Hexcel Corporation (HXL) Jefferies Global Industrials Conference 2026 September 9, 2026 1:30 PM EDT
Company Participants
Thomas Gentile - CEO, President & Chairman
Conference Call Participants
Kyle Wenclawiak - Jefferies LLC, Research Division
Presentation
Kyle Wenclawiak
Jefferies LLC, Research Division
All right. Good afternoon, everyone. My name is Kyle Wenclawiak. I work on the U.S. aerospace, defense and airlines equity research team with Sheila.
We're very happy to have Tom Gentile here of Hexcel Corporation, who served in the President and CEO role since May 2024 and as Chairman of the Board since December 2024. Prior to that, of course, spent time at Spirit AeroSystems as CEO. And prior to that, a series of President, CEO, COO roles across the GE enterprise, including Capital, Healthcare and Aviation Services.
He also holds a number of Board seats and is very involved in the community across the U.S. Chamber of Commerce, RPM International, the Board of Governors for the Wings Club and a number of other community actions, including the Smithsonian National Air and Space Museum, the Wichita State University's Business School Board, as well as the Aerospace Industries Association.
Question-and-Answer Session
Kyle Wenclawiak
Jefferies LLC, Research Division
So with that, Tom, I think a good starting point is, obviously, the first half of the year has been quite strong. You have several of the aerospace programs at pretty close to peak rates that were achieved back in 2019. Margins have made a ton of headway over the past, call it, 1.5 years. So maybe when you think over the back half of this year and into 2027, where you're spending most of your time, where you're most excited about? And what are kind of the upside drivers as you think about the kind of forward years?
STAMFORD, Conn.--(BUSINESS WIRE)--Hexcel Corporation (NYSE: HXL) announced today that Tom Gentile, Chairman, CEO and President, will speak at the Jefferies Global Industrials conference on Wednesday September 9, 2026 at 1:30 PM ET.
A live webcast will be accessible on the Investor Relations section of the Hexcel website using this webcast link. A replay will be available shortly after the conclusion of the presentation.
About Hexcel
Hexcel Corporation is a global leader in advanced lightweight composites technology. We provide innovative, high-performance material solutions that are lighter, stronger and tougher, shaping a world that moves farther, smarter and more efficiently. Our broad and unrivaled product range includes carbon fiber, specialty reinforcements, prepregs and other fiber-reinforced matrix materials, honeycomb, resins, engineered core, and composite structures for use in commercial aerospace, defense and space, and industrial applications.
Key Takeaways Hexcel expanded long-term supply agreements with Boeing across commercial, defense and space programs.New Boeing deals cover composite materials and engineered core requirements for engine applications.Hexcel will supply advanced composites for Deutsche Aircraft's D328eco under a long-term partnership. Hexcel Corporation (HXL - Free Report) is strengthening its long-term growth prospects through new and extended supply agreements with leading aerospace companies. As aircraft production rates rise and the aerospace industry increasingly adopts lightweight and advanced composite materials, such long-term agreements are expected to provide Hexcel with better revenue visibility and support sustained demand for its products.
In July 2026, Hexcel announced a series of new and extended long-term agreements with Boeing, reinforcing the companies’ collaboration across commercial, defense and space programs.
The agreements include a broad enterprise-level framework for the supply of composite materials, as well as a contract extension to support Boeing's advanced acoustic engineered core requirements for engine applications. These deals should enable Hexcel to support Boeing's current production priorities while strengthening its presence across critical aerospace systems.
Earlier, in June 2026, Hexcel signed a long-term industrial partnership and supply agreement with Deutsche Aircraft to provide advanced composite solutions for the D328eco, a next-generation regional turboprop aircraft.
Under the agreement, Hexcel will collaborate with Deutsche Aircraft to integrate advanced composites into the aircraft's airframe. These materials are designed to meet stringent mechanical, weight and environmental requirements, supporting the D328eco's performance and sustainability objectives.
Overall, these long-term agreements highlight strong demand for Hexcel's advanced composite solutions and strengthen its position in the aerospace supply chain. With rising aircraft production and growing demand for lightweight materials, such agreements should provide greater visibility into Hexcel's future revenue opportunities and support its long-term growth.
Other Companies Benefiting From Long-Term AgreementsApart from Hexcel, other aerospace companies are also benefiting from long-term agreements that provide greater revenue visibility and strengthen customer relationships. These companies are discussed below:
Howmet Aerospace Inc. (HWM - Free Report) secures long-term agreements with major aerospace customers to supply engineered components for aircraft engines and other critical systems. Its long-term customer relationships support steady demand and provide visibility into future growth.
TransDigm Group Incorporated (TDG - Free Report) also benefits from long-term relationships with aircraft manufacturers and defense customers. Its broad portfolio of highly engineered aerospace components helps generate recurring demand across commercial and military aircraft programs.
The Zacks Rundown for HXLShares of HXL have surged 48% in the past year compared with the industry’s 3% growth.
Image Source: Zacks Investment Research
The company shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 3.09X compared with its industry’s average of 8.08X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HXL’s 2026 and 2027 earnings has moved north over the past 60 days.
Image Source: Zacks Investment Research
HXL stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It has been about a month since the last earnings report for Hexcel (HXL - Free Report) . Shares have lost about 8% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Hexcel due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
Hexcel Corporation reported second-quarter 2026 adjusted earnings of 66 cents per share, which improved 32% from the year-ago quarter’s figure of 50 cents. The bottom line also surpassed the Zacks Consensus Estimate of 56 cents by 17.9%.
The company reported GAAP earnings of 64 cents per share, which surpassed the year-ago quarter’s earnings of 17 cents.
HXL’s Total SalesThe company’s net sales totaled $529.3 million, which beat the Zacks Consensus Estimate of $522 million by 1.5%. The top line also witnessed an improvement of 8% from the year-ago quarter’s figure of $489.9 million.
Hexcel’s Operational UpdateHexcel's gross margin was 26.1%, which increased 330 basis points from the prior-year quarter. The improvement can be attributed to favorable cost leverage driven by higher sales.
Selling, general and administrative expenses increased 9.8% year over year to $47.2 million.
Meanwhile, research and development expenses rose 21% year over year to $17.3 million.
HXL’s adjusted operating income was $72.6 million compared with $30 million in the year-ago period.
Contribution From Different MarketsCommercial Aerospace: Net sales increased 18.3% year over year to $346.6 million, driven by sales growth from Airbus A350, as well as Boeing 787 programs. This market contributed 66% to total revenues in the first half of 2026.
Defense, Space & Other: Net sales decreased 7.2% year over year to $182.7 million due to the divestment of the Austrian-based industrial business. This market contributed 34% to total revenues in the first half of 2026.
HXL’s Financial DetailsAs of June 30, 2026, Hexcel’s cash and cash equivalents were $62.2 million compared with $71 million as of Dec. 31, 2025.
The company’s long-term debt totaled $959.4 million as of June 30, 2026, down from $993 million as of 2025-end.
HXL’s cash flow from operating activities was $96.7 million against a cash outflow of $5.2 million in the prior year.
Hexcel’s 2026 GuidanceHexcel expects to generate sales in the range of $2.03-$2.13 billion for 2026. The Zacks Consensus Estimate is pegged at $2.08 billion, which lies above the midpoint of the company’s sales guidance.
HXL also expects its adjusted earnings per share to be in the range of $2.30-$2.40 for 2026. The Zacks Consensus Estimate is currently pegged at $2.26 per share, which is below the company’s guided range.
Hexcel expects to generate a free cash flow of more than $195 million in 2026. It also expects capital expenditure to be less than $100 million.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a flat trend in estimates review.
VGM ScoresCurrently, Hexcel has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook Hexcel has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
BlackRock Inc. bought a new stake in Hexcel Corporation (NYSE:HXL – Free Report) during the second quarter, according to its most recent filing with the SEC. The firm bought 14,218,892 shares of the aerospace company’s stock, valued at approximately $1,422,742,000. BlackRock Inc. owned about 18.80% of Hexcel at the end of the most recent quarter.
Several other institutional investors have also recently bought and sold shares of HXL. Alliancebernstein L.P. grew its holdings in Hexcel by 1,918.9% in the 2nd quarter. Alliancebernstein L.P. now owns 2,178,259 shares of the aerospace company’s stock valued at $123,050,000 after buying an additional 2,070,366 shares during the last quarter. Alyeska Investment Group L.P. acquired a new stake in Hexcel in the 3rd quarter worth $123,233,000. Price T Rowe Associates Inc. MD increased its holdings in shares of Hexcel by 18.3% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 5,104,121 shares of the aerospace company’s stock worth $377,196,000 after purchasing an additional 790,320 shares during the period. Jennison Associates LLC raised its position in shares of Hexcel by 87.5% during the fourth quarter. Jennison Associates LLC now owns 1,335,002 shares of the aerospace company’s stock valued at $98,657,000 after buying an additional 623,032 shares during the last quarter. Finally, UBS Group AG lifted its stake in shares of Hexcel by 122.3% in the third quarter. UBS Group AG now owns 955,995 shares of the aerospace company’s stock valued at $59,941,000 after buying an additional 525,900 shares during the period. Institutional investors own 95.47% of the company’s stock.
