2024-01-26 06:47:22 ET
Summary
- Hexcel's stock price has struggled despite its important role in advanced composites solutions.
- Commercial aerospace revenues are growing, but single aisle demand is softer than expected.
- Space & Defense revenues are increasing, but industrial sales continued to decline.
Hexcel Corporation (HXL) is a company that I have covered for years, and the reality is that, as an aerospace engineer, I am extremely enthusiastic about the company's product and the role composites play in future commercial airplane developments, as well as advancement in mobility and defense. Despite this, its stock price has struggled. For a company that plays such an important role in advanced composites solutions, you would expect a bit more stellar performance. However, that the company is facing some challenges is partially also driven by the softness observed during the pandemic in commercial airplane demand, and that is a volume that you don't build back overnight. And shipset value of composites increased with each new airplane development, and airplane developments also do not happen overnight....
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Hexcel Stock Falls 8%: What Is Next?