The company sees strong momentum in commercial aerospace, forecasting low to mid-double digit sales growth in 2026, with A350 deliveries expected to jump from 57 to 80 units. Improved production visibility at Airbus and Boeing, coupled with HXL's high fixed-cost leverage, sets up strong earnings growth into 2026. Defense and space markets remain robust, with budgets rising globally and Hexcel targeting low to mid-single digit growth in defense sales for 2026.
Cyborg Score Rationale
Q4 2025 results showed 3.7% sales growth and 14% EBIT growth, signaling operating leverage inflection. Hexcel benefits from structural tailwinds in aerospace production, though valuation appears stretched and execution risk remains on aircraft delivery ramps.
Top Insights
Most OEM destocking is believed to be behind, setting up for a stronger 2026
Fourth quarter composite materials margin reached 20.5%; operating leverage is expected to drive further margin expansion as production rates improve
Hexcel's biggest customers are Airbus (40% of 2024 sales) and Boeing (15% of 2024 sales)
CEO Thomas Gentile indicated strong confidence in a sustained ramp-up of commercial aircraft production rates, citing a commercial aircraft backlog exceeding 17,000 and a delivery shortfall of at least 5,300 aircraft
Named Competitors
Solvay Composites — Aerospace composite materials and resin systems
Toray Composites — Carbon fiber and advanced materials for aerospace
3M Aerospace — Adhesives and composite materials for aircraft
ARC Technologies — Lightweight composite structures and assemblies
Recent Developments
(February 2026) Analyst upgrades; Morgan Stanley upgraded from underweight to equal-weight with $90 target
(January 2026) Q4 2025 earnings beat with 3.7% revenue growth and 14% EBIT growth