At a glance
Hexcel Corporation is worth $5.91B. Revenue fell 0.5% to $1.89B in fiscal 2025, with 5.8% kept as profit; over 5 years it has grown 4.7% a year. It pays a 0.91% dividend yield, raised every year for at least 3 years, and returned $915.7M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +8.3% over the past year with dividends reinvested and +7.6% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 61.3% in the 2020 crash (S&P 500: 33.7%) and 19.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 39 months and 4 months after the lows.
The business in plain English
Hexcel makes advanced lightweight composite materials, mainly for aircraft. Its products include HexTow carbon fiber, reinforcement fabrics, HexPly prepregs (fibers already soaked in resin, ready to be shaped and cured into parts), resins, structural adhesives and HexWeb honeycomb, a light cellular core that adds stiffness with little weight. These go into wing and tail parts, jet engine fan blades and housings, overhead bins, helicopter blades, satellites and rockets, plus industrial products such as car parts.
The company reports two segments. Composite Materials makes the fibers, prepregs, honeycomb and adhesives. It had $1,516.2 million of the $1,893.9 million in net sales for the year ended December 31, 2025, about 80%. Engineered Products, about 20%, turns these materials into finished parts such as wing-to-body fairings and machined honeycomb pieces. It also makes materials that block radio interference for military and aerospace use.
Commercial aerospace made up 61% of 2025 net sales. Defense, space and other markets supplied the rest. Sales are concentrated: Airbus and its subcontractors accounted for about 39%, and Boeing and its subcontractors about 13%. Other key customers include Safran, General Electric, Lockheed Martin and RTX. During 2025 Hexcel sold its Austrian operations and a 3D-printing business in Hartford, Connecticut. It also closed a plant in Belgium as it narrowed its focus to carbon fiber composites.
Price history
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HXL +8.3% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Commercial Aerospace Market Applications | $1.15B | 60.6% |
| Space And Defense Market Applications | $747.0M | 39.4% |
By business segment
| Composite Materials | $1.52B | 80.1% |
| Engineered Products | $377.7M | 19.9% |
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $496.4M, up 8.8% from a year earlier, and net income was $38.6M (+87.4%).
- For fiscal 2025, revenue was $1.89B (-0.5% year over year; +4.7% a year from FY2020 to FY2025) with a 5.8% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +4.7% watch |
|---|---|
| Operating margin | 9.1% watch |
| Free cash flow margin | 8.3% watch |
| Return on equity (FY2025) | 8.7% watch |
| Return on assets (FY2025) | 4% watch |
| Net cash (cash minus debt) | $-857.1M weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $1.50B | $31.7M | $213.7M |
| FY2021 | $1.32B | $16.1M | $123.8M |
| FY2022 | $1.58B | $126.3M | $96.8M |
| FY2023 | $1.79B | $105.7M | $148.9M |
| FY2024 | $1.90B | $132.1M | $202.9M |
| FY2025 | $1.89B | $109.4M | $157.2M |
Valuation snapshot
| Market value | $5.91B |
|---|---|
| P/E ratio | — |
| Dividend yield | 0.91% |
Rank among 1514 US companies
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| HXL price data to Oct 28, 2026 | +6.2% | +8.3% | +10.4% | +7.6% | +6.4% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +6.2% |
| 2025 | +19.2% |
| 2024 | -14.2% |
| 2023 | +26.3% |
| 2022 | +14.4% |
| 2021 | +6.8% |
| 2020 | -33.7% |
| 2019 | +29.0% |
| 2018 | -6.5% |
| 2017 | +21.3% |
| 2016 | +11.8% |
| 2015 | +12.9% |
| 2014 | -7.2% |
| 2013 | +65.8% |
| 2012 | +11.4% |
| 2011 | +33.8% |
| 2010 | +39.4% |
| 2009 | +75.6% |
| 2008 | -69.6% |
| 2007 | +39.5% |
| 2006 | -3.5% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 80.2% over that stretch · deepest drop along the way 82.9%, back to its old high 37.5 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 60.5% over that stretch · deepest drop along the way 61.3%, back to its old high 39.2 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 3% over that stretch · deepest drop along the way 19.6%, back to its old high 3.9 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 1 open-market purchases ($242K) and 4 sales ($2.3M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Sep 3, 2026 | Gail E Lehman See Remarks | sell | $813K |
| Aug 14, 2026 | Gina Fitzsimons See Remarks | sell | $635K |
| Sep 3, 2026 | Gail E Lehman See Remarks | sell | $461K |
| Aug 14, 2026 | Gina Fitzsimons See Remarks | sell | $363K |
| Oct 26, 2026 | Neal J. Keating Director | buy | $242K |
Who owns it
Large shareholders (13G filings)
| BlackRock Portfolio Management LLC | 8.4% | Jun 30, 2026 |
| T. Rowe Price Associates, Inc. | 7.8% | Jun 30, 2026 |
| EARNEST PARTNERS LLC | 6.5% | Jun 30, 2025 |
| STATE STREET CORPORATION | 6.3% | Mar 31, 2026 |
| Vanguard Capital Management | 5.23% | Mar 31, 2026 |
| AllianceBernstein L.P. | 4.5% | Mar 31, 2026 |
ETFs with the most weight in HXL
| GCAD Gabelli Commercial Aerospace and Defense ETF | 5.09% |
| TINT ProShares Smart Materials ETF | 4.5% |
| ROKT SPDR S&P Kensho Final Frontiers ETF | 3.7% |
| XAR SPDR S&P Aerospace & Defense ETF | 3.65% |
| EART Global X Rare Earth & Critical Materials ETF | 3.47% |
| BUSA Brandes U.S. Value ETF | 0.94% |
| ITA iShares U.S. Aerospace & Defense ETF | 0.81% |
| PPA Invesco Aerospace & Defense ETF | 0.57% |
What could go wrong
- Heavy reliance on Airbus and Boeing. About 39% of 2025 sales went to Airbus and its subcontractors and about 13% to Boeing and its subcontractors. Program delays, smaller orders or a switch to other materials could cut sales significantly.
