Hexcel’s fourth quarter was marked by a positive market response, driven by stronger-than-expected commercial aerospace demand and disciplined cost management. Management attributed the quarter’s performance to the ongoing recovery in aircraft production rates across key programs, including the Airbus A350 and Boeing 787, alongside operational streamlining initiatives such as facility closures and workforce reductions. CEO Thomas Gentile noted that "a sustained recovery and ramp-up in commercial aircraft build rates is beginning to take hold," as the company benefited from easing supply chain constraints and a rebound in customer orders, particularly for narrow-body jets.
Is now the time to buy HXL? Find out in our full research report (it’s free for active Edge members).
Hexcel (HXL) Q4 CY2025 Highlights:
- Revenue: $491.3 million vs analyst estimates of $480.5 million (3.7% year-on-year growth, 2.2% beat)
- Adjusted EPS: $0.52 vs analyst estimates of $0.49 (5.2% beat)
- Adjusted EBITDA: $95.9 million vs analyst estimates of $94.32 million (19.5% margin, 1.7% beat)
- Adjusted EPS guidance for the upcoming financial year 2026 is $2.20 at the midpoint, missing analyst estimates by 3.1%
- Operating Margin: 12.5%, up from 1.9% in the same quarter last year
- Market Capitalization: $6.61 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Hexcel’s Q4 Earnings Call
-
Kenneth Herbert (RBC Capital Markets) asked about commercial aerospace growth and underlying A350 assumptions. CEO Thomas Gentile detailed bottom-up demand analysis and reaffirmed confidence in delivering to Airbus' production targets.
-
Gautam Khanna (TD Cowen) questioned out-of-period benefits and incremental margins. Gentile and CFO Michael Lenz attributed margin gains to operating leverage, cost control, and disciplined headcount management.
-
Gavin Parsons (UBS) inquired about fixed versus variable cost dynamics and hiring plans. Gentile explained that Hexcel would only ramp hiring as production rates increase, with current headcount reduced significantly.
-
Sheila Kahyaoglu (Jefferies) queried revenue assumptions and margin risks related to FX. Gentile clarified a conservative stance on Boeing and explained that FX headwinds were already factored into guidance.
-
Ronald Epstein (Bank of America) asked about next-generation manufacturing technology and defense opportunities. Gentile described ongoing collaborations with OEMs on automation and the strategic importance of lightweight composites in emerging defense markets.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be monitoring (1) the pace at which commercial aircraft production rates recover, especially for the A350 and 787, (2) evidence that operational streamlining, such as facility closures, translates into sustainable margin improvement, and (3) resilience in defense and space demand amid shifting geopolitical priorities. The impact of foreign exchange and progress on automation will also be critical signposts.
Hexcel currently trades at $82.99, up from $80.23 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.