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.
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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.
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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.
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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.
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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.
