Hexcel Corp

We see attractive multiyear growth opportunities in companies such as Hexcel, driven by strong demand in commercial aerospace and defense sectors. The modernization and global rearmament trends are supporting sustained demand across mission-critical technologies. Additionally, the need for more fuel-efficient aircraft and strong travel demand are key drivers for Hexcel's growth. This positions Hexcel favorably within our portfolio as we capitalize on these long-term trends.

We initiated a new investment position in Hexcel Corporation. Hexcel is a global leader in advanced composite materials, specializing in the production of carbon fiber reinforcements, resin systems, and honeycomb structures. These materials are critical for lightweight, high-performance applications, particularly in the commercial aerospace, space, and defense sectors. We like the duopoly market structure and deep moats of Hexcel’s business. The cycle has been in a prolonged downtrend due to the COVID supply chain shocks, creating bottlenecks in engines and the struggles of Boeing and Spirit Aerosystems. We believe these headwinds are now largely behind us. The competitive moats in this business are significant.

During the quarter, we began buying shares in Hexcel Corporation, a manufacturer of composite materials for aerospace, commercial and industrial uses worldwide. The initial recovery in aircraft production should provide original equipment manufacturer (OEM) suppliers with a secular tailwind. As the largest OEM of aerospace-grade carbon fiber used in the newer Airbus and Boeing planes, we expect Hexcel to benefit as production levels rise.

During the quarter, we began buying shares in Hexcel Corporation, a manufacturer of composite materials for aerospace, commercial and industrial uses worldwide. The initial recovery in aircraft production should provide original equipment manufacturer (OEM) suppliers with a secular tailwind. As the largest OEM of aerospace-grade carbon fiber used in the newer Airbus and Boeing planes, we expect Hexcel to benefit as production levels rise.

During the quarter, we began buying shares in Hexcel Corporation, a manufacturer of composite materials for aerospace, commercial and industrial uses worldwide. The initial recovery in aircraft production should provide original equipment manufacturer (OEM) suppliers with a secular tailwind. As the largest OEM of aerospace-grade carbon fiber used in the newer Airbus and Boeing planes, we expect Hexcel to benefit as production levels rise.