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

Woodward, Inc. WWD reported first-quarter fiscal 2026 adjusted net earnings per share (EPS) of $2.17, which jumped 60.7% year over year and beat the Zacks Consensus Estimate by 31.5%.
Quarterly net sales increased 29% year over year to $996 million. The upside is fueled by market tailwinds across Aerospace and Industrial. The top line beat the consensus estimate by 10.1%.
Management highlighted that the company delivered a strong first-quarter 2026 performance that exceeded expectations, reflecting broad-based year-over-year growth across both segments, driven by strong demand and disciplined execution by our global teams. In Aerospace, margin expansion was supported by a richer mix of commercial services activity and robust defense OEM demand, while Industrial results benefited from strength in power generation, transportation and oil and gas markets.
The company’s continued focus on operational excellence is driving productivity gains and more consistent execution across the portfolio. Building on this strong start to the year, WWD raised its full-year sales and earnings guidance.
Post this announcement, the stock surged 15% in the after-market trading session yesterday. In the past year, shares have gained 78.3% compared with the Zacks Aerospace - Defense Equipment industry’s rise of 39.9%.
Image Source: Zacks Investment Research
WWD’s Segment Results
Aerospace: Net sales were $635 million, up 29% year over year, driven by broad-based strength across commercial services, commercial OEM and defense OEM. Defense OEM and defense services sales were up 23% and 1%, respectively, year over year. Commercial OEM sales were up 22% year over year, while services jumped 50%.
Segmental earnings were $148 million, up from $95 million a year ago. The gains were fueled by effective price realization, a more favorable product mix and higher sales volumes, though partly tempered by planned investments in Aerospace manufacturing and ongoing inflationary pressures. Margins expanded 420 basis points (bps) to 23.4%.
Woodward, Inc. Price, Consensus and EPS Surprise
Industrial: Net sales totaled $362 million, up 30% year over year, driven by gains across transportation, power generation and oil & gas markets. Core industrial sales, excluding the China on-highway impact, rose 22%.
Transportation sales rose 55%, and oil and gas sales increased 28%. Power generation grew a modest 7%, reflecting the sale of the combustion business in the prior year. Without that divestiture, power generation sales would have grown in the mid-20s on a percentage basis.
Segmental earnings were $67 million, up from $40 million in the year-ago quarter. In the core industrial segment, margins increased 410 bps to 18.5% of sales, led by strong pricing, higher volume and favorable mix, partially offset by inflationary pressures.
Other Details of WWD
Gross margin was up 480 bps year over year to 29.3%.
Total costs and expenses were $827.3 million, up 23.3% year over year.
Adjusted EBITDA was $207.8 million compared with $134.9 million a year ago.
WWD’s Cash Flow & Liquidity
As of Dec. 31, 2025, Woodward had $454.3 million in cash and cash equivalents with $457 million of long-term debt (less the current portion).
For the quarter ended Dec. 31, 2025, WWD generated $114.4 million of net cash from operating activities, increasing from $34.5 million reported in the prior-year period.
Free cash flow was $70 million compared with $1 million in the year-ago period. This uptick was driven by strong aerospace commercial services and higher China on-highway revenue within its Industrial segment. Notably, the company did not see the typical seasonal decline in demand and maintained steady production levels despite fewer working days during the quarter.
Capital expenditures reached $44 million in the first quarter, up from $34 million. The company expects capital spending to rise meaningfully over the remaining three quarters, driven primarily by the Spartanburg facility build-out and other ongoing automation initiatives.
In the quarter under review, WWD returned $146 million to its shareholders in the form of $17 million of dividends and $129 million worth of share repurchases.
WWD’s Fiscal 2026 Guidance
On the back of a strong first-quarter performance, Woodward has raised its guidance for fiscal 2026. The updated outlook assumes a continued robust demand environment, supporting ongoing sales growth and additional margin expansion.
Woodward expects consolidated net sales to rise 14% to 18% compared with the previous guidance of 7% to 12%. Aerospace is projected to grow 15% to 20% compared with the earlier projection of 9% to 15%, and Industrial is anticipated to increase 11% to 14% compared with the prior expectation of 5% to 9%.
Management stated that it plans to wind down the China on-highway business by the end of fiscal 2026. Aerospace segment earnings are still expected to be 22% to 23% of segment sales. Industrial segment earnings are estimated to be 16% to 17% compared with the prior view of 14.5% to 15.5% of segment sales.
Adjusted free cash flow is still anticipated to be between $300 million and $350 million. The company continues to project free cash flow in the range of $300-$350 million.
The company raised EPS guidance to $8.2-$8.6 from the previous expectation of $7.5-$8.
WWD’s Zacks Rank
Woodward currently carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performance of Other Companies
Teledyne Technologies Inc. TDY reported fourth-quarter 2025 adjusted earnings of $6.30 per share, which surpassed the Zacks Consensus Estimate of $5.83 by 8.1%. The bottom line also improved 14.1% from $5.52 recorded in the year-ago quarter.
Total sales were $1.61 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 2.7%. The top line also surged 7.3% from $1.50 billion reported in the year-ago quarter.
Textron Inc. TXT reported fourth-quarter 2025 adjusted earnings of $1.73 per share, which missed the Zacks Consensus Estimate of $1.74 by 0.8%. However, the bottom line rose 29.1% from $1.34 in the year-ago quarter.
The company reported total revenues of $4.18 billion, which outpaced the Zacks Consensus Estimate of $4.14 billion by 0.8%. The top line also rose 15.7% from the year-ago quarter’s level of $3.61 billion.
Hexcel Corporation HXL reported fourth-quarter 2025 adjusted earnings of 52 cents per share, which came in line with the year-ago quarter’s figure. However, the bottom line topped the Zacks Consensus Estimate of 50 cents by 4%.
The company’s net sales totaled $491.3 million in the fourth quarter, which beat the Zacks Consensus Estimate of $478 million by 2.7%. The top line also rose 3.7% from the year-ago quarter’s reported sales of $473.8 million.
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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.

