Update shared on03 Sep 2025
Fair value Increased 1.55%Hexcel’s price target was modestly raised to $65.33 as stronger Q2 revenue and EPS and maintained 2025 guidance outweighed near-term inventory and cash flow headwinds, reflecting improved near-term performance but ongoing operational challenges.
Analyst Commentary
- Q2 results surpassed consensus on revenue and EPS, but fell short on adjusted EBIT and cash flow.
- The company reiterated its 2025 guidance, maintaining confidence in its longer-term outlook.
- Continued destocking of A350 inventory in Europe is expected to remain a headwind through Q3.
- Inventory headwinds are projected to be largely resolved by Q4.
- Modest price target increase reflects improved near-term performance offset by ongoing operational challenges.
What's in the News
- Hexcel is actively seeking acquisitions in advanced material science technology but has not yet found attractively priced, synergistic targets.
- The company completed a share buyback of 2,765,529 shares (3.41% of outstanding) for $164.71 million as part of its current program.
- Hexcel reaffirmed full-year 2025 guidance, expecting sales between $1.88 billion and $1.95 billion.
Valuation Changes
Summary of Valuation Changes for Hexcel
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $64.33 to $65.33.
- The Net Profit Margin for Hexcel remained effectively unchanged, moving only marginally from 11.30% to 11.38%.
- The Future P/E for Hexcel remained effectively unchanged, moving only marginally from 21.55x to 21.70x.
Disclaimer
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