Hexcel Corporation (NYSE:HXL) is expected to report a decline in earnings despite an increase in revenues for the quarter ending December 2025.The company has a high price-to-earnings (P/E) ratio of 95.13, indicating strong investor confidence in future growth.Hexcel's financial stability is reflected in its current ratio of 2.75 and a moderate debt-to-equity ratio of 0.48.Hexcel Corporation, listed as NYSE:HXL, is a leading advanced composites company that supplies materials to the aerospace, defense, and ...

Key Points FTAI and Hexcel serve different but compatible roles in the aviation sector. FTAI benefits from aftermarket services and new AI-driven opportunities. Hexcel’s composite materials are becoming more important for future aircraft and long-term growth. 10 stocks we like better than Ftai Aviation › FTAI Aviation (NASDAQ: FTAI) and Hexcel (NYSE: HXL) are two attractive stocks in the aviation sector, and while Hexcel looks like the better buy right now for long-term investors, they are actuall ...

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Core Insights - Hexcel Corporation (HXL) has delivered a 27.1% return since the last report, significantly outperforming the S&P 500's 3.1% gain, highlighting the investment potential in aerospace and defense companies [1] Company Analysis - The aerospace, defense, and airline analyst Dhierin-Perkash Bechai leads The Aerospace Forum, focusing on identifying investment opportunities within the aerospace sector [1] - The company utilizes data-informed analysis to provide insights into the complex aerospace industry, which is characterized by significant growth prospects [1] Industry Context - The Aerospace Forum aims to discover investment opportunities in the aerospace, defense, and airline industry, emphasizing the importance of data analytics in shaping investment theses [1]

Investment Rating - The report maintains a positive outlook on the civil aviation manufacturing industry, indicating it will become a significant growth area for China's aerospace manufacturing sector [1][5]. Core Insights - The civil aviation manufacturing sector is expected to mirror the success of the U.S. aerospace industry, where commercial aircraft manufacturing is a major source of revenue and profit for companies like Boeing and GE Aviation [2][55]. - The C919 aircraft is set to lead the development of China's civil aviation manufacturing industry, with a production capacity expected to reach 200 units per year by 2029 [3][56]. - The aftermarket for civil aviation in China is projected to be vast, with the country potentially becoming the largest single aviation market globally by 2044 [4][5]. Summary by Sections Civil Aviation Manufacturing Growth - Civil aviation manufacturing in China is anticipated to grow significantly, driven by the C919's commercial operations and the development of a domestic supply chain [1][5]. - The report highlights that the domestic aviation manufacturing industry is beginning to catch up, with a focus on increasing the localization rate of components [3][4]. C919 Aircraft Development - The C919 aircraft, with over 1,000 orders, is expected to enhance production and delivery capabilities, marking a significant milestone in China's aviation history [3][56]. - The aircraft's production model involves a high degree of localization, with over 50% of its components sourced domestically [3][56]. Aftermarket Opportunities - The civil aviation aftermarket in China is projected to expand, with an increase in the number of approved civil aviation products and components [4][5]. - The report notes that the penetration of domestic materials is expected to rise, helping airlines reduce procurement costs and improve supply chain reliability [4][5]. Investment Opportunities - The report suggests focusing on investment opportunities within the civil aviation manufacturing supply chain, including companies involved in aircraft body manufacturing, materials, engines, and onboard equipment [5]. - Key companies mentioned include AVIC Xi'an Aircraft Industry, AVIC Harbin Aircraft Industry, and various suppliers of materials and components [5].

STAMFORD, Conn.--(BUSINESS WIRE)--Hexcel Corporation (NYSE: HXL) announced today that it will report financial results for its fourth quarter of 2025 on Wednesday, January 28 after the market close. The company will host a webcast and conference call to discuss highlights of its financial results on Thursday, January 29 at 9 a.m. ET. The call will be hosted by Chairman, CEO and President Tom Gentile and Interim Chief Financial Officer Mike Lenz. The event will be webcast via the Investor Relati. ...