Key Stories Impacting Hexcel Here are the key news stories impacting Hexcel this week:
Positive Sentiment: Long-term earnings outlook improved: Zacks Research raised its FY2028 EPS estimate to $4.02 from $3.88 and lifted its FY2026 forecast to $2.34 from $2.23. Analysts also increased estimates for Q2 2027 and Q1/Q2 2028, suggesting expectations for stronger aerospace demand and earnings growth over time. Hexcel analyst estimates Neutral Sentiment: Overall earnings expectations remain broadly intact: Zacks projects FY2027 EPS of $2.99 and the current-year consensus remains $2.36, indicating that the revisions have not materially changed the broader earnings narrative. However, the stock’s elevated valuation—approximately 47 times earnings based on the provided background—leaves less room for disappointing updates. Negative Sentiment: Several near-term estimates were reduced: Zacks cut its Q4 2026 EPS forecast to $0.62 from $0.64, Q1 2027 to $0.61 from $0.62, Q3 2027 to $0.71 from $0.72, and FY2027 to $2.99 from $3.02. Q4 2027 was also lowered to $0.94 from $0.96. These reductions may signal caution about the pace of near-term recovery or execution. Neutral Sentiment: Aerospace-sector context: A separate report compares Woodward’s second-quarter results with other aerospace companies, including Hexcel, but the supplied headline does not provide specific Hexcel operating or earnings information. Q2 earnings highlights: Woodward versus aerospace stocks Insider Transactions at Hexcel In other Hexcel news, insider Gina Fitzsimons sold 9,675 shares of the stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $103.14, for a total value of $997,879.50. Following the completion of the sale, the insider directly owned 7,712 shares in the company, valued at $795,415.68. This represents a 55.65% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 1.84% of the company’s stock. Hexcel Stock Down 3.7% Shares of NYSE:HXL opened at $94.18 on Friday. Hexcel Corporation has a 52 week low of $60.26 and a 52 week high of $111.74. The company has a debt-to-equity ratio of 0.74, a quick ratio of 1.37 and a current ratio of 2.43. The company has a market capitalization of $7.12 billion, a PE ratio of 47.33, a PEG ratio of 1.40 and a beta of 1.06. The company has a 50 day moving average price of $101.43 and a two-hundred day moving average price of $92.22.
Hexcel (NYSE:HXL – Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The aerospace company reported $0.66 earnings per share for the quarter, topping analysts’ consensus estimates of $0.57 by $0.09. Hexcel had a net margin of 7.76% and a return on equity of 12.34%. The company had revenue of $529.30 million for the quarter, compared to analysts’ expectations of $528.08 million. During the same period last year, the firm posted $0.50 earnings per share. The business’s quarterly revenue was up 8.0% compared to the same quarter last year. Hexcel has set its FY 2026 guidance at 2.300-2.400 EPS. Analysts forecast that Hexcel Corporation will post 2.36 earnings per share for the current year.
Hexcel Dividend Announcement The firm also recently announced a quarterly dividend, which was paid on Monday, August 17th. Shareholders of record on Monday, August 10th were paid a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date of this dividend was Monday, August 10th. Hexcel’s payout ratio is presently 36.18%.
Analyst Ratings Changes HXL has been the topic of several recent research reports. Wolfe Research lowered Hexcel from an “outperform” rating to a “peer perform” rating in a report on Friday, July 31st. BMO Capital Markets increased their target price on shares of Hexcel from $85.00 to $97.00 and gave the stock a “market perform” rating in a research report on Friday, April 24th. Jefferies Financial Group reaffirmed a “hold” rating and set a $110.00 price target on shares of Hexcel in a report on Sunday, August 2nd. The Goldman Sachs Group upped their price target on shares of Hexcel from $88.00 to $97.00 and gave the stock a “neutral” rating in a research report on Tuesday, August 4th. Finally, Royal Bank Of Canada increased their price objective on shares of Hexcel from $105.00 to $115.00 and gave the stock an “outperform” rating in a report on Friday, July 31st. Five equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $107.18.
View Our Latest Analysis on Hexcel
Hexcel Company Profile (Free Report)
Hexcel Corporation is a global leader in advanced composite materials for aerospace and industrial applications. The company specializes in the development and manufacture of lightweight, high-performance products that enhance fuel efficiency, durability and structural strength. Its offerings are critical to the aerospace sector, where demand for lighter, more efficient aircraft drives continuous innovation in materials.
Hexcel’s product portfolio encompasses carbon fiber reinforcements, pre-impregnated composites (prepregs), honeycomb core, engineered adhesives and structural film adhesives.
Further Reading Five stocks we like better than Hexcel 3 Energy Stocks Raising Dividends as the Sector Surges 5 Reasons the S&P 500 Could Keep Rallying Through Year-End Walmart’s Post-Earnings Drop Could Be a Buying Opportunity The Trade Desk’s Earnings Miss Raises a Bigger Question About Its AI Future
Receive News & Ratings for Hexcel Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Hexcel and related companies with MarketBeat.com's FREE daily email newsletter.
SummaryHexcel Corporation demonstrates accelerating operating leverage, with Q2 sales up 8% and adjusted operating margin expanding 280 bps to 13.9%.HXL raises 2026 sales and EPS guidance, reflecting broadening commercial aerospace demand, particularly from Airbus A350 and Boeing 787 programs.Incremental margin reached 49% in Q2, and management targets mid-30% longer-term, as capacity is restored to meet rising demand.I downgrade from strong buy to buy, with a new price target of $125.31 (21% upside), as near-term upside moderates but multi-year margin and cash flow growth remain compelling.Looking for more investing ideas like this one? Get them exclusively at The Aerospace Forum. Learn More » Alvin Man/iStock Editorial via Getty Images
Hexcel Corporation (HXL), a leading provider of composite materials for the aerospace and defense industry, reported second-quarter 2026 results that confirmed the commercial aerospace recovery is finally translating into higher utilization, margins, and cash flow. High
24.45K Followers
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Hexcel Corporation delivered Q2 2026 non-GAAP EPS of $0.66, beating estimates by $0.08, with revenue up 8% year-over-year to $529.3M. Demand recovery in the Commercial Aerospace portion of the business led to revenue growth of almost 20%. Hexcel is hiring more employees and ramping up production at a previously idle facility, which could lead to margin pressures during H2 of 2026.
As The Magnificent 7 Stumble, Pivot to These 3 Growth StocksHexcel NYSE: HXL reported higher second-quarter sales, margins and cash flow as commercial aircraft production rates increased, led by demand on wide-body programs including the Airbus A350 and Boeing 787.
Second-quarter sales totaled $529 million, up 8% from the prior-year period, while adjusted earnings per share were $0.66. Adjusted operating income rose to $74 million, or 13.9% of sales, from $54 million, or 11.1% of sales, a year earlier. Gross margin increased to 26.1% from 22.8%, reflecting higher production volumes, improved overhead absorption and price realization.
Get Hexcel alerts:
Chairman, CEO and President Tom Gentile said the company is benefiting from the commercial aerospace production ramp and expects operating leverage to continue improving as volumes rise.
“With the ramp-up in commercial aircraft production across all the major programs now firmly taking hold, our operating leverage continues to strengthen from higher volumes combined with strong execution from our team,” Gentile said.
Commercial Aerospace Drives Growth Commercial aerospace sales rose 18.3% year over year to $346.6 million, representing about two-thirds of quarterly revenue. Growth was led by increased volume on the A350 and 787 wide-body programs. Narrow-body sales also rose, with increases on the Boeing 737 MAX, Airbus A320 and A220 programs.
Sales in other commercial aerospace increased 3.7%, driven by regional jets. Gentile said Hexcel typically ships materials four to six months before aircraft assemblers deliver planes, meaning the company manages its operations based on supply-chain production demand rather than reported OEM deliveries.
The company said it has firm Airbus orders through the end of 2026 supporting at least 80 A350 ship sets this year. Gentile said Airbus was producing between eight and nine A350 aircraft per month at the time of the Farnborough Airshow and that Hexcel sees potential upside to its 80-aircraft outlook based on purchase orders and continuing discussions with Airbus.
Hexcel said that if Airbus and Boeing reach their publicly stated peak production rates on major commercial aircraft programs, its existing contracts could generate approximately $500 million in incremental annual sales. The company said it was previously equipped to support an A350 production rate of 13 aircraft per month and retains that capacity, though higher rates could require additional investment.
Defense, Space and Industrial Results Defense, space and other sales totaled $182.7 million, down 7% from the year-earlier quarter. Chief Financial Officer Jamie Coogan said the decline primarily reflected lower industrial revenue following the September 2025 divestiture of Hexcel’s Austrian industrial business and the wind-down of industrial operations at its Leicester, U.K., site.
Hexcel ceased industrial operations at Leicester effective June 30. The site had annual sales of about $15 million and will continue to support aerospace research and development projects.
Defense and space sales alone were unchanged from the prior-year quarter. Strength in U.S. and international fixed-wing programs, international helicopters and satellite sales was offset by temporary softness in launchers and rocket motors, according to Coogan.
Gentile said defense and space remains a priority organic-growth market, and the company expects defense, space, regional jets and business jets to provide about $200 million of incremental sales growth before the end of the decade. He said defense currently accounts for roughly 35% of sales and could eventually represent 40% to 50%, although commercial aerospace is expected to grow rapidly over the next several years.
Capacity, Margins and Cash Flow To support higher demand in the second half and expected production-rate increases in 2027, Hexcel plans to accelerate hiring and restart a carbon-fiber line in Salt Lake City that had been idle during the pandemic. Gentile said the company has 14 carbon-fiber lines in Salt Lake City, four of which had been idled. Two were already restarted, and the company is bringing a third back online earlier than originally planned.
The company had originally planned to hire 400 employees during 2026 and had hired 300 by the time of the call. It expects to complete that plan in the second half while adding further hiring as demand increases.
Coogan said adjusted EBITDA for the first six months of 2026 increased 25% to $216 million, with an adjusted EBITDA margin of 21%, compared with $173 million and an 18.2% margin in the comparable period of 2025. The company is targeting an adjusted operating margin of 18% and an adjusted EBITDA margin of about 25% as production rates recover.
