Hexcel (HXL) Stock Forecast & Price Target

Hexcel is poised for continued growth, with expectations of approximately 50% revenue increase in the wind blade segment from 2026 to 2028, demonstrating strong market confidence in the original equipment cycle. The company's free cash flow reached about $96.5 million, marking a 32% year-over-year increase and exceeding market expectations by 21%, underscoring its financial strength. Additionally, the ongoing recovery in defense and aerospace spending, particularly with programs like the Rafale fighter and advancements in the A320 program, further supports Hexcel's positive financial outlook amid stabilizing supply chains.

Hexcel's stock has experienced volatility, seeing a 15% increase despite a downward revision to its revenue and EPS outlook, underscoring the inconsistency in its financial performance. The company reported a year-over-year decline of 8.6% in Commercial Aerospace sales, driven primarily by broader aerospace supply chain issues and sustained destocking pressures, contributing to a significant drop in operating margins, which fell to 11.2%. Additionally, the forecast for Q3 suggests further challenges with continued destocking and anticipated tariff impacts, which have resulted in a notable decline in EPS guidance and raised concerns about long-term profitability.