Hexcel (HXL) AI Stock Analysis

• Market Cap: $4.86B
• Dividend Yield: 1.05%
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): 56.8
• Beta (1Y): 1.18
• Revenue Growth: 1.92%
• EPS Growth: -15.47%
• Country: US
• Employees: 5,894
• Sector: Industrials
• Sector Strength: 95
• Industry: Aerospace & Defense
• EPS (TTM): 0.50
• Shares Outstanding: 79,563,350
• 10 Day Avg. Volume: 1,374,565
• 30 Day Avg. Volume: 1,169,842
• PEG Ratio: -1.93
• Price to Book (P/B): 3.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.72
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 0.75
• Enterprise Value/Gross Profit: 10.62
• Enterprise Value/Ebitda: 3.42
• 1Y Price Target: $64.17
• Price Target Upside: 5.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 72 Outperform
• Price Target: $68.00 ▲(11.27%Upside)

Hexcel's overall stock score reflects strong financial management and technical momentum. However, high valuation and challenges in commercial aerospace sales and revised guidance dampen the outlook. Corporate actions and defense segment growth provide some optimism.

Positive Factors

Demand for space/defense products

Demand for HXL's space/defense products remains strong.

Narrowbody production and pricing

Narrowbody OE production is rising, and HXL cites modest, annual pricing opportunity.

Optimistic A350 outlook

Management remains optimistic in their outlook for the A350 as Airbus is still expecting to ramp to 12/mo by 2028.

Negative Factors

A350 demand inefficiency risk

This volatile A350 demand pattern raises some risk that expected demand surge may carry some inefficiency.

Aerospace supply chain issues

The supply chain issues across the aerospace industry have negatively impacted HXL's earnings again.

Lowered financial outlook and guidance

HXL has trimmed its FY guidance to $1.85-2.05 vs. the prior guide of $2.05-2.25, indicating challenges in the Comm markets.

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 Engineered Products. The Composite Materials segment manufactures and markets carbon fibers, fabrics and specialty reinforcements, prepregs and other fiber-reinforced matrix materials, structural adhesives, honeycomb, molding compounds, tooling materials, polyurethane systems, and laminates that are used in military and commercial aircraft, wind turbine blades, recreational products, and other industrial applications, as well as in automotive, marine, and trains. The Engineered Products segment manufactures and markets aircraft structures and finished aircraft components, including wing to body fairings, wing panels, flight deck panels, door liners, rotorcraft blades, spars, and tip caps; and aircraft structural sub-components and semi-finished components used in rotorcraft blades, engine nacelles, and aircraft surfaces, such as flaps, wings, elevators, and fairings. The company sells its products directly through its managers, product managers, and sales personnel, as well as through independent distributors and manufacturer representatives in the Americas, Europe, the Asia Pacific, India, and Africa. Hexcel Corporation was founded in 1946 and is headquartered in Stamford, Connecticut.

How the Company Makes Money

Hexcel Corporation generates revenue through the sale of its advanced composite materials, primarily targeting the aerospace and defense sectors, which are its largest markets. The company supplies carbon fiber, prepregs, and other composite materials to major aircraft manufacturers, such as Boeing and Airbus, for use in commercial and military aircraft. Additionally, Hexcel serves the wind energy sector by providing lightweight materials that improve the efficiency of wind turbines. The industrial sector also contributes to its revenue stream, with sales of materials used in automotive, sporting goods, and other applications. Partnerships with leading aerospace companies and long-term supply agreements further bolster Hexcel's revenue, as these relationships ensure a steady demand for its products.

Hexcel Financial Statement Overview

Summary

Hexcel demonstrates strong profitability and a stable financial position with efficient cash flow generation. However, challenges include lack of revenue growth and a slight decline in free cash flow, which are critical areas for future focus.

Income Statement

Hexcel shows solid profitability with a stable gross profit margin of 24.0% for TTM (Trailing-Twelve-Months) and a net profit margin of 6.6%. However, the revenue has slightly decreased to $1.89 billion from $1.90 billion, showing a stagnant growth rate. The EBIT margin is healthy at 9.3%, indicating efficient core operations. Overall, the company displays good profitability metrics, but revenue growth is a concern.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.51, indicating moderate leverage. The equity ratio stands at 55.2%, suggesting a sound capital structure. ROE is 8.1% for TTM, demonstrating decent return for shareholders. Stability is evident, but the company should monitor its leverage to maintain financial flexibility.

