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 Corporation

In trading on Thursday, the SPDR S&P Aerospace & Defense ETF is outperforming other ETFs, up about 3.2% on the day. Components of that ETF showing particular strength include shares of Carpenter Technology, up about 21.5% and shares of Hexcel, up about 15.7% on the day.
And underperforming other ETFs today is the iShares U.S. Transportation ETF, off about 1.2% in Thursday afternoon trading. Among components of that ETF with the weakest showing on Thursday were shares of Ryder System, lower by about 9.3%, and shares of Southwest Airlines, lower by about 7.4% on the day.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Thursday's ETF Movers: XAR, IYT

(RTTNews) - Hexcel Corp. (HXL) released a profit for third quarter that Decreased from last year and missed the Street estimates.
The company's earnings came in at $20.6 million, or $0.26 per share. This compares with $39.8 million, or $0.49 per share, last year.
Excluding items, Hexcel Corp. reported adjusted earnings of $29.8 million or $0.37 per share for the period.
Analysts on average had expected the company to earn $0.38 per share. Analysts' estimates typically exclude special items.
The company's revenue for the period fell 0.1% to $456.2 million from $456.5 million last year.
Hexcel Corp. earnings at a glance (GAAP) :
-Earnings: $20.6 Mln. vs. $39.8 Mln. last year. -EPS: $0.26 vs. $0.49 last year. -Revenue: $456.2 Mln vs. $456.5 Mln last year.
-Guidance: Full year EPS guidance: $1.70 - $1.80 Full year revenue guidance: $1.88 Bln
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Hexcel Corp. Q3 Profit Decreases, Misses Estimates

Investors in Hexcel Corp. (Symbol: HXL) saw new options become available today, for the June 2026 expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 245 days until expiration the newly available contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the HXL options chain for the new June 2026 contracts and identified one put and one call contract of particular interest.
The put contract at the $60.00 strike price has a current bid of $2.85. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $60.00, but will also collect the premium, putting the cost basis of the shares at $57.15 (before broker commissions). To an investor already interested in purchasing shares of HXL, that could represent an attractive alternative to paying $62.53/share today.
Because the $60.00 strike represents an approximate 4% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 64%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 4.75% return on the cash commitment, or 7.08% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Hexcel Corp., and highlighting in green where the $60.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $85.00 strike price has a current bid of $1.05. If an investor was to purchase shares of HXL stock at the current price level of $62.53/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $85.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 37.61% if the stock gets called away at the June 2026 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if HXL shares really soar, which is why looking at the trailing twelve month trading history for Hexcel Corp., as well as studying the business fundamentals becomes important. Below is a chart showing HXL's trailing twelve month trading history, with the $85.00 strike highlighted in red:
Considering the fact that the $85.00 strike represents an approximate 36% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 76%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 1.68% boost of extra return to the investor, or 2.50% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 32%, while the implied volatility in the call contract example is 40%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $62.53) to be 31%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Also see:
Top Ten Hedge Funds Holding RMNY
INFO shares outstanding history
MULN Insider Buying
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

