Shares of Hexcel (NYSE:HXL) were little changed in extended trading Wednesday after the aerospace materials supplier reported third-quarter revenue that topped Wall Street’s estimates. The company reported adjusted earnings of $0.37 per share, missing analysts’ expectations of $0.38 per share, and revenue of $456 million, surpassing the ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Hexcel Corporation (Exact name of registrant as specified in its charter) Delaware 94-1109521 (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) For the Quarterly Period Ended September 30, 2025 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Fo ...

Hexcel Corporation Two Stamford Plaza| 281 Tresser Blvd., 16 Floor Stamford, CT 06901 USA www.hexcel.com th Exhibit 99.1 HEXCEL REPORTS 2025 THIRD QUARTER RESULTS See Table C for reconciliation of GAAP and non-GAAP operating income, net income, earnings per share and operating cash flow to free cash flow. Free cash flow is cash from operations less capital expenditures. | Summary of Results from Operations | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | Quarte ...

STAMFORD, Conn.--(BUSINESS WIRE)--Hexcel Corporation (NYSE: HXL) announced today that the Company's Board of Directors has declared a regular quarterly cash dividend of $0.17 per share on the common stock of Hexcel, payable to stockholders of record as of November 3, 2025, with a payment date of November 10, 2025. About Hexcel Hexcel Corporation is a global leader in advanced lightweight composites technology. We propel the future of flight and transportation through excellence in providing inn. ...

The market expects Hexcel (HXL) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on O ...

Group 1 - Hexcel Corporation (NYSE: HXL) is a key supplier of advanced composite materials for the aerospace and defense industry, showing a gain of approximately 24%, trailing the S&P 500's gain of 27.4% [1] - The Aerospace Forum aims to discover investment opportunities in the aerospace, defense, and airline industry, providing analysis driven by data-informed insights [1] - The investing group offers direct access to data analytics monitors, enhancing the investment research process [1] Group 2 - The article emphasizes the importance of context in understanding developments within the aerospace and defense industry and their potential impact on investment theses [1]

Group 1 - Hexcel Corporation (NYSE: HXL) is a key supplier of advanced composite materials for the aerospace and defense industry, showing a gain of approximately 24%, trailing the S&P 500's gain of 27.4% [1] - The Aerospace Forum aims to discover investment opportunities in the aerospace, defense, and airline industry, providing analysis driven by data-informed insights [1] - The investing group offers direct access to data analytics monitors, enhancing the investment research process [1] Group 2 - The article emphasizes the importance of context in understanding developments within the aerospace and defense industry and their potential impact on investment theses [1]

Core Viewpoint - Hexcel (HXL) is currently facing challenges due to low aftermarket demand for its carbon fiber composites, particularly impacted by reduced airplane production expectations from key customers Airbus and Boeing. However, the long-term growth prospects remain strong, and recent positive signs in the aerospace supply chain suggest potential recovery for the company [2][3][5][16]. Company Performance - Hexcel has experienced a difficult period, with Wall Street projecting minimal sales growth for the current year and a decline in earnings per share from $2.03 in 2024 to $1.87 in 2025 due to production shortfalls from major customers [5]. - Approximately 40% of Hexcel's 2024 sales are tied to Airbus, while 15% are linked to Boeing, making the company vulnerable to their production fluctuations [3]. Market Conditions - The commercial aerospace supply chain is showing signs of improvement, with GE Aerospace reporting a 38% increase in LEAP engine deliveries in Q2, and RTX's Pratt & Whitney expected to ramp up production in the second half of the year [9][10]. - Airbus has lowered its production expectations for the A350, which has a shipset value of $4.5 million to $5 million, indicating challenges in the market [4]. Long-term Growth Prospects - Despite current challenges, Hexcel's growth potential is highlighted by the expected ramp-up in aircraft production and deliveries from Airbus and Boeing, which are currently behind schedule [12][15]. - The increasing incorporation of composites in new aircraft generations presents additional opportunities for Hexcel, as aircraft deliveries are anticipated to rise, positively impacting sales and margins [15][16].