Cash Flow

Free cash flow has decreased slightly to $184 million from $202.9 million, showing a decline in growth. However, the operating cash flow to net income ratio is robust at 2.15, indicating strong cash earnings. Free cash flow to net income ratio at 1.48 further underscores efficient cash generation. Overall, Hexcel maintains a strong cash flow position despite recent declines.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.90B	1.79B	1.58B	1.32B	1.50B
Gross Profit	469.80M	433.20M	357.10M	250.10M	239.70M
EBITDA	310.10M	268.50M	312.20M	198.30M	14.10M
Net Income	132.10M	105.70M	126.30M	16.10M	31.70M
Balance Sheet
Total Assets	2.73B	2.92B	2.84B	2.82B	2.92B
Cash, Cash Equivalents and Short-Term Investments	125.40M	227.00M	112.00M	127.70M	103.30M
Total Debt	700.70M	699.50M	723.50M	823.30M	926.40M
Total Liabilities	1.20B	1.20B	1.28B	1.33B	1.41B
Stockholders Equity	1.53B	1.72B	1.55B	1.49B	1.51B
Cash Flow
Free Cash Flow	202.90M	148.90M	96.80M	123.80M	213.70M
Operating Cash Flow	289.90M	257.10M	173.10M	151.70M	264.30M
Investing Cash Flow	-87.00M	-50.70M	-54.60M	-27.90M	-50.60M
Financing Cash Flow	-301.70M	-92.60M	-130.00M	-96.80M	-178.50M

Hexcel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 61.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 61.11 is above the 20-day moving average (MA) of 59.15, above the 50-day MA of 56.36, and above the 200-day MA of 58.96, indicating a bullish trend. The MACD of 1.60 indicates Negative momentum. The RSI at 63.43 is Neutral, neither overbought nor oversold. The STOCH value of 76.73 is Neutral, 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	77 Outperform	$5.79B	27.73	11.32%	0.62%	4.77%	4.50%
HXL	72 Outperform	$4.86B	56.75	5.63%	1.05%	1.92%	-15.47%
KTOS	72 Outperform	$9.95B	473.24	1.45%	―	7.32%	―
VSEC	68 Neutral	$2.82B	172.61	4.83%	0.29%	19.84%	-51.67%
SPR	60 Neutral	$4.81B	―	81.63%	―	-2.91%	-109.95%
MRCY	58 Neutral	$3.17B	―	-4.45%	―	5.66%	52.71%
Sector *	58 Neutral	HK$14.89B	4.74	-2.78%	5.07%	3.80%	-54.55%

Hexcel Corporate Events

Hexcel Reports Q2 2025 Results with Sales Decline

On July 24, 2025, Hexcel Corporation reported its second quarter 2025 results, showing a decrease in net sales to $490 million from $500 million in the same quarter of 2024. The company experienced a decline in commercial aerospace sales, particularly in major programs like Airbus A350, due to production rate decreases and inventory destocking. However, there was growth in the Defense, Space & Other segment, driven by programs like Sikorsky CH-53K and international fighter programs. Hexcel also completed the closure of its Belgium facility, incurring restructuring charges, and continued its strategic review of other operations. Despite challenges, Hexcel remains optimistic about future growth, supported by ongoing stock repurchases and participation in industry events like the Paris Air Show.

The most recent analyst rating on (HXL) stock is a Hold with a $65.00 price target. To see the full list of analyst forecasts on Hexcel stock, see the HXL Stock Forecast page.

Hexcel Announces Leadership Transition Plans

On July 7, 2025, Hexcel Corporation announced that Thierry Merlot, President of Aerospace – EMEA/AP & Industrial, plans to retire in 2026. In preparation, he will transition to Executive Vice President – Strategy by September 29, 2025, with a successor expected to be appointed around the same date.

The most recent analyst rating on (HXL) stock is a Hold with a $65.00 price target. To see the full list of analyst forecasts on Hexcel stock, see the HXL Stock Forecast page.

Hexcel Stockholders Approve Key Proposals at Annual Meeting

At the 2025 Annual Meeting of Stockholders held on May 8, 2025, Hexcel Corporation’s stockholders elected all nominated directors, approved executive compensation for 2024, ratified Ernst & Young LLP as the independent auditor for 2025, and approved amendments to the 2016 Employee Stock Purchase Plan. These decisions reflect strong shareholder support for the company’s leadership and strategic initiatives, potentially enhancing its operational stability and market position.

The most recent analyst rating on (HXL) stock is a Hold with a $65.00 price target. To see the full list of analyst forecasts on Hexcel stock, see the HXL Stock Forecast page.