Hexcel Q4 sales rise 3.7%, beat expectations

Overview

• Composite materials maker's Q4 sales rose 3.7%, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company increased quarterly dividend by 6%

Outlook

• Hexcel projects 2026 sales of $2.0 bln to $2.1 bln

• Company expects 2026 adjusted EPS of $2.10 to $2.30

• Hexcel forecasts 2026 free cash flow over $195 mln

Result Drivers

• COMMERCIAL AEROSPACE - Q4 sales increased 7.6% led by strong growth in Airbus A320neo sales, while Airbus A350 sales decreased due to destocking

• DEFENSE & SPACE - Sales decreased 1.9% due to the divestment of the Austrian-based industrial business, despite growth in military helicopter programs

• OPERATING INCOME - Significant increase in Q4 operating income due to improved sales and cost control measures, despite a slight decrease in gross margins

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 10 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy."

• Wall Street's median 12-month price target for Hexcel Corp is $82.00, about 0.5% above its January 27 closing price of $81.57

• The stock recently traded at 36 times the next 12-month earnings vs. a P/E of 27 three months ago

Press Release: ID:nBw3260sqa

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