Free cash flow was $52 million in the first half, compared with a $47 million use of cash a year earlier. Net debt-to-last-12-month adjusted EBITDA improved to 2.3 times at June 30 from just under 2.7 times at the end of 2025. Hexcel said it remains focused on reducing leverage to its targeted range of 1.5 to 2.0 times during 2026.
Guidance Raised Hexcel raised its full-year 2026 sales outlook to a range of $2.025 billion to $2.125 billion, from a prior range of $2 billion to $2.1 billion. It increased adjusted EPS guidance to $2.30 to $2.40, compared with previous guidance of $2.10 to $2.30.
The company maintained its outlook for free cash flow of more than $195 million and capital expenditures of less than $100 million. The higher sales outlook reflects expected upside in commercial aerospace, including the A350 and 737 MAX programs.
Management said the second half will include normal third-quarter seasonality, increased hiring costs, expenses associated with restarting the carbon-fiber line, and some conservatism regarding potential oil-price effects. Coogan said Hexcel’s hedging and procurement arrangements helped limit the effect of higher energy and acrylonitrile costs during the second quarter.
The company also declared a quarterly dividend of $0.18 per share, payable Aug. 17 to shareholders of record on Aug. 10.
About Hexcel (NYSE:HXL)Hexcel Corporation is a global leader in advanced composite materials for aerospace and industrial applications. The company specializes in the development and manufacture of lightweight, high-performance products that enhance fuel efficiency, durability and structural strength. Its offerings are critical to the aerospace sector, where demand for lighter, more efficient aircraft drives continuous innovation in materials.
Hexcel's product portfolio encompasses carbon fiber reinforcements, pre-impregnated composites (prepregs), honeycomb core, engineered adhesives and structural film adhesives.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Hexcel Right Now?Before you consider Hexcel, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Hexcel wasn't on the list.
While Hexcel currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Click the link to see MarketBeat's list of seven stocks and why their long-term outlooks are very promising.
Hexcel Corporation (HXL) Q2 2026 Earnings Call July 30, 2026 9:30 AM EDT
Company Participants
Kurt Goddard - Vice President of Investor Relations
Thomas Gentile - CEO, President & Chairman
James Coogan - Executive VP & CFO
Conference Call Participants
Gavin Parsons - UBS Investment Bank, Research Division
Kenneth Herbert - RBC Capital Markets, Research Division
Sheila Kahyaoglu - Jefferies LLC, Research Division
Joshua Korn - Wells Fargo Securities, LLC, Research Division
Richard Safran - Seaport Research Partners
Myles Walton - Wolfe Research, LLC
Scott Mikus - Melius Research LLC
Kristine Liwag - Morgan Stanley, Research Division
Mariana Perez Mora - BofA Securities, Research Division
Anton Rinnert - TD Cowen, Research Division
Presentation
Operator
Thank you for standing by, and welcome to Hexcel's Second Quarter 2026 Earnings Call. [Operator Instructions] I would now like to turn the call over to Kurt Goddard, Vice President, Investor Relations. Sir, please go ahead.
Kurt Goddard
Vice President of Investor Relations
Hello, everyone. Welcome to Hexcel Corporation's Second Quarter Earnings Conference Call. Before beginning, let me cover the formality. I would like to remind everyone about the safe harbor provisions related to any forward-looking statements we may make during the course of this call. Certain statements contained in this call may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. They involve estimates, assumptions, judgments and uncertainties caused by a variety of factors that could cause future results or outcomes to differ materially from our forward-looking statements today.
Such factors are detailed in the company's SEC filings and earnings release. A replay of this call will be available on the Investor Relations page of our website.
Lastly, this call is being recorded by Hexcel Corporation and is copyrighted material. It cannot be recorded or rebroadcast without our express permission. Your participation on this call constitutes your consent to that request.
Key Takeaways Hexcel's Q2 adjusted EPS rose 32% to 66 cents, while net sales increased 8% to $529.3 million.Commercial Aerospace sales grew 18.3%, driven by Airbus A350 and Boeing 787 program growth.Hexcel expects 2026 sales of $2.03-$2.13 billion and adjusted EPS of $2.30-$2.40. Hexcel Corporation (HXL - Free Report) reported second-quarter 2026 adjusted earnings of 66 cents per share, which improved 32% from the year-ago quarter’s figure of 50 cents. The bottom line also surpassed the Zacks Consensus Estimate of 56 cents by 17.9%.
The company reported GAAP earnings of 64 cents per share, which surpassed the year-ago quarter’s earnings of 17 cents.
HXL’s Total SalesThe company’s net sales totaled $529.3 million, which beat the Zacks Consensus Estimate of $522 million by 1.5%. The top line also witnessed an improvement of 8% from the year-ago quarter’s figure of $489.9 million.
Hexcel’s Operational UpdateHexcel's gross margin was 26.1%, which increased 330 basis points from the prior-year quarter. The improvement can be attributed to favorable cost leverage driven by higher sales.
Selling, general and administrative expenses increased 9.8% year over year to $47.2 million.
Meanwhile, research and development expenses rose 21% year over year to $17.3 million.
HXL’s adjusted operating income was $72.6 million compared with $30 million in the year-ago period.
Contribution From Different MarketsCommercial Aerospace: Net sales increased 18.3% year over year to $346.6 million, driven by sales growth from Airbus A350, as well as Boeing 787 programs. This market contributed 66% to total revenues in the first half of 2026.
Defense, Space & Other: Net sales decreased 7.2% year over year to $182.7 million due to the divestment of the Austrian-based industrial business. This market contributed 34% to total revenues in the first half of 2026.
HXL’s Financial DetailsAs of June 30, 2026, Hexcel’s cash and cash equivalents were $62.2 million compared with $71 million as of Dec. 31, 2025.
The company’s long-term debt totaled $959.4 million as of June 30, 2026, down from $993 million as of 2025-end.
HXL’s cash flow from operating activities was $96.7 million against a cash outflow of $5.2 million in the prior year.
Hexcel’s 2026 GuidanceHexcel expects to generate sales in the range of $2.03-$2.13 billion for 2026. The Zacks Consensus Estimate is pegged at $2.08 billion, which lies above the midpoint of the company’s sales guidance.
HXL also expects its adjusted earnings per share to be in the range of $2.30-$2.40 for 2026. The Zacks Consensus Estimate is currently pegged at $2.26 per share, which is below the company’s guided range.
Hexcel expects to generate a free cash flow of more than $195 million in 2026. It also expects capital expenditure to be less than $100 million.
HXL’s Zacks RankHexcel currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense ReleasesTeledyne Technologies Inc. (TDY - Free Report) reported second-quarter 2026 adjusted earnings of $6.28 per share, which surpassed the Zacks Consensus Estimate of $5.78 by 8.7%. The bottom line also improved 20.8% from $5.20 recorded in the year-ago quarter.
Total sales were $1.66 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 5.9%. The top line also jumped 9.8% from $1.51 billion reported in the year-ago quarter.
Northrop Grumman Corporation (NOC - Free Report) reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.
NOC’s total sales of $10.88 billion in the second quarter beat the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.
AAR Corp. (AIR - Free Report) reported fourth-quarter fiscal 2026 adjusted earnings of $1.53 per share, which topped the Zacks Consensus Estimate of $1.41 by 8.5%. The bottom line also improved 31.9% from the year-ago quarter’s level of $1.16.
In the fourth quarter, AAR generated net sales of $928 million. The reported figure beat the Zacks Consensus Estimate of $892 million by 4%. The figure also increased 23% from $754.5 million recorded in the year-ago quarter.
Hexcel (HXL - Free Report) came out with quarterly earnings of $0.66 per share, beating the Zacks Consensus Estimate of $0.56 per share. This compares to earnings of $0.5 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +17.86%. A quarter ago, it was expected that this maker of lightweight composite materials would post earnings of $0.42 per share when it actually produced earnings of $0.59, delivering a surprise of +40.48%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Hexcel, which belongs to the Zacks Aerospace - Defense Equipment industry, posted revenues of $529.3 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.47%. This compares to year-ago revenues of $489.9 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Hexcel shares have added about 48.9% since the beginning of the year versus the S&P 500's gain of 8.5%.
What's Next for Hexcel?While Hexcel has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Hexcel was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.47 on $505.71 million in revenues for the coming quarter and $2.26 on $2.08 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Aerospace - Defense Equipment is currently in the top 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Curtiss-Wright (CW - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5.
This engineering firm is expected to post quarterly earnings of $3.62 per share in its upcoming report, which represents a year-over-year change of +12.1%. The consensus EPS estimate for the quarter has been revised 0.9% higher over the last 30 days to the current level.
Curtiss-Wright's revenues are expected to be $930.6 million, up 6.2% from the year-ago quarter.
For the quarter ended June 2026, Hexcel (HXL - Free Report) reported revenue of $529.3 million, up 8% over the same period last year. EPS came in at $0.66, compared to $0.50 in the year-ago quarter.
