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 appears to be a high-quality industrial business, but no longer a cheap one: growth in revenue, profit, and EBITDA supports the valuation, however the multiples remain noticeably above industry medians. P/E, P/S, P/B, and P/FCF are materially higher than the sector, which points to a high bar for expectations and limits the potential for further re-rating. At the same time, the recent trend in these multiples does not show any clear cheapening, meaning the market is already pricing in a strong recovery scenario and sustainable margins. The company’s strength lies in the improvement in absolute financial results: revenue, net income, operating profit, and EBITDA are growing compared with weaker periods, and net profit margin has also improved. Liquidity looks acceptable: the current ratio and quick ratio are above industry benchmarks, which reduces short-term risk. However, leverage is above the median, and long-term debt remains significant, so the balance sheet cannot be called conservative. Return on equity and return on assets are still below industry levels, meaning the company is generating good earnings, but not efficiently enough to justify such high multiples without a risk discount. Gross margin is below the sector, indicating pressure on cost of goods sold or limited pricing power. Operating margin looks close to normal, but not strong enough to fully offset the expensive valuation. Dividend yield has declined, so the dividend factor is no longer supporting the investment case as strongly as before. Overall, the fundamentals support maintaining interest in the stock rather than aggressively raising the target. For an investor, this means HXL has resilience and improving operating performance, but the current price already reflects much of these positives, so a moderate conservative downward adjustment is appropriate.

Hexcel Corporation

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, значительно упал. Рынок не поддерживает быков.

Weak index, significantly down. The market does not support the bulls.

Средний индекс, значительно упал. Отток средств из лонгов увеличился и находится на высоком уровне.

Medium index, significantly down. The outflow of funds from longs has increased and is at a high level.

Hexcel is improving profit and revenue, but it trades at a premium to the industry, with weaker profitability and higher debt, so valuation upside is limited.

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.
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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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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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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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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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Can These 3 Aerospace & Defense Stocks Hit Q2 Earnings Targets?

General Dynamics GD is scheduled to release second-quarter 2026 results on July 29, before market open. The company delivered an earnings surprise of 11.4% 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 GD’s Q2 Results
General Dynamics heads into second-quarter earnings season with a record backlog and healthy book-to-bill ratios across its business segments, supporting strong revenue visibility despite macroeconomic uncertainty. The company's defense operations are expected to have remained the primary growth driver, benefiting from sustained demand for submarines, combat vehicles, munitions and mission systems amid rising global defense spending.
Marine Systems is likely to have been one of the biggest catalysts for the second quarter. Management highlighted improving labor productivity across its shipyards, stronger material availability and steadily improving supplier performance, all of which might have supported higher throughput on the Columbia- and Virginia-class submarine programs. The company continues to invest aggressively in expanding shipyard capacity to meet growing U.S. naval demand. If these operational improvements continued through the second quarter, Marine Systems could have been a major contributor to revenue and margin expansion.
Gulfstream entered the second quarter after recording the strongest first-quarter delivery performance in its history, while management emphasized durable manufacturing improvements across the G700 and G800 programs. Management expects second-quarter aircraft deliveries to remain similar to the first quarter before rising further in the second half of the year, indicating another solid quarter for the segment.
Although management said supply-chain conditions have improved, critical components sourced from single suppliers continue to constrain production. Any renewed disruptions could slow the pace of submarine construction and limit further throughput improvements despite robust customer demand.
GD’s Q2 Expectations
The Zacks Consensus Estimate for earnings is pegged at $3.95 per share, indicating a year-over-year increase of 5.6%.
The Zacks Consensus Estimate for revenues is pinned at $13.49 billion, implying a year-over-year improvement of 3.4%.
The Zacks Consensus Estimate for total Gulfstream aircraft deliveries is pinned at 42, compared with the company’s registered figure of 38 in the year-ago quarter.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for General Dynamics this time around. 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.
General Dynamics Corporation Price and EPS Surprise
Earnings ESP: The company’s Earnings ESP is +1.61%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, the company carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
Other Stocks to Consider
Investors may also consider the following players from the same sector as these, too, have the right combination of elements to post an earnings beat this reporting cycle.
Hexcel HXL is likely to come up with an earnings beat when it announces second-quarter results on July 29, before market open. It has an Earnings ESP of +6.13% and a Zacks Rank #3 at present.
The consensus estimate for HXL’s second-quarter sales suggests an improvement of 6.5% from the year-ago quarter’s reported numbers. The company delivered an average earnings surprise of 12.6% for the trailing four quarters.
L3Harris Technologies LHX is expected to come up with an earnings beat when it reports second-quarter results on July 29, after market close. It has an Earnings ESP of +2.09% and a Zacks Rank #3 at present.
The consensus estimate for LHX’s second-quarter sales implies an improvement of 6.8% from the year-ago quarter’s level. The Zacks Consensus Estimate for earnings is pinned at $2.80 per share, indicating year-over-year growth of 0.7%.
Curtiss-Wright CW is likely to come up with an earnings beat when it announces second-quarter results on Aug. 5, after market close. It has an Earnings ESP of +0.36% and a Zacks Rank #3 at present.
The consensus estimate for CW’s second-quarter sales suggests an improvement of 6.2% from the year-ago quarter’s reported numbers. The company delivered an average earnings surprise of 3.8% for the trailing four quarters.
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General Dynamics to Release Q2 Earnings: Here's What to Expect

