Hexcel Corporation (HXL): PESTLE Analysis [Nov-2025 Updated]

You're defintely right to focus on Hexcel Corporation (HXL) right now; the commercial aerospace recovery is the clearest tailwind, but it's not a clear path to easy profit. As we analyze the macro-environment for HXL in late 2025, the core insight is that while demand from Airbus and Boeing for composite materials is surging, their ability to realize margin expansion is tightly tied to navigating persistent raw material inflation and the unpredictable nature of US and European defense budget cycles. We need to look past the top-line growth and see how Political, Economic, Social, Technological, Legal, and Environmental factors are forcing strategic shifts right now.

Hexcel Corporation (HXL) - PESTLE Analysis: Political factors

US and European defense spending budgets drive significant revenue.

The political commitment to increased military readiness in both the US and Europe is a major tailwind for Hexcel Corporation right now, offsetting some of the commercial aerospace volatility you're seeing. The direct takeaway is that government spending on defense modernization is a defintely reliable demand driver for advanced composite materials.

The US Fiscal Year 2025 defense budget request is a massive $852.2 billion, reflecting a 3.3% increase over FY 2024, with a clear focus on advanced weapons systems and missile defense, both of which use Hexcel's lightweight carbon fiber. Similarly, European Union defense spending is projected to surge to €381 billion in 2025, exceeding the 2% of GDP threshold for the first time, a historic increase driven by the evolving security environment.

This spending translates directly into Hexcel's financial results. For the third quarter of 2025, the company's Defense, Space & Other segment sales were $182.0 million, representing a robust 13.3% year-over-year increase. This growth is crucial, especially as overall 2025 sales are anticipated to be around $1.88 billion, making the defense segment's performance a key stabilizer. You can see the sheer scale of the political commitment in these budget numbers.

Geopolitical tensions increase demand for defense-related composite materials.

Geopolitical instability, particularly the ongoing conflicts and the renewed focus on peer competition, is structurally changing defense procurement, favoring Hexcel's products. The political environment is driving a shift toward advanced, lightweight platforms that require high-performance composites for speed, range, and stealth.

The strong demand is evident in the specific military programs Hexcel supplies, such as fighter jets and rotorcraft. For example, the US budget allocates $28.4 billion for missile defense initiatives, including the Next Generation Interceptor (NGI), which relies heavily on advanced materials to meet stringent weight and performance requirements. The European ramp-up is also prioritizing defense investment, with procurement and major upgrades projected to be close to €130 billion in 2025.

This is a long-term trend, not a one-off spike, and it's fueling Hexcel's strategic shift to defense-focused operations with margin expansion goals. The need to replenish stockpiles and modernize fleets across NATO allies means sustained demand for the carbon fiber and honeycomb structures Hexcel provides for military aircraft. It's a clear signal that defense is the near-term growth engine.

Export controls (e.g., ITAR) complicate international sales and technology transfer.

The political landscape creates a significant operational hurdle through strict export control regimes, primarily the International Traffic in Arms Regulations (ITAR) in the US. ITAR governs the export of defense-related items, technical data, and services, and Hexcel's advanced composite materials are often classified as such.

Compliance is a non-negotiable business imperative. Failure to comply can lead to devastating consequences, including civil fines up to $500,000 per violation and criminal penalties up to $1 million or imprisonment. Because Hexcel is a global supply chain partner, it must maintain a rigorous Technology Control Plan to manage who has access to its sensitive technology, especially when dealing with foreign nationals.

This political constraint complicates international partnerships and can slow down the transfer of technology needed for global manufacturing. It means every international sale of a defense-related product requires careful classification and authorization to ensure compliance with national security laws. Honestly, this regulatory moat is also a competitive advantage, as it makes it incredibly difficult for new, non-US producers to enter the high-end defense market.

Government support for sustainable aviation initiatives influences material development.

Governments are using policy and funding to push the aerospace industry toward net-zero carbon goals, which directly influences Hexcel's material development strategy. The political drive for a greener future is creating a new market for ultra-lightweight composites.

Hexcel is actively participating in the US Federal Aviation Administration's (FAA) Fueling Aviation's Sustainable Transition (FAST) program. This government-backed initiative is intended to demonstrate innovative composite manufacturing technologies for advanced aircraft designs.