- Aircraft production delays hit sales. Commercial aerospace was 61% of 2025 sales. Supply chain problems, quality issues and strikes have slowed Airbus and Boeing production before. More delays or cuts would reduce Hexcel's sales and profits.
- Customers press suppliers on price. Planemakers push for lower costs and better contract terms across their supply chains. Hexcel says it may have to accept more risk or thinner profit margins on some products.
- Defense and space budgets could shrink. Defense, space and other markets supplied about 39% of 2025 sales. Lower government spending on military aircraft, helicopters or space programs could reduce demand, and breaking procurement rules could cost Hexcel business.
- Raw material shortages or plant disruptions. Hexcel relies on steady supplies of raw materials and on key plants. Shortages, plant outages, severe weather or rising input costs could materially reduce profits.
- A sizable debt load. As of September 30, 2026, total debt was $934.9 million against $77.8 million in cash. Weaker results could make it harder to keep up with debt payments or meet loan covenants (conditions lenders set).
Recent events
- Quarterly results released; Investor presentation or announcement; Other company announcement
- Quarterly results released; Investor presentation or announcement; Other company announcement
- Major agreement ended
- Executive or board change; Shareholder vote results; Other company announcement
- Other company announcement
- Quarterly results released; Investor presentation or announcement; Other company announcement
- Major agreement signed; Major agreement ended; New debt or financial obligation
- Executive or board change
- Major agreement signed; Executive or board change
- Quarterly results released; Investor presentation or announcement; Other company announcement
For income and retirement investors
Hexcel pays a small dividend. The yield was 0.91% as of October 28, 2026. The company paid no dividend in fiscal 2021, then restarted it. Regular payments rose from $0.40 a share in 2022 to $0.50 in 2023 and $0.60 in 2024. Cash dividends of $53.9 million in fiscal 2025 used about 49% of net income and 34% of free cash flow (cash left after capital spending). Buybacks return more cash: $736.6 million over fiscal 2021–2025, including $454.3 million in 2025. The share count fell about 10% between January 2022 and October 2026.
The shares have fallen hard in downturns. They dropped 82.9% from peak to low in the 2008 financial crisis and 61.3% in the 2020 COVID crash. Each time, they took more than three years after the low to recover. In the 2022 bear market they fell 19.6% and recovered in about four months. A single stock like Hexcel carries more risk than a diversified fund.
Questions investors ask
How does Hexcel make money?
Hexcel earns most of its money from lightweight composite materials used to build aircraft. Its Composite Materials segment makes carbon fiber, prepregs (fibers pre-soaked in resin), honeycomb and adhesives. That segment produced about 80% of the $1,893.9 million in net sales for the year ended December 31, 2025. Engineered Products, about 20%, makes finished composite parts and machined honeycomb. Commercial aerospace accounted for 61% of sales, and defense, space and other markets made up the rest.
How much does Hexcel depend on Airbus and Boeing?
Heavily. About 39% of Hexcel's 2025 net sales went to Airbus and its subcontractors and about 13% to Boeing and its subcontractors. Together, the two planemakers' supply chains accounted for roughly half of sales. Within commercial aerospace alone, about 77% of sales went to Airbus, Boeing and their subcontractors. Hexcel's annual report warns that production delays, strikes or quality problems at either planemaker can hurt its results.
Does Hexcel pay a dividend?
Yes, but it is small. The dividend yield was 0.91% as of October 28, 2026. Hexcel paid no dividend in fiscal 2021, then restarted it. Regular payments rose from $0.40 a share in 2022 to $0.60 in 2024. The company returns far more cash through buybacks: $454.3 million in fiscal 2025, against $53.9 million in dividends. Investors who rely on portfolio income would get relatively little from this stock's dividend.
Is Hexcel's business growing?
Modestly. Net sales slipped 0.5% to $1,893.9 million in fiscal 2025, and net income fell 17.2% to $109.4 million. Over the five years from fiscal 2020, sales grew about 4.7% a year. The quarter ended September 30, 2026 was stronger. Sales rose 8.8% from a year earlier to $496.4 million, and net income rose 87.4% to $38.6 million. One strong quarter does not by itself make a trend.
How has Hexcel stock performed over the long term?
Modestly over the long run, with big swings along the way. As of October 28, 2026, the stock's price return was about 6.4% a year over 10 years and 7.6% a year over five years. It fell 82.9% in the 2008 financial crisis and 61.3% in the 2020 COVID crash. It also dropped 29% in the three months to October 28, 2026. Its volatility (a measure of how widely the price swings) was 34% over the prior year.