|HXL Overview
HXL

HEXCEL CORP /DE/

Materials • CIK: 0000717605

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Market Cap
$5.87B
P/E (TTM)
53.7x
Rev Growth (TTM)
-0.5%
Net Margin (TTM)
5.8%
FCF Yield (TTM)
2.7%
FCF Margin (TTM)
8.3%

LATEST EARNINGS

Q4 2025
about 1 month ago
View source
Revenue
$491.30M
+3.7%
Net Income
$46.40M
+700.0%
EPS
$0.60
+757.1%
Gross
24.6% -0.4%
Operating
12.5% +10.6%
Net
9.5% +8.3%
  • Q4 2025 sales increased 3.7% year-over-year to $491.3 million, driven by strong growth in Airbus A320neo sales.
  • Adjusted operating income margin improved to 13.3% in Q4 2025 from 12.1% in Q4 2024, indicating improved profitability.
  • Quarterly dividend increased 6% to $0.18 per share.
  • 2026 guidance projects sales growth of 8% at the midpoint and adjusted EPS growth of 25% at the midpoint, reflecting expected recovery and operating leverage.

Cash Flow Health

Free Cash Flow6/8 positive
TTM$157M
Q4 '25
$107M+11%
Q3 '25
$97M+1106%
FCF Margin
TTM8.3%
Q4 '2521.8%+3%
Sector: 0.8%Above Avg
OCF Margin12.2%
OCF/NI2.11x
CapEx Coverage3.1x
FCF Yield2.7%
FCF Growth (2Y)+18%
Cash Conversion Cycle
108 days
DSO: 48+DIO: 91DPO: 31

Capital Allocation & Returns

Shareholder Friendly
Total Shareholder YieldTTM
TTM8.7%
Div Yield0.9%
+
Buyback (TTM)7.7%

Strong capital returns to shareholders

Dividend & Payout Metrics
Dividend Yield (TTM)0.9%
FCF Payout Ratio34.3%
Free Cash Flow (TTM)$157.2M
Stock Repurchases (TTM)$454.3M
Capital Return / FCF323.3%
Est. Dividends Paid (TTM)$53.9M
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
5.9%
Stable
-0.0% YoY-1.8%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
7.3%
8Q: 9.6%
Asset Turnover
0.68x
8Q: 0.67x
Leverage (1+D/E)
1.79x
D/E: 0.79x
DuPont: 9.0%5.9% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
1.17x
8Q:1.15x
+4.0%
Invested Cap Turn
0.81x
8Q:0.80x
+3.6%
CapEx Intensity
3.1%
8Q:3.1%
CapEx/Depreciation
0.61x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
Revenue
$1.9B
$491.3M7.7%
$456.2M6.9%
$489.9M7.3%
$456.5M3.7%
$473.8M3.8%
$456.5M8.8%
$500.4M5.9%
$472.3M
Operating Income
$171.6M
$61.4M70.6%
$36.0M20.0%
$30.0M32.1%
$44.2M396.6%
$8.9M83.0%
$52.5M26.9%
$71.8M35.7%
$52.9M
Net Income
$109.4M
$46.4M125.2%
$20.6M52.6%
$13.5M53.3%
$28.9M398.3%
$5.8M85.4%
$39.8M20.4%
$50.0M37.0%
$36.5M
Operating Cash Flow
$230.5M
$125.5M13.9%
$110.2M373.0%
$23.3M181.8%
$-28.5M117.5%
$162.6M80.5%
$90.1M103.8%
$44.2M731.4%
$-7.0M
Free Cash Flow
$157.2M
$107.3M11.2%
$96.5M1106.3%
$8.0M114.7%
$-54.6M137.9%
$144.0M96.5%
$73.3M244.1%
$21.3M159.7%
$-35.7M
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
53.7x
Volatile
8Q: 160.6x+2368%
Multiple expansion without fundamental improvement
Valuation Lenses
Earnings
53.7x
vs sector
Cash Flow
41.9x
EV/FCF vs
Growth-Adj
PEG
N/A
Quality-Adj
9.1P/E per %ROIC
ROIC: 5.9%
Shareholder Returns
Dividend
0.9%
Buyback
7.7%
Total Yield
8.7%
Market Cap$5.87B
EV$6.59B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
69/100
High Quality

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Below Avg
7.2%
8Q:
Return on Invested Capital (ROIC)Top 25%
5.9%
8Q:
Flat
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 7.3%
Asset Turnover: 0.68x

Earnings Quality

Cash Conversion

2.11x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin23.0%

Capital Efficiency

Invested Capital Turnover0.81x

Working Capital

Cash Conversion Cycle108 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
58/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
-0.5%
OpInc Growth YoY
589.9%
EPS Growth YoY
-14.0%
FCF 3Y CAGR
17.5%

Growth Quality Analysis

Efficient Growth: Free cash flow growing faster than revenue

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
23.0%
Operating
9.1%
Above Avg in sector
Net
5.8%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+2.5 pts
FCF: 8.3% | Net: 5.8%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Adequate
Net Debt / EBITDA
Net Debt: $922.00M
Interest Coverage
Leverage Metrics
Debt-to-Equity
0.79x
Balance sheet risk & solvency analysis