HXL June 2026 Options Begin Trading

Key Points
Boeing and Airbus are set to ramp up production in the coming years, and this stock is expected to be a leading beneficiary.
This company has had to adjust to a correction in the e-commerce spending boom during the lockdowns, but it is now back on the growth path.
EV spending will undoubtedly increase over time as it's the future of the automotive industry.
This eclectic group of stocks trades at significant discounts to their all-time high prices, with advanced materials company Hexcel (NYSE: HXL) down 25%, e-commerce logistics company GXO Logistics (NYSE: GXO) down 48%, and ON Semiconductor (NASDAQ: ON) down 54%. All three companies operate in long-term growth markets that are currently experiencing temporary weakness, and this article will briefly summarize why and how they can return to their growth path.
Hexcel, because composites are the future of the aerospace industry
No one disputes that airplanes are likely to contain more advanced composite materials in the future. Indeed, every new generation of aircraft has led to more value per plane for Hexcel. For example, the classic Boeing 737 had approximately 5% of its content made from advanced composites, whereas the newer Boeing 737 MAX has 15%. That figure increases even higher for wide-body aircraft like the Boeing 787 and Airbus A350, which contain at least 50% composite content.
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The investment case for Hexcel is relatively straightforward: A combination of increasing content on each new generation of aircraft and multiyear backlogs at Boeing and Airbus presents an excellent long-term growth opportunity.
That said, both airplane manufacturers have struggled to ramp up aircraft production in recent years (at least relative to expectations), and that has caused knock-on issues at Hexcel as end demand has been weaker than expected at a time when management is looking to increase its manufacturing capacity.
Still, it appears to be a question of "when, not if" for the company, and Wall Street expects double-digit revenue growth to kick in, in 2026 and 2027 , with net income almost doubling from 2025 to 2027. As such, now looks like a great time to buy a growth stock on a dip.
GXO Logistics, because e-commerce and outsourcing logistics will only grow
The case for the stock is based on very powerful business trends. The share of retail sales coming from e-commerce activities continues to grow, meaning it will become an increasingly larger part of a company's activities. In addition, the rapid development of productivity-enhancing technologies in logistics, such as automation and robotics, innovative warehousing, and AI-led analytics, means e-commerce logistics is becoming a more complex activity.
All of which points to an environment in which GXO's offering of contract logistics provision (advanced warehousing with e-commerce warehousing being its largest industry vertical) is set to enjoy long-term demand growth.
However, there's been a problem in recent years, and it's best encapsulated in the following chart. Following the boom in e-commerce created by the lockdowns, the growth rate has returned to its long-term trend line.
Unfortunately, the adjustment in growth, from a previously unsustainable growth rate, also led to a slowing of GXO's organic revenue growth rate in 2023 and 2024.
GXO Logistics
2021
2022
2023
2024
2025Est
Organic Revenue Growth
15%
15.4%
2%
3%
3.5% to 6.5%
The good news is the company appears to be building momentum in 2025, and it's winning new contracts to offset some customers previously rationalizing how much logistics supporyt they outsource. Wall Street sees its earnings growing at a double-digit rate in 2026 and 2027.
ON Semiconductor: Near-term risk and long-term opportunity
The company's focus on power and sensing technology for the automotive (notably electric vehicles, or EVs) and industrial (EV charging, automation, smart cities) sectors, as well as more recently AI data centers (Nvidia), gives it exciting exposure to some excellent long-term, secular growth trends.
While that still holds, the company is going through a difficult period, as automakers have pared back EV spending in response to relatively high interest rates and, aside from Tesla, difficulties in profitability.
Still, if you believe that EVs remain the future of the automotive industry, and Ford's recent $5 billion spending commitment supports that argument, then a recovery will likely emerge even as the near-term outlook remains uncertain.
Stocks to buy
All three contain near-term risk, but they also have substantive upside potential. On a risk-reward basis, they all appear to be attractive stocks to buy for investors who can tolerate the potential for some near-term disappointment.
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends GXO Logistics, Hexcel, and ON Semiconductor. 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.

3 Growth Stocks Down 25% to 54% to Buy Right Now

Investors in Hexcel Corp. (Symbol: HXL) saw new options become available today, for the November 21st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the HXL options chain for the new November 21st contracts and identified one put and one call contract of particular interest.
The put contract at the $60.00 strike price has a current bid of 60 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $60.00, but will also collect the premium, putting the cost basis of the shares at $59.40 (before broker commissions). To an investor already interested in purchasing shares of HXL, that could represent an attractive alternative to paying $62.07/share today.
Because the $60.00 strike represents an approximate 3% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 63%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 1.00% return on the cash commitment, or 5.70% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Hexcel Corp., and highlighting in green where the $60.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $65.00 strike price has a current bid of 50 cents. If an investor was to purchase shares of HXL stock at the current price level of $62.07/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $65.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 5.53% if the stock gets called away at the November 21st expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if HXL shares really soar, which is why looking at the trailing twelve month trading history for Hexcel Corp., as well as studying the business fundamentals becomes important. Below is a chart showing HXL's trailing twelve month trading history, with the $65.00 strike highlighted in red:
Considering the fact that the $65.00 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 60%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 0.81% boost of extra return to the investor, or 4.59% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 34%, while the implied volatility in the call contract example is 32%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $62.07) to be 31%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Also see:
LIME Insider Buying
RRX Stock Predictions
Institutional Holders of JFR
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

