Want to see HXL full AI Analyst Report?
Hexcel (HXL) AI Stock Analysis
Hexcel
(NYSE:HXL)
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).
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.
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.
Hexcel (HXL) vs. SPDR S&P 500 ETF (SPY)
- 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
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.
Q3-2026 Updates
Positive Updates
Negative 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
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
78PositiveBalance Sheet
60NeutralCash Flow
66Positive| 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
Price Trends
Market Momentum
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.
Latest Risks Added
0 New RisksHexcel Peers Comparison
Overall Rating
MOG.A80Outperform
LOAR79Outperform
ATRO68Neutral
HXL63Neutral
AMTM55Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| 80Outperform | $11.10B | 29.44 | 18.00% | 0.34% | 15.65% | 78.52% | |
| 79Outperform | $5.82B | 86.26 | 5.77% | ― | 29.76% | 51.88% | |
| 68Neutral | $2.55B | 29.11 | 51.97% | ― | 14.49% | ― | |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| 63Neutral | $5.89B | 34.59 | 13.35% | 0.91% | 7.52% | 163.84% | |
| 55Neutral | $5.35B | 26.35 | 4.44% | ― | 11.44% | 291.35% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HXL | Hexcel Corporation | 77.84 | 6.13 | 8.54% | |
| ATRO | Astronics | 59.39 | 20.50 | 52.71% | |
| MOG.A | Moog Inc. | 350.67 | 145.04 | 70.53% | |
| LOAR | Loar Holdings Inc. | 62.11 | -15.77 | -20.25% | |
| AMTM | Amentum Holdings, Inc. | 21.87 | -0.33 | -1.49% |
Hexcel Corporate Events
Hexcel boosts buyback as aerospace drives Q3 growth
PositiveOn 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...
Hexcel Raises 2026 Outlook on Strong Aerospace Demand
PositiveIn 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...
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