Woodward's Q1 Earnings & Revenues Beat Estimates, Up Y/Y, Stock Rises

Hexcel (HXL) came out with quarterly earnings of $0.52 per share, beating the Zacks Consensus Estimate of $0.5 per share. This compares to earnings of $0.52 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +4.31%. A quarter ago, it was expected that this maker of lightweight composite materials would post earnings of $0.38 per share when it actually produced earnings of $0.37, delivering a surprise of -2.63%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Hexcel, which belongs to the Zacks Aerospace - Defense Equipment industry, posted revenues of $491.3 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.70%. This compares to year-ago revenues of $473.8 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Hexcel shares have added about 10.4% since the beginning of the year versus the S&P 500's gain of 1.9%.
What's Next for Hexcel?
While Hexcel has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Hexcel was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.43 on $487.4 million in revenues for the coming quarter and $2.29 on $2.07 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Aerospace - Defense Equipment is currently in the top 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Curtiss-Wright (CW), has yet to report results for the quarter ended December 2025. The results are expected to be released on February 11.
This engineering firm is expected to post quarterly earnings of $3.66 per share in its upcoming report, which represents a year-over-year change of +11.9%. The consensus EPS estimate for the quarter has been revised 1.7% lower over the last 30 days to the current level.
Curtiss-Wright's revenues are expected to be $890.2 million, up 8% from the year-ago quarter.
Should You Invest in Hexcel Corporation (HXL)?
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Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
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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 (HXL) Surpasses Q4 Earnings and Revenue Estimates

(RTTNews) - Hexcel Corp. (HXL) released a profit for its fourth quarter that Increases, from last year
The company's bottom line came in at $46.4 million, or $0.60 per share. This compares with $5.8 million, or $0.07 per share, last year.
Excluding items, Hexcel Corp. reported adjusted earnings of $40.4 million or $0.52 per share for the period.
The company's revenue for the period rose 3.7% to $491.3 million from $473.8 million last year.
Hexcel Corp. earnings at a glance (GAAP) :
-Earnings: $46.4 Mln. vs. $5.8 Mln. last year. -EPS: $0.60 vs. $0.07 last year. -Revenue: $491.3 Mln vs. $473.8 Mln last year.
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. Q4 Income Climbs

Key Points
FTAI and Hexcel serve different but compatible roles in the aviation sector.
FTAI benefits from aftermarket services and new AI-driven opportunities.
Hexcel’s composite materials are becoming more important for future aircraft and long-term growth.
FTAI Aviation (NASDAQ: FTAI) and Hexcel (NYSE: HXL) are two attractive stocks in the aviation sector, and while Hexcel looks like the better buy right now for long-term investors, they are actually complementary companies for a portfolio. Here's why.
FTAI Aviation growth prospects
The main difference is that FTAI focuses only on the aerospace aftermarket, while Hexcel's advanced composite materials are used in the original equipment market (OEM). Owning both stocks lets investors benefit when aircraft production is strong (Hexcel) and also when manufacturers like Airbus and Boeing face delays, causing airlines to use and service older planes more often (FTAI Aviation).
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This "dual threat" of being relevant in both the OEM and aftermarket is part of the reason GE Aerospace (NYSE: GE), the leading engine manufacturer that sells engines under long-term service agreements (LTSA), has performed so well in recent years.
FTAI is both a rival to GE Aerospace and arguably a business that benefits the aerospace giant. FTAI owns, leases, and sells aviation equipment. Its primary business is the maintenance and repair of aircraft engines, notably the CFM International (a GE Aerospace joint venture) CFM56 that powers the legacy Airbus A320 family and the Boeing 737s that will still be used by airlines for many years to come.
FTAI will service CFM's newer LEAP engines in the future, once GE Aerospace's LTSAs expire (usually after more than a decade). As such, FTAI both competes with GE Aerospace (for maintaining and servicing engines after the LTSA period expires) and supports its engine sales, as airlines know they can use FTAI to service engines in the future.
A hidden artificial intelligence (AI) stock
Recently, FTAI's stock has surged, far outpacing Hexcel's. This growth is mainly due to the launch of FTAI Power, which will convert CFM56 engines into power turbines for data centers to meet the growing demand for AI. It's an exciting business that builds on FTAI's strengths. It's not unusual -- GE Vernova, for example, makes smaller turbines based on aerospace engines, called aeroderivatives.
Why Hexcel is a great stock to buy for 2026
Hexcel's advanced composite materials are the future of the aerospace industry, and each new generation of aircraft increasingly uses relatively more of them. They offer strength and weight advantages over traditional materials like aluminum and steel, helping airlines improve productivity and meet their emissions goals.
As such, Hexcel is not only a play on the ramp in aircraft production (both Airbus and Boeing have multyear backlogs), but also on the increased use of its composites on aircraft. For example, consider that the legacy Boeing 737 has just 5% composites by weight while the 737 MAX has 15%, and each plane has a $0.2 million to $0.5 million shipset value to Hexcel.
This gives Hexcel excellent long-term growth prospects as the aerospace industry supply chain bottleneck eases and investors begin to look at companies benefiting from OEM growth (Hexcel) as well as aftermarket growth (FTAI Aviation). That's the next phase of the aerospace recovery, and Hexcel is the ideal way to play it.
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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 Ge Vernova and 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.