November 21st Options Now Available For Hexcel (HXL)

Key Points
The investment adviser added 418,477 shares of Hexcel at an estimated trade value of $22 million, based on second quarter's average price.
Hexcel now accounts for 1.3% of the fund's 13F assets, valued at $290.4 million as of June 30, 2025.
What happened
According to a recent SEC filing dated August 15, 2025, EARNEST Partners LLC increased its position in Hexcel Corporation (NYSE:HXL) by 418,477 shares during the quarter. The estimated transaction value, based on the quarterly average share price, was $22.13 million.
The fund's total holdings in Hexcel were 5,140,542 shares as of June 30, 2025, with a reported market value of $290.39 million as of June 30, 2025.
What else to know
The transaction lifted Hexcel to 1.3% of EARNEST Partners LLC's 13F assets.
Top holdings after the filing:
CBRE Group: $496.38 million (2.24% of AUM)
Reinsurance Group of America: $476.32 million (2.15% of AUM)
GATX Corp: $473.92 million (2.14% of AUM)
Houlihan Lokey: $444.92 million (2.01% of AUM)
Moog: $393.05 million (1.77% of AUM)
Hexcel shares were priced at $61.57 as of August 18, 2025, with a one-year negative alpha of 17.0 percentage points versus the S&P 500.
The stock's dividend yield was 1.07% as of August 18, 2025; Forward P/E (FY1 2026) was 25.11; EV/EBITDA was 28.82; and shares were priced at 13.3% below the 52-week high as of August 18, 2025.
Company Overview
Revenue (TTM)
$1.88 billion
Net Income (TTM)
$88 million
Dividend Yield
1.07%
Company Snapshot
Manufactures advanced structural materials, including carbon fibers, prepregs, adhesives, and engineered aircraft components for aerospace, defense, and industrial applications.
Generates revenue through direct sales and distribution of composite materials and engineered products worldwide.
Primary customers include commercial aerospace manufacturers, defense contractors, and industrial firms requiring high-performance materials.
Hexcel supplies advanced composites and engineered products, serving the aerospace, defense, and industrial sectors. The company operates globally, providing high-performance materials for aerospace and industrial applications. Hexcel has a diversified product portfolio and a broad customer base.
Foolish take
EARNEST Partners' acquisition of stock in the advanced composite materials company, Hexcel, looks like a smart move. The company has struggled over the last few years as its two key customers, Airbus, and to a lesser extent, Boeing (and both their subcontractors), have fallen behind their aircraft production plans. That's problematic for Hexcel because, unlike many other aerospace suppliers, it can't fall back on aftermarket demand when original equipment manufacturing (the aircraft) demand is weak.
It's even more problematic considering that Hexcel geared up for more volume demand than it received, to the detriment of its margins. That said, the backlog at Airbus and Boeing isn't disappearing. In fact, according to their last earnings reports, Airbus has a backlog of 8,754 commercial airplanes, and Boeing's commercial airplane backlog is over 5,900.
Provided there isn't a recession in the travel industry, those orders are likely to get filled– good news for Hexcel. Still, it's not the whole story, because the company benefits not only from increased aircraft volume but also from an ongoing trend towards newer planes having an ever-increasing amount of advanced composites in airplanes.
Investors like EARNEST will need to be patient, not least because clearing the supply chain crisis in the aerospace industry is taking longer than many expected. Still, it's only a matter of time, and buying on a dip in Hexcel's share price makes sense.
Glossary
13F: A quarterly SEC filing by institutional investment managers disclosing their equity holdings.
AUM (Assets Under Management): The total market value of assets an investment firm manages on behalf of clients.
Alpha: A measure of an investment's performance relative to a benchmark, often indicating outperformance or underperformance.
Dividend yield: Annual dividends per share divided by the share price, expressed as a percentage.
Forward P/E: Price-to-earnings ratio using forecasted earnings for the next fiscal year.
EV/EBITDA: Enterprise value divided by earnings before interest, taxes, depreciation, and amortization; a valuation metric.
Prepreg:Reinforced fibers pre-impregnated with resin, used in advanced composite manufacturing.
Composite materials: Engineered materials made from two or more constituent substances with different physical or chemical properties.
TTM: The 12-month period ending with the most recent quarterly report.
Quarterly average price: The average share price of a security over a specific quarter.
Market value: The total dollar value of a company's outstanding shares, calculated using the current share price.
Engineered products: Items designed and manufactured to meet specific technical requirements, often for industrial or aerospace use.
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Houlihan Lokey. 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.