The reported revenue represents a surprise of +1.47% over the Zacks Consensus Estimate of $521.65 million. With the consensus EPS estimate being $0.56, the EPS surprise was +17.86%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Hexcel performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales- Commercial Aerospace- Composite Materials: $289.2 million versus $279.43 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +15.7% change.Net Sales- Defense, Space & Other- Composite Materials: $132.3 million compared to the $135.25 million average estimate based on two analysts. The reported number represents a change of -7.7% year over year.Net Sales- Engineered products: $107.8 million versus $102.89 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +11.5% change.Net Sales- Defense, Space & Other- Engineered Products: $50.4 million versus the two-analyst average estimate of $54.12 million. The reported number represents a year-over-year change of -5.8%.Net Sales- Composite Materials: $421.5 million compared to the $414.67 million average estimate based on two analysts. The reported number represents a change of +7.2% year over year.Net Sales- Commercial Aerospace- Engineered Products: $57.4 million versus the two-analyst average estimate of $48.77 million. The reported number represents a year-over-year change of +32.9%.Operating income- Composite Materials: $74.2 million compared to the $73.31 million average estimate based on two analysts.Operating income- Corporate & Other: $-18 million compared to the $-18.11 million average estimate based on two analysts.Operating income- Engineered Products: $16.4 million versus the two-analyst average estimate of $8.57 million.View all Key Company Metrics for Hexcel here>>>
Shares of Hexcel have returned +10% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
STAMFORD, Conn.--(BUSINESS WIRE)--Hexcel Corporation (NYSE: HXL): Q2 2026 GAAP diluted EPS of $0.64 compared to Q2 2025 GAAP diluted EPS of $0.17. Q2 2026 adjusted diluted EPS of $0.66, compared to Q2 2025 adjusted diluted EPS of $0.50. Q2 2026 Sales were $529 million, an increase of 8.0% over Q2 2025 sales of $490 million (8.1% increase in constant currency). FY 2026 sales guidance increased to $2.025 billion to $2.125 billion, previously $2.0 billion to $2.1 billion. Adjusted EPS increased to.
STAMFORD, Conn.--(BUSINESS WIRE)--Hexcel Corporation (NYSE: HXL) announced today that the Company's Board of Directors has declared a regular quarterly cash dividend of $0.18 per share on the common stock of Hexcel, payable to stockholders of record as of August 10, 2026, with a payment date of August 17, 2026. About Hexcel Hexcel Corporation is a global leader in advanced lightweight composites technology. We provide innovative, high-performance material solutions that are lighter, stronger, a.
Key Takeaways Hexcel's Q2 earnings estimate of 56 cents per share implies year-over-year growth of 12%.Higher Airbus, Boeing, business jet and defense demand may have supported Hexcel's results.Increased R&D spending and restructuring costs likely pressured Hexcel's bottom-line performance. Hexcel Corporation (HXL - Free Report) is scheduled to release second-quarter 2026 results on July 29, after market close. The company delivered an earnings surprise of 40.48% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors That Might Have Impacted HXL's Q2 EarningsHexcel’s second-quarter 2026 earnings are likely to have benefited from improving commercial aerospace demand, driven by higher production rates across major Airbus and Boeing programs. Higher demand from business and regional jets, along with steady demand across defense programs, is also expected to have contributed to the company’s quarterly performance.
HXL’s earnings are anticipated to have gained from improving operating leverage, aided by higher production volumes and better capacity utilization. A robust commercial aircraft backlog, coupled with growing adoption of lightweight composite materials, is likely to have further supported quarterly performance.
However, higher operating expenses, primarily due to increased research and development spending and restructuring-related costs, are likely to have weighed on the company's bottom-line performance.
Q2 Expectations for HXLThe Zacks Consensus Estimate for earnings is pegged at 56 cents per share, which indicates year-over-year growth of 12%.
The Zacks Consensus Estimate for revenues is pinned at $521.7 million, which suggests a year-over-year rise of 6.5%.
What Our Quantitative Model Predicts for HXLOur proven model predicts an earnings beat for Hexcel this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below.
Other Stocks to ConsiderInvestors may consider the following players from the same industry, as these also have the right combination of elements to post an earnings beat this reporting cycle.
Woodward, Inc. (WWD - Free Report) is expected to report its fiscal third-quarter 2026 earnings on July 29, after market close. It has an Earnings ESP of +5.10% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for WWD’s earnings is pegged at $2.39 per share, indicating year-over-year growth of 35.8%. The consensus estimate for its sales stands at $1.11 billion, calling for a year-over-year increase of 21.7%.
Curtiss-Wright Corporation (CW - Free Report) is set to report second-quarter 2026 earnings on Aug. 5, after market close. It has an Earnings ESP of +0.36% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for CW’s earnings is pegged at $3.62 per share, suggesting a year-over-year rise of 12.1%. The consensus estimate for its sales stands at $930.6 million, implying a year-over-year increase of 6.2%.
ATI Inc. (ATI - Free Report) is expected to report its second-quarter 2026 earnings on Aug. 6, before market open. It has an Earnings ESP of +1.32% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for ATI’s earnings is pegged at $1.03 per share, suggesting year-over-year growth of 39.2%. The consensus estimate for its sales stands at $1.22 billion, calling for a year-over-year jump of 7%.
Wall Street expects a year-over-year increase in earnings on higher revenues when Hexcel (HXL - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 29. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis maker of lightweight composite materials is expected to post quarterly earnings of $0.56 per share in its upcoming report, which represents a year-over-year change of +12%.
Revenues are expected to be $521.65 million, up 6.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 2.39% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Hexcel?For Hexcel, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +6.13%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Hexcel will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Hexcel would post earnings of $0.42 per share when it actually produced earnings of $0.59, delivering a surprise of +40.48%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Hexcel appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
FARNBOROUGH, England--(BUSINESS WIRE)--Hexcel Corp. (NYSE: HXL), a global leader in advanced composites, has completed qualification of its HexPly® M91 carbon fiber-reinforced epoxy prepreg system through the National Center for Advanced Materials Performance (NCAMP), an initiative of the National Institute for Aviation Research (NIAR) at Wichita State University.The qualification includes both unidirectional tape and plain weave fabric forms, establishing a fully characterized material system f.
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Hexcel (HXL - Free Report) . This company, which is in the Zacks Aerospace - Defense Equipment industry, shows potential for another earnings beat.
This maker of lightweight composite materials has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 22.24%.
For the most recent quarter, Hexcel was expected to post earnings of $0.42 per share, but it reported $0.59 per share instead, representing a surprise of 40.48%. For the previous quarter, the consensus estimate was $0.5 per share, while it actually produced $0.52 per share, a surprise of 4.00%.
Price and EPS Surprise
For Hexcel, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Hexcel has an Earnings ESP of +6.13% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on July 29, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
FARNBOROUGH, England--(BUSINESS WIRE)--Hexcel Corporation (NYSE: HXL), a global leader in advanced lightweight composites technology, announced a series of new and extended long-term agreements with The Boeing Company, reinforcing the companies' collaboration across commercial, defense and space programs. “These agreements reflect the strength of our partnership with Boeing and our shared commitment to advancing composite technology in aerospace applications,” said Lyndon Smith, President, Amer.
Hexcel (HXL 0.91%) and Textron (TXT 1.59%) are two distinct players in the aerospace sector. Deciding which stock to buy requires balancing specialized material expertise against a broad multi-industry manufacturing portfolio.
Hexcel leads in lightweight composite materials essential for modern aircraft efficiency. Textron builds the aircraft itself, as well as specialized vehicles and defense technologies. Both companies are navigating a recovery in global travel and shifting defense priorities, making them common targets for investors in the aerospace industry today.
The case for HexcelHexcel develops and manufactures advanced composite materials like carbon fiber and resin systems for those following industrial stocks. Major customers include Airbus and The Boeing Company (BA 2.91%), which accounted for approximately 39% and 13% of 2025 net sales, respectively. Customer concentration like this adds a layer of risk to the business.
In FY 2025, revenue reached nearly $1.9 billion, a slight decline of approximately $10 million from the prior year. The company reported net income of roughly $109.4 million, resulting in a net margin of close to 5.8%. This margin, which measures profit kept for every dollar earned, was lower than the nearly 6.9% reported in the previous year.
On its December 2025 balance sheet, the debt-to-equity ratio was approximately 0.8x, measuring total debt against shareholder equity. Free cash flow for the year slid about $46 million $157.2 million. Free cash flow is calculated as operating cash minus capital expenditures and shows the cash available after maintaining assets.
The case for TextronTextron operates as a multi-industry manufacturer with a diverse portfolio spanning aviation, defense, and industrial segments. A critical portion of revenue is tied to U.S. government contracts, specifically its Bell subsidiary and its MV-75 assault aircraft program. To improve leverage, the company recently realigned its segments to integrate electric aviation activities into existing divisions.
During FY 2025, revenue grew by roughly 8.0% to nearly $14.8 billion. This growth helped drive a net income $921 million for the year. The net margin was roughly 6.2%, reflecting a consistent performance compared to the nearly 6.0% reported in 2024.
As of its January 2026 balance sheet, the debt-to-equity ratio was roughly 0.5x, showing a lower level of debt relative to equity than its peer. Free cash flow reached $944 million during the 2025 fiscal year. This cash generation provides flexibility for research, acquisitions, or returning capital to shareholders.
Risk profile comparisonHexcel faces significant risks from its high customer concentration with Airbus and Boeing, as production delays at these firms directly impact orders. The company is also vulnerable to supply chain volatility and potential failure to achieve planned savings from recent operational restructuring. Furthermore, evolving cybersecurity threats pose a constant risk to its proprietary technology and global production systems.
Textron relies heavily on U.S. government defense spending, making it sensitive to federal budget shifts and funding delays for programs like the MV-75. The demand for business jets remains highly cyclical and often declines during periods of economic weakness. Finally, supply chain inefficiencies or labor shortages can delay production, while rigorous procurement regulations carry risks of financial penalties.
Valuation comparisonTextron appears to be the more value-oriented choice, trading at a significant discount to Hexcel across both its Forward P/E and P/S ratio.