A key action point here is Hexcel's partnership with JetZero to qualify composite materials for their 'all-wing' design aircraft. This design is projected to offer up to 50% better fuel efficiency than current tube-and-wing aircraft, a massive step toward the industry's net-zero objectives. The political push for lower emissions is essentially mandating the use of more advanced, lighter materials, which is a structural opportunity for Hexcel. This government-supported R&D is accelerating the adoption of new composite solutions, like its HexWeb Acousti-Cap honeycomb, which helps reduce noise without adding weight.

Hexcel Corporation (HXL) - PESTLE Analysis: Economic factors

The economic environment for Hexcel Corporation in 2025 is a study in contrasts: strong underlying demand for new aircraft is battling a choppy, inflation-hit supply chain. The direct takeaway is that while end-market demand is robust, OEM inventory destocking and cost pressures are suppressing Hexcel's 2025 financial performance, forcing a downward revision of guidance.

For the full fiscal year 2025, Hexcel's sales are anticipated to be around $1.88 billion, which is the low end of their initial guidance, and adjusted diluted Earnings Per Share (EPS) is revised down to a range of $1.70 to $1.80, reflecting a real-world hit from these macroeconomic and supply chain pressures.

Commercial aerospace build rates are the primary growth engine.

Your core business lives and dies by the production rates of the major commercial aircraft programs. In 2025, the narrowbody ramp-up-the A320neo and 737 MAX-is the critical long-term driver, but it's not translating directly to Hexcel's top line yet. The industry is still navigating a significant supply chain misalignment, leading to inventory destocking (Original Equipment Manufacturers or OEMs reducing their on-hand parts) that directly impacts Hexcel's immediate sales.

For the first six months of 2025, Commercial Aerospace sales were $573.2 million, a 7.5% decrease from the same period in 2024. This decline is not a demand problem; it's a supply chain and inventory issue, especially on the widebody side. The Defense, Space & Other segment, however, remains a bright spot, contributing $373.2 million in H1 2025, up 5.8% year-over-year.

Here's the quick math on the major narrowbody programs, which are the future growth catalysts:

• Airbus A320neo Family: Production rates in the second half of 2025 have been running between 58 to 68 aircraft per month, though Airbus is still struggling to meet its full-year delivery target of 820 aircraft.
• Boeing 737 MAX: Production has been constrained, with rates around 36 to 40 units per month in the second half of 2025, due to FAA scrutiny and production quality issues.

What this estimate hides is the A350 and 787 destocking, which is the primary reason Hexcel's Commercial Aerospace sales were down 7.5% in the first half of 2025.

High inflation in raw materials like carbon fiber impacts cost of goods sold.

The cost of your primary input, carbon fiber, remains structurally high in 2025. This is due to the energy-intensive nature of its production, the high cost of the precursor material (Polyacrylonitrile or PAN), and persistent skilled labor shortages.

The financial impact is clear in the gross margin erosion. Hexcel's gross margin for the first nine months of 2025 was 23.3%, down from 24.6% in the prior year period. This 130 basis point decline is a direct result of lower capacity utilization from choppy OEM build rates, inventory reduction initiatives, and the compounding effect of raw material and tariff headwinds.

For context on the raw material cost pressure:

• Carbon Fiber Price (Germany, Q3 2025): Approximately $32.8 per kilogram.
• Carbon Fiber Price (South Korea, Q3 2025): Approximately $37.3 per kilogram.

The high cost of carbon fiber is defintely a key factor influencing how much composite content will be on the next generation of single-aisle aircraft, meaning Hexcel must constantly prove its value proposition.

US Dollar strength affects international sales and competitiveness against foreign suppliers.

The strength of the US Dollar (USD) is a double-edged sword for a global company like Hexcel. A stronger dollar makes your US-manufactured products more expensive for foreign buyers, but it also means that when you convert foreign earnings back into USD, the result is favorable.

In the first quarter of 2025, the impact of exchange rates on operating income as a percentage of sales was actually favorable by approximately 60 basis points. This suggests that while a strong USD might pressure the price competitiveness of your exports against European or Asian rivals, the transactional benefit of converting foreign currency-denominated sales back into US Dollars has been a net positive on the income statement in the near term.

Global interest rate environment influences customer capital expenditure for new aircraft.

