Hexcel Reports Q4 Earnings Beat, Shares Surge 9.7%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 22 2026
0mins
Should l Buy HXL?
Source: Benzinga
Hexcel Corp's shares rose 9.7% after the company reported Q4 earnings that exceeded expectations, reaching a 52-week high.
The company reported Q4 sales of $491 million, surpassing analyst expectations of $482 million, with adjusted earnings per share at $0.52, exceeding the consensus forecast of $0.49. Additionally, Hexcel's net income surged from $5.8 million last year to $46.4 million, reflecting a notable improvement in profitability amid the recovery in the commercial aerospace market. The board also approved a 6% increase in the quarterly dividend to $0.18 per share, signaling an optimistic outlook for future growth.
This strong performance not only boosts investor confidence but also positions Hexcel favorably for continued growth in the aerospace materials sector, especially with a forecasted sales range of $2.0 billion to $2.1 billion for 2026.
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Analyst Views on HXL
Wall Street analysts forecast HXL stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for HXL is 77.29 USD with a low forecast of 60.00 USD and a high forecast of 90.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
3 Buy
2 Hold
2 Sell
Hold
Current: 83.200
Low
60.00
Averages
77.29
High
90.00
Current: 83.200
Low
60.00
Averages
77.29
High
90.00
About HXL
Hexcel Corporation is engaged in providing advanced lightweight composites technology. The Company’s 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, space and defense, and industrial applications. The Company operates through two segments: Composite Materials and Engineered Products. The Composite Materials segment comprises its carbon fiber, specialty reinforcements, resin systems, prepregs and other fiber-reinforced matrix materials, and honeycomb core product lines and pultruded profiles. The Engineered Products segment comprises lightweight high strength composite structures, radio frequency/electromagnetic interference (RF/EMI) and microwave absorbing materials, engineered core and specialty machined honeycomb products with added functionality and thermoplastic additive manufacturing.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Hexcel Corporation Q4 2025 Earnings Call Insights
- Strong Demand in Commercial Aviation: CEO Thomas Gentile highlighted a backlog of over 17,000 commercial aircraft, with a delivery shortfall of at least 5,300, indicating robust demand for lightweight, fuel-efficient planes, which is expected to drive future sales growth for Hexcel.
- Solid Financial Performance: Hexcel reported full-year 2025 sales of $1.894 billion and adjusted EPS of $1.76, with Q4 sales reaching $492 million, up 3.7% year-over-year, including commercial aerospace sales of $299.5 million, reflecting strong performance in the aviation market.
- Optimistic Future Outlook: Gentile projected 2026 sales between $2.0 billion and $2.1 billion, with adjusted EPS between $2.10 and $2.30, and anticipated generating over $1 billion in cumulative free cash flow over the next four years, demonstrating confidence in future growth.
- Strategic Investments and Buyback Plans: Hexcel launched a $350 million accelerated share repurchase program and increased its quarterly dividend by 6% to $0.18 per share, indicating a commitment to enhancing shareholder returns while optimizing capital structure to support long-term growth.
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Hexcel Q4 Earnings Beat Expectations, Shares Rise 9.7%
- Earnings Beat: Hexcel reported Q4 sales of $491 million, surpassing analyst expectations of $482 million, with adjusted earnings per share at $0.52, exceeding the consensus forecast of $0.49, indicating strong performance in the aerospace materials sector.
- Significant Profit Growth: The company's net income surged from $5.8 million last year to $46.4 million, translating to earnings per share of $0.60, reflecting a notable improvement in profitability amid the recovery in the commercial aerospace market.
- Dividend Increase: Hexcel's board approved a 6% increase in the quarterly dividend to $0.18 per share, payable on February 17, which not only boosts investor confidence but also signals the company's optimistic outlook for future growth.
- 2026 Outlook: Hexcel forecasts sales between $2.0 billion and $2.1 billion for 2026, with adjusted earnings per share projected at $2.10 to $2.30, exceeding the analyst estimate of $2.27, showcasing strong growth potential driven by the recovery in commercial aerospace and increased defense spending.
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Hexcel to Announce Q4 Earnings on January 28
- Earnings Announcement Date: Hexcel is set to announce its Q4 earnings on January 28 after market close, with a consensus EPS estimate of $0.49, reflecting a 5.8% year-over-year decline, which may affect investor confidence in the company's profitability.