MetricHexcelTextronSector BenchmarkForward P/E48.1x13.7x242.8xP/S ratio4.0x1.1xn/aSector benchmark uses the SPDR XLI sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Hexcel is a key supplier to the world’s two largest passenger airplane makers, Airbus and Boeing, so its future is closely linked to the state of the airline industry. The fact that both claim record backlog for new equipment is a plus, coming after a pandemic-induced slump in aircraft orders. But that rebound has taken longer than expected. However, airlines are highly sensitive to jet fuel prices, so the Iran war and its effect on prices will likely spur more orders for Hexcel’s core customers. For 2026, Hexcel sales are expected to grow to nearly $2.1 billion, representing nearly 10% growth.
The larger and more diverse Textron is far less dependent on any one industry, although defense spending, golf cart demand, and fuel tanks for passenger automobiles are three notable sectors that it sells strongly into. Textrons’ 2026 sales are expected to grow more slowly than Hexcel’s, at about 5%. However, it is just beginning to plan deliveries of the MV-75, and it plans a big increase in U.S. defense spending in the coming years, which should help longer-term growth.
Though it is slower-growing in fiscal 2026. Textron is significantly cheaper than Hexcel in forward P/E and P/S ratios. Both are good companies with strong stocks, but Textron gets the nod given it is value-priced by the market compared to Hexcel.
Hexcel Corporation (NYSE: HXL), a global leader in advanced lightweight composites technology, today announced its participation in the upcoming [url="]Farnbor
STAMFORD, Conn.--(BUSINESS WIRE)--Hexcel Corporation (NYSE: HXL), a global leader in advanced lightweight composites technology, today announced its participation in the upcoming Farnborough International Airshow, July 20-24, 2026. As a vertically integrated supplier, Hexcel delivers a full range of high-performance composite materials used extensively across commercial aerospace, defense, and space applications. “The Farnborough Air Show provides an important platform to highlight the continue.
STAMFORD, Conn.--(BUSINESS WIRE)--Hexcel Corporation (NYSE: HXL) announced today that it will report financial results for its second quarter of 2026 on Wednesday, July 29 after the market close.
The company will host a webcast and conference call to discuss highlights of its financial results on Thursday, July 30 at 9:30 a.m. ET. The call will be hosted by Chairman, CEO and President Tom Gentile and Chief Financial Officer Jamie Coogan.
The event will be webcast via the Investor Relations webpage at www.Hexcel.com. The event can also be accessed by dialing +1 (646) 307-1963. The conference ID is 2360739. A replay of the call will be available on the investor relations page of the Hexcel website approximately two hours after the conclusion of the call.
About Hexcel
Hexcel Corporation is a global leader in advanced lightweight composites technology. We provide innovative, high-performance material solutions that are lighter, stronger and tougher, shaping a world that moves farther, smarter and more efficiently. Our broad and unrivaled product range includes carbon fiber, specialty reinforcements, prepregs and other fiber-reinforced matrix materials, honeycomb, resins, engineered core, and composite structures for use in commercial aerospace, defense and space, and industrial applications.
Massachusetts Financial Services Co. MA boosted its position in shares of Hexcel Corporation (NYSE:HXL – Free Report) by 23.0% in the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 2,289,145 shares of the aerospace company’s stock after purchasing an additional 428,541 shares during the quarter. Massachusetts Financial Services Co. MA owned about 2.88% of Hexcel worth $169,168,000 as of its most recent filing with the Securities and Exchange Commission.
Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. New York State Common Retirement Fund raised its holdings in Hexcel by 25.8% during the 3rd quarter. New York State Common Retirement Fund now owns 421,980 shares of the aerospace company’s stock worth $26,458,000 after purchasing an additional 86,625 shares during the last quarter. Barclays PLC raised its holdings in Hexcel by 124.0% during the 3rd quarter. Barclays PLC now owns 347,156 shares of the aerospace company’s stock worth $21,767,000 after purchasing an additional 192,190 shares during the last quarter. Fort Washington Investment Advisors Inc. OH raised its holdings in Hexcel by 12.6% during the 3rd quarter. Fort Washington Investment Advisors Inc. OH now owns 403,881 shares of the aerospace company’s stock worth $25,323,000 after purchasing an additional 45,061 shares during the last quarter. Madison Asset Management LLC bought a new stake in Hexcel during the 3rd quarter worth about $1,410,000. Finally, Leeward Investments LLC MA raised its holdings in Hexcel by 33.4% during the 3rd quarter. Leeward Investments LLC MA now owns 371,161 shares of the aerospace company’s stock worth $23,272,000 after purchasing an additional 92,892 shares during the last quarter. 95.47% of the stock is owned by institutional investors.
Hexcel Price Performance Hexcel stock opened at $83.57 on Monday. The firm has a market capitalization of $6.30 billion, a P/E ratio of 60.56, a PEG ratio of 1.31 and a beta of 1.05. Hexcel Corporation has a 1 year low of $45.37 and a 1 year high of $95.22. The business has a 50-day moving average of $85.04 and a 200-day moving average of $77.20. The company has a current ratio of 2.26, a quick ratio of 1.25 and a debt-to-equity ratio of 0.79.
Hexcel (NYSE:HXL – Get Free Report) last posted its earnings results on Wednesday, January 28th. The aerospace company reported $0.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.50 by $0.02. Hexcel had a return on equity of 9.54% and a net margin of 5.78%.The company had revenue of $491.30 million during the quarter, compared to analyst estimates of $484.46 million. During the same period in the previous year, the company earned $0.52 EPS. The company’s revenue for the quarter was up 3.7% compared to the same quarter last year. Hexcel has set its FY 2026 guidance at 2.100-2.300 EPS. On average, equities analysts anticipate that Hexcel Corporation will post 2.14 EPS for the current year.
Hexcel Increases Dividend The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, February 17th. Investors of record on Monday, February 9th were given a $0.18 dividend. The ex-dividend date was Monday, February 9th. This represents a $0.72 annualized dividend and a dividend yield of 0.9%. This is a boost from Hexcel’s previous quarterly dividend of $0.17. Hexcel’s payout ratio is presently 52.17%.
Insider Activity In related news, insider Amy S. Evans sold 1,500 shares of the business’s stock in a transaction that occurred on Friday, February 27th. The stock was sold at an average price of $92.80, for a total value of $139,200.00. Following the completion of the transaction, the insider directly owned 1,979 shares in the company, valued at approximately $183,651.20. The trade was a 43.12% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 1.84% of the company’s stock.
Analysts Set New Price Targets Several brokerages have weighed in on HXL. Jefferies Financial Group dropped their price objective on Hexcel from $90.00 to $80.00 and set a “hold” rating for the company in a report on Monday, April 6th. BMO Capital Markets restated a “market perform” rating and set a $85.00 target price on shares of Hexcel in a research report on Friday, January 30th. Weiss Ratings restated a “hold (c)” rating on shares of Hexcel in a research report on Thursday, January 22nd. Royal Bank Of Canada boosted their target price on Hexcel from $92.00 to $95.00 and gave the stock an “outperform” rating in a research report on Friday, January 30th. Finally, The Goldman Sachs Group boosted their target price on Hexcel from $67.00 to $75.00 and gave the stock a “neutral” rating in a research report on Tuesday, January 20th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Hexcel presently has an average rating of “Hold” and an average price target of $86.36.
Check Out Our Latest Stock Report on HXL
Hexcel Company Profile (Free Report)
Hexcel Corporation is a global leader in advanced composite materials for aerospace and industrial applications. The company specializes in the development and manufacture of lightweight, high-performance products that enhance fuel efficiency, durability and structural strength. Its offerings are critical to the aerospace sector, where demand for lighter, more efficient aircraft drives continuous innovation in materials.
Hexcel’s product portfolio encompasses carbon fiber reinforcements, pre-impregnated composites (prepregs), honeycomb core, engineered adhesives and structural film adhesives.
Read More Five stocks we like better than Hexcel
Receive News & Ratings for Hexcel Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Hexcel and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEMassachusetts Financial Services Co. MA Has $162.05 Million Holdings in Graphic Packaging Holding Company $GPK
NEXT HEADLINE »Ritholtz Wealth Management Buys 219,723 Shares of Information Services Group, Inc. $III
The market expects Hexcel (HXL - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on April 22, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis maker of lightweight composite materials is expected to post quarterly earnings of $0.42 per share in its upcoming report, which represents a year-over-year change of +13.5%.
Revenues are expected to be $486.97 million, up 6.7% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.23% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Hexcel?For Hexcel, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.00%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Hexcel will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Hexcel would post earnings of $0.5 per share when it actually produced earnings of $0.52, delivering a surprise of +4.00%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Hexcel appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
STAMFORD, Conn.--(BUSINESS WIRE)--Embraer awarded Hexcel Corporation (NYSE: HXL), a global leader in advanced composite materials, with the Embraer Best Suppliers Award in the Standards & Materials Category for the second consecutive year, recognizing the company's outstanding performance across quality, delivery, collaboration, and operational excellence. “This recognition is a testament to the dedication of our global teams and the strength of our long‑standing partnership with Embraer,”.
STAMFORD, Conn.--(BUSINESS WIRE)--Hexcel Corporation (NYSE: HXL): Q1 2026 GAAP diluted EPS of $0.49 compared to Q1 2025 GAAP diluted EPS of $0.35. Q1 2026 adjusted diluted EPS of $0.59 compared to Q1 2025 adjusted diluted EPS of $0.37 Q1 2026 Sales were $502 million, an increase of 9.9% compared to Q1 2025 sales of $457 million. Refinanced the $750 million syndicated Revolver and extended maturity to 2031 2026 guidance unchanged See Table C for reconciliation of GAAP and non-GAAP operating inco.
