg.Lower RiskFinance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
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

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

HXL against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
MOG.AMOG.A80Outperform$11.10B29.4418.00%0.34%15.65%78.52%
LOARLOAR79Outperform$5.82B86.265.77%―29.76%51.88%
ATROATRO68Neutral$2.55B29.1151.97%―14.49%―
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
HXLHXL63Neutral$5.89B34.5913.35%0.91%7.52%163.84%
AMTMAMTM55Neutral$5.35B26.354.44%―11.44%291.35%

* Industrials Sector Average

Performance Comparison

0%50%100%HXLATROMOG.ALOARAMTMDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HXL and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HXLHexcel Corporation77.846.138.54%
ATROAstronics59.3920.5052.71%
MOG.AMoog Inc.350.67145.0470.53%
LOARLoar Holdings Inc.62.11-15.77-20.25%
AMTMAmentum Holdings, Inc.21.87-0.33-1.49%

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 co...

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 787 p...

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.

Date of analysis: Oct 23, 2026