Key Points
Hexcel maintains a specialized position in advanced composite materials for commercial aerospace and defense giants.
Textron offers a diversified manufacturing base ranging from Cessna business jets to critical U.S. military programs.
Which industrial powerhouse is the better addition for 2026?
Hexcel (NYSE:HXL) and Textron (NYSE:TXT) are two distinct players in the aerospace sector. Deciding which stock to buy requires balancing specialized material expertise against a broad multi-industry manufacturing portfolio.
Hexcel leads in lightweight composite materials essential for modern aircraft efficiency. Textron builds the aircraft itself, as well as specialized vehicles and defense technologies. Both companies are navigating a recovery in global travel and shifting defense priorities, making them common targets for investors in the aerospace industry today.
The case for Hexcel
Hexcel develops and manufactures advanced composite materials like carbon fiber and resin systems for those following industrial stocks. Major customers include Airbus and The Boeing Company (NYSE:BA), which accounted for approximately 39% and 13% of 2025 net sales, respectively. Customer concentration like this adds a layer of risk to the business.
In FY 2025, revenue reached nearly $1.9 billion, a slight decline of approximately $10 million from the prior year. The company reported net income of roughly $109.4 million, resulting in a net margin of close to 5.8%. This margin, which measures profit kept for every dollar earned, was lower than the nearly 6.9% reported in the previous year.
On its December 2025 balance sheet, the debt-to-equity ratio was approximately 0.8x, measuring total debt against shareholder equity. Free cash flow for the year slid about $46 million $157.2 million. Free cash flow is calculated as operating cash minus capital expenditures and shows the cash available after maintaining assets.
The case for Textron
Textron operates as a multi-industry manufacturer with a diverse portfolio spanning aviation, defense, and industrial segments. A critical portion of revenue is tied to U.S. government contracts, specifically its Bell subsidiary and its MV-75 assault aircraft program. To improve leverage, the company recently realigned its segments to integrate electric aviation activities into existing divisions.
During FY 2025, revenue grew by roughly 8.0% to nearly $14.8 billion. This growth helped drive a net income $921 million for the year. The net margin was roughly 6.2%, reflecting a consistent performance compared to the nearly 6.0% reported in 2024.
As of its January 2026 balance sheet, the debt-to-equity ratio was roughly 0.5x, showing a lower level of debt relative to equity than its peer. Free cash flow reached $944 million during the 2025 fiscal year. This cash generation provides flexibility for research, acquisitions, or returning capital to shareholders.
Risk profile comparison
Hexcel faces significant risks from its high customer concentration with Airbus and Boeing, as production delays at these firms directly impact orders. The company is also vulnerable to supply chain volatility and potential failure to achieve planned savings from recent operational restructuring. Furthermore, evolving cybersecurity threats pose a constant risk to its proprietary technology and global production systems.
Textron relies heavily on U.S. government defense spending, making it sensitive to federal budget shifts and funding delays for programs like the MV-75. The demand for business jets remains highly cyclical and often declines during periods of economic weakness. Finally, supply chain inefficiencies or labor shortages can delay production, while rigorous procurement regulations carry risks of financial penalties.
Valuation comparison
Textron appears to be the more value-oriented choice, trading at a significant discount to Hexcel across both its Forward P/E and P/S ratio.
Forward P/E
48.1x
13.7x
242.8x
P/S ratio
4.0x
1.1x
n/a
Sector benchmark uses the SPDR XLI sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
Hexcel is a key supplier to the world’s two largest passenger airplane makers, Airbus and Boeing, so its future is closely linked to the state of the airline industry. The fact that both claim record backlog for new equipment is a plus, coming after a pandemic-induced slump in aircraft orders. But that rebound has taken longer than expected. However, airlines are highly sensitive to jet fuel prices, so the Iran war and its effect on prices will likely spur more orders for Hexcel’s core customers. For 2026, Hexcel sales are expected to grow to nearly $2.1 billion, representing nearly 10% growth.
The larger and more diverse Textron is far less dependent on any one industry, although defense spending, golf cart demand, and fuel tanks for passenger automobiles are three notable sectors that it sells strongly into. Textrons’ 2026 sales are expected to grow more slowly than Hexcel’s, at about 5%. However, it is just beginning to plan deliveries of the MV-75, and it plans a big increase in U.S. defense spending in the coming years, which should help longer-term growth.
Though it is slower-growing in fiscal 2026. Textron is significantly cheaper than Hexcel in forward P/E and P/S ratios. Both are good companies with strong stocks, but Textron gets the nod given it is value-priced by the market compared to Hexcel.
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Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing. The Motley Fool recommends Hexcel and Textron. 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 vs. Textron: Which Key Industrial Supplier Stock Is a Better Buy in 2026?