Hexcel Reaches Analyst Target Price

Hexcel Corporation’s HXL share price dropped 2% to reach $61.11 on July 25, following the company’s latest quarterly release.
Hexcel reported second-quarter 2025 adjusted earnings of 50 cents per share, which declined 16.7% from the year-ago quarter’s figure of 60 cents. However, the bottom line surpassed the Zacks Consensus Estimate of 46 cents by 8.7%.
The company reported GAAP earnings of 17 cents per share, which declined 71.7% from the year-ago quarter’s figure of 60 cents.
The year-over-year bottom-line decline can be attributed to lower net sales and operating income compared with the prior-year quarter.
HXL’s Total Sales
In the second quarter, the company’s net sales totaled $489.9 million, which beat the Zacks Consensus Estimate of $471 million by 4%. However, the top line fell 2.1% from the year-ago quarter’s reported sales of $500.4 million.
The year-over-year decline can be attributed to lower sales from the Commercial Aerospace market.
Hexcel Corporation Price, Consensus and EPS Surprise
Hexcel’s Operational Update
Hexcel's gross margin in the second quarter was 22.8%, which contracted 250 basis points from the prior-year quarter. The decline in the gross margin can be attributed to lower sales, and inventory reduction actions drove unfavorable cost leverage.
Selling, general and administrative (SG&A) expenses increased 7.8% year over year to $43 million in the second quarter. Meanwhile, research and technology expenses for the second quarter of 2025 dropped 2.7% year over year to $14.3 million.
HXL’s adjusted operating income was $54.2 million in the quarter compared with $72 million in the year-ago period.
HXL’s Contribution From Different Markets
Beginning from the first quarter of 2025, Hexcel’s sales are reported for two markets, which include Commercial Aerospace and Defense, Space & Other (which combines the previous Space & Defense market and Industrial market).
Commercial Aerospace: Net sales decreased 8.6% year over year to $293.1 million due to lower sales from each of the four major programs, including the Airbus A350 and A320neo and the Boeing 787 and 737 MAX.
Space and Defense: Net sales rose 9.5% year over year to $196.8 million. This increase was led by strong sales volume from the Sikorsky CH-53K, two international fighter programs and space programs, including launchers, rocket motors and satellites.
HXL’s Financial Details
As of June 30, 2025, Hexcel’s cash and cash equivalents were $77.2 million compared with $125.4 million as of Dec. 31, 2024.
The company’s long-term debt totaled $827.7 million as of June 30, 2025, up from $700.6 million as of 2024-end.
During the first six months of 2025, HXL’s cash used in operating activities was $5.2 million against the cash inflow of $37.2 million in the year-ago period.
Hexcel’s adjusted free cash outflow as of June 30, 2025 was $46.6 million compared with adjusted free cash outflow of $14.4 million in the year-ago period.
Hexcel’s 2025 Guidance
Hexcel reiterated its guidance for 2025. The company still expects to generate sales in the band of $1.88-$1.95 billion in 2025. The Zacks Consensus Estimate, pegged at $1.91 billion, lies just below the midpoint of the company's guidance range.
HXL still expects its adjusted earnings per share in the range of $1.85-$2.05 in 2025. The Zacks Consensus Estimate, pegged at $1.87, lies near the lower end of the company's guidance range.
Hexcel still expects to generate free cash flow of approximately $190 million in 2025. Its capital expenditure outlook still remains less than $90 million.
HXL’s Zacks Rank
Hexcel currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
General Dynamics Corporation GD reported second-quarter 2025 earnings per share of $3.74, which beat the Zacks Consensus Estimate of $3.59 by 4.2%. The bottom line also increased 14.7% from $3.26 recorded in the year-ago quarter.
Revenues of $13.04 billion topped the Zacks Consensus Estimate of $12.35 billion by 5.6%. The top line also improved 8.9% from the prior-year figure.
L3Harris Technologies, Inc. LHX reported second-quarter 2025 adjusted earnings (from continuing operations) of $2.78 per share, which beat the Zacks Consensus Estimate of $2.48 by 12.1%. The bottom line also increased 15.8% from the year-ago quarter’s $2.40.
L3Harris’ revenues totaled $5.43 billion, which beat the Zacks Consensus Estimate of $5.30 billion by 2.3%. The top line also improved 2.4% from the year-ago quarter’s $5.30 billion.
Textron Inc. TXT reported second-quarter 2025 adjusted earnings of $1.55 per share, which surpassed the Zacks Consensus Estimate of $1.45 by 6.9%. The bottom line also rose 0.6% from $1.54 in the year-ago quarter.
The company reported total revenues of $3.72 billion, which beat the Zacks Consensus Estimate of $3.63 billion by 2.4%. Moreover, revenues increased 5.4% from the year-ago quarter’s level of $3.53 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.