The global interest rate environment, characterized by elevated short-term borrowing costs, directly impacts the capital expenditure (CapEx) decisions of your OEM customers and the airlines that buy their jets. Higher rates increase the cost of financing new aircraft purchases and new factory capacity.

However, analysts forecast a gradual CapEx rebound in 2025, projecting growth of about 5.4% on a Q4/Q4 basis, driven in part by the expectation of lower short-term borrowing rates. For Hexcel itself, the financial picture is conservative and controlled:

This shows Hexcel is managing its own CapEx tightly, keeping it below $90 million, while still generating substantial Free Cash Flow of around $190 million. This financial strength allows the company to weather the current production choppiness and even execute a significant share repurchase program, demonstrating confidence in the long-term demand curve.

Hexcel Corporation (HXL) - PESTLE Analysis: Social factors

You're looking at Hexcel Corporation (HXL) and trying to map the social currents that will either fuel or frustrate their growth plans for 2025. The core takeaway is this: public demand for green flight is a massive tailwind, but the internal battle for skilled talent is a significant headwind that will drive up labor costs and cap production capacity.

The aerospace industry's push for advanced composites is defintely a social factor, driven by travelers and regulators demanding a lower carbon footprint. Hexcel's materials are critical here, but the company must navigate a tight labor market and increasing scrutiny on ethical sourcing to capitalize on this demand.

Shortage of skilled labor in manufacturing and engineering is a persistent risk.

The scarcity of specialized talent is a real, measurable risk for Hexcel, especially as the aerospace production ramp-up continues-or attempts to. Industry-wide, a staggering 76% of aerospace organizations report sustained challenges in hiring engineering talent, and 56% struggle to source skilled trades talent. This isn't just a general hiring issue; it's a core skills gap.

For Hexcel, this translates to higher operational costs and potential delays. The average time to fill an aerospace engineering position now sits at 62 days. Honestly, that's a long time to have a critical role open. Furthermore, HR departments in the aerospace sector report a turnover rate that is 15% higher than other manufacturing sectors, meaning the industry is constantly refilling the bucket.

Here's the quick math on the industry-wide labor challenge:

• Aerospace Industry Turnover Rate: 6.7% (Some sources cite nearly 15%).
• Cost to Replace an Employee: About a third of their annual salary.
• Preventable Voluntary Turnover: Roughly 75%.

To be fair, Hexcel did strategically reduce its workforce by approximately 100 employees in early 2025, a 5% reduction from initial planning targets, to align with lower-than-expected production rates from major OEMs like Airbus and Boeing. This move shows management is actively managing capacity against market reality, but the underlying industry-wide shortage remains a long-term structural risk once production accelerates.

Public demand for lighter, more fuel-efficient aircraft drives material adoption.

This is Hexcel's biggest opportunity. Public and regulatory pressure for sustainability has made lightweight composite materials a non-negotiable part of new aircraft design. Hexcel's advanced composite solutions already contribute to reducing fuel consumption by 25% on composite-rich aircraft like the Airbus A350 and Boeing 787 compared to their predecessors.

This social and environmental demand is directly translating into market growth. The global aerospace lightweight materials market is projected to reach approximately $77.29 billion by 2032, growing at a robust CAGR of 7.08%. For Hexcel, this means more than 90% of their 2024 sales directly contributed to reducing global emissions by lightweighting aircraft. That's a powerful social value proposition.

Increased focus on supplier diversity and ethical sourcing in the supply chain.

Customers and investors are demanding transparency and ethical behavior deep into the supply chain (the social component of Environmental, Social, and Governance, or ESG). Hexcel works with more than 5,000 suppliers globally. The company has a strong commitment to ethical sourcing and requires 100% of its critical direct suppliers to commit to its Supplier Code of Conduct, which includes compliance with all applicable laws and sustainability requirements.

This focus is crucial because a single lapse in ethical sourcing or labor practices by one of those 5,000 suppliers could create significant reputational damage. Hexcel is actively managing this risk by requiring its suppliers to cascade these requirements throughout their own supply chains.

Employee retention is key as the aerospace industry accelerates production.

Keeping valuable, skilled employees is paramount, especially in a technical field where replacing a worker can cost a third of their salary. The aerospace industry is responding with competitive compensation, with average salary budget increases in the UK aerospace and defense industry reaching 5.1%, which is higher than the general industry median forecast of 4%.