Key Points
Hexcel maintains a dominant position in advanced composites for major commercial aircraft manufacturers like Airbus and Boeing.
Rocket Lab USA is transitioning from a small-launch specialist to an end-to-end space infrastructure company with significant satellite services.
Which aerospace innovator deserves a spot in your portfolio as 2026 progresses?
Choosing between an established materials leader and an aggressive space explorer requires balancing steady aerospace demand against high-growth potential. Both Hexcel (NYSE:HXL) and Rocket Lab USA (NASDAQ:RKLB) offer unique exposure to flight technology.
Hexcel provides specialized materials that make aircraft lighter and more fuel-efficient, serving as a critical supplier to the global aviation supply chain. Rocket Lab focuses on frequent satellite launches and space systems, aiming to become a vertically integrated provider of space infrastructure for government and commercial clients.
The case for Hexcel
Among industrial stocks, Hexcel is a primary provider of carbon fiber reinforcements and composite structures used in commercial and defense aircraft. Major customers include Airbus and The Boeing Company, which accounted for roughly 39% and 13% of net sales in 2025 respectively. Customer concentration like this adds a layer of risk to the business, though it is balanced by partnerships with Lockheed Martin and General Electric.
In FY 2025, revenue reached nearly $1.9 billion, representing a slight decrease of roughly 0.5% compared to the prior year. The company reported net income of approximately $109.4 million for the period, resulting in a net margin of close to 5.8%. This performance followed a similar revenue result in 2024, showing how the company is managing its output during a period of shifting aircraft production rates.
As of its December 2025 balance sheet, the company maintained a debt-to-equity ratio of nearly 0.8x, which measures total debt against shareholder equity. The current ratio, a measure of a company's ability to pay its short-term debts with short-term assets, stood at approximately 2.3x. Hexcel also generated roughly $307.2 million in free cash flow, representing the cash remaining after paying for capital expenditures.
The case for Rocket Lab USA
Rocket Lab designs and manufactures the Electron orbital launch vehicle while concurrently developing the larger Neutron rocket to compete in the medium-lift market. Its business serves government agencies like NASA along with commercial firms such as BlackSky Technology and Planet Labs PBC. The company is also in the process of acquiring Iridium Communications for approximately $8 billion to integrate satellite constellations and subscription revenue into its platform.
During FY 2025, revenue reached nearly $601.8 million, showing a strong growth rate of roughly 38.0% year over year. Despite the top-line expansion, the company reported a net loss of approximately $198.2 million, translating to a negative net margin of nearly 32.9%. This loss is largely due to the high costs associated with developing new launch technologies and scaling its space systems division.
Based on the December 2025 balance sheet, the company reported a debt-to-equity ratio of approximately 0.1x. Its current ratio reached nearly 4.1x, indicating a high level of liquidity available to meet immediate financial obligations. However, the company reported negative free cash flow of approximately $321.8 million for the year, as it continues to invest heavily in its flight hardware and infrastructure.
Risk profile comparison
Hexcel faces risks stemming from the cyclical nature of the commercial aerospace industry and potential production delays at its largest customers. Significant revenue depends on the production rates of Airbus and Boeing, meaning any operational or supply chain disruptions at those firms directly impact Hexcel. Additionally, the company must manage its reliance on limited sources for raw materials while maintaining its focus on core carbon fiber operations after recent facility closures.
Rocket Lab carries risks related to its massive $8 billion acquisition of Iridium Communications, which could create challenges for operational integration and corporate leverage. The company has a history of net losses and must successfully develop the Neutron launch vehicle to achieve long-term profitability. Furthermore, the business is subject to inherent aerospace hazards like launch failures and relies heavily on funding cycles from the U.S. government for its ongoing contracts.
Valuation comparison
Hexcel offers a traditional valuation based on its current profitability, while Rocket Lab does not currently have a defined forward P/E ratio because the company is not yet expected to be profitable over the next 12 months
Forward P/E
43.2x
N/A
246.5x
P/S ratio
4.0x
96.6x
Sector benchmark uses the SPDR XLI sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
I'd go with Rocket Lab. Hexcel is a well-run, profitable business with a durable position inside the aerospace supply chain. Its composite materials are baked into aircraft like the Boeing 787 and Airbus A350, and switching suppliers is essentially unthinkable once a plane is certified. That stickiness is valuable. But Hexcel's growth is tied closely to Boeing and Airbus production rates, which creates a ceiling on how fast the business can move.
Rocket Lab is operating on a different trajectory entirely. Revenue grew more than 60% last year and the company just posted its first $200 million quarter. Its backlog has climbed past $2 billion dollars. It signed more launch contracts in one quarter than it did in all of the prior year. And the Neutron rocket program adds another potential growth engine that Hexcel simply has no equivalent of.
Rocket Lab is still unprofitable and the stock is volatile. But for a long-term investor comfortable with some turbulence, the growth opportunity here is in a different league than what Hexcel can offer.
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Hexcel vs. Rocket Lab USA: Which Aerospace Stock Is a Better Buy in 2026?

