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Investing.com - Truist Securities has maintained its Buy rating and $75.00 price target on Hexcel Corp. (NYSE:HXL) following the company’s third-quarter 2025 results. According to InvestingPro analysis, the company, currently valued at $5.8 billion, is trading slightly above its Fair Value, with a P/E ratio of 59.6x.
Hexcel reported better-than-expected third-quarter performance, exceeding analyst projections for revenues, earnings per share, and free cash flow. The company maintains strong financial health with a current ratio of 2.69 and operates with moderate debt levels. Despite these positive results, management narrowed its revenue guidance to the lower end of its previously stated range, citing ongoing inventory restocking challenges.
The composite materials manufacturer also reduced the midpoint of its earnings per share guidance by 10%, fully incorporating the impact of tariffs into its financial outlook. The company maintained its free cash flow forecast and expressed confidence in its 2026 performance, including its ability to generate $1 billion in free cash flow in coming years.
In a show of confidence, Hexcel’s Board of Directors authorized an additional $600 million in share repurchases. The company has already entered into a $350 million accelerated share repurchase program as part of this authorization, which could potentially reduce its outstanding share count by approximately 11%.
Separately, Hexcel announced that Chief Financial Officer Patrick Winterlich will be leaving the company effective November 30, 2025, to pursue another opportunity.
In other recent news, Hexcel Corporation reported its Q2 2025 earnings, highlighting significant growth in its defense segment. Despite this positive development, the company experienced a decline in commercial aerospace sales. These mixed results come as Hexcel continues to implement strategic initiatives to strengthen its market position. Additionally, Hexcel’s Board of Directors declared a regular quarterly cash dividend of $0.17 per share. This dividend will be payable on November 10, 2025, to stockholders of record as of November 3, 2025. The company’s consistent dividend program reflects its commitment to returning value to shareholders. These developments indicate Hexcel’s focus on balancing growth in different market segments while maintaining shareholder returns.
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