Company Overview - Hexcel Corporation (HXL) is a leading producer of carbon fiber composites, which are stronger, lighter, and more durable than aluminum, making them suitable for aerospace, defense, and high-end industrial applications [2] - The company is vertically integrated, producing key inputs such as polyacrylonitrile (PAN), carbon fibers, resins, adhesives, prepregs, and structural components, with a significant portion of its output used internally [2] Market Segments - Hexcel operates in two main segments: Composite Materials (80% of sales) and Engineered Products (20%), serving Commercial Aerospace, Space & Defense, and Industrial markets, with Airbus and Boeing as the largest customers [3] - The carbon fiber produced by Hexcel is utilized in both primary and secondary aircraft structures, with widebody planes benefiting from its lightweight properties for improved fuel efficiency [3] Financial Performance and Projections - Despite a high trailing P/E of 85.07 and a forward P/E of 28.82, Hexcel's earnings are currently depressed due to ongoing supply chain and airframer issues that have hindered aircraft production [1][4] - The market has largely accounted for prolonged weakness, presenting a potential mispricing opportunity, as industry insights indicate that supply chain issues are being resolved, which could lead to a projected 70% increase in aircraft production over the next 3–5 years [4] Competitive Position and Growth Potential - Hexcel's oligopolistic position, technological expertise, and long-term customer relationships contribute to its durability and strong growth potential [5] - Additional growth could arise from stabilization in the aerospace supply chain, increased production volumes of the Airbus A350 and 777, and advancements in the next-generation Boeing 737 narrowbody [5] - Historically, Hexcel has been viewed as a potential takeover target, providing additional optionality for investors [5]

Core Viewpoint - Hexcel Corporation is recognized as a strong company in the advanced composite materials sector, particularly for aerospace and defense applications, with a favorable market position and significant competitive advantages [1] Company Overview - Hexcel Corporation (NYSE:HXL) specializes in advanced carbon fibers, reinforcements, honeycomb materials, and composite parts used in aerospace, defense, and industrial applications [1] - The company is a global leader in advanced composite materials, focusing on carbon fiber reinforcements, resin systems, and honeycomb structures, which are essential for lightweight, high-performance applications [1] Market Position - Major clients include aerospace giants such as Airbus and Boeing, indicating a strong customer base [1] - The market structure is characterized by a duopoly, with significant competitive moats due to high capital intensity, incumbency, and vertical integration [1] - Certification processes for wing and fuselage components require extensive regulatory approval, leading to high switching costs for customers [1] Industry Challenges and Outlook - The industry has faced prolonged downtrends due to COVID-19 supply chain shocks, impacting engine production and companies like Boeing and Spirit Aerosystems [1] - However, these headwinds are believed to be largely resolved, suggesting a potential recovery in the market [1] Competitive Landscape - The competitive structure is described as benign, with Japanese firm Toray being the only other significant competitor, holding a combined market share in wing and fuselage that approaches 90% [1] - Toray's position includes sole-sourced contracts with original equipment manufacturers (OEMs), further solidifying Hexcel's competitive advantages [1] Valuation - The intrinsic value of Hexcel Corporation is estimated to be $85, indicating potential for investment [1]

Core Viewpoint - Hexcel is positioned to benefit significantly from the recovery in aircraft production, driven by the easing of supply chain issues and increasing demand for lightweight composites in new aircraft models [1][6]. Group 1: Market Conditions - The commercial aerospace sector has faced challenges due to lockdowns, supply chain crises, and slow recovery in aircraft production from Boeing and Airbus, impacting Hexcel's growth [1]. - Boeing and Airbus have multiyear backlogs and are ramping up production to meet the demand for over 15,000 aircraft, which is expected to positively impact Hexcel [3][6]. Group 2: Growth Drivers - Hexcel's growth is primarily linked to increased aircraft production and the rising use of composites in aircraft, with the Boeing 777X expected to have a 30% composite penetration compared to 10% in the current 777 model [4]. - The supply chain crisis is improving, as indicated by GE Aerospace and RTX raising their guidance due to better parts availability [3]. Group 3: Financial Outlook - Management has authorized $600 million in share buybacks, reflecting confidence in aircraft production rates and Hexcel's market position [6]. - Wall Street anticipates double-digit revenue growth and EBITDA growth of 20% or more for Hexcel over the next few years, indicating the start of a multiyear recovery [6][7].

Core Insights - Madison Small Cap Fund experienced a challenging third quarter in 2025, with a decline of 1.3% in its performance, underperforming benchmarks due to stock selection and a speculative market environment [1] Company Overview: Hexcel Corporation - Hexcel Corporation is a leader in advanced composite materials, producing carbon fiber reinforcements, resin systems, and honeycomb structures for commercial aerospace, space, and defense applications [2][3] - The stock of Hexcel Corporation had a one-month return of -3.08% but gained 15.30% over the last 52 weeks, closing at $70.55 per share with a market capitalization of $5.616 billion on November 20, 2025 [2] Investment Position - The small cap team initiated a new investment position in Hexcel Corporation, citing its critical role in lightweight, high-performance applications, particularly in aerospace [3] - Major clients include industry leaders such as Airbus and Boeing, benefiting from a duopoly market structure and significant competitive moats [3] - The company faces challenges from previous COVID-related supply chain issues, but these headwinds are believed to be largely resolved [3] - The competitive landscape is characterized by high capital intensity and regulatory hurdles, leading to substantial switching costs for customers [3] - The intrinsic value of Hexcel's franchise is estimated at $85 [3]