Hexcel Corporation (HXL)
NYSE:HXL
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Hexcel
(NYSE:HXL)
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Rating:64Neutral
Price Target:
$93.00
▲(4.78% Upside)
Action:ReiteratedDate:04/23/26
The score is anchored by sound financial performance and strong recovery commentary in the latest earnings call (reaffirmed guidance and improved margins), supported by constructive price trend/momentum. The main limiter is expensive valuation (high P/E, low yield) alongside higher leverage that increases risk if aerospace ramp or costs/FX/geopolitics worsen.
Positive Factors
Strong free cash flow generation
Sustained high operating and free cash flow provides durable funding for deleveraging, measured capacity investments, dividends and buybacks. Reliable cash conversion supports resilience through aerospace cycles and funds strategic priorities without immediate reliance on external capital.
Negative Factors
Elevated leverage
Leverage at ~2.6x reduces strategic flexibility and raises refinancing and covenants risk if aerospace ramps or margins weaken. Management’s deleveraging focus limits near-term large M&A and increases vulnerability to input-cost shocks or demand softness before net debt falls within target.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Sustained high operating and free cash flow provides durable funding for deleveraging, measured capacity investments, dividends and buybacks. Reliable cash conversion supports resilience through aerospace cycles and funds strategic priorities without immediate reliance on external capital.
Read all positive factors
Hexcel (HXL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.83B
Dividend Yield0.89%
Average Volume (3M)1.17M
Price to Earnings (P/E)41.3
Beta (1Y)1.13
Revenue Growth1.46%
EPS Growth-0.14%
CountryUS
Employees5,894
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.59
Shares Outstanding75,427,185
10 Day Avg. Volume992,436
30 Day Avg. Volume1,167,053
Financial Highlights & Ratios
PEG Ratio-3.76
Price to Book (P/B)4.70
Price to Sales (P/S)3.10
P/FCF Ratio19.12
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue4.02
Enterprise Value/Gross Profit17.04
Enterprise Value/Ebitda25.30
Forecast
1Y Price Target
$91.27Price Target Upside2.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)2.29
Revenue Forecast (FY)$2.07B
Hexcel Business Overview & Revenue Model
Company Description
Hexcel Corporation, together with its subsidiaries, develops, manufactures, and markets structural materials for use in commercial aerospace, space and defense, and industrial markets. It operates through two segments, Composite Materials and Engi...
How the Company Makes Money
Hexcel makes money by selling advanced composite materials and related engineered products to original equipment manufacturers (OEMs) and suppliers, with aerospace (commercial aerospace, space/defense, and rotorcraft) as its primary end market. Re...
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 Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 27, 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 | 307.30M | 295.00M | 310.10M | 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
88.76
Price Trends
85.19
Positive
81.52
Positive
72.47
Positive
Market Momentum
0.42
Negative
62.42
Neutral
78.14
Neutral
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 88.76 is above the 20-day moving average (MA) of 81.79, above the 50-day MA of 85.19, and above the 200-day MA of 72.47, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 62.42 is Neutral, neither overbought nor oversold. The STOCH value of 78.14 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $9.60B | 27.92 | 14.06% | 0.46% | 13.79% | 37.64% | |
70 Outperform | $5.03B | 88.22 | 6.31% | ― | 23.20% | 213.21% | |
64 Neutral | $6.83B | 41.28 | 8.35% | 0.89% | 1.46% | -0.14% | |
64 Neutral | $6.18B | 42.26 | 2.18% | ― | 44.73% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $2.39B | 71.09 | 14.92% | ― | 8.39% | ― |
* Industrials Sector Average
HXL
Hexcel
90.54
42.59
88.82%
ATRO
Astronics
66.99
44.30
195.24%
MOG.A
Moog
302.02
135.65
81.54%
LOAR
Loar Holdings Inc.
53.75
-40.83
-43.17%
AMTM
Amentum Holdings, Inc.
25.34
3.52
16.13%
Hexcel Corporate Events
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 ...
Business Operations and StrategyPrivate Placements and Financing
Hexcel Secures New $750 Million Revolving Credit Facility
Positive
Apr 1, 2026
On March 31, 2026, Hexcel Corporation entered into a new $750 million revolving credit facility maturing on March 31, 2031, arranged with a syndicate of lenders led by Bank of America as agent. Hexcel immediately drew $300 million under the new fa...
Business Operations and StrategyExecutive/Board Changes
Hexcel Names James Coogan as New Chief Financial Officer
Positive
Mar 13, 2026
Hexcel Corporation has appointed James (Jamie) Coogan as executive vice president and chief financial officer, effective May 1, 2026, succeeding interim CFO Mike Lenz, who will stay on for about three months as senior advisor to ensure a smooth tr...
Business Operations and StrategyExecutive/Board Changes
Hexcel Reaches Cooperation Deal, Adds Veteran Aerospace Director
Positive
Mar 4, 2026
On March 3, 2026, Hexcel Corporation entered into a cooperation agreement with Vision One Fund, LP and its affiliates that adds former Kaman Corporation chief executive Neal J. Keating to Hexcel’s board and audit committee and commits the co...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Hexcel posts soft 2025 results but upbeat 2026 outlook
Neutral
Jan 28, 2026
On January 28, 2026, Hexcel reported its fourth-quarter and full-year 2025 results, showing Q4 2025 sales of $491.3 million, up 3.7% year over year, and GAAP diluted EPS of $0.60, with adjusted EPS flat at $0.52, while full-year 2025 sales were es...
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.