1 Stock I'd Buy Before FTAI Aviation in 2026

Key Points
Hexcel is at the start of a likely multiyear recovery.
Boeing and Airbus are aggressively addressing their mammoth backlogs, which benefits Hexcel.
The use of lightweight composites in aircraft is increasing with each new model.
It has been a challenging few years for advanced lightweight composites company Hexcel (NYSE: HXL). The company's primary end market is commercial aerospace, and the combination of lockdowns affecting the travel market, the ensuing supply chain crisis, and the slower-than-expected recovery in aircraft production at Boeing (NYSE: BA) and Airbus (OTC: EADSY) collectively hurt Hexcel's growth. However, there are real signs of a strong recovery in place now, and Hexcel stock will be a major beneficiary.
The case for buying Hexcel
Hexcel is an ideal stock to buy to play the recovery in aircraft production, because unlike most other aerospace-focused companies, it doesn't have significant aftermarket revenue. Instead, its growth depends on a combination of increased aircraft production and the increasing penetration of composites in aircraft.
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Both earnings drivers have excellent prospects. First, Boeing and Airbus continue to have multiyear backlogs in place, and they're aggressively ramping aircraft production to catch up with the more than 15,000 aircraft they need to build. Meanwhile, engine and component suppliers GE Aerospace and RTX both recently hiked their guidance on the back of improved parts availability. The supply chain crisis is easing.
Second, lightweight composites will have a larger share of content on commercial aircraft, as has been the case with each successive generation of aircraft. For example, the current Boeing 777 wide-body features a 10% composite penetration, whereas the forthcoming 777X is expected to have a 30% composite penetration.
It's a trend that will benefit Hexcel through a combination of increased aircraft production and higher shipset value on newer aircraft.
Hexcel's recovery is just starting
Management is so confident in aircraft production rates and Hexcel's position that it recently authorized $600 million in share buybacks as it returns value to shareholders. Meanwhile, Wall Street expects double-digit revenue growth and earnings before interest, taxes, depreciation, and amortization (EBITDA) growth of 20% or more over the next few years.
As such, Hexcel is in the early innings of a multiyear recovery in concert with production ramps at Boeing and Airbus.
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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.

This Aerospace Stock Is About to Take Off

Looking at the universe of stocks we cover at Dividend Channel, on 11/3/25, Hexcel Corp. (Symbol: HXL), Core Laboratories Inc (Symbol: CLB), and ONEOK Inc (Symbol: OKE) will all trade ex-dividend for their respective upcoming dividends. Hexcel Corp. will pay its quarterly dividend of $0.17 on 11/10/25, Core Laboratories Inc will pay its quarterly dividend of $0.01 on 11/24/25, and ONEOK Inc will pay its quarterly dividend of $1.03 on 11/14/25. As a percentage of HXL's recent stock price of $73.02, this dividend works out to approximately 0.23%, so look for shares of Hexcel Corp. to trade 0.23% lower — all else being equal — when HXL shares open for trading on 11/3/25. Similarly, investors should look for CLB to open 0.06% lower in price and for OKE to open 1.53% lower, all else being equal.
Below are dividend history charts for HXL, CLB, and OKE, showing historical dividends prior to the most recent ones declared.
Hexcel Corp. (Symbol: HXL):
Core Laboratories Inc (Symbol: CLB):
ONEOK Inc (Symbol: OKE):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 0.93% for Hexcel Corp., 0.25% for Core Laboratories Inc, and 6.13% for ONEOK Inc.
In Thursday trading, Hexcel Corp. shares are currently up about 0.5%, Core Laboratories Inc shares are off about 2.2%, and ONEOK Inc shares are off about 2.8% on the day.
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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.

Ex-Dividend Reminder: Hexcel, Core Laboratories and ONEOK

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.
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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.

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.

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