Hexcel's retention strategy focuses on development and a positive culture. They have a long-standing commitment to safety, having achieved their safest year on record in 2024. They also invest in the community and their employees' families, having awarded over $2 million in scholarships to children of U.S. employees since 1987.

This table summarizes key social metrics and Hexcel's response:

Finance: Track the year-over-year change in Hexcel's average salary and training expenditure per employee to benchmark against the industry's 5.1% salary increase trend.

Hexcel Corporation (HXL) - PESTLE Analysis: Technological factors

You're looking at Hexcel Corporation (HXL) and trying to gauge its long-term moat, and honestly, the technology portfolio is the core of it. The composite materials industry is an R&D arms race, and Hexcel's strategy is a clear, three-pronged attack: faster production, higher performance, and process automation. This focus is directly tied to the aerospace industry's need to ramp up production rates without sacrificing the structural integrity that composites provide.

Development of next-generation composite materials for higher performance and lower cost

Hexcel is defintely pushing the performance envelope, particularly in carbon fiber and prepreg systems (pre-impregnated fiber sheets). The goal isn't just lighter and stronger; it's about making those properties accessible for high-volume programs, which means lower cost per part. Their investment in this area is substantial, with Research and Technology (R&T) expenses for the first nine months of 2025 totaling $42.1 million, representing approximately 3.0% of net sales for that period.

One clear example is the new HexTow® IM11-R/12K carbon fiber, which they've used to engineer Type IV carbon overwrap pressure vessels (COPVs). These vessels are significantly lighter and corrosion-resistant compared to traditional metal tanks, making them critical for storing gases like hydrogen in demanding aerospace and space applications. They also launched HexTow® IM9 24K, which provides a strong value proposition for manufacturers seeking to maximize efficiency in primary and secondary aerospace structures. That's the kind of innovation that keeps competitors playing catch-up.

Increased adoption of automation and Industry 4.0 in manufacturing processes

The composites industry is moving rapidly toward Industry 4.0 (the fourth industrial revolution, focusing on digitalization and smart manufacturing), and Hexcel is aligning its product portfolio to enable this shift. They recognize that the bottleneck in aerospace production isn't just the material, but how quickly it can be processed. This means developing materials fully compatible with automated manufacturing techniques.

Their technologies are now configured for high-rate automated production, which is a major selling point for Original Equipment Manufacturers (OEMs). This is a smart move, because it reduces the labor and variability that can plague manual composite lay-up. The key automated processes Hexcel is targeting include:

• Automated Tape Laying (ATL)
• Automated Fiber Placement (AFP)
• Pick-and-place processes for preforms

This push for automation is also supported by strategic collaborations, such as the partnership with FIDAMC, which aims to integrate digitalization and artificial intelligence into advanced manufacturing techniques to reduce production costs.

Investment in new resin systems to meet faster cure cycles for high-volume programs

The biggest hurdle in composite manufacturing has always been the long cure time-often requiring massive, expensive autoclaves. Hexcel is directly tackling this with rapid-curing resin systems, moving production out of the autoclave (OOA) where possible. This is a game-changer for capital expenditure (CapEx) and throughput for their customers.

The flagship product here is HexPly® M51, a rapid-curing prepreg designed for hot-in/hot-out press curing or stamping of structural parts. This system delivers significantly shorter cure cycles and reduces the need for multiple sets of tooling and labor compared to traditional prepreg systems. In one major program, the use of HexPly® M51 for a fuselage frame component resulted in a processing time reduction of over 50%. That's real operational leverage for their customers.

The focus on OOA technology is also evident in their Liquid Compression Molding (LCM) products, like the HF610F-2 and HF640F-2 epoxy resins, which are optimized for rapid curing and eliminate the need for autoclave investment. For demanding applications like Defense and Space, the TowPly™ towpreg range uses the fast-cure, high-temperature resistance M901 resin with IM 24K and 12K HexTow® carbon fibers.

Competition from alternative materials like advanced aluminum alloys still exists

While composites are the preferred solution for the most advanced aerospace and defense applications, competition from alternative materials, particularly advanced aluminum alloys, remains a consistent threat. These alloys have seen their own performance improvements and offer a lower-cost, easier-to-process alternative for less structurally demanding components, or for aircraft programs prioritizing lower upfront material costs.

