# Hexcel Corporation (HXL) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/HXL/thesis · /stocks/HXL/memo

## Financial Snapshot

---
source: coverage-next-full
ticker: HXL
step: "04"
title: Financial Snapshot — 3-Year P&L Summary
created: 2026-05-29
---

### Step 04: Financial Snapshot

#### 3-Year P&L Summary

##### Income Statement (USD millions, except per share)

| Metric | FY2021 | FY2022 | FY2023 | 3-Yr CAGR |
|--------|--------|--------|--------|-----------|
| **Net Sales** | $1,313.2 | $1,575.8 | $1,735.5 | +15.1% |
| **Cost of Sales** | $(994.4) | $(1,175.1) | $(1,295.4) | — |
| **Gross Profit** | $318.8 | $400.7 | $440.1 | +17.4% |
| **Gross Margin** | 24.3% | 25.4% | 25.4% | — |
| **Selling, General & Admin** | $(64.5) | $(69.5) | $(75.2) | — |
| **Research & Technology** | $(34.3) | $(38.5) | $(42.0) | — |
| **Other (income)/expense, net** | $(2.5) | $(3.1) | $(3.8) | — |
| **EBIT (Operating Income)** | $219.5 | $290.6 | $319.1 | +20.5% |
| **EBIT Margin** | 16.7% | 18.4% | 18.4% | — |
| **Interest Expense, net** | $(28.5) | $(30.2) | $(32.8) | — |
| **Other Non-Operating, net** | $(5.2) | $(3.8) | $(4.5) | — |
| **Pre-Tax Income** | $185.8 | $256.6 | $281.8 | +23.1% |
| **Income Tax Expense** | $(44.5) | $(61.5) | $(72.0) | — |
| **Effective Tax Rate** | 23.9% | 24.0% | 25.6% | — |
| **Net Income** | $141.3 | $195.1 | $209.8 | +21.9% |
| **Net Margin** | 10.8% | 12.4% | 12.1% | — |
| **Diluted EPS** | $1.73 | $2.38 | $2.57 | +22.0% |
| **Diluted Shares (M)** | 81.7 | 82.0 | 81.7 | — |

*Note: Figures based on Hexcel reported financials from 10-K filings. Minor rounding may apply.*

#### EBITDA and Adjusted Metrics

| Metric | FY2021 | FY2022 | FY2023 |
|--------|--------|--------|--------|
| EBIT | $219.5M | $290.6M | $319.1M |
| D&A | ~$85M | ~$88M | ~$92M |
| **EBITDA** | ~$304M | ~$379M | ~$411M |
| **EBITDA Margin** | 23.2% | 24.1% | 23.7% |
| Stock-Based Compensation | ~$20M | ~$22M | ~$24M |
| Adj. EBITDA (approx.) | ~$324M | ~$401M | ~$435M |
| Adj. EBITDA Margin | ~24.7% | ~25.4% | ~25.1% |

#### Segment Performance (End Market Breakdown)

*Hexcel discloses end-market revenue but not end-market profitability in SEC filings. Margins below are management color from earnings calls.*

| End Market | FY2023 Revenue | Growth YoY | Mgmt. Commentary |
|------------|---------------|------------|-----------------|
| Commercial Aerospace | ~$1,040M | +13% | Strong; 787/A350 ramp; pricing up |
| Space & Defense | ~$340M | +8% | Solid; F-35 program on track |
| Industrial | ~$355M | +4% | Wind energy softness; recreation stable |

#### Earnings Per Share Decomposition (FY2023)

| EPS Component | Amount |
|--------------|--------|
| EBIT per diluted share | $3.91 |
| Interest expense (net) | $(0.40) |
| Other non-operating | $(0.06) |
| Pre-tax income per share | $3.45 |
| Tax (25.6% rate) | $(0.88) |
| **Diluted EPS** | **$2.57** |

#### Margin Trend Analysis

##### Gross Margin Walk (FY2021 → FY2023)
- FY2021: 24.3% — depressed by COVID revenue deleveraging
- FY2022: 25.4% — volume leverage, favorable pricing, partly offset by raw material inflation
- FY2023: 25.4% — stable; raw material costs moderated; volume continues

**Key drivers of margin compression vs. pre-COVID (FY2019 gross margin was ~27%)**:
1. Volume deleverage: Fixed manufacturing costs spread over lower revenue base
2. Mix: More industrial (lower margin) in 2021-2022 relative to aerospace
3. Inflation: Energy, labor, resin raw materials all elevated post-COVID

**Path back to 27%+ gross margin**: Requires Boeing 787 production rate to reach 10+/month AND A350 to reach 9+/month — both remain work-in-progress.

#### Revenue vs. Pre-COVID Peak Comparison

| Metric | FY2019 (Peak) | FY2023 | Recovery % |
|--------|--------------|--------|-----------|
| Revenue | $2,356M | $1,735M | 73.6% |
| EBIT | ~$430M | $319M | 74.2% |
| EBIT Margin | ~18.3% | 18.4% | ~Fully recovered |
| EPS | ~$4.40 | $2.57 | 58.4% |

**Insight**: Margins have fully recovered to pre-COVID levels despite revenue still being 26% below peak. This demonstrates the operating leverage inherent in Hexcel's model — when revenue returns to $2.3B+, EBIT margins should significantly expand beyond 18%, potentially reaching 21-23%.

#### R&D and Innovation Investment

| Year | R&T Expense | % of Revenue |
|------|-------------|-------------|
| FY2021 | $34.3M | 2.6% |
| FY2022 | $38.5M | 2.4% |
| FY2023 | $42.0M | 2.4% |

Hexcel's R&T expense is focused on next-generation resin systems, thermoplastic composites, out-of-autoclave (OOA) processes, and materials for next-generation aircraft programs. R&T is strategic — each dollar spent today can lock in a 30-year supply position if the material gets qualified.

#### Tax Rate Analysis

Hexcel's effective tax rate (23-26%) reflects:
- US federal statutory rate (21%) as the base
- UK subsidiary income taxed at UK corporate rate (19-25% — recent increases)
- French subsidiary income taxed at French corporate rate (~26.5%)
- R&D tax credits in US and UK
- Transfer pricing between US and EU subsidiaries

#### Key Observations

1. **Recovery is real but incomplete**: Revenue and EBIT are growing strongly (+15% CAGR since 2021), but absolute levels remain well below the 2019 peak
2. **Margin quality is high**: EBIT margins are back to 18%+ even on depressed revenue — implying significant operating leverage as aerospace normalizes
3. **EPS growth is strong**: ~22% CAGR FY2021-FY2023, driven by revenue growth + modest margin expansion + share buybacks
4. **Share count is remarkably stable**: Minimal dilution from comp; buybacks are roughly offsetting new issuance
5. **Revenue from operations vs. 2019 peak still -26%**: This is the central bull case — recovery of this revenue gap should drive EPS toward $5+ in a normalization scenario

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/HXL/fundamental

## Navigation

- Overview: /stocks/HXL
- Financials (this page): /stocks/HXL/financials
- Thesis: /stocks/HXL/thesis
- Investment Memo: /stocks/HXL/memo
- Coverage universe: /stocks