Hexcel Q2 Earnings Beat Estimates, Sales Decline Y/Y

Key Points
Joby Aviation's business model differs significantly from that of its peers.
There's reason to believe its vertically integrated strategy will win out.
The upside potential is significant; provided the certification process goes smoothly, Joby has a big future.
The electric vertical take-off and landing (eVTOL) market is crowded, but that doesn't mean it's a winner-takes-all scenario. Different companies have different business models with varying risks and rewards, and Joby Aviation (NYSE: JOBY) is arguably the one with the most reward and also one that's reducing its risk the most in 2025. Is it enough to make it a stock that could set investors up for life? Here's the lowdown.
What makes Joby Aviation different
It's always interesting to compare competitors across a growth industry, and doing so with Joby's peer Archer Aviation (NYSE: ACHR) makes for a fascinating comparison. The first conclusion is that they have significantly different models. The second is that the nature of their models allows for more than enough room for both in the market, and the third is that Joby Aviation is making real progress in de-risking the elements of its business that are subject to greater market uncertainty.
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In a nutshell, you can think of Joby Aviation as a "go it alone" player in the industry, backed by a heavyweight manufacturing partner in Toyota, as well as other investors such as Uber and Delta Air Lines. Its business model is different from Archer's and the rest of the industry in two key ways:
Joby Aviation doesn't plan to sell its aircraft and prefers to develop much of its technology in-house, having its own powertrain and electronics manufacturing facility in California.
As quoted from its Securities and Exchange Commission (SEC) filings, Joby plans to "own and operate our aircraft ourselves, building a vertically integrated transportation company that will deliver transportation services to customers."
Both points are crucial to understanding the investment case.
Joby's in-house development
Archer, along with other eVTOL companies such as Germany's Lilium and the U.K.'s Vertical Aerospace, makes no secret of the fact that it has leading aerospace and automotive companies as partners in providing solutions. The advantage of heavy integration with established partners in developing technology is a simplified and less risky process, which, theoretically, leads to earlier certification.
For example, Archer partners with Honeywell for actuators and climate systems, Hexcel for advanced composite materials, Safran for avionics, and Stellantis (also a key investor). Honeywell is a key strategic technology partner of Vertical Aerospace and partners with European aerospace companies GKN and Leonardo.
Lilium partners with GE Aerospace in flight data management and Honeywell (also an investor) for flight control, avionics, and propulsion unit sensors.
As such, Joby's more "go it alone" approach could be deemed more risky. However, it has received significant investment (up to $894 million) from a manufacturing heavyweight, Toyota. Moreover, the Japanese giant is assisting in improving Joby's manufacturing processes and optimizing design.
A vertically integrated transportation company
Here again, Joby is different. It doesn't want to sell its aircraft; instead, it wants to handle the commercialization of transportation services itself. Again, this is a more risky business model, as it implies commercial business expertise in addition to research & development and manufacturing expertise. It's somewhat akin to Boeing or Airbus deciding to operate an airline.
On the other hand, there's a reason why Uber has invested $125 million in Joby so far: the obvious potential to integrate their services. Similarly, Delta Air Lines is investing up to $200 million in Joby to transport passengers to airports. With Delta increasingly focusing on premium travelers and looking to offer experiences that engender loyalty, the Joby tie-in is a significant plus.
Can Joby Aviation be a life-changing investment?
Given the current trends in the global economy, whereby technology is enabling fundamental shifts in how industrial and transportation companies operate (think Tesla selling direct or Uber not needing to own cars), Joby's business model makes perfect sense and has the potential to create more value for shareholders over the long term.
Meanwhile, while its peers are working with leading aerospace companies, Toyota is a formidable manufacturing entity and partner, and the Toyota Production System is the precursor to all the lean manufacturing practices successfully implemented by GE Aerospace and many others.
There are no guarantees in nascent technology fields such as eVTOL, and diversification is key when investing in growth stocks. Still, Joby Aviation is a strong candidate for an investment that could set you up for life.
Should you invest $1,000 in Joby Aviation 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 Uber Technologies. The Motley Fool recommends Delta Air Lines, GE Aerospace, Hexcel, and Stellantis. 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.

Could Buying Joby Aviation Stock Today Set You Up for Life?