STAMFORD, Conn.--(BUSINESS WIRE)--Hexcel Corporation (NYSE: HXL) announced today that the Company's Board of Directors has declared a regular quarterly cash dividend of $0.18 per share on the common stock of Hexcel, payable to stockholders of record as of May 4, 2026, with a payment date of May 11, 2026. About Hexcel Hexcel Corporation is a global leader in advanced lightweight composites technology. We provide innovative, high-performance material solutions that are lighter, stronger and tough.
Hexcel (HXL - Free Report) came out with quarterly earnings of $0.59 per share, beating the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $0.37 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +40.61%. A quarter ago, it was expected that this maker of lightweight composite materials would post earnings of $0.5 per share when it actually produced earnings of $0.52, delivering a surprise of +4%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Hexcel, which belongs to the Zacks Aerospace - Defense Equipment industry, posted revenues of $501.5 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 2.98%. This compares to year-ago revenues of $456.5 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Hexcel shares have added about 18% since the beginning of the year versus the S&P 500's gain of 3.2%.
What's Next for Hexcel?While Hexcel has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Hexcel was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.58 on $525.88 million in revenues for the coming quarter and $2.22 on $2.07 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Aerospace - Defense Equipment is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, ATI (ATI - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on April 30.
This maker of steel and specialty metals is expected to post quarterly earnings of $0.88 per share in its upcoming report, which represents a year-over-year change of +22.2%. The consensus EPS estimate for the quarter has been revised 0.9% lower over the last 30 days to the current level.
ATI's revenues are expected to be $1.19 billion, up 3.7% from the year-ago quarter.
Hexcel (HXL - Free Report) reported $501.5 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 9.9%. EPS of $0.59 for the same period compares to $0.37 a year ago.
The reported revenue represents a surprise of +2.98% over the Zacks Consensus Estimate of $486.97 million. With the consensus EPS estimate being $0.42, the EPS surprise was +40.61%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Hexcel performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales- Composite Materials: $427.2 million versus the two-analyst average estimate of $389.62 million. The reported number represents a year-over-year change of +10.9%.Net Sales- Engineered products: $104.3 million versus $98.78 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +14% change.Net Sales- Defense, Space & Other- Engineered Products: $51.2 million versus $56.21 million estimated by two analysts on average.Net Sales- Commercial Aerospace- Engineered Products: $51.5 million versus the two-analyst average estimate of $42.58 million. The reported number represents a year-over-year change of +34.5%.Net Sales- Defense, Space & Other- Composite Materials: $117.6 million versus the two-analyst average estimate of $130.15 million.Net Sales- Commercial Aerospace- Composite Materials: $281.2 million compared to the $259.47 million average estimate based on two analysts. The reported number represents a change of +16.3% year over year.Operating income- Composite Materials: $69.7 million versus the two-analyst average estimate of $65.92 million.Operating income- Corporate & Other: $-27.3 million versus the two-analyst average estimate of $-17.86 million.Operating income- Engineered Products: $15.2 million versus the two-analyst average estimate of $6.16 million.View all Key Company Metrics for Hexcel here>>>
Shares of Hexcel have returned +7.7% over the past month versus the Zacks S&P 500 composite's +8.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Key Takeaways Hexcel Q1 earnings beat estimates, with adjusted EPS up 59.5% and sales rising 9.9% year over year.HXL growth was driven by commercial aerospace demand, with Airbus and Boeing programs boosting sales.HXL expects 2026 sales of $2.00-$2.10B and free cash flow above $195M, signaling steady outlook. Hexcel Corporation (HXL - Free Report) reported first-quarter 2026 adjusted earnings of 59 cents per share, which improved 59.5% from the year-ago quarter’s figure of 37 cents. The bottom line also surpassed the Zacks Consensus Estimate of 42 cents by 40.5%.
The company reported GAAP earnings of 49 cents per share, which surpassed the year-ago quarter’s earnings of 35 cents.
HXL’s Total SalesThe company’s net sales totaled $501.5 million, which beat the Zacks Consensus Estimate of $487 million by 3%. The top line also witnessed an improvement of 9.9% from the year-ago quarter’s figure of $456.5 million.
Hexcel’s Operational UpdateHexcel's gross margin was 26.9%, which increased 450 basis points from the prior-year quarter. The improvement can be attributed to favorable cost leverage driven by higher sales.
Selling, general and administrative expenses increased 14.1% year over year to $49.4 million.
Meanwhile, research and technology expenses rose 29% year over year to $17.8 million.
HXL’s adjusted operating income was $57.6 million compared with $44.2 million in the year-ago period.
Contribution From Different MarketsCommercial Aerospace: Net sales increased 18.8% year over year to $332.7 million, driven by sales growth from Airbus A350 and A320, as well as Boeing 787 and 737 programs. This market contributed 66% to total revenues in the quarter.
Defense, Space & Other: Net sales decreased 4.3% year over year to $168.8 million, due to the divestment of the Austrian-based industrial business and lower sales of launchers and rocket motors. This market contributed 34% to total revenues in the quarter.
HXL’s Financial DetailsAs of March 31, 2026, Hexcel’s cash and cash equivalents were $54.1 million compared with $71 million as of Dec. 31, 2025.
The company’s long-term debt totaled $998.1 million as of March 31, 2026, up from $993 million as of 2025-end.
HXL’s cash flow from operating activities was $19 million, in contrast to a cash outflow of $28.5 million in the prior year.
Hexcel’s 2026 GuidanceHexcel expects to generate sales in the range of $2.00-$2.10 billion for 2026. The Zacks Consensus Estimate is pegged at $2.07 billion, which lies above the midpoint of the company’s sales guidance.
HXL also expects its adjusted earnings per share to be in the range of $2.10-$2.30 for 2026. The Zacks Consensus Estimate is currently pegged at $2.22 per share, which is above the midpoint of the company’s guided range.
Hexcel expects to generate a free cash flow of more than $195 million in 2026. It also expects capital expenditure to be less than $100 million.
HXL’s Zacks RankHexcel currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense ReleasesRTX Corporation’s (RTX - Free Report) first-quarter 2026 adjusted earnings per share (EPS) of $1.78 beat the Zacks Consensus Estimate of $1.52 by 17%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.47.
Quarterly revenues came in at $22.08 billion, up 8.7% from $20.31 billion in the year-ago period. Sales also beat the consensus mark of $21.56 billion by 2.43%.
Northrop Grumman Corporation (NOC - Free Report) reported first-quarter 2026 adjusted earnings of $6.14 per share, which beat the Zacks Consensus Estimate of $6.08 by 1%. The bottom line also improved 1.3% from the year-ago quarter’s level of $6.06.
NOC’s total sales of $9.88 billion in the first quarter beat the Zacks Consensus Estimate of $9.79 billion by 1%. The top line also improved 4.4% from $9.47 billion reported in the year-ago quarter.
The Boeing Company (BA - Free Report) incurred an adjusted loss of 20 cents per share in the first quarter of 2026, narrower than the Zacks Consensus Estimate of a loss of 95 cents. The bottom line improved from the year-ago quarter’s reported loss of 49 cents.
Revenues amounted to $22.22 billion, which outpaced the Zacks Consensus Estimate of $21.87 billion by 3.5%. The top line also surged 14% from the year-ago quarter’s reported figure of $19.5 billion.
Hexcel Corporation is upgraded to strong buy with a $105.52 price target, reflecting 16% upside and robust operating leverage. HXL's commercial aerospace sales surged nearly 19% quarterly, driven by Airbus A350, Boeing 787, and strong single-aisle program volumes. 2026 guidance calls for $2–$2.1B in sales, $2.10–$2.30 EPS, and >$195M in free cash flow, as margins and leverage improve.
Hexcel Corporation delivered robust Q1 2026 results, with EPS of $0.59, beating consensus by $0.15, and revenue surpassing $500 million. HXL's revenue grew nearly 10% year-over-year, and the company outperformed the SPY ETF by more than sixfold over the past five months. I maintain a BUY rating on HXL, supported by price momentum and strong projected earnings growth.
Key Takeaways WWD Q2 EPS jumped 34% to $2.27, beating estimates as sales rose 23% to $1.09B.Woodward saw strong Aerospace and Industrial demand, driving growth across OEM and services markets.WWD raised FY26 outlook, now sees sales up 2023% and EPS of $9.15$9.45 on solid momentum. Woodward, Inc. (WWD - Free Report) reported second-quarter fiscal 2026 adjusted net earnings per share (EPS) of $2.27, which jumped 34.3% year over year and beat the Zacks Consensus Estimate by 13.5%.
Quarterly net sales increased 23.4% year over year to $1090.6 million. The upside was fueled by market tailwinds across Aerospace and Industrial. The top line beat the consensus estimate by 9.9%.
Management highlighted that it is raising its full-year outlook, supported by strong first-half performance and continued demand strength. The company remains focused on disciplined execution in a dynamic environment, while continuing to invest in innovation and operational excellence to drive sustained profitable growth and long-term shareholder value.
In the past year, shares have gained 90.3% compared with the Zacks Aerospace - Defense Equipment industry’s rise of 23.6%.
Image Source: Zacks Investment Research
WWD’s Segment ResultsAerospace: Net sales were $703 million, up 25% year over year, driven by broad-based strength across commercial services, commercial OEM and defense OEM. Defense OEM and defense services sales were up 9% and 8%, respectively, year over year. Commercial OEM sales were up 30% year over year, while services jumped 36%.
