Zacks Research Weighs in on Hexcel's Q3 Earnings (NYSE:HXL)

Key Points

• Zacks Research has downgraded its Q3 2025 EPS estimate for Hexcel Corporation from $0.40 to $0.39, maintaining a "Hold" rating on the stock.
• Hexcel reported $0.50 EPS for the last quarter, exceeding expectations, but saw a 2.1% decline in revenue compared to the previous year.
• Hexcel recently announced a quarterly dividend of $0.17, resulting in an annualized yield of 1.1% amid a payout ratio of 62.96%.

Hexcel Corporation (NYSE:HXL - Free Report) - Stock analysts at Zacks Research cut their Q3 2025 EPS estimates for shares of Hexcel in a research note issued to investors on Tuesday, October 14th. Zacks Research analyst Team now forecasts that the aerospace company will post earnings per share of $0.39 for the quarter, down from their prior forecast of $0.40. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for Hexcel's current full-year earnings is $2.14 per share. Zacks Research also issued estimates for Hexcel's FY2025 earnings at $1.85 EPS, Q1 2026 earnings at $0.45 EPS, Q2 2026 earnings at $0.63 EPS, FY2026 earnings at $2.42 EPS, Q1 2027 earnings at $0.64 EPS and FY2027 earnings at $3.09 EPS.

Several other equities analysts have also recently weighed in on the stock. Weiss Ratings reiterated a "hold (c)" rating on shares of Hexcel in a research note on Wednesday, October 8th. Morgan Stanley lifted their target price on Hexcel from $50.00 to $55.00 and gave the company an "underweight" rating in a research report on Thursday, July 17th. Royal Bank Of Canada restated an "outperform" rating and issued a $70.00 price target (up previously from $65.00) on shares of Hexcel in a research report on Monday, July 28th. BMO Capital Markets increased their target price on shares of Hexcel from $52.00 to $67.00 and gave the stock a "market perform" rating in a report on Tuesday, July 29th. Finally, UBS Group raised shares of Hexcel from a "neutral" rating to a "buy" rating and lifted their price target for the company from $65.00 to $80.00 in a report on Tuesday, September 2nd. Three equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $65.63.

Hexcel Stock Performance

Shares of HXL opened at $62.45 on Wednesday. The firm has a market capitalization of $4.97 billion, a P/E ratio of 57.82, a PEG ratio of 1.96 and a beta of 1.33. The company has a debt-to-equity ratio of 0.53, a current ratio of 2.69 and a quick ratio of 1.50. Hexcel has a one year low of $45.28 and a one year high of $71.05. The business has a fifty day moving average of $62.81 and a 200 day moving average of $57.54.

Hexcel (NYSE:HXL - Get Free Report) last issued its earnings results on Thursday, July 24th. The aerospace company reported $0.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.46 by $0.04. The company had revenue of $489.90 million for the quarter, compared to analysts' expectations of $482.20 million. Hexcel had a net margin of 4.69% and a return on equity of 9.76%. The firm's quarterly revenue was down 2.1% on a year-over-year basis. During the same quarter last year, the company posted $0.60 earnings per share. Hexcel has set its FY 2025 guidance at 1.850-2.050 EPS.

Hedge Funds Weigh In On Hexcel

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Geneos Wealth Management Inc. raised its position in shares of Hexcel by 21.7% during the 2nd quarter. Geneos Wealth Management Inc. now owns 924 shares of the aerospace company's stock valued at $52,000 after buying an additional 165 shares in the last quarter. ProShare Advisors LLC raised its position in Hexcel by 3.7% during the second quarter. ProShare Advisors LLC now owns 4,779 shares of the aerospace company's stock valued at $270,000 after purchasing an additional 172 shares during the period. Park Place Capital Corp raised its position in Hexcel by 65.1% during the second quarter. Park Place Capital Corp now owns 497 shares of the aerospace company's stock valued at $28,000 after purchasing an additional 196 shares during the period. Beverly Hills Private Wealth LLC lifted its stake in shares of Hexcel by 4.0% in the 1st quarter. Beverly Hills Private Wealth LLC now owns 5,323 shares of the aerospace company's stock valued at $291,000 after purchasing an additional 207 shares during the last quarter. Finally, Retirement Systems of Alabama boosted its holdings in shares of Hexcel by 0.3% in the 1st quarter. Retirement Systems of Alabama now owns 98,746 shares of the aerospace company's stock worth $5,407,000 after purchasing an additional 255 shares during the period. 95.47% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other Hexcel news, insider Thierry Merlot sold 8,897 shares of the firm's stock in a transaction that occurred on Thursday, August 28th. The stock was sold at an average price of $63.86, for a total transaction of $568,162.42. Following the completion of the transaction, the insider owned 51,308 shares in the company, valued at $3,276,528.88. This trade represents a 14.78% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Gina Fitzsimons sold 911 shares of the company's stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $65.00, for a total value of $59,215.00. Following the sale, the insider directly owned 4,283 shares in the company, valued at $278,395. This trade represents a 17.54% decrease in their ownership of the stock. The disclosure for this sale can be found here. 2.03% of the stock is currently owned by corporate insiders.

Hexcel Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 15th. Investors of record on Friday, August 8th were given a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date was Friday, August 8th. Hexcel's payout ratio is currently 62.96%.

Hexcel Company Profile

Hexcel Corporation develops, manufactures, and markets carbon fibers, structural reinforcements, honeycomb structures, resins, and composite materials and parts for use in commercial aerospace, space and defense, and industrial applications. It operates through two segments, Composite Materials and Engineered Products.

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