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. The Composite Materials segment manufactures and markets fabrics, multi-axials, specialty reinforcements, prepregs and other fiber-reinforced matrix materials, structural adhesives, molding compounds, tooling materials, polyurethane systems, and laminates that are used in military and commercial aircraft, wind turbine blades, recreational products, and other industrial applications, as well as in automotive, marine, and rail transportation. The Engineered Products segment manufactures and markets aircraft structures and finished aircraft components, including wing to body fairings, wing panels, flight deck panels, door liners, rotorcraft blades, spars, and tip caps; and aircraft structural sub-components and semi-finished components used in rotorcraft blades, engine nacelles, and aircraft surfaces, such as flaps, wings, elevators, and fairings; and RF interference control products for military and aerospace applications. This segment also provides interference control materials, structural composites, and services; dielectric absorber foams; magnetic absorbers; and thermoplastics for commercial and defense applications. The company sells its products directly through its managers, product managers, and sales personnel, as well as through independent distributors in the Americas, Europe, the Asia Pacific, India, and Africa. Hexcel Corporation was founded in 1946 and is headquartered in Stamford, Connecticut.

Hexcel looks like a high-quality industrial asset, but no longer a cheap one: the business remains profitable, yet the valuation is clearly running ahead of the underlying fundamentals. The P/E of 51.99, P/S of 3.32, and P/B of 5.39 are significantly above the industry median, indicating high market expectations and limiting further upside potential without an acceleration in earnings. P/FCF of 26.06 is also above average, though not as extreme as P/E and P/S, so free cash flow does not yet look strong enough to fully justify the premium. At the same time, leverage is moderate in absolute terms, but debt/equity of 0.74 is above the industry median, and long-term debt remains meaningful, which adds caution to the valuation. The company’s strength is liquidity: a current ratio of 2.43 and a quick ratio of 1.37 look comfortable and support financial stability. Profitability has generally improved versus last year: an operating margin of 11.53% and a net profit margin of 7.74% show solid operating discipline, while EBITDA and operating income are growing. However, in terms of capital quality and efficiency, Hexcel still lags the industry: ROE of 8.37%, ROI of 6.73%, and return on tangible equity of 13.82% are below median benchmarks, suggesting less-than-ideal returns on invested capital. Gross margin of 24.97% is also below the industry level, so pricing power and cost structure do not look among the strongest in the sector. It is positive that revenue, gross profit, EBITDA, net income, and operating income are generally growing year over year, and equity remains high relative to liabilities. But cash on hand has declined to $62 million, and the dividend yield of 0.18% has fallen noticeably, meaning shareholder returns through dividends are weak. Overall, the fundamentals support the company as a resilient industrial business, but the premium valuation has already priced in a significant portion of the improvements. For an investor, this suggests a moderately cautious view: the core story remains intact, but the current price looks closer to fair value or slightly overvalued relative to the quality of growth.

Hexcel Corporation

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Средний индекс, значительно вырос. Рынок на стороне быков.

Medium index, significantly up. The market is on the bulls' side.

Слабый индекс, незначительно вырос

Hexcel is demonstrating growth in revenue and profit with good liquidity, but it is trading at a high premium on valuation multiples and has weak dividend yield.

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Ultra Clean Holdings Inc (Symbol: UCTT), where a total of 10,115 contracts have traded so far, representing approximately 1.0 million underlying shares. That amounts to about 125.2% of UCTT's average daily trading volume over the past month of 808,105 shares. Particularly high volume was seen for the $90 strike call option expiring October 16, 2026, with 5,015 contracts trading so far today, representing approximately 501,500 underlying shares of UCTT. Below is a chart showing UCTT's trailing twelve month trading history, with the $90 strike highlighted in orange:
Hexcel Corp. (Symbol: HXL) options are showing a volume of 10,489 contracts thus far today. That number of contracts represents approximately 1.0 million underlying shares, working out to a sizeable 122.4% of HXL's average daily trading volume over the past month, of 856,965 shares. Particularly high volume was seen for the $80 strike call option expiring October 16, 2026, with 5,210 contracts trading so far today, representing approximately 521,000 underlying shares of HXL. Below is a chart showing HXL's trailing twelve month trading history, with the $80 strike highlighted in orange:
And Pacific Biosciences of California Inc (Symbol: PACB) options are showing a volume of 86,584 contracts thus far today. That number of contracts represents approximately 8.7 million underlying shares, working out to a sizeable 120.6% of PACB's average daily trading volume over the past month, of 7.2 million shares. Especially high volume was seen for the $2 strike call option expiring December 18, 2026, with 40,742 contracts trading so far today, representing approximately 4.1 million underlying shares of PACB. Below is a chart showing PACB's trailing twelve month trading history, with the $2 strike highlighted in orange:
For the various different available expirations for UCTT options, HXL options, or PACB options, visit StockOptionsChannel.com.
Further UCTT Research:

