Hexcel Corp. Reports Decline in Q3 Profit, Falls Short of Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 22 2025
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Source: NASDAQ.COM
Earnings Performance: Hexcel Corp. reported a third-quarter profit of $20.6 million, down from $39.8 million last year, and missed analysts' expectations of $0.38 per share with an actual EPS of $0.26.
Adjusted Earnings: Excluding special items, the company reported adjusted earnings of $29.8 million or $0.37 per share for the quarter.
Revenue Comparison: The company's revenue slightly decreased by 0.1% to $456.2 million compared to $456.5 million in the same quarter last year.
Future Guidance: Hexcel Corp. provided full-year EPS guidance of $1.70 to $1.80 and revenue guidance of $1.88 billion.
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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: 84.560
Low
60.00
Averages
77.29
High
90.00
Current: 84.560
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 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 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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