Hexcel sets quarterly dividend at $0.17 per share

STAMFORD, Conn. - Hexcel Corporation (NYSE: HXL), known for its advanced lightweight composites technology, has declared a regular quarterly cash dividend. On Monday, the company’s Board of Directors announced that a dividend of $0.17 per share will be paid to stockholders of record as of May 2, 2025. The scheduled payment date for this dividend is May 9, 2025. According to InvestingPro data, the company has raised its dividend for three consecutive years, with a significant 36% dividend growth over the last twelve months.

Hexcel’s expertise lies in creating high-performance material solutions, including carbon fiber and honeycomb structures, which are integral to aerospace, defense, space, and industrial applications. The company’s commitment to innovation supports the ongoing evolution of transportation and defense technologies. With a market capitalization of $4.05 billion and current InvestingPro analysis suggesting the stock is undervalued, Hexcel maintains a strong position in its specialized market segments.

The declaration of this dividend reflects Hexcel’s financial practices aimed at providing value to its shareholders. Regular dividends are often seen as a sign of a company’s stable financial health and its management’s confidence in ongoing profitability. InvestingPro data reveals the company operates with a moderate level of debt and maintains strong liquidity, with a current ratio of 2.21 indicating robust financial health. Discover more insights about Hexcel’s financial strength and growth potential with InvestingPro’s comprehensive research report, available along with 8 additional ProTips.

This recent announcement is consistent with Hexcel’s history of dividend payments and underscores the company’s position in the market as a provider of specialized materials. The dividend of $0.17 per share remains an important aspect of the company’s strategy to enhance shareholder returns.

Investors in Hexcel Corporation may mark their calendars for the upcoming dividend record date of May 2, 2025, and the subsequent payment date of May 9, 2025. This information is based on a press release statement from Hexcel Corporation.

In other recent news, Hexcel Corporation has made several notable financial moves and adjustments. S&P Global Ratings revised its outlook for Hexcel to stable from positive, affirming a ’BB+’ rating on the company’s credit and senior unsecured debt. This decision reflects Hexcel’s resilience despite ongoing market challenges, with revenue growth expected to be modest in the coming years. In a strategic debt management move, Hexcel redeemed its 4.700% Senior Notes due 2025 using proceeds from a new $300 million offering of 5.875% Senior Notes due 2035. This action is part of Hexcel’s broader strategy to optimize its capital structure and strengthen its financial position.

Additionally, Wells Fargo downgraded Hexcel’s stock rating from Overweight to Equal Weight, citing concerns over operational leverage and profitability amid industry challenges. The price target was adjusted to $55 from $63, reflecting potential impacts from Airbus A350 production rates. Meanwhile, Truist Securities reduced Hexcel’s stock price target to $80 from $85 but maintained a Buy rating, emphasizing long-term value despite uncertainties in the Airbus A350 production. These recent developments highlight Hexcel’s ongoing efforts to navigate industry headwinds while positioning itself for future growth.

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