Key Points
Hexcel is a long-standing leader in advanced lightweight composite materials with deep ties to the world's largest aircraft manufacturers.
Loar is a rapidly growing provider of niche aerospace components that maintains a highly diversified customer base and strong net margins.
Which aerospace stock offers the best combination of growth and value for your portfolio in 2026?
Investors often weigh the stability of established industry leaders against the high-growth potential of newer challengers. Today, we compare the long-standing Hexcel (NYSE:HXL) against the rapidly expanding Loar (NYSE:LOAR) to see which fits your portfolio.
Hexcel leads the market in advanced composite materials used to make aircraft lighter and more fuel-efficient. Loar focuses on designing and manufacturing niche components for both commercial and military aviation. Both companies benefit from the aerospace recovery, yet they offer different risk and reward profiles for those investing in commercial aviation or military technology.
The case for Hexcel
Hexcel supplies advanced lightweight composite materials, including carbon fiber reinforcements and resins, to the global aerospace market. These products are essential for modern aircraft because they reduce weight and improve fuel efficiency. Roughly 39% of net sales in FY 2025 came from Airbus, while Boeing and its subcontractors accounted for nearly 13%. Customer concentration like this adds a layer of risk to the business. The company remains a key player among defense stocks due to its participation in military aviation programs.
In FY 2025, revenue reached nearly $1.9 billion, which was approximately 0.5% lower than the prior year. Despite this slight decline in sales, the company reported net income of roughly $109.4 million. This resulted in a net margin of close to 5.8%, down from the 6.9% achieved in the previous fiscal year.
As of its December 2025 balance sheet, the debt-to-equity ratio is approximately 0.8x. This ratio measures how much a company finances its operations through debt, rather than through shareholder capital, and includes both short- and long-term debt. The current ratio, which compares short-term assets to short-term liabilities, is roughly 2.3x. In FY 2025, Hexcel generated nearly $307.2 million in free cash flow, the cash remaining after capital expenditures.
The case for Loar
Loar focuses on designing and manufacturing niche aerospace and defense components for a variety of end markets. These include commercial aviation, business jets, and military platforms. Unlike some competitors, the company maintains a more diversified customer base, with no single customer accounting for more than 12% of net sales in 2025. Customer concentration like this adds a layer of risk to the business. This strategy helps insulate the business from the production issues of any one aircraft manufacturer.
During FY 2025, the company reported revenue of nearly $496.3 million. This represented a substantial increase of approximately 23.2% compared to the prior year. Net income for the period was roughly $72.1 million, resulting in a net margin of nearly 14.5%, a significant improvement over the 5.5% net margin recorded in the previous fiscal year.
As of the December 2025 balance sheet, the debt-to-equity ratio was 0.0x, indicating the company has no significant debt relative to its equity. The current ratio was approximately 4.7x, suggesting a very strong ability to cover short-term financial obligations. During FY 2025, Loar generated nearly $99.3 million in free cash flow. This metric measures the cash a company generates after subtracting the cost of physical assets, such as equipment.
Risk profile comparison
Hexcel faces significant risks due to its heavy reliance on two primary customers. If either Airbus or Boeing experiences program delays or production slowdowns, Hexcel's revenue would likely suffer. Furthermore, the company is vulnerable to supply disruptions because it depends on limited-source raw materials. It must also navigate strict government regulations and the constant threat of cybersecurity breaches targeting its proprietary data.
Loar carries different risks, particularly related to its acquisition-based growth strategy. Integrating new businesses can be difficult and may lead to unforeseen expenses or the loss of key personnel. The company also competes against larger entities such as Honeywell International or TransDigm Group for market share. Because many of its government contracts are fixed-price, Loar faces the risk of shrinking net margins if raw material costs increase unexpectedly.
Valuation comparison
Hexcel offers a much lower entry point for investors based on its sales and earnings multiples, while Loar carries a significant growth premium.
Forward P/E
40.4x
52.4x
29.8x
P/S ratio
3.7x
12.4x
n/a
Sector benchmark uses the SPDR XLI sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
While both stocks are leaders in their respective niches, they are vastly different types of companies to hold. If you are looking for a stock that is the dominant force in its industry but probably doesn’t offer multibagger returns anytime soon, Hexcel, with its No. 1 position in aerospace composites, is an excellent steady-Eddie investment. On the other hand, Loar is more of a swing-for-the-fences type of investment, offering multibagger potential thanks to its smaller size and a strong history of successful M&A.
Both companies trade at premium forward P/E ratios, but for different reasons. Hexcel gets its lofty valuation thanks to its No. 1 position, wide moat, and tough-to-disrupt operations. Meanwhile, Loar has grown its sales by 38% annually since 2012 and boasts high-and-rising margins. In this sense, I’d say both stocks deserve their premium. However, I think Loar stands out because of its higher growth potential.
Though Loar “competes” with TransDigm in the aerospace components and parts industry, it mostly does so through the M&A process rather than individual parts. They both love to add new parts through tuck-in acquisitions, but TransDigm’s much larger size leaves them uninterested in some tiny M&A deals that wouldn’t move the needle for them -- but do for Loar. In a sense, Loar is borrowing from TransDigm’s playback to try to generate similarly impressive results as the latter has delivered over the years.
That said, while I would rather own Loar, Hexcel could prove an interesting stock over the next decade, as Boeing and Airbus have massive backlogs to fill, which should keep the company busy. At the same time, Hexcel also makes composites for satellites, rocket motors, and other space applications, making it an interesting investment as the space industry booms.
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Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing, Honeywell International, and TransDigm Group. 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 vs. Loar: Which Industrials Stock Is a Better Buy in 2026?