Noteworthy Wednesday Option Activity: UCTT, HXL, PACB

Key Points
Boeing trades at a valuation discount versus peers, especially after 2028.
Recent management actions are addressing operational and supply chain issues.
Execution on Boeing’s backlog is not a given, but it is a major opportunity to generate value for investors.
Boeing (NYSE: BA) stock presents a rare value in the aerospace sector right now. Commercial aerospace-focused stocks tend to command premium valuations because the market prices in a long-term stream of income coming from a combination of lucrative aftermarket services and the surety of massive commercial aircraft backlogs at Boeing and Airbus.
However, the valuation discount makes it appear attractive to value-oriented investors. Here's why.
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Boeing's valuation discount
The table shows price-to-free cash flow (FCF) valuations based on the Wall Street consensus from Visible Alpha.
Price to Free Cash Flow
2025
2026
2027
2028
2029
2030
The Boeing Company
NM
66.6x
27.3x
17.1x
13.8x
11.6x
GE Aerospace
42.8x
35.3x
31.3x
28.3x
25.9x
23.1x
Howmet Aerospace
58.2x
46.6x
38.6x
32.5x
28.6x
26.5x
Hexcel
37.6x
33.4x
25.7x
21.6x
18.2x
16.8x
RTX
31.3x
30.6x
26.1x
23.0x
20.5x
18.7x
The clear discount beyond 2028 then leads to an almost philosophical question: If Boeing and Airbus aircraft are the starting point of the commercial aerospace industry and Boeing's current backlog of more than 6,200 airplanes (worth $597 billion) is a large part of the rationale for buying aerospace stocks, why does Boeing deserve such a valuation discount?
The answer lies in the much-maligned, high-profile 737 MAX quality issues and groundings, as well as delays in commercial aircraft certifications and massive losses on fixed-price development programs in its defense arm, Boeing Defense, Space & Security (BDS). Simply put, Boeing needs to convince investors that its worst days are behind it and that it can execute to meet the numbers implied by the valuations above for 2028 and beyond.
CEO Kelly Ortberg is turning the company around
The good news is there are signs of progress.
First, having started 2025 with 737 MAX production in the low 30s per month, CEO Kelly Ortberg said in July that Boeing is "now ramping to 47 airplanes per month" and that a production line in Everett, Washington, will be opened to reach 52 per month in the future.
Ortberg recently spoke at a Morgan Stanley conference, saying, "We are not stable yet at 47 a month," which is a little disappointing. On a more positive note, he confirmed that the new production line in Everett is now open. Moreover, Ortberg believes certification on the 737 MAX 10 (an aircraft likely to compete with the hugely successful Airbus A321) is coming very soon.
Second, the acquisition of Spirit AeroSystems in December 2025 has derisked its supply chain for fuselages and other components for the 737 MAX, 777, and 787 Dreamliner.
Third, the issues at BDS primarily relate to a few problematic fixed-price development programs (KC-46 Tanker and Air Force One among them), which the company is working through (the rest of the business is profitable). The company is on track to return to profitability at BDS in 2026.
Finally, Boeing's sale of its electric vertical takeoff and landing (eVTOL) business, Wisk, to Archer Aviation helps to focus Boeing on its core business.
A stock to buy?
When you put these things together, it's clear that Ortberg is making progress at Boeing, and the enduring opportunity to execute on its massive backlog underpins the stock's valuation case.
Should you buy stock in Boeing right now?
Before you buy stock in Boeing, consider this:
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Boeing Isn't Perfect -- but It's Still a Compelling Value Buy Right Now

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Wednesday, shares of Hexcel Corp. (Symbol: HXL) entered into oversold territory, hitting an RSI reading of 29.4, after changing hands as low as $90.96 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 53.6. A bullish investor could look at HXL's 29.4 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of HXL shares:
Looking at the chart above, HXL's low point in its 52 week range is $60.26 per share, with $111.735 as the 52 week high point — that compares with a last trade of $91.75.
Further HXL Research:

Hexcel is Now Oversold (HXL)

