Hexcel (HXL)
NYSE:HXL
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Hexcel
(NYSE:HXL)
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Rating:61Neutral
Price Target:
$85.00
▲(6.33% Upside)
Action:ReiteratedDate:04/01/26
The score reflects solid underlying financial quality and a constructive 2026 guide (improving sales/EPS/FCF) as the main positives, offset by higher leverage and softened 2025 profitability, a weak-to-neutral technical backdrop, and a stretched valuation (high P/E, low yield) that increases sensitivity to any OEM schedule, destocking, or FX setbacks.
Positive Factors
Strong free cash flow generation
Hexcel's FCF outpacing net income and material FCF improvement in 2025 indicates durable cash conversion. That strengthens the company's ability to fund capex, invest in capacity for rising aircraft build rates, pay dividends/repurchases, and accelerate deleveraging without relying solely on equity.
Negative Factors
Elevated leverage after ASR
Net leverage near 2.7x reduces financial flexibility and raises refinancing and covenant risk versus historical levels. Higher interest burden and limited headroom constrain capital allocation choices (capex, M&A, buybacks) until structural deleveraging is achieved, increasing sensitivity to earnings volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Hexcel's FCF outpacing net income and material FCF improvement in 2025 indicates durable cash conversion. That strengthens the company's ability to fund capex, invest in capacity for rising aircraft build rates, pay dividends/repurchases, and accelerate deleveraging without relying solely on equity.
Read all positive factors
Hexcel (HXL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.07B
Dividend Yield0.89%
Average Volume (3M)1.30M
Price to Earnings (P/E)53.7
Beta (1Y)1.15
Revenue Growth-0.37%
EPS Growth-34.97%
CountryUS
Employees5,894
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.52
Shares Outstanding75,870,415
10 Day Avg. Volume1,269,472
30 Day Avg. Volume1,303,331
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 Cap1.19
Enterprise Value/Revenue3.82
Enterprise Value/Gross Profit16.66
Enterprise Value/Ebitda24.65
Forecast
1Y Price Target
$88.90Price Target Upside11.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)2.23
Revenue Forecast (FY)$2.06B
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:Jan 28, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Neutral
The transcript reflects cautious optimism: management outlines a clear path to recovery with 2026 revenue and EPS guidance, segment margin expansion (notably in Composite Materials), early capacity preparations and disciplined shareholder returns. However, material near-term headwinds remain — Airbus A350 schedule changes and OEM destocking, weaker free cash flow and EBITDA versus 2024, elevated leverage after the ASR, FX pressures, and sales reductions from divestitures. The positives (recovering commercial demand, margin expansion in core segment, strong guidance and strategic actions) are balanced by meaningful near-term financial and operational challenges.Positive Updates
Full Year Financial Results and Q4 Revenue Growth
Full year 2025 sales of $1.894 billion, adjusted EPS of $1.76 and free cash flow of $157 million. Fourth quarter 2025 sales ~ $491–492 million (Tom: +3.7% YoY; Mike: +1.6% constant currency) and fourth quarter adjusted operating income of $65 million (13.3% of sales) versus $57 million (12.1%) in prior year.
Negative Updates
A350 Schedule Changes and OEM Destocking Hurt 2025
Airbus-initiated A350 schedule revisions and OEM channel destocking materially impacted 2025 results (notably lower A350 sales in 2025 and lingering destocking in Q4), reducing near-term revenue and visibility on that program.
Read all updates
Q4-2025 Updates
Positive
Negative
Full Year Financial Results and Q4 Revenue Growth
Full year 2025 sales of $1.894 billion, adjusted EPS of $1.76 and free cash flow of $157 million. Fourth quarter 2025 sales ~ $491–492 million (Tom: +3.7% YoY; Mike: +1.6% constant currency) and fourth quarter adjusted operating income of $65 million (13.3% of sales) versus $57 million (12.1%) in prior year.