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Hexcel Corp. (Symbol: HXL), where a total of 13,310 contracts have traded so far, representing approximately 1.3 million underlying shares. That amounts to about 142.6% of HXL's average daily trading volume over the past month of 933,095 shares. Especially high volume was seen for the $95 strike call option expiring June 18, 2026, with 6,892 contracts trading so far today, representing approximately 689,200 underlying shares of HXL. Below is a chart showing HXL's trailing twelve month trading history, with the $95 strike highlighted in orange:
Trump Media & Technology Group Corp (Symbol: DJT) saw options trading volume of 54,583 contracts, representing approximately 5.5 million underlying shares or approximately 135.3% of DJT's average daily trading volume over the past month, of 4.0 million shares. Particularly high volume was seen for the $5 strike put option expiring June 18, 2026, with 8,537 contracts trading so far today, representing approximately 853,700 underlying shares of DJT. Below is a chart showing DJT's trailing twelve month trading history, with the $5 strike highlighted in orange:
And SiriusXM Holdings Inc (Symbol: SIRI) options are showing a volume of 57,768 contracts thus far today. That number of contracts represents approximately 5.8 million underlying shares, working out to a sizeable 127.7% of SIRI's average daily trading volume over the past month, of 4.5 million shares. Particularly high volume was seen for the $30.50 strike call option expiring June 05, 2026, with 13,778 contracts trading so far today, representing approximately 1.4 million underlying shares of SIRI. Below is a chart showing SIRI's trailing twelve month trading history, with the $30.50 strike highlighted in orange:
For the various different available expirations for HXL options, DJT options, or SIRI options, visit StockOptionsChannel.com.
Further HXL Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.