Hexcel Corporation HXL is strengthening its long-term growth prospects through new and extended supply agreements with leading aerospace companies. As aircraft production rates rise and the aerospace industry increasingly adopts lightweight and advanced composite materials, such long-term agreements are expected to provide Hexcel with better revenue visibility and support sustained demand for its products.
In July 2026, Hexcel announced a series of new and extended long-term agreements with Boeing, reinforcing the companies’ collaboration across commercial, defense and space programs.
The agreements include a broad enterprise-level framework for the supply of composite materials, as well as a contract extension to support Boeing's advanced acoustic engineered core requirements for engine applications. These deals should enable Hexcel to support Boeing's current production priorities while strengthening its presence across critical aerospace systems.
Earlier, in June 2026, Hexcel signed a long-term industrial partnership and supply agreement with Deutsche Aircraft to provide advanced composite solutions for the D328eco, a next-generation regional turboprop aircraft.
Under the agreement, Hexcel will collaborate with Deutsche Aircraft to integrate advanced composites into the aircraft's airframe. These materials are designed to meet stringent mechanical, weight and environmental requirements, supporting the D328eco's performance and sustainability objectives.
Overall, these long-term agreements highlight strong demand for Hexcel's advanced composite solutions and strengthen its position in the aerospace supply chain. With rising aircraft production and growing demand for lightweight materials, such agreements should provide greater visibility into Hexcel's future revenue opportunities and support its long-term growth.
Other Companies Benefiting From Long-Term Agreements
Apart from Hexcel, other aerospace companies are also benefiting from long-term agreements that provide greater revenue visibility and strengthen customer relationships. These companies are discussed below:
Howmet Aerospace Inc. HWM secures long-term agreements with major aerospace customers to supply engineered components for aircraft engines and other critical systems. Its long-term customer relationships support steady demand and provide visibility into future growth.
TransDigm Group Incorporated TDG also benefits from long-term relationships with aircraft manufacturers and defense customers. Its broad portfolio of highly engineered aerospace components helps generate recurring demand across commercial and military aircraft programs.
The Zacks Rundown for HXL
Shares of HXL have surged 48% in the past year compared with the industry’s 3% growth.
Image Source: Zacks Investment Research
The company shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 3.09X compared with its industry’s average of 8.08X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HXL’s 2026 and 2027 earnings has moved north over the past 60 days.
Image Source: Zacks Investment Research
HXL stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Can Long-Term Agreements Strengthen Hexcel's Growth Prospects?

HEICO Corporation HEI is scheduled to release third-quarter fiscal 2026 results on Aug. 25, after market close. The company delivered an earnings surprise of 24.81% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Key Factors Likely to Influence HEI’s Q3 Results
In June 2026, HEICO acquired a 90% stake in CalRamic Technologies, a manufacturer of high-voltage ceramic capacitors, and an 80% stake in Cook Defense Systems, a supplier of armored vehicle track systems. The acquisitions are likely to have supported growth by expanding HEICO’s aerospace and defense portfolio, strengthening aftermarket capabilities and adding new revenue opportunities.
Strong sales growth across product lines, led by aftermarket parts and distribution operations, along with contributions from prior acquisitions, is likely to have supported the Flight Support Group unit’s fiscal third-quarter top line.
Healthy sales growth across aerospace, defense and electronics products is likely to have boosted the Electronic Technologies unit’s revenues in the quarter under review.
HEI’s Q3 Expectations
The Zacks Consensus Estimate for HEI’s fiscal third-quarter sales is pegged at $1.34 billion, which indicates an increase of 17% from the prior-year figure.
The consensus estimate for HEI’s fiscal third-quarter earnings is pegged at $1.51 per share, which indicates year-over-year growth of 19.8%.
What the Zacks Model Unveils for HEI
Our proven model predicts an earnings beat for HEICO this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below.
Heico Corporation Price and EPS Surprise
Earnings ESP of HEICO: The company’s Earnings ESP is +3.20%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
HEI’s Zacks Rank: Currently, the company has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Recent Defense Releases
TransDigm Group Incorporated TDG reported third-quarter fiscal 2026 adjusted earnings of $10.87 per share, which topped the Zacks Consensus Estimate of $10.29 by 5.6%. The bottom line also improved 13% from the prior-year quarter’s figure of $9.60.
Sales rose 23% to $2.74 billion and beat the consensus estimate of $2.65 billion by 2.6%.
Teledyne Technologies Inc. TDY reported second-quarter 2026 adjusted earnings of $6.28 per share, which surpassed the Zacks Consensus Estimate of $5.78 by 8.7%. The bottom line also improved 20.8% from $5.20 recorded in the year-ago quarter.
Total sales were $1.66 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 5.9%. The top line also jumped 9.8% from $1.51 billion reported in the year-ago quarter.
Hexcel Corporation HXL reported second-quarter 2026 adjusted earnings of 66 cents per share, which improved 32% from the year-ago quarter’s figure of 50 cents. The bottom line also surpassed the Zacks Consensus Estimate of 56 cents by 17.9%.
The company’s net sales totaled $529.3 million, which beat the Zacks Consensus Estimate of $522 million by 1.5%. The top line also witnessed an improvement of 8% from the year-ago quarter’s figure of $489.9 million.
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HEICO to Report Q3 Earnings: What's in the Cards for the Stock?

