This Aerospace Stock Is About to Take Off

2025-11-24 13:30:00 ET

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.

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.

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.

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