Segmental earnings were $158 million, up from $125 million a year ago. The increase was driven by price realization and higher sales volumes, partially offset by the impact of inflation as well as continued investments in manufacturing capabilities, research and development and the enterprise resource planning system upgrade. Margins expanded 30 basis points (bps) to 22.5%.
Industrial: Net sales totaled $387 million, up 20% year over year, driven by gains across transportation, power generation and oil & gas markets. Core industrial sales, excluding the China on-highway impact, rose 19%.
Transportation sales surged 34%, and oil and gas sales increased 18%. Power generation grew a modest 7%.
Segmental earnings were $66 million, up from $46 million in the year-ago quarter. In the industrial segment, margins increased 270 bps to 17%. The increase was driven by higher sales volumes, effective price realization and a favorable product mix, partially offset by inflationary pressures and a reserve related to a product performance claim.
Other Details of WWDGross margin was up 180 bps year over year to 29%.
Total costs and expenses were $923.1 million, up 23% year over year.
Adjusted EBITDA was $215.5 million compared with $164 million a year ago.
WWD’s Cash Flow & LiquidityAs of March 31, 2026, Woodward had $501.2 million in cash and cash equivalents with $453.4 million of long-term debt (less the current portion).
For the quarter ended March 31, 2026, WWD generated $90.8 million of net cash from operating activities compared with $77.8 million reported in the same period last year. For the first half, WWD generated $205.3 million of net cash from operating activities compared with $112.3 million reported a year ago.
For the second quarter, free cash flow was $38.2 million compared with $59.4 million in the year-ago period. This uptick was driven by higher earnings.
Capital expenditures reached $53 million in the second quarter, up from $18 million. The company expects capital spending to rise meaningfully over the remaining two quarters.
In the quarter under review, WWD returned $245 million to its shareholders in the form of $19 million of dividends and $226 million worth of share repurchases.
WWD’s Fiscal 2026 GuidanceFor fiscal 2026, Woodward has raised its overall outlook, reflecting strong performance and improved visibility. The company now expects total sales to grow 20–23%, an increase from the earlier guidance of 14–18%.
At the segment level, Aerospace sales growth is now anticipated at 21–24%, up from the earlier estimated 15–20% range, with segment earnings expected to improve to 23–23.5% of sales compared with 22–23% previously. In the Industrial segment, sales are projected to grow 18–20%, an increase from the prior outlook of 11–14%, while segment earnings are expected to rise to 18–18.5% of sales from the earlier 16–17% range.
The company anticipates adjusted EPS of $9.15–$9.45 versus the prior range of $8.20–$8.60.
Other assumptions remain unchanged — the company still anticipates free cash flow of $300–$350 million, capital expenditures of around $290 million and an adjusted effective tax rate of approximately 22%.
WWD’s Zacks RankWoodward currently carries a Zacks Rank #3(Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performance of Other CompaniesTeledyne Technologies Inc. (TDY - Free Report) reported first-quarter 2026 adjusted earnings of $5.80 per share, which surpassed the Zacks Consensus Estimate of $5.48 by 5.9%. The bottom line also improved 17.2% from $4.95 recorded in the year-ago quarter.
Including one-time items, the company recorded GAAP earnings of $4.85 per share, up 21.6% from the prior-year period’s earnings of $3.99.
The year-over-year improvement in the bottom line can be attributed to higher net sales and operating income in the first quarter than the year-ago quarter’s reported actuals.
Hexcel Corporation (HXL - Free Report) reported first-quarter 2026 adjusted earnings of 59 cents per share, which improved 59.5% from the year-ago quarter’s figure of 37 cents. The bottom line also surpassed the Zacks Consensus Estimate of 42 cents by 40.5%.
The company reported GAAP earnings of 49 cents per share, which surpassed the year-ago quarter’s earnings of 35 cents.
The company’s net sales totaled $501.5 million, which beat the Zacks Consensus Estimate of $487 million by 3%. The top line also witnessed an improvement of 9.9% from the year-ago quarter’s figure of $456.5 million.
RTX Corporation’s (RTX - Free Report) first-quarter 2026 adjusted earnings per share of $1.78 beat the Zacks Consensus Estimate of $1.52 by 17%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.47.
Quarterly revenues came in at $22.08 billion, up 8.7% from $20.31 billion in the year-ago period. Sales also beat the consensus mark of $21.56 billion by 2.43%.
, /PRNewswire/ -- AMETEK, Inc. (NYSE: AME) today announced that its Board of Directors has appointed Nick L. Stanage as a new director of the Company. Mr. Stanage is the former Chairman and Chief Executive Officer of Hexcel Corporation (NYSE: HXL), a global leader in advanced lightweight composite technologies for aerospace, defense, and industrial applications.
"We are excited to welcome Nick as a member of AMETEK's Board of Directors," said David A. Zapico, AMETEK Chairman and Chief Executive Officer. "Nick is a seasoned executive with decades of global industrial experience. His proven success at Hexcel combined with his outstanding operating experience nicely complements our current Board of Directors."
Mr. Stanage joined Hexcel in 2009 as President, before assuming the role of Chief Operating Officer in 2012. In 2013, he was named Hexcel's Chief Executive Officer and in 2014, became Chairman of the Board. Following his retirement in May 2024, Mr. Stanage served as Executive Chairman until November 2024. Mr. Stanage now serves as a Director on Hexcel's Board in addition to the boards of Huntington Ingalls Industries and TriMas Corporation.
Prior to joining Hexcel, Mr. Stanage served as President of the Heavy Vehicles Product Group and Vice President and General Manager of the Commercial Vehicle Group at Dana Holding Corporation. Prior to these roles, Mr. Stanage spent 20 years with Honeywell, Inc. holding a number of leadership roles, including Vice President and General Manager, Engine Systems & Accessories.
Mr. Stanage holds a Bachelor of Science degree in Mechanical Engineering from Western Michigan University and a Master of Business Administration degree from the University of Notre Dame.
Corporate Profile
AMETEK (NYSE: AME) is a leading global provider of industrial technology solutions serving a diverse set of attractive niche markets with annual sales of approximately $7.5 billion. The AMETEK Growth Model integrates the Four Growth Strategies - Operational Excellence, Technology Innovation, Global and Market Expansion, and Strategic Acquisitions - with a disciplined focus on cash generation and capital deployment. AMETEK's objective is double-digit percentage growth in earnings per share over the business cycle and a superior return on total capital. Founded in 1930, AMETEK has been listed on the NYSE for over 95 years and is a component of the S&P 500. For more information, visit www.ametek.com.
Contact:
Kevin Coleman
Vice President, Investor Relations and Treasurer
[email protected]
Phone: 610.889.5247
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Hexcel (HXL - Free Report) Delaware-based Hexcel Corporation develops, manufactures and distributes lightweight, high-performance structural materials for use in the Commercial Aerospace, Space & Defense and Industrial markets. Hexcel Corporation, founded in 1946, was incorporated in California in 1948, and reincorporated in Delaware in 1983. The company's products are used in a wide variety of end applications, such as commercial and military aircraft, space launch vehicles and satellites, wind turbine blades, automotive and other complex industrial applications. The company serves international markets through manufacturing facilities located in the United States, Asia Pacific, Europe, Russia and Africa.
HXL is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Aerospace stock. HXL has a Momentum Style Score of B, and shares are up 8.8% over the past four weeks.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.02 to $2.24 per share. HXL boasts an average earnings surprise of +12.6%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, HXL should be on investors' short list.
A month has gone by since the last earnings report for Hexcel (HXL - Free Report) . Shares have lost about 7.2% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Hexcel due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
Hexcel Corporation reported first-quarter 2026 adjusted earnings of 59 cents per share, which improved 59.5% from the year-ago quarter’s figure of 37 cents. The bottom line also surpassed the Zacks Consensus Estimate of 42 cents by 40.5%.
The company reported GAAP earnings of 49 cents per share, which surpassed the year-ago quarter’s earnings of 35 cents.
HXL’s Total SalesThe company’s net sales totaled $501.5 million, which beat the Zacks Consensus Estimate of $487 million by 3%. The top line also witnessed an improvement of 9.9% from the year-ago quarter’s figure of $456.5 million.
Hexcel’s Operational UpdateHexcel's gross margin was 26.9%, which increased 450 basis points from the prior-year quarter. The improvement can be attributed to favorable cost leverage driven by higher sales.
Selling, general and administrative expenses increased 14.1% year over year to $49.4 million.
Meanwhile, research and technology expenses rose 29% year over year to $17.8 million.
HXL’s adjusted operating income was $57.6 million compared with $44.2 million in the year-ago period.
Contribution From Different MarketsCommercial Aerospace: Net sales increased 18.8% year over year to $332.7 million, driven by sales growth from Airbus A350 and A320, as well as Boeing 787 and 737 programs. This market contributed 66% to total revenues in the quarter.
Defense, Space & Other: Net sales decreased 4.3% year over year to $168.8 million, due to the divestment of the Austrian-based industrial business and lower sales of launchers and rocket motors. This market contributed 34% to total revenues in the quarter.
HXL’s Financial DetailsAs of March 31, 2026, Hexcel’s cash and cash equivalents were $54.1 million compared with $71 million as of Dec. 31, 2025.
The company’s long-term debt totaled $998.1 million as of March 31, 2026, up from $993 million as of 2025-end.
HXL’s cash flow from operating activities was $19 million, in contrast to a cash outflow of $28.5 million in the prior year.
Hexcel’s 2026 GuidanceHexcel expects to generate sales in the range of $2.00-$2.10 billion for 2026. The Zacks Consensus Estimate is pegged at $2.07 billion, which lies above the midpoint of the company’s sales guidance.