Key Points
Boeing trades at a valuation discount compared to many of its aerospace peers.
The company's backlog and production ramp-up signal improving fundamentals.
Boeing's defense business is slowly returning to profitability.
GE Aerospace (NYSE: GE) is a fine and worthy stock, and it deserves a premium rating for the surety of its long-term stream of recurring earnings and cash flow coming from servicing its commercial aerospace engines.
However, many of the assumptions necessary to justify its valuation also support a higher valuation for Boeing (NYSE: BA). Here's why I think investors should take a closer look at Boeing as a value play in the industry.
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The case for Boeing stock
I'm not arguing that Boeing doesn't face challenges, not least from internal execution issues and the ever-present risk of a cyclical slowdown in its end markets. I also believe that the issues it's had with the 737 MAX mean that it's almost missed the cash cycle with the aircraft, whereby the cash flow from one narrow-body fund funds the massive investment needed to develop the next one. In addition, its defense arm, Boeing Defense, Space & Security (BDS), continues to generate negative or meager profit margins as it takes charges on high-profile fixed-price development programs.
Still, many of these issues are already reflected in the valuation, and there's clear evidence that Boeing is, albeit slowly, turning them around. As such, Boeing is the value play in the sector.
Boeing's valuation discount
The aerospace sector tends to trade at a premium to reflect long-term growth prospects, as outlined with GE Aerospace. It's also reflected in the valuation of an advanced material supplier like Hexcel (NYSE: HXL). The two companies are useful to compare Boeing with because GE Aerospace relies on a combination of new engine sales to increase its installed base and ultimately drive long-term, highly profitable services revenue that can last for over 40 years.
GE Aerospace needs new aircraft production and a buoyant travel market (which drives services growth). Meanwhile, Hexcel is almost entirely dependent on new aircraft production (mainly from Airbus, Boeing, and their suppliers), as well as on an increase in the build of advanced composite-rich wide-body aircraft.
With that in mind, does Boeing, which is one-half of the effective duopoly in the large commercial jetliners market, and whose aircraft production and utilization, a key part of earnings at GE Aerospace and Hexcel, deserve the kind of valuation discount implied from 2028 onward?
It's a genuine question because if you are assuming that demand for aircraft engine equipment and servicing (GE Aerospace) will hold up and that aircraft build rates improve (Hexcel), you are making a whole bunch of assumptions that are positive for Boeing.
For example, since CFM International (a GE Aerospace joint venture) provides the sole engine option for the Boeing 737 MAX and GE Aerospace provides the sole engine for the new wide-body Boeing 777X, every time those aircraft are ordered, both Boeing and GE Aerospace benefit. Meanwhile, 61% of Hexcel's sales go to the commercial aerospace end market, with 77% of those going to Airbus, Boeing, or their subcontractors.
Price to Free Cash Flow (Wall Street Consensus)
2026
2027
2028
2029
2030
GE Aerospace
42.5x
38.0x
34.3x
31.2x
27.8x
Hexcel
38.0x
29.2x
24.6x
20.8x
19.1x
Boeing
75.2x
29.6x
19.2x
15.5x
13.1x
Is the market overly pessimistic about Boeing?
Boeing's overall backlog currently stands at a record $715 billion, with Boeing Commercial Airplanes (BCA) backlog at a record $597 billion, representing more than 6,200 planes. Given this level of end-demand strength and its valuation discount relative to peers, it's clear the market has concerns about Boeing.
However, the two main concerns have seen definitive signs of progress since Kelly Ortberg took over as CEO in August 2024. First, Boeing is ramping production of the 737 MAX from 42 a month to 47 a month this summer, and Ortberg doesn't see "any supply chain constraints relative to moving to rate 52," although he acknowledges that moving from 52 a month to 57 a month will be harder. Still, it's real progress on the No. 1 issue that has dogged the company in recent years.
Second, BDS is slowly working through the highly problematic fixed-price development projects that have been the real cause of its lack of profitability. One example of this is VC-25B (Air Force One) presidential transport, which took another $280 million charge in the second quarter.
Still, management expects BDS's overall operating margin of 2.5% for 2026. That may not sound like much, but it's still a big improvement on the negative 0.5% margin in 2025 and evidence that it's slowly working through contracts like VC-25B.
All told, Boeing isn't perfect, but value stocks rarely are, and on a relative and absolute basis, Boeing is an attractive stock.
Should you buy stock in Boeing right now?
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing and GE Aerospace. The Motley Fool recommends Hexcel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Move Over, GE Aerospace: This Aerospace Stock Deserves Your Attention Instead