Not all of the growth stocks featured here will likely deliver outsize returns, so it makes sense to spread portfolio risk around a collection of holdings. In that line of thought, here are 10 growth stock ideas for investors to consider. They range from a couple of high-profile household names, such as Tesla (NASDAQ: TSLA) and Delta Air Lines (NYSE: DAL), to companies like Navitas Semiconductor (NASDAQ: NVTS) and Synopsys (NASDAQ: SNPS), which are less well known.
You might want to consider buying and holding any (or all) of these equities long-term.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Tesla's robotaxis are a game-changer
The key to the investment case for Tesla lies in its promised robotaxis and unsupervised full self-driving (FSD) software, which is scheduled to launch on a limited basis beginning this week. Tesla is already a highly successful automaker and the dominant player in electric vehicles (EVs) in the U.S., and robotaxis offer the prospect of transforming it into a company able to generate high-margin and recurring revenue from owning its robotaxi fleet or revenue sharing from Tesla's transformed fleet using Full Self-Driving (FSD) software.
There's also the dedicated robotaxi, Cybercab, and the potential to sell FSD on a subscription basis. And all of it will be supported by Tesla's market-leading position in EVs and its ability to develop affordable EVs in the future.
Next-generation data centers
Nvidia partners Navitas Semiconductor and Vertiv (NYSE: VRT) and the next generation of data centers, namely 800-volt (V) high voltage direct current (HVDC), which I've discussed in more detail elsewhere, so investors with the time and inclination can peruse. Nvidia believes they will be more efficient, with lower maintenance costs and significantly lower costs of ownership.
The new data centers, scheduled for 2027, employ a different power conversion method, and Navitas is developing Gallium Nitride (GaN) and Silicon Carbide (SiC) power semiconductors to enable more efficient power conversion in 800V HVDC data centers.
Similarly, another Nvidia partner, and leading data center equipment provider, Vertiv, is developing critical power and cooling equipment and systems for the new data centers and expects to have them available in the second half of 2026, in time for the launch of the 800V HVDC data center in 2027.
What makes both companies particularly interesting is that, unlike their rivals, they are more like pure plays in their end markets. For example, Navitas specializes in GaN and SiC chips for power conversion (not silicon), and 80% of Vertiv's revenue comes from data centers.
Aehr Test Systems is opening up new end markets
Speaking of SiC and GaN chips, Aehr's (NASDAQ: AEHR) stock has soared recently on speculation that Navitas might be a customer for Aehr's testing and burn-in equipment. Aehr's equipment helps semiconductor manufacturers ensure quality and reliability throughout the manufacturing process.
Aehr has struggled recently as its revenue at SiC customers, including ON Semiconductor, has declined in light of pullbacks in EV investment. Still, Aehr is making good progress in opening up and winning customers in new markets, including GaN semiconductors and semiconductors for artificial intelligence (AI) processing.