Read all positive updates
Company Guidance
Hexcel guided 2026 sales of $2.0–$2.1 billion, adjusted EPS of $2.10–$2.30 and free cash flow greater than $195 million, and reiterated an expectation of in‑excess of $1 billion cumulative FCF from 2026–2029; management also highlighted that OEMs reaching peak build rates would drive roughly $500 million of incremental annual sales and that defense/space plus business/regional jet growth could add over $200 million. For context, 2025 results were full‑year sales $1.894 billion, adjusted EPS $1.76, free cash flow $157 million and adjusted EBITDA $346 million, with Q4 sales roughly $491–492 million (commercial ≈$300M/61%, defense ≈$192M/39%), Q4 gross margin 24.6% and adjusted operating margin 13.3% (composite materials margin 20.5%). Balance sheet and other guideposts: year‑end leverage was ~2.7x net debt/EBITDA after borrowing $350 million for the ASR (company targets 1.5–2.0x and plans revolver repayment in 2026), expected 2026 interest expense $50–55 million, projected effective tax rate ~20%, Q4 FX headwind ~110 bps (average EUR/USD ~1.13 in 2025), dividend raised 6% to $0.18 quarterly, headcount down ~330 vs. 2024. Key commercial build assumptions baked into the guide include A350 ≈80 units in 2026 (up from 57) with a $4.5–5.0M shipset, A320 in the low–mid 700s (shipset $200–$500k), MAX in the mid‑400s and 787 at ~90–100.Hexcel Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
57
Neutral
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.89B | 1.90B | 1.79B | 1.58B | 1.32B |
| Gross Profit | 434.80M | 469.80M | 433.20M | 357.10M | 250.10M |
| EBITDA | 295.00M | 310.10M | 268.50M | 312.20M | 198.30M |
| Net Income | 109.40M | 132.10M | 105.70M | 126.30M | 16.10M |
Balance Sheet | |||||
| Total Assets | 2.70B | 2.73B | 2.92B | 2.84B | 2.82B |
| Cash, Cash Equivalents and Short-Term Investments | 71.00M | 125.40M | 227.00M | 112.00M | 127.70M |
| Total Debt | 993.00M | 726.10M | 728.90M | 773.10M | 823.30M |
| Total Liabilities | 1.45B | 1.20B | 1.20B | 1.28B | 1.33B |
| Stockholders Equity | 1.25B | 1.53B | 1.72B | 1.55B | 1.49B |
Cash Flow | |||||
| Free Cash Flow | 307.20M | 202.90M | 148.90M | 96.80M | 123.80M |
| Operating Cash Flow | 230.50M | 289.90M | 257.10M | 173.10M | 151.70M |
| Investing Cash Flow | -76.00M | -87.00M | -50.70M | -54.60M | -27.90M |
| Financing Cash Flow | -212.30M | -301.70M | -92.60M | -130.00M | -96.80M |
Hexcel Technical Analysis
Negative
79.94
Price Trends
84.82
Negative
80.34
Negative
71.31
Positive
Market Momentum
-1.60
Negative
44.46
Neutral
43.69
Neutral
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 79.94 is below the 20-day moving average (MA) of 80.80, below the 50-day MA of 84.82, and above the 200-day MA of 71.31, indicating a neutral trend. The MACD of -1.60 indicates Negative momentum. The RSI at 44.46 is Neutral, neither overbought nor oversold. The STOCH value of 43.69 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $9.45B | 25.10 | 13.20% | 0.46% | 7.11% | 13.43% | |
70 Outperform | $5.45B | 88.22 | 6.31% | ― | 25.38% | 237.96% | |
67 Neutral | $6.51B | 42.26 | 2.18% | ― | ― | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $2.56B | 71.09 | 14.92% | ― | 6.19% | 52.10% | |
61 Neutral | $6.07B | 53.70 | 7.41% | 0.89% | -0.37% | -34.97% |
* Industrials Sector Average
HXL
Hexcel
79.94
27.25
51.72%
ATRO
Astronics
71.83
48.82
212.17%
MOG.A
Moog
298.06
129.28
76.60%
LOAR
Loar Holdings Inc.
58.24
-27.22
-31.85%
AMTM
Amentum Holdings, Inc.
26.67
8.66
48.08%
Hexcel Corporate Events
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.