Honeywell Aerospace Inc. HONA reported second-quarter 2026 adjusted earnings of $1.87 per share, which missed the Zacks Consensus Estimate of $2.07 by 9.7%. The bottom line declined 32% from $2.75 in the year-ago quarter.
HONA’s Q2 Sales Discussion
Sales rose 5% year over year to $4.52 billion but missed the consensus estimate of $4.67 billion by 3.1%. Supply constraints limited deliveries across end markets, while backlog increased 9% to $18.15 billion.
Commercial Aftermarket sales increased 8% to $2.03 billion, supported by broad-based demand across the installed base and higher business aviation flight hours.
Commercial Original Equipment sales rose 6% to $679 million as commercial air transport shipments recoupled with higher customer build schedules. Defense and Space revenues advanced 3% to $1.82 billion, as stronger domestic volumes were partly offset by supply-constrained international deliveries and the wind-down of a restricted government program.
Honeywell Aerospace inc. Price, Consensus and EPS Surprise
Honeywell Aerospace inc. price-consensus-eps-surprise-chart | Honeywell Aerospace inc. Quote
Honeywell Aerospace's Segment Results Stay Mixed
Electronic Solutions sales grew 8% to $1.77 billion, led by Defense and Space and Commercial Aftermarket demand. Segment adjusted EBIT declined 3% to $459 million as higher volume and pricing were more than offset by unfavorable mix and higher costs.
Engines & Power Systems sales increased 1% to $1.41 billion, but segment adjusted EBIT dropped 32% to $174 million. Control Systems sales rose 7% to $1.34 billion, while segment adjusted EBIT improved 8% to $389 million as pricing more than offset higher costs.
HONA's Profitability Faces Mix and Cost Pressure
Adjusted EBIT declined 7% to $995 million from $1.07 billion. The adjusted EBIT margin contracted to 22% from 24.9%, reflecting unfavorable sales mix, higher costs and roughly $50 million of inventory obsolescence charges.
The company allocated more output to domestic defense customers and Engines & Power Systems original equipment programs, which carry lower profitability. Reported net income fell 70% to $256 million, while GAAP earnings decreased to 78 cents per share from $2.66.
HONA’s Financial Position
Cash and cash equivalents amounted to $1.06 billion as of June 27, 2026, up from $213 million as of 2025-end. Long-term debt increased to $15.85 billion from $4 million, reflecting financing transactions related to the separation from Honeywell Technologies.
Net cash provided by operating activities totaled $571 million in the quarter, down from $748 million a year earlier.
HONA’s 2026 Outlook
Management lowered its 2026 organic sales growth outlook to 4-5% from 7-9%.
Pro forma standalone adjusted EBIT is now projected to be between $4.35 billion and $4.45 billion, down from the prior guidance of $4.65 billion to $4.75 billion.
The company initiated pro forma standalone adjusted earnings guidance of $7.60-$7.90 per share and maintained second-half free cash flow guidance of $1-$1.5 billion. The Zacks Consensus Estimate is pinned at $8.44 per share, which is higher than the company’s newly guided range.
HONA’s Zacks Rank
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Teledyne Technologies Inc. TDY reported second-quarter 2026 adjusted earnings of $6.28 per share, which surpassed the Zacks Consensus Estimate of $5.78 by 8.7%. The bottom line also improved 20.8% from $5.20 recorded in the year-ago quarter.
TDY’s total sales were $1.66 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 5.9%. The top line also jumped 9.8% from $1.51 billion reported in the year-ago quarter.
Hexcel Corporation HXL reported second-quarter 2026 adjusted earnings of 66 cents per share, which improved 32% from the year-ago quarter’s figure of 50 cents. The bottom line also surpassed the Zacks Consensus Estimate of 56 cents by 17.9%.
The company’s net sales were $529.3 million, which beat the Zacks Consensus Estimate of $522 million by 1.5%. The top line also witnessed an improvement of 8% from the year-ago quarter’s figure of $489.9 million.
Textron Inc. TXT reported second-quarter 2026 adjusted earnings of $1.62 per share, which surpassed the Zacks Consensus Estimate of $1.52 by 6.6%. The bottom line also rose 4.5% from $1.55 in the year-ago quarter.
The company reported total revenues of $3.83 billion, which beat the Zacks Consensus Estimate of $3.82 billion by 0.15%. The top line also increased 3% from the year-ago quarter’s level of $3.72 billion.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Honeywell Aerospace Q2 Earnings Miss Estimates, Sales Increase Y/Y