- Revenue Expectations: The anticipated revenue for Q4 is $481.79 million, representing a 1.7% year-over-year increase, indicating resilience in a challenging market environment, which could attract investors seeking stable returns despite limited growth.
- Historical Performance Review: Over the past two years, Hexcel has beaten EPS estimates 63% of the time and revenue estimates 38% of the time, demonstrating relative stability in earnings forecasts, potentially bolstering market confidence in its future performance.
- Estimate Revision Dynamics: In the last three months, there have been no upward revisions to EPS estimates and 9 downward revisions, while revenue estimates also saw no upward revisions and 8 downward revisions, indicating analysts' cautious outlook on the company's short-term prospects, which may influence investor decisions.
See More
FTAI Aviation and Hexcel: Dual Investment Opportunities in Aerospace
- Market Outlook: FTAI Aviation focuses on the aerospace aftermarket while Hexcel's composite materials are used in the OEM market, allowing investors to benefit from both strong aircraft production and delays faced by airlines, creating a complementary investment portfolio.
- Competition and Collaboration: FTAI competes with GE Aerospace while also supporting its engine sales, particularly in maintaining CFM56 engines, and will service CFM's newer LEAP engines in the future, enhancing its position in the aviation maintenance market.
- AI-Driven Growth: FTAI's stock has surged recently, primarily due to the launch of FTAI Power, which converts CFM56 engines into power turbines for data centers to meet the growing demand for AI, showcasing FTAI's potential in emerging markets.
- Hexcel's Long-Term Growth: Hexcel's composite materials play a crucial role in the future of the aerospace industry, with increasing demand for composites in new aircraft, particularly as the 737 MAX's composite usage rises from 5% to 15%, positioning Hexcel to benefit from the growth in aircraft production.
See More
FTAI and Hexcel: Dual Investment Opportunities in Aviation Sector
- Market Complementarity: FTAI focuses on the aerospace aftermarket while Hexcel's composite materials are increasingly important in the OEM market, allowing investors to benefit from both strong aircraft production and delays faced by airlines, thus diversifying their portfolios.
- Technological Innovation: The recent launch of FTAI Power, which converts CFM56 engines into power turbines for data centers to meet growing AI demand, has significantly boosted FTAI's stock, showcasing its technological edge and future growth potential in the aviation market.
- Growing Demand for Composites: Hexcel's composite materials are seeing increased usage in new aircraft generations, with the 737 MAX featuring 15% composites, providing superior strength and weight advantages over traditional materials, helping airlines enhance productivity and meet emissions goals.
- Long-Term Growth Prospects: As supply chain bottlenecks in the aerospace industry ease, Hexcel stands to benefit not only from increased aircraft production but also from the broader application of its composites, making it a focal point for investors seeking long-term growth opportunities.
See More
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Hexcel Corporation Q4 2025 Earnings Call Insights
- Strong Demand in Commercial Aviation: CEO Thomas Gentile highlighted a backlog of over 17,000 commercial aircraft, with a delivery shortfall of at least 5,300, indicating robust demand for lightweight, fuel-efficient planes, which is expected to drive future sales growth for Hexcel.
- Solid Financial Performance: Hexcel reported full-year 2025 sales of $1.894 billion and adjusted EPS of $1.76, with Q4 sales reaching $492 million, up 3.7% year-over-year, including commercial aerospace sales of $299.5 million, reflecting strong performance in the aviation market.
- Optimistic Future Outlook: Gentile projected 2026 sales between $2.0 billion and $2.1 billion, with adjusted EPS between $2.10 and $2.30, and anticipated generating over $1 billion in cumulative free cash flow over the next four years, demonstrating confidence in future growth.
- Strategic Investments and Buyback Plans: Hexcel launched a $350 million accelerated share repurchase program and increased its quarterly dividend by 6% to $0.18 per share, indicating a commitment to enhancing shareholder returns while optimizing capital structure to support long-term growth.
See More
Hexcel Q4 Earnings Beat Expectations, Shares Rise 9.7%
- Earnings Beat: Hexcel reported Q4 sales of $491 million, surpassing analyst expectations of $482 million, with adjusted earnings per share at $0.52, exceeding the consensus forecast of $0.49, indicating strong performance in the aerospace materials sector.