HXL also expects its adjusted earnings per share to be in the range of $2.10-$2.30 for 2026. The Zacks Consensus Estimate is currently pegged at $2.22 per share, which is above the midpoint of the company’s guided range.
Hexcel expects to generate a free cash flow of more than $195 million in 2026. It also expects capital expenditure to be less than $100 million.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates review.
VGM ScoresCurrently, Hexcel has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Following the exact same course, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Hexcel has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
WICHITA, Kan.--(BUSINESS WIRE)--Hexcel Corporation (NYSE: HXL), a global leader in advanced composite materials, today announced the groundbreaking of the Hexcel Applications Center at Wichita State University's National Institute for Aviation Research (NIAR). The new center marks a significant expansion of Hexcel's long‑standing collaboration with NIAR and reflects a shared commitment to advancing composite materials, automated processing, and aerospace manufacturing innovation. “This investme.
On May 28, 2026, Hexcel Corp HXL shares rose 3.3%, bringing the current price to $91.08. This price falls within a 52-week range of $51.52 to $98.26, reflecting a significant year-to-date gain of 23.8% and a remarkable one-year increase of 78.0%.
GF Value™ verdict: Current price of $91.08 compared to GF Value™ of $79.27 indicates the stock is 14.9% overvalued.GF Score™ of 91/100 suggests a strong overall ranking in terms of quality and performance potential.Most notable signal: A momentum rank of 10/10 indicates strong performance trends in the stock’s price movements. Is HXL Overvalued or Undervalued? Hexcel Corp HXL is currently trading at $91.08, which is above its GF Value™ estimate of $79.27, indicating that the stock is approximately 14.9% overvalued. This situation presents a potential risk for investors, as buying into an overvalued stock can lead to losses if the price corrects to align with its intrinsic value. The GF Valuation label of "Modestly Overvalued" further reinforces this assessment, suggesting that while the stock may not be egregiously overvalued, caution is warranted.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. With the current market price exceeding this intrinsic value, investors may want to consider the margin of safety that exists when purchasing shares. A significant overvaluation may lead to a price adjustment, posing a risk to those holding the stock at the current levels.
How Does HXL's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 59.9x 50.1x Forward P/E 39.7x N/A Hexcel's current P/E (TTM) of 59.9x is significantly above its 5-year median P/E of 50.1x, indicating that the stock is trading at a premium compared to its historical valuation. This analysis aligns with the GF Value™ verdict of being overvalued, suggesting that the current price may not be justified by historical earnings performance.
What Does HXL's GF Score™ Tell Us? Metric Rating GF Score™ 91 Financial Strength 6/10 Profitability 8/10 Growth 9/10 Valuation 7/10 Momentum 10/10 The GF Score™ of 91/100 indicates that Hexcel Corp demonstrates strong potential for long-term returns, particularly highlighted by its high growth rank of 9/10 and momentum rank of 10/10. However, the financial strength rating of 6/10 suggests there could be areas of improvement regarding the company’s balance sheet or liquidity, which may warrant further scrutiny for risk-averse investors.
What Are Insiders Doing with HXL Stock? There have been no insider transactions reported in the last three months for Hexcel Corp. This lack of activity might suggest that insiders are currently not making significant moves, possibly indicating confidence in the stock’s valuation or a wait-and-see approach regarding future price movements. Insider activity can often be a telling sign of internal sentiment regarding share price and company performance.
What This Means for Investors Based on the GF Value™ assessment, Hexcel Corp HXL is currently overvalued. With the stock trading at $91.08 against a GF Value™ of $79.27, investors may want to consider this valuation before making any investment decisions.
For the complete analysis, visit the Hexcel Corp HXL stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is HXL's GF Score™?
HXL's GF Score™ is 91/100, indicating a strong overall ranking based on key aspects such as financial strength, profitability, growth, valuation, and momentum.
Is HXL overvalued or undervalued?
HXL is currently overvalued, with a GF Value™ of $79.27 compared to its current price of $91.08, suggesting a potential risk for investors.
What is HXL's P/E ratio?
HXL's P/E ratio is 59.9x (TTM), which is above its 5-year median P/E of 50.1x, indicating that the stock is trading at a premium compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Hexcel Corporation is rated Buy with a $119/share price target, reflecting strong growth prospects in aerospace, defense, and space markets. Robust Q1'26 results, including 10% top-line growth and 180 bps margin expansion, highlight operational momentum and margin-accretive growth. HXL is positioned to benefit from rising aircraft production, space infrastructure investments, and increased defense spending, with operating leverage expected to improve through FY26.
Investors often weigh the stability of established industry leaders against the high-growth potential of newer challengers. Today, we compare the long-standing Hexcel (HXL +6.32%) against the rapidly expanding Loar (LOAR +5.98%) to see which fits your portfolio.
Hexcel leads the market in advanced composite materials used to make aircraft lighter and more fuel-efficient. Loar focuses on designing and manufacturing niche components for both commercial and military aviation. Both companies benefit from the aerospace recovery, yet they offer different risk and reward profiles for those investing in commercial aviation or military technology.
The case for HexcelHexcel supplies advanced lightweight composite materials, including carbon fiber reinforcements and resins, to the global aerospace market. These products are essential for modern aircraft because they reduce weight and improve fuel efficiency. Roughly 39% of net sales in FY 2025 came from Airbus, while Boeing and its subcontractors accounted for nearly 13%. Customer concentration like this adds a layer of risk to the business. The company remains a key player among defense stocks due to its participation in military aviation programs.
In FY 2025, revenue reached nearly $1.9 billion, which was approximately 0.5% lower than the prior year. Despite this slight decline in sales, the company reported net income of roughly $109.4 million. This resulted in a net margin of close to 5.8%, down from the 6.9% achieved in the previous fiscal year.
As of its December 2025 balance sheet, the debt-to-equity ratio is approximately 0.8x. This ratio measures how much a company finances its operations through debt, rather than through shareholder capital, and includes both short- and long-term debt. The current ratio, which compares short-term assets to short-term liabilities, is roughly 2.3x. In FY 2025, Hexcel generated nearly $307.2 million in free cash flow, the cash remaining after capital expenditures.
The case for LoarLoar focuses on designing and manufacturing niche aerospace and defense components for a variety of end markets. These include commercial aviation, business jets, and military platforms. Unlike some competitors, the company maintains a more diversified customer base, with no single customer accounting for more than 12% of net sales in 2025. Customer concentration like this adds a layer of risk to the business. This strategy helps insulate the business from the production issues of any one aircraft manufacturer.
During FY 2025, the company reported revenue of nearly $496.3 million. This represented a substantial increase of approximately 23.2% compared to the prior year. Net income for the period was roughly $72.1 million, resulting in a net margin of nearly 14.5%, a significant improvement over the 5.5% net margin recorded in the previous fiscal year.
As of the December 2025 balance sheet, the debt-to-equity ratio was 0.0x, indicating the company has no significant debt relative to its equity. The current ratio was approximately 4.7x, suggesting a very strong ability to cover short-term financial obligations. During FY 2025, Loar generated nearly $99.3 million in free cash flow. This metric measures the cash a company generates after subtracting the cost of physical assets, such as equipment.
Risk profile comparisonHexcel faces significant risks due to its heavy reliance on two primary customers. If either Airbus or Boeing experiences program delays or production slowdowns, Hexcel's revenue would likely suffer. Furthermore, the company is vulnerable to supply disruptions because it depends on limited-source raw materials. It must also navigate strict government regulations and the constant threat of cybersecurity breaches targeting its proprietary data.
Loar carries different risks, particularly related to its acquisition-based growth strategy. Integrating new businesses can be difficult and may lead to unforeseen expenses or the loss of key personnel. The company also competes against larger entities such as Honeywell International or TransDigm Group for market share. Because many of its government contracts are fixed-price, Loar faces the risk of shrinking net margins if raw material costs increase unexpectedly.
Valuation comparisonHexcel offers a much lower entry point for investors based on its sales and earnings multiples, while Loar carries a significant growth premium.
MetricHexcelLoarSector BenchmarkForward P/E40.4x52.4x29.8xP/S ratio3.7x12.4xn/aSector benchmark uses the SPDR XLI sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
While both stocks are leaders in their respective niches, they are vastly different types of companies to hold. If you are looking for a stock that is the dominant force in its industry but probably doesn’t offer multibagger returns anytime soon, Hexcel, with its No. 1 position in aerospace composites, is an excellent steady-Eddie investment. On the other hand, Loar is more of a swing-for-the-fences type of investment, offering multibagger potential thanks to its smaller size and a strong history of successful M&A.
Both companies trade at premium forward P/E ratios, but for different reasons. Hexcel gets its lofty valuation thanks to its No. 1 position, wide moat, and tough-to-disrupt operations. Meanwhile, Loar has grown its sales by 38% annually since 2012 and boasts high-and-rising margins. In this sense, I’d say both stocks deserve their premium. However, I think Loar stands out because of its higher growth potential.
Though Loar “competes” with TransDigm in the aerospace components and parts industry, it mostly does so through the M&A process rather than individual parts. They both love to add new parts through tuck-in acquisitions, but TransDigm’s much larger size leaves them uninterested in some tiny M&A deals that wouldn’t move the needle for them -- but do for Loar. In a sense, Loar is borrowing from TransDigm’s playback to try to generate similarly impressive results as the latter has delivered over the years.
That said, while I would rather own Loar, Hexcel could prove an interesting stock over the next decade, as Boeing and Airbus have massive backlogs to fill, which should keep the company busy. At the same time, Hexcel also makes composites for satellites, rocket motors, and other space applications, making it an interesting investment as the space industry booms.