TransDigm Group Incorporated TDG reported third-quarter fiscal 2026 adjusted earnings of $10.87 per share, which topped the Zacks Consensus Estimate of $10.29 by 5.6%. The bottom line also improved 13% from the prior-year quarter’s figure of $9.60.
The company reported GAAP earnings of $9.39 per share compared with $8.47 in the year-ago quarter.
TransDigm’s Q3 Sales Discussion
Sales rose 23% to $2.74 billion and beat the consensus estimate of $2.65 billion by 2.6%. Organic sales growth was 13%, supported by double-digit gains across all three major aerospace market channels.
Transdigm Group Incorporated Price, Consensus and EPS Surprise
TransDigm's Profitability Faces Margin Pressure
Gross profit increased 22.2% year over year to $1.63 billion. The gross margin was 59.4%, slightly below 59.5% in the prior-year quarter.
Selling and administrative expenses rose to $332 million from $242 million. These expenses represented 12.1% of sales compared with 10.8% a year earlier. Net interest expense increased 29.5% to $514 million, reflecting interest on debt raised by the company.
EBITDA As Defined rose 18.9% to $1.45 billion. However, the related margin contracted to 52.8% from 54.4%, partly reflecting acquisition dilution. Management noted that the base businesses expanded margins year over year after excluding that dilution. GAAP net income increased 9.5% to $540 million, while reported earnings rose to $9.39 per share from $8.47.
TDG's Acquisition and Capital Moves Stay Active
TransDigm completed the acquisitions of Jet Parts Engineering and Victor Sierra in April 2026 for approximately $2.2 billion in cash. The businesses expand the company’s exposure to proprietary aerospace aftermarket parts and repair solutions.
After the quarter ended, TDG agreed to acquire Prince & Izant for approximately $1.07 billion in cash, including certain tax benefits. The company expects the business to strengthen its position in aerospace and defense, aeroderivative turbine and transportation markets.
TDG also repurchased 809,101 shares during the quarter at an average price of $1,208 per share, returning $1 billion to shareholders. Fiscal year-to-date repurchases totaled $1.8 billion for nearly 1.5 million shares.
TransDigm’s Financial Position
Cash and cash equivalents as of June 27, 2026, amounted to $2.77 billion, down from $2.81 billion recorded as of Sept. 30, 2025.
Total debt was $33.71 billion, while net debt was $30.93 billion. The company reported a total net leverage ratio of 5.8 times. About 75% of gross debt was hedged or fixed through fiscal 2029 using interest-rate caps, swaps and collars, limiting near-term exposure to variable-rate increases.
Net cash provided by operating activities for the first 39 weeks of fiscal 2026 increased to $1.69 billion from $1.53 billion.
TransDigm Raises Fiscal 2026 Outlook
Management raised fiscal 2026 guidance after bookings exceeded expectations and operating momentum remained strong. The updated outlook excludes contributions from the pending Prince & Izant acquisition.
Net sales are now projected to be between $10.47 billion and $10.55 billion, up $150 million at the midpoint from the prior forecast. EBITDA As Defined is expected to be in the range of $5.49 billion to $5.55 billion, representing a $100 million midpoint increase. The Zacks Consensus Estimate is pegged at $10.36 billion, which is lower than the company’s newly guided range.
Adjusted earnings are forecasted to be between $40.62 and $41.46 per share compared with the previous range of $38.83-$40.21. The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $39.96 per share, lower than the company’s revised guidance.
TDG’s Zacks Rank
TransDigm currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Teledyne Technologies Inc. TDY reported second-quarter 2026 adjusted earnings of $6.28 per share, which surpassed the Zacks Consensus Estimate of $5.78 by 8.7%. The bottom line also improved 20.8% from $5.20 recorded in the year-ago quarter.
TDY’s total sales were $1.66 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 5.9%. The top line also jumped 9.8% from $1.51 billion reported in the year-ago quarter.
Hexcel Corporation HXL reported second-quarter 2026 adjusted earnings of 66 cents per share, which improved 32% from the year-ago quarter’s figure of 50 cents. The bottom line also surpassed the Zacks Consensus Estimate of 56 cents by 17.9%.
The company’s net sales were $529.3 million, which beat the Zacks Consensus Estimate of $522 million by 1.5%. The top line also witnessed an improvement of 8% from the year-ago quarter’s figure of $489.9 million.
Textron Inc. TXT reported second-quarter 2026 adjusted earnings of $1.62 per share, which surpassed the Zacks Consensus Estimate of $1.52 by 6.6%. The bottom line also rose 4.5% from $1.55 in the year-ago quarter.
The company reported total revenues of $3.83 billion, which beat the Zacks Consensus Estimate of $3.82 billion by 0.15%. The top line also increased 3% from the year-ago quarter’s level of $3.72 billion.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