- Significant Profit Growth: The company's net income surged from $5.8 million last year to $46.4 million, translating to earnings per share of $0.60, reflecting a notable improvement in profitability amid the recovery in the commercial aerospace market.
- Dividend Increase: Hexcel's board approved a 6% increase in the quarterly dividend to $0.18 per share, payable on February 17, which not only boosts investor confidence but also signals the company's optimistic outlook for future growth.
- 2026 Outlook: Hexcel forecasts sales between $2.0 billion and $2.1 billion for 2026, with adjusted earnings per share projected at $2.10 to $2.30, exceeding the analyst estimate of $2.27, showcasing strong growth potential driven by the recovery in commercial aerospace and increased defense spending.
See More
Hexcel to Announce Q4 Earnings on January 28
- Earnings Announcement Date: Hexcel is set to announce its Q4 earnings on January 28 after market close, with a consensus EPS estimate of $0.49, reflecting a 5.8% year-over-year decline, which may affect investor confidence in the company's profitability.
- Revenue Expectations: The anticipated revenue for Q4 is $481.79 million, representing a 1.7% year-over-year increase, indicating resilience in a challenging market environment, which could attract investors seeking stable returns despite limited growth.
- Historical Performance Review: Over the past two years, Hexcel has beaten EPS estimates 63% of the time and revenue estimates 38% of the time, demonstrating relative stability in earnings forecasts, potentially bolstering market confidence in its future performance.
- Estimate Revision Dynamics: In the last three months, there have been no upward revisions to EPS estimates and 9 downward revisions, while revenue estimates also saw no upward revisions and 8 downward revisions, indicating analysts' cautious outlook on the company's short-term prospects, which may influence investor decisions.
See More
FTAI Aviation and Hexcel: Dual Investment Opportunities in Aerospace
- Market Outlook: FTAI Aviation focuses on the aerospace aftermarket while Hexcel's composite materials are used in the OEM market, allowing investors to benefit from both strong aircraft production and delays faced by airlines, creating a complementary investment portfolio.
- Competition and Collaboration: FTAI competes with GE Aerospace while also supporting its engine sales, particularly in maintaining CFM56 engines, and will service CFM's newer LEAP engines in the future, enhancing its position in the aviation maintenance market.
- AI-Driven Growth: FTAI's stock has surged recently, primarily due to the launch of FTAI Power, which converts CFM56 engines into power turbines for data centers to meet the growing demand for AI, showcasing FTAI's potential in emerging markets.
- Hexcel's Long-Term Growth: Hexcel's composite materials play a crucial role in the future of the aerospace industry, with increasing demand for composites in new aircraft, particularly as the 737 MAX's composite usage rises from 5% to 15%, positioning Hexcel to benefit from the growth in aircraft production.
See More
FTAI and Hexcel: Dual Investment Opportunities in Aviation Sector
- Market Complementarity: FTAI focuses on the aerospace aftermarket while Hexcel's composite materials are increasingly important in the OEM market, allowing investors to benefit from both strong aircraft production and delays faced by airlines, thus diversifying their portfolios.
- Technological Innovation: The recent launch of FTAI Power, which converts CFM56 engines into power turbines for data centers to meet growing AI demand, has significantly boosted FTAI's stock, showcasing its technological edge and future growth potential in the aviation market.
- Growing Demand for Composites: Hexcel's composite materials are seeing increased usage in new aircraft generations, with the 737 MAX featuring 15% composites, providing superior strength and weight advantages over traditional materials, helping airlines enhance productivity and meet emissions goals.
- Long-Term Growth Prospects: As supply chain bottlenecks in the aerospace industry ease, Hexcel stands to benefit not only from increased aircraft production but also from the broader application of its composites, making it a focal point for investors seeking long-term growth opportunities.
See More
Dell, Heineken, and 28 Additional Selections for 2026 from the Barron’s Roundtable
Dramatic Start to 2026: The year has begun with significant tensions, likened to a transition from conflict to peace efforts.
Greenland's Political Situation: Greenland was on the verge of becoming the seventh state of New England, highlighting its unique geopolitical status.
See More
