Hexcel (HXL) Surges to New High Ahead of Dividend Record Date

We recently published Why These 10 Stocks are Soaring by Double Digits. Hexcel Corp. (NYSE:HXL) is one of the best performers on Thursday.

Hexcel soared to a new all-time high on Thursday, as investors gobbled up shares ahead of its quarterly dividend payout, despite a dismal earnings performance and a lower growth outlook for the rest of the year.

In intra-day trading, Hexcel Corp. (NYSE:HXL) soared by as much as 16.6 percent to its highest price of $74.35 before paring gains to end the day just up by 11.31 percent at $70.95 apiece.

This followed announcements that it would pay $0.17 worth of dividends to all common shareholders as of the November 3 record, payable on November 10, 2025.

Meanwhile, Hexcel Corp. (NYSE:HXL) saw a 48.2 percent drop in its net profit in the third quarter of the year to $20.6 million from $39.8 million in the same period last year. Net sales also ended flat at $456.2 million versus $456.5 million year-on-year.

Earnings per share (EPS) fell by 46.9 percent to $0.26 from $0.49 in the same comparable period.

As key risks remain in the picture, including tariffs, inflation, and continued destocking, Hexcel Corp. (NYSE:HXL) said it expects to book $1.88 billion in sales for full-year 2025, marking the bottom end of its previous sales guidance of $1.88 billion to $1.95 billion for the year.

For next year, the company expects orders from commercial clients to pick up in line with their expansion plans.

“Once Airbus and Boeing hit their publicly announced peak build rates, Hexcel expects to benefit with an additional $500 million in incremental annual revenue from existing contracts. These increasing sales in 2026 and beyond will drive higher capacity utilization, unlocking the volume leverage that will fuel future margin expansion. With the incremental revenue, Hexcel is expected to generate more than $1 billion in free cash flow over the next four years,” Chairman, President, and CEO Tom Gentile said.

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Disclosure: None. This article is originally published at Insider Monkey.