Hexcel's strategy is to continually widen the performance gap and drive down the total cost of ownership for composites. The push for faster cure cycles and automation is a direct response to the cost and rate advantages of metals. The table below shows the clear trade-off Hexcel must manage in its market positioning:

The company's ability to meet its 2025 Capital Expenditures guidance of less than $90 million while funding its R&T is critical to maintaining this technological lead. They need to keep investing in the next generation of materials and process technology, or the cost advantage of advanced metal alloys will start to erode their market share in a wider range of applications.

Hexcel Corporation (HXL) - PESTLE Analysis: Legal factors

The legal landscape for Hexcel Corporation is defined by high-stakes regulatory compliance, aggressive intellectual property (IP) defense, and the constant threat of international trade friction, all of which directly impact 2025 financial performance. The critical nature of Hexcel's composite materials in aerospace means any legal misstep or regulatory delay carries a disproportionately high financial risk.

For the first nine months of 2025, Hexcel reported $127.4 million in Selling, General, and Administrative (SG&A) expenses, which includes a significant portion of their legal and compliance costs. This spending is essential to navigate the complex legal environment, particularly in the multi-jurisdictional aerospace sector.

Strict FAA and EASA certification processes for new materials and applications.

Because Hexcel supplies structural components for major programs like the Airbus A350 and Boeing 787, every new material or process must pass rigorous airworthiness certification from the Federal Aviation Administration (FAA) in the US and the European Union Aviation Safety Agency (EASA). This process is slow, expensive, and non-negotiable.

For example, Hexcel is working to qualify a new carbon fiber line for aerospace markets, which is not expected to be fully approved until late 2025 or early 2026. This timeline shows how regulatory hurdles directly gate new revenue streams. The agencies are continuously working to harmonize standards for emerging technologies like Additive Manufacturing (AM) in their 2025 joint workshops, indicating that the regulatory bar for new composite applications is constantly rising.

• FAA/EASA approval is the primary barrier to entry for new aerospace products.
• Qualification delays push back revenue recognition by 12+ months.
• Compliance requires extensive testing and documentation for every new formulation.

Intellectual property protection is critical for proprietary composite formulations.

Hexcel's competitive advantage relies heavily on its proprietary composite formulations, like the HexTow® carbon fiber and HexPly® M21E prepreg resin used in the A350. These are trade secrets and patented technologies that require constant, global legal defense against infringement, particularly in markets with weaker IP enforcement.

The risk of IP theft is explicitly cited by Hexcel as a factor that could adversely affect their financial condition and results of operations, especially the potential difficulty in enforcing their rights in certain foreign countries. The value of this IP is baked into their long-term contracts, so any breach could erode their margin and market share.

Compliance with complex international trade agreements and tariffs.

Trade policy is a major legal and financial headwind for Hexcel in 2025. The company is a global manufacturer, sourcing and selling across the US, Europe, and Asia, making it highly vulnerable to tariffs and trade restrictions.

The direct financial impact is clear: Hexcel lowered its 2025 guidance, citing tariff-related costs as a key factor. The company now expects full-year 2025 sales to be around $1.88 billion, and adjusted diluted earnings per share (EPS) to be in the range of $1.70 to $1.80, a reduction from the prior range of $1.85 to $2.05. This is a concrete tariff cost hitting the bottom line.

Here's the quick math on the 2025 outlook change:

The new trade environment, including the potential for a 10% baseline tariff on global imports and higher reciprocal duties on Chinese goods, requires constant supply chain re-evaluation and adds defintely to operational complexity.

Product liability exposure due to the critical nature of aerospace components.

As a supplier of primary and secondary structural materials-like the massive composite wing covers for the A350-Hexcel faces extreme product liability exposure. A material failure in an aerospace component could lead to catastrophic loss of life and aircraft, triggering multi-billion dollar lawsuits.

While Hexcel maintains insurance coverage, the risk is a permanent fixture on the balance sheet. For the first six months of 2025, Hexcel's accrued warranty cost, recorded in accrued liabilities, was approximately $2.4 million at the beginning of the period, with an additional $0.5 million in warranty expense recognized during the period. This is just the standard warranty cost; the true legal exposure from a major component failure is orders of magnitude higher and is a constant strategic risk. The company also faces ongoing environmental litigation, such as the March 2024 suit filed against Hexcel and other parties for cost recovery related to the cleanup of the Lower Passaic River.

