Hexcel CorporationHXL
NYSE•Industrials•Aerospace & Defense
Hexcel Corporation develops, manufactures, and markets advanced lightweight composites technology. It operates through two segments, Composite Materials and Engineered Products. The company offers carbon fiber, reinforcements, prepregs and other fiber-reinforced matrix materials, honeycomb, resins, engineered core and composite structures for use in commercial aerospace, defense and space, and industrial applications. The Composite Materials segment manufactures and markets carbon fibers, fabrics, multi-axials, specialty reinforcements, prepregs and other fiber-reinforced matrix materials, structural adhesives, honeycomb, molding compounds, tooling materials, polyurethane systems, and laminates that are used in military aircraft, transportation, recreational products, and other industrial applications. The Engineered Products segment manufactures and markets aircraft structures and finished aircraft components, including wing to body fairings, wing panels, flight deck panels, door liners, rotorcraft blades, spars, and tip caps; and aircraft structural sub-components and semi-finished components used in rotorcraft blades, engine nacelles, and aircraft surfaces, such as flaps, wings, elevators, and fairings; and RF interference control products for military and aerospace applications. This segment also provides interference control materials, structural composites, and services; dielectric absorber foams; magnetic absorbers; and thermoplastics for commercial and defense applications. The company sells its products directly through its marketing managers, product managers, and sales personnel, as well as through independent distributors in the Americas, Europe, the Asia Pacific, India, and Africa. Hexcel Corporation was founded in 1946 and is headquartered in Stamford, Connecticut.
Hexcel Corporation (HXL) reported trailing twelve months revenue of $1.94B as of March 2026, a 2.7% increase year-over-year. Quarterly revenue reached $501.50M, reflecting continued top-line momentum.
Hexcel Corporation generated $117.70M in TTM net income, with quarterly EBITDA of $88.00M. The operating margin expanded from 9.7% to 11.5%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (11.5%) and net margin (7.4%) indicates tight cost control with minimal non-operating drag. Net margin has improved from 6.3% a year ago, signaling stronger bottom-line efficiency.
HXL trades at a P/E of 64.4x (a premium multiple) and a P/S of 3.9x. The price-to-book ratio of 6.0x indicates a significant premium over book value.
The company reported negative free cash flow of $-6.20M, indicating cash consumption over the period. The balance sheet shows $2.72B in total assets with $998.10M in long-term debt against $1.27B in stockholders equity for a debt-to-equity ratio of 0.8. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~9.4% on average, but show some variability — pricing power may be sensitive to market conditions.
ROE is positive at ~7.3% on average, adequate but below the threshold typically associated with wide moats.
6 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
Revenue shows resilience with 4 of 7 quarters posting growth — demand is generally stable but has seen some soft patches.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~9.5% — no sign of cost or pricing stress.
FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.
Debt-to-equity has risen 53.5% recently — increasing financial risk even if the current ratio is manageable.
Revenue is stable or growing over recent quarters — demand appears durable.
FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.
Shares decreased 8.0% — net buybacks are reducing shares outstanding and boosting per-share value.