TransDigm's Q3 Earnings Surpass Estimates, Sales Increase Y/Y

Hexcel Corporation HXL reported second-quarter 2026 adjusted earnings of 66 cents per share, which improved 32% from the year-ago quarter’s figure of 50 cents. The bottom line also surpassed the Zacks Consensus Estimate of 56 cents by 17.9%.
The company reported GAAP earnings of 64 cents per share, which surpassed the year-ago quarter’s earnings of 17 cents.
HXL’s Total Sales
The company’s net sales totaled $529.3 million, which beat the Zacks Consensus Estimate of $522 million by 1.5%. The top line also witnessed an improvement of 8% from the year-ago quarter’s figure of $489.9 million.
Hexcel Corporation Price, Consensus and EPS Surprise
Hexcel’s Operational Update
Hexcel's gross margin was 26.1%, which increased 330 basis points from the prior-year quarter. The improvement can be attributed to favorable cost leverage driven by higher sales.
Selling, general and administrative expenses increased 9.8% year over year to $47.2 million.
Meanwhile, research and development expenses rose 21% year over year to $17.3 million.
HXL’s adjusted operating income was $72.6 million compared with $30 million in the year-ago period.
Contribution From Different Markets
Commercial Aerospace: Net sales increased 18.3% year over year to $346.6 million, driven by sales growth from Airbus A350, as well as Boeing 787 programs. This market contributed 66% to total revenues in the first half of 2026.
Defense, Space & Other: Net sales decreased 7.2% year over year to $182.7 million due to the divestment of the Austrian-based industrial business. This market contributed 34% to total revenues in the first half of 2026.
HXL’s Financial Details
As of June 30, 2026, Hexcel’s cash and cash equivalents were $62.2 million compared with $71 million as of Dec. 31, 2025.
The company’s long-term debt totaled $959.4 million as of June 30, 2026, down from $993 million as of 2025-end.
HXL’s cash flow from operating activities was $96.7 million against a cash outflow of $5.2 million in the prior year.
Hexcel’s 2026 Guidance
Hexcel expects to generate sales in the range of $2.03-$2.13 billion for 2026. The Zacks Consensus Estimate is pegged at $2.08 billion, which lies above the midpoint of the company’s sales guidance.
HXL also expects its adjusted earnings per share to be in the range of $2.30-$2.40 for 2026. The Zacks Consensus Estimate is currently pegged at $2.26 per share, which is below the company’s guided range.
Hexcel expects to generate a free cash flow of more than $195 million in 2026. It also expects capital expenditure to be less than $100 million.
HXL’s Zacks Rank
Hexcel currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Teledyne Technologies Inc. TDY reported second-quarter 2026 adjusted earnings of $6.28 per share, which surpassed the Zacks Consensus Estimate of $5.78 by 8.7%. The bottom line also improved 20.8% from $5.20 recorded in the year-ago quarter.
Total sales were $1.66 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 5.9%. The top line also jumped 9.8% from $1.51 billion reported in the year-ago quarter.
Northrop Grumman Corporation NOC reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.
NOC’s total sales of $10.88 billion in the second quarter beat the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.
AAR Corp. AIR reported fourth-quarter fiscal 2026 adjusted earnings of $1.53 per share, which topped the Zacks Consensus Estimate of $1.41 by 8.5%. The bottom line also improved 31.9% from the year-ago quarter’s level of $1.16.
In the fourth quarter, AAR generated net sales of $928 million. The reported figure beat the Zacks Consensus Estimate of $892 million by 4%. The figure also increased 23% from $754.5 million recorded in the year-ago quarter.
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AAR Corp. (AIR) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Hexcel Q2 Earnings Surpass Estimates, Revenues Improve Y/Y

