Hexcel (HXL)
NYSEIndustrialsAerospace & DefenseSnapshot 2026-09-04
$91.98-0.49%
Close 2026-09-04 · 1-day change
NYSEIndustrialsAerospace & DefenseSnapshot 2026-09-04
QuarterlyIQ Insights · HXL
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within industrials on a research-validated quality screen. As of 2026-09-04.
The screen ranks HXL against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 3 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Industrials names rated strong grew net income 67% of the time over the next year (vs 52% for the rest of the cohort, n=6958).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Drive sales growth primarily through rising commercial aerospace build rates and expanding adoption of advanced composites.
Stated as a priority in 4 of last 4 quarters. Revenue grew from $456.5M in 2025-Q1 to $501.5M in 2026-Q1 (+9.9%) and from $489.9M in 2025-Q2 to $529.3M in 2026-Q2 (+8.0%). Commercial Aerospace sales increased over 18% year-over-year in both quarters. Management is delivering on revenue growth driven by rising aerospace build rates.
“Rising build rates at our commercial aerospace customers drove strong sales growth this quarter.”
“First quarter sales increased ten percent and earnings per share grew at a significantly higher rate.”
“Strong orders from commercial aerospace OEMs to support production rate increases for key programs.”
“Focus on execution as we position Hexcel to benefit from a multi-year growth cycle under existing contracts.”
Improve operating income and margins through higher sales leverage and operational discipline.
Stated as a priority in 4 of last 4 quarters. Adjusted operating income rose from $45.3M in 2025-Q1 to $67.5M in 2026-Q1 and from $54.2M in 2025-Q2 to $73.6M in 2026-Q2, with margins improving from 9.9% to 13.5% and 11.1% to 13.9% respectively. Management is delivering improved operating income driven by sales leverage and operational discipline.
Generate free cash flow above $195 million annually and maintain capital expenditures below $100 million.
Stated as a priority in 4 of last 4 quarters. Free cash flow improved from negative $46.6M in first half 2025 to positive $51.8M in first half 2026. Capital expenditures remained disciplined at $44.9M in first half 2026, consistent with guidance to keep annual capex below $100M. Management is delivering improved cash flow and maintaining capital discipline.
“Free cash flow guidance of greater than $195 million and capital expenditures less than $100 million unchanged.”
Continue share repurchases supported by strong free cash flow and debt management.
Stated as a priority in 3 of last 4 quarters. The company executed a $350M accelerated share repurchase in 2025 and had $380.6M remaining authorization as of 2026-Q2. $100.9M was spent on repurchases in first nine months of 2025. Management is delivering on share repurchase execution supported by cash flow.
Implement restructuring actions including shutdown of industrial manufacturing to improve operational efficiency.
Stated as a priority in 3 of last 4 quarters. Restructuring charges related to Leicester, UK facility shutdown were $5.5M in 2026-Q1 and $1.0M in 2026-Q2. Prior restructuring included closure of Belgium facility in 2025-Q3. Management is progressing on operational restructuring with declining restructuring charges.
“Other operating expense included $1.0 million restructuring charges related to shutdown of Leicester, UK facility.”
Over the trailing year it converted 1.69x of net income into operating cash flow. Historically, Industrials names rated robust grew net income 58% of the time over the next year (vs 54% for the rest of the cohort, n=4997).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity (low R² over the window).
20 material management or governance events in the past 24 months, led by executive changes. Historically, Industrials names rated volatile grew net income 58% of the time over the next year (vs 57% for the rest of the cohort, n=2592).
Not investment advice. As of 2026-09-04.
“Adjusted operating income was $73.6 million or 13.9% of sales, compared to $54.2 million or 11.1% in Q2 2025.”
“Adjusted operating income was $67.5 million or 13.5% of sales, compared to $45.3 million or 9.9% in Q1 2025.”
“Adjusted operating income was $44.8 million or 9.8% of sales, compared to $52.9 million or 11.6% in Q3 2024.”
“Operating income focus as part of execution priorities.”
“Reaffirming full year 2026 guidance for free cash flow > $195 million and capex < $100 million.”
“Free cash flow of approximately $190 million and capital expenditures less than $90 million guidance for 2025.”
“Focus on cash generation and capital discipline.”
“Aggregate remaining authorization under share repurchase program was approximately $380.6 million as of June 30, 2026.”
“Entered into $350 million accelerated share repurchase as part of additional $600 million authorization.”
“Board authorized an additional $600 million for repurchases and entered into $350 million ASR.”
“Restructuring expenses related to expected shutdown of Leicester, UK facility and non-recurring professional fees.”
“Other operating expense included charges for closure of Belgium facility and divestiture of Austria plant.”