Hexcel vs Kratos Defense & Security Solutions
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KIRA’s take AI analyst
I put Hexcel and Kratos Defense & Security Solutions side by side, using each one’s latest annual report. Here is what stands out:
- Hexcel is the larger business, with $1.9B of revenue in fiscal 2025 against $1.3B for Kratos Defense & Security Solutions.
- Kratos Defense & Security Solutions grew revenue faster (18.5%, against −0.5%).
- Hexcel kept more of each dollar of sales as operating profit (9.1% operating margin, against 1.9%).
- Hexcel turned more of its sales into free cash flow (8.3% FCF margin, against −10.2%).
- Hexcel earned a higher return on the capital invested in it (6.5%, against 1.2%).
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Hexcel
HXL
8/11
Gross marginOperating marginNet marginFCF marginReturn on capitalReturn on equityPiotroski F-scoreShare count change
Kratos Defense & Security Solutions
KTOS
3/11
Revenue growth5-year growthNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | HXL FY25 | KTOS FY25 |
|---|---|---|
| Size | ||
| Market cap | $6.1B | $7.7B |
| Revenue | $1.9B | $1.3B |
| Free cash flow | $157M | −$137M |
| Net income | $109M | $22.0M |
| Growth | ||
| Revenue growth | −0.5% | 18.5% |
| 5-year growth | 4.7% | 12.5% |
| Share count change | −3.6% | 9.5% |
| Profitability | ||
| Gross margin | 23.0% | 22.9% |
| Operating margin | 9.1% | 1.9% |
| Net margin | 5.8% | 1.6% |
| FCF margin | 8.3% | −10.2% |
| Return on capital | 6.5% | 1.2% |
| Return on equity | 7.9% | 1.3% |
| Balance sheet | ||
| Net debt | $922M | −$461M |
| Net debt / EBITDA | 3.1x | −6.4x |
| Dividends and buybacks | $508M | $0.0M |
| Valuation & quality | ||
| P/E | 35.9x | — |
| Piotroski F-score | 6 | 4 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.