Synopsys and the future of semiconductors
Synopsys is a leader in electronic design automation software (used to design and verify chips), and its intended acquisition of engineering simulation and analysis company Ansys is a key event. The aim is to create a company offering design software, as well as simulation and analysis software to test the fruits of the design. It will also open up Synopsys' solutions to Ansys' wider range of end-market customers, particularly as semiconductors and electronics are increasingly being embedded in a range of new industries.
Hexcel is the future of aerospace
The advanced materials company's lightweight composites are the future of the aerospace industry, as every new generation of airplane contains more composites. This means Hexcel (NYSE: HXL) can grow as airplane production increases (Airbus and Boeing have multiyear backlogs in place) and new, more composite-rich airplanes are developed.
Hexcel has faced headwinds in recent years as Airbus' and Boeing's delivery rates have fallen short of expectations, but it's only a matter of time before they improve.
Cognex's machine vision has long-term growth prospects
Cognex (NASDAQ: CGNX) is another company with excellent long-term secular growth prospects (the use of machine vision in automated processes) that has suffered near-term headwinds (weakness in key end markets like automotive and consumer electronics). Still, this is a temporary slowdown in a long-term growth story.
PTC, Trimble, and the growing interface between the digital and physical worlds
PTC (NASDAQ: PTC) provides computer-aided design (CAD), product lifecycle management (PLM), and other solutions essential to creating a so-called "digital thread" for a physical product as it moves from design through manufacturing, use, servicing, and ultimately disposal. As such, it's a leading player in the digitization of the industrial sector.
Trimble's (NASDAQ: TRMB) precise positioning hardware (its origins) and growing software/services also make it a leading play on digitization. In Trimble's case, it's about integrating physical positioning with the digital world, such as in construction and infrastructure work, transportation, and geospatial activities. Through the use of advanced analytics in the digital world, Trimble's solutions can be integrated into its customers' daily workflows.
Delta Air Lines is different now
Last but not least, Delta's growing mix of premium cabin revenue, loyalty program, co-brand card remuneration, and ability to adjust and compete in economy tickets when necessary means it's a much more diversified airline than a decade ago. In addition, as a network operator, it's much better positioned to deal with the growing cost pressures in the industry than low-cost carriers. Despite headwinds in 2025, it's ideally placed to generate value for shareholders over the long term.
Where to invest $1,000 right now
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*Stock Advisor returns as of June 9, 2025
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cognex, Nvidia, Synopsys, and Tesla. The Motley Fool recommends Ansys, Delta Air Lines, Hexcel, ON Semiconductor, PTC, and Trimble. 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.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.