Hexcel Corporation (HXL) - PESTLE Analysis: Environmental factors

Pressure to reduce manufacturing waste and energy consumption in production

The drive to reduce the environmental footprint of manufacturing is a major factor for Hexcel Corporation, pushing for efficiency gains that save money and resources. The company has set a clear, long-term target: a 30% reduction in waste between the 2019 baseline and 2030. This isn't just a goal; they've implemented a corporate standard since 2023 requiring every manufacturing site to systematically review and plan to reduce waste at its origin. It's a smart move because less waste means lower disposal costs and better material utilization.

On the energy front, Hexcel is working to cut its operational emissions. They are targeting a 30% reduction in Scope 1 and 2 greenhouse gas (GHG) emissions intensity between 2019 and 2030. For instance, a heat exchange equipment installation in 2024 is expected to eliminate up to an estimated 2,000 metric tons of CO2 emissions per year. That's a concrete impact. Plus, they currently use renewable power for approximately 20% of their global power consumption needs.

Here's the quick math on their near-term efficiency projects:

• U.S. energy assessments are projected to yield an aggregate 8-15% CO2 reduction over the next 3-5 years.
• As of year-end 2024, 90% of global manufacturing sites were ISO 14001:2015 certified, showing a commitment to a formal environmental management system.

Demand for materials that enable aircraft to meet stricter carbon emission targets

The commercial aerospace market, which represented 63% of Hexcel's 2024 net sales, is under immense pressure to decarbonize. This is a massive opportunity for Hexcel because their advanced composites are the solution. Lightweight, high-strength materials are essential for new-generation aircraft to meet stricter fuel efficiency and emission standards.

For example, composite-rich aircraft like the Airbus A350 and Boeing 787, which heavily utilize Hexcel materials, consume approximately 25 percent less fuel than their predecessors. The looming January 1, 2027, mandatory start of the International Civil Aviation Organization's (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) emission reduction mandates for international aviation will defintely influence airlines to prioritize fleet renewal with these composite-intensive models.

The sheer scale of demand is clear: the combined Airbus and Boeing backlog stood at 14,903 aircraft as of December 31, 2024, nearly all of which rely on advanced composites to meet performance and environmental goals.

Focus on developing recyclable or sustainable composite materials for end-of-life

The industry faces a tough challenge with composite material end-of-life, but Hexcel is focused on closing the loop. This focus is a major competitive advantage, as sustainability is now a core customer requirement, not a bonus feature. Their collaboration with the deep technology start-up Fairmat, for instance, diverted over 280 tons of prepreg waste from incineration and landfill in 2024, creating a recycled carbon fiber sheet called FairPly.

The company also strategically invested in Carbon Conversions Inc. (CCI) to reclaim dry, wet, and cured carbon fiber for repurposing in aerospace and industrial applications. This is a crucial step toward a circular economy for composites. To be fair, this is a long-term play, but they're committing resources now: 75% of all Research & Technology (R&T) projects are required to provide a sustainability benefit to Hexcel or its customers through product innovation or operational improvements.

They're also innovating with bio-based chemistry, offering the HexPly® Nature Range, which uses bio-derived resin content combined with natural fiber reinforcements for industrial markets like wind energy and automotive.

Regulatory mandates on chemical usage (e.g., REACH) affect material sourcing

Regulatory frameworks, particularly the European Union's REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals), directly impact Hexcel's material sourcing and product formulation. Compliance is non-negotiable, and the landscape is constantly shifting.

As of 2025, the focus on Substances of Very High Concern (SVHCs) continues to tighten. The proposed REACH revision, unveiled in April 2025, suggests a limited registration validity of only 10 years and mandatory dossier updates when a substance is identified as an SVHC. This means Hexcel must maintain an extremely vigilant and proactive supply chain management system to avoid disruption.

The table below summarizes key regulatory and compliance metrics as of the 2025 fiscal year:

The increasing rigor of REACH, plus the rising global emphasis on 'green chemistry,' means Hexcel's R&T efforts must prioritize replacing or finding alternatives for any hazardous substances, even before they hit the SVHC list.