Hexcel

HXL

Market cap $6.07B

Hexcel is at the start of a likely multiyear recovery. Boeing and Airbus are aggressively addressing their mammoth backlogs, which benefits Hexcel.

The small cap team initiated a new investment position in Hexcel Corporation. Hexcel is a global leader in advanced composite materials. We initiated a position in Charles River Labs in Q3. CRL is a high-quality company in the drug discovery and development outsourcing space. Small cap exited Saia this quarter. The company has faced a challenging macroeconomic environment for LTL (less-than-truckload) pricing.

Hexcel Corporation (HXL) is rated a BUY, with improving financials and a moderate discount to fair value. HXL's Defense, Space & Other division showed strong growth, while Commercial Aerospace faces short-term headwinds from OEM destocking and tariffs. Dividend growth has resumed since 2022, but the payout ratio has risen sharply, warranting close monitoring by income-focused investors.

All the leading industry players have confirmed that the aerospace supply chain is healing and aircraft production is set to ramp significantly in the coming years. GE Aeropace and RTX have both raised guidance recently, partly on the back of improved parts availability, which is helping boost engine and component production.

Hexcel Corporation (NYSE:HXL ) Q3 2025 Earnings Call October 23, 2025 9:00 AM EDT Company Participants Kurt Goddard - Vice President of Investor Relations Thomas Gentile - CEO, President & Chairman Patrick Winterlich - Executive VP & CFO Conference Call Participants Myles Walton - Wolfe Research, LLC Michael Ciarmoli - Truist Securities, Inc., Research Division Gavin Parsons - UBS Investment Bank, Research Division Scott Mikus - Melius Research LLC Kenneth Herbert - RBC Capital Markets, Research Division John McNulty - BMO Capital Markets Equity Research Peter Skibitski - Alembic Global Advisors Sheila Kahyaoglu - Jefferies LLC, Research Division Gautam Khanna - TD Cowen, Research Division Noah Poponak - Goldman Sachs Group, Inc., Research Division Scott Deuschle - Deutsche Bank AG, Research Division Richard Safran - Seaport Research Partners Presentation Operator Thank you for standing by. My name is Tiffany, and I will be your conference operator today.

The multiyear backlogs and support from Airbus and Boeing are expected to drive significant growth for this company for many years to come. Anecdotal evidence and industry commentary point toward an ongoing ramp-up in aircraft production.

HXL's Q3 earnings lag estimates despite a slight sales beat, as weaker aerospace demand and margin pressure lead to a lowered 2025 EPS outlook.

Although the revenue and EPS for Hexcel (HXL) give a sense of how its business performed in the quarter ended September 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.

Hexcel (HXL) came out with quarterly earnings of $0.37 per share, missing the Zacks Consensus Estimate of $0.38 per share. This compares to earnings of $0.47 per share a year ago.

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 $0.17 per share on the common stock of Hexcel, payable to stockholders of record as of November 3, 2025, with a payment date of November 10, 2025. About Hexcel Hexcel Corporation is a global leader in advanced lightweight composites technology. We propel the future of flight and transportation through excellence in providing inn.