HXL
Hexcel Corp (HXL) Q1 2026 Earnings Call Highlights: Strong Aerospace Demand Boosts Revenue and ...
Article Summary
BUY- Hexcel Corp. (NYSE: HXL) reported a 10% increase in sales for the first quarter of 2026, reaching $502 million driven by rising commercial aerospace demand across Airbus A350, A320, Boeing 787, 737, and 737 MAX programs, with gross margins rising to 26.9%, up from 22.4% in the prior year.
- Hexcel maintained full-year guidance, reflecting confidence in sustained demand and operational leverage as commercial aerospace production recovers.
- Defense, Space & Other segment sales declined 6.9% year-over-year due to divestments and restructuring costs from the transition of the Lester UK business, while operating income dropped 13.5% due to foreign exchange headwinds.
- Hexcel refinanced its $750 million revolver, extending its maturity to 2031, strengthening its strong liquidity position.
- Despite the company maintaining guidance with some puts and takes, analysts see upside on the A350 and 737, flat on the 787 due to engine availability issues, and some pressure on A320 due to A320 engine availability.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 1.5% | 25% | 20.0 ptsMinimal (1.5%) - Very weak |
| EPS Growth Next 5Y ? | 28.6% | 25% | 80.0 ptsVery Good (28.6%) - Good outlook |
| Target Price Upside ? | 1.5% | 20% | 20.0 ptsMinimal Upside (1.5%) - Target: $94.40 vs Current: $93.00 |
| Gross Margin % ? | 22.3% | 15% | 40.0 ptsModerate (22.3%) - Adequate margins |
| Drawdown from 52-Wk High ? | -5.4% | 15% | 20.0 ptsBarely a Dip (-5.4%) - Near recent highs |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About HXL
- Hexcel Corporation develops, manufactures, and markets advanced lightweight composites technology.
- It operates through two segments, Composite Materials and Engineered Products.
- The company offers carbon fiber, 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.
- The Composite Materials segment manufactures and markets carbon fibers, fabrics, multi-axials, specialty reinforcements, prepregs and other fiber-reinforced matrix materials, structural adhesives, honeycomb, molding compounds, tooling materials, polyurethane systems, and laminates that are used in military aircraft, transportation, recreational products, and other industrial applications.
- The Engineered Products segment manufactures and markets aircraft structures and finished aircraft components, including wing to body fairings, wing panels, flight deck panels, door liners, rotorcraft blades, spars, and tip caps; and aircraft structural sub-components and semi-finished components used in rotorcraft blades, engine nacelles, and aircraft surfaces, such as flaps, wings, elevators, and fairings; and RF interference control products for military and aerospace applications.
- This segment also provides interference control materials, structural composites, and services; dielectric absorber foams; magnetic absorbers; and thermoplastics for commercial and defense applications.
- The company sells its products directly through its marketing managers, product managers, and sales personnel, as well as through independent distributors in the Americas, Europe, the Asia Pacific, India, and Africa.
- Hexcel Corporation was founded in 1946 and is headquartered in Stamford, Connecticut.