HXLHexcel Corporation
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.4×).
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 11% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is HXL?
Hexcel Corporation earns 8.9% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 0.08 points below what the capital costs: growth destroys value
- Operating margin
- 12%
Operating margin · Aerospace & Defense median 9.6% · 12 months to Q3 2026
- Cash conversion
- 1.40×
Cash conversion · 2.79× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −4.5%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 0.94% |
| FY2021 | 3.9% |
| FY2022 | 11% |
| FY2023 | 12% |
| FY2024 | 9.8% |
| FY2025 | 9.1% |
Details›
- Gross margin12 months to Q3 2026
- 25%
- Operating margin12 months to Q3 2026
- 12%
- Net margin12 months to Q3 2026
- 8.5%
- Free cash flow margin
- 10%
- R&D as % of revenue
- 3.3%
- Revenue, trailing twelve months
- $2.02B
- Free cash flow, trailing twelve months
- $210M
- Net income, trailing twelve months
- $172M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.9%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from HXL and who it buys from, as the companies report it.
- Airbus and its subcontractors39%
Share of revenue · FY2025 10-K
- BABoeing13%
Share of revenue · FY2025 10-K
- Two customers and their related subcontractors52%
Combined share of revenue · FY2025 10-K
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; HXL’s own figures are from its FY2025 10-K. Smaller customers and suppliers go unreported.