Core Viewpoint - Hexcel Corporation's share price declined by 2% to $61.11 following its second-quarter 2025 earnings release, which showed a decrease in adjusted earnings and net sales compared to the previous year [1][9]. Financial Performance - Hexcel reported adjusted earnings of 50 cents per share for Q2 2025, down 16.7% from 60 cents in the same quarter last year, but exceeded the Zacks Consensus Estimate of 46 cents by 8.7% [1][9]. - GAAP earnings were reported at 17 cents per share, a significant decline of 71.7% from the prior year's 60 cents [1]. - Total net sales for Q2 2025 were $489.9 million, surpassing the Zacks Consensus Estimate of $471 million by 4%, but down 2.1% from $500.4 million in Q2 2024 [3][9]. Operational Insights - The gross margin for Q2 2025 was 22.8%, a contraction of 250 basis points from the previous year, attributed to lower sales and unfavorable cost leverage due to inventory reduction actions [4]. - Selling, general and administrative (SG&A) expenses increased by 7.8% year over year to $43 million, while research and technology expenses decreased by 2.7% to $14.3 million [5]. Market Segment Performance - In the Commercial Aerospace segment, net sales fell by 8.6% year over year to $293.1 million, impacted by lower sales from major programs including Airbus A350 and A320neo, and Boeing 787 and 737 MAX [6]. - Conversely, the Defense, Space & Other segment saw a 9.5% increase in net sales to $196.8 million, driven by strong demand from various military and space programs [7][9]. Financial Position - As of June 30, 2025, Hexcel's cash and cash equivalents were $77.2 million, down from $125.4 million at the end of 2024, while long-term debt increased to $827.7 million from $700.6 million [10]. - The company reported a cash outflow from operating activities of $5.2 million in the first half of 2025, compared to a cash inflow of $37.2 million in the same period last year [10]. Guidance - Hexcel maintained its 2025 guidance, expecting sales between $1.88 billion and $1.95 billion, with the Zacks Consensus Estimate at $1.91 billion [12]. - The company anticipates adjusted earnings per share in the range of $1.85 to $2.05, with the Zacks Consensus Estimate at $1.87 [12]. - Hexcel also expects to generate approximately $190 million in free cash flow for 2025, with capital expenditures projected to be less than $90 million [13].

Financial Data and Key Metrics Changes - The company generated sales of $490 million in Q2 2025, with adjusted diluted EPS of $0.50 per share [13] - Gross margin decreased to 22.8% in Q2 2025 from 25.3% in Q2 2024, impacted by lower operating leverage and inventory reduction actions [16][28] - Adjusted operating income was $54.2 million, or 11.1% of sales, compared to $72 million, or 14.4% of sales in the prior year [30] Business Line Data and Key Metrics Changes - Commercial aerospace sales totaled $293 million, down 8.9% year-over-year on a constant currency basis, primarily due to the A350 and Boeing 787 [13][26] - Defense, Space, and Other sales reached $197 million, up 7.6% year-over-year, driven by various military programs [15][27] - The Composite Materials segment represented 80% of total sales with an adjusted operating margin of 14.1%, down from 17.2% in the prior year [31] Market Data and Key Metrics Changes - The commercial aerospace market accounted for approximately 60% of total sales in Q2 2025, while Defense, Space, and Other represented about 40% [26] - The company noted strong demand in the defense sector, with NATO members in Europe planning to increase defense spending to 5% of GDP [10] Company Strategy and Development Direction - The company aims to generate over $1 billion in cash cumulatively over the next four years, supported by strong demand for advanced lightweight composite materials [9][38] - The company is focused on operational excellence and cost control, with plans to optimize production efficiency through automation and AI [20][22] - The company is exploring targeted M&A opportunities to complement its advanced material science technology [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the commercial aerospace industry's recovery, with a backlog for new aircraft at an all-time high [37] - The company anticipates a strong fourth quarter in 2025 as production rates increase, particularly for the A350 program [45][85] - Management highlighted the importance of maintaining on-time delivery and quality, receiving recognition from Airbus for outstanding performance [18][76] Other Important Information - The company took a restructuring charge of $24 million in Q2 2025 related to the closure of its engineered product facility in Belgium [21][29] - The company repurchased $50 million of shares in Q2 2025, totaling $100 million for the year [25] Q&A Session Summary Question: Can you outline the assumptions on build rates for the A350 program? - Management indicated that the A350 program's build rate has been adjusted down to the low sixties for the full year, with expectations for a strong fourth quarter as destocking ends [44][85] Question: Is there continued growth expected in the defense space? - Management expressed optimism about ongoing growth in defense spending globally, particularly in the second half of the year [46][47] Question: What were the actual shipping rates for the A350 in the first half of the year? - Shipping rates were in the low sixties in Q1 and high fives in Q2, reflecting destocking impacts [55][57] Question: How does the company view the impact of tariffs on earnings guidance? - Management noted that tariffs could impact earnings by $3 to $4 million per quarter, but they did not include this in guidance due to uncertainty [86][88] Question: What is the long-term growth outlook for the defense business? - Management sees defense as a significant growth opportunity, with increased spending in both the US and Europe expected to benefit the business [96][97]