The Zacks Aerospace sector’s second-quarter 2026 earnings are expected to have been supported by strong global defense demand, healthy commercial aerospace production, solid backlog execution and sustained investments in advanced military technologies.
Per the latest Earnings Preview, the Zacks Aerospace sector's second-quarter 2026 earnings are expected to increase 21.1% year over year on revenue growth of 11.8%. Strong global defense spending, rising commercial aircraft production and healthy demand for aerospace products are likely to have driven the sector's performance. However, supply-chain constraints, higher labor costs and tariff-related pressures are likely to have partially offset some of these gains.
Factors to Consider
Rising global security concerns continue to drive defense spending worldwide, with governments investing heavily in next-generation combat vehicles, naval platforms, mission systems, intelligence, surveillance and reconnaissance capabilities, as well as advanced communications technologies. These trends are expected to have supported revenue growth across much of the aerospace and defense industry during the quarter.
The commercial aerospace market also remained favorable in the second quarter, aided by increasing aircraft production, strong aftermarket demand and healthy airline fleet modernization activity. Suppliers with exposure to commercial aircraft programs are likely to have benefited from higher build rates and improved supply-chain stability.
Meanwhile, most aerospace and defense companies continue to invest in production capacity expansion, digital manufacturing, automation and operational efficiency initiatives. These investments are expected to have supported margin performance by improving productivity and reducing manufacturing costs over time.
However, the aerospace-defense industry continues to face certain challenges. Ongoing geopolitical tensions, tariffs and changing trade policies may disrupt supply chains and increase costs. Labor shortages and inflationary pressures could also affect production schedules and margins. Additionally, since many defense companies rely heavily on government contracts, changes in defense spending priorities or delays in budget approvals may impact contract awards, program execution and profitability.
What Our Model Predicts
According to the Zacks model, a company needs the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
General Dynamics’s GD second-quarter results are likely to benefit from its record backlog, strong defense demand and healthy Gulfstream aircraft deliveries. Improved execution in the Marine Systems segment, supported by better labor productivity and supplier performance, is also expected to aid results. However, lingering supply-chain constraints for certain critical components are likely to have partially offset these positives. (Read more: What's in Store for General Dynamics in Q2 Earnings?)
Our proven model predicts an earnings beat for General Dynamics this time around. GD has an Earnings ESP of +1.61% and a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
General Dynamics Corporation Price and EPS Surprise
L3Harris Technologies’ LHX second-quarter results are likely to benefit from strong demand for resilient communication equipment, classified ISR and space programs, and international mission systems. Higher production in Integrated Vision Solutions, continued momentum in the Next Generation Jammer program, and growth in missile and space propulsion are also expected to have supported top-line growth. (Read more: L3Harris Technologies to Post Q2 Earnings: Here's What's in the Cards)
Our proven model predicts an earnings beat for L3Harris Technologies this time around. LHX has an Earnings ESP of +2.09% and a Zacks Rank of 3 at present.
L3Harris Technologies Inc Price and EPS Surprise
Hexcel Corporation's HXL second-quarter results are likely to benefit from improving commercial aerospace demand, higher aircraft production rates and steady defense sales. Higher production volumes, better capacity utilization and strong demand for lightweight composite materials are also expected to have supported performance. However, increased operating expenses, including higher R&D and restructuring costs, are likely to have partially offset these gains. (Read more: Hexcel Gears Up to Report Q2 Earnings: Here's What to Expect)
Our proven model predicts an earnings beat for Hexcel this time around. HXL has an Earnings ESP of +6.13% and a Zacks Rank of 3 at present.
Hexcel Corporation Price and EPS Surprise
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The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	51.99 24.67
Price/Sales	3.32 1.41
P/B	5.39 2.39
P/FCF	26.06 18.56

Indicator	TTM Median
ROE	8.37 14.70
ROA	5.61 6.02
ROI	6.73 8.68
Net Worth	7.64 1.19
Quick Ratio	1.37 1.16
Current Ratio	2.43 1.59

Indicator	TTM Median
Net Profit Margin	7.74 7.70
Operating Margin	11.53 10.36
Gross Margin	24.97 32.70
Return on tangible equity	13.82 24.33

Indicator	TTM Median
EPS	0.66 0.80
EPS Forecast	0.56 0.67
Revenue	529.00M 187.00M
Gross Profit	138.00M —
EBITDA	103.00M —

Hexcel Corporation

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