Financial Data and Key Metrics Changes - Hexcel achieved full-year sales of $1.894 billion, adjusted EPS of $1.76, and free cash flow of $157 million for 2025 [11] - In Q4 2025, sales were $492 million, up 3.7% from 2024, indicating a positive trend in commercial orders [12] - Gross margin for Q4 2025 was 24.6%, down from 25% in Q4 2024, primarily due to sales mix [23] Business Line Data and Key Metrics Changes - Commercial aerospace sales in Q4 were $299.5 million, a 7.6% increase compared to 2024, driven by growth in A320, 787, and 737 volumes [13] - Defense, space, and other segments saw sales of $191.8 million in Q4, down 1.9% from the same period in 2024, impacted by the divestment of the Austrian industrial business [14] Market Data and Key Metrics Changes - The backlog for commercial aircraft has exceeded 17,000, with a delivery shortfall of at least 5,300 aircraft, highlighting the supply-demand imbalance [4] - Aircraft production in 2025 was 1,503, about 87% of pre-pandemic levels, with expectations to fully recover to pre-pandemic levels in 2026 [8] Company Strategy and Development Direction - Hexcel is focused on developing advanced material solutions for next-generation aircraft, positioning itself to benefit from increased commercial aircraft production and defense funding [5][10] - The company initiated a $350 million Accelerated Share Repurchase program, reflecting confidence in long-term growth [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a sustained ramp-up in commercial aircraft production rates, with positive catalysts across major programs [6][20] - For 2026, Hexcel expects sales in the range of $2.0 billion to $2.1 billion, with adjusted EPS between $2.10 and $2.30, driven by increased operating leverage and disciplined cost control [21] Other Important Information - The board declared a quarterly dividend of $0.18 per share, a 6% increase, reflecting a positive outlook on long-term growth [18] - The company closed a facility in Belgium and divested non-core businesses to streamline operations [14][16] Q&A Session Summary Question: Can you provide more detail on the growth assumptions for commercial aerospace in 2026? - Management indicated that commercial aerospace growth is expected to be low to mid double digits, with specific assumptions for A350 deliveries at about 80 units in 2026, up from 57 in 2025 [38][39] Question: What is the outlook for incremental margins? - Management expects mid-30s incremental margins, driven by operating leverage as production rates increase [68][69] Question: Will there be further cash going into buybacks in 2026? - The priority is to reduce leverage back to the target range, but after achieving that, continued share repurchase will be considered [71]

Financial Data and Key Metrics Changes - In 2025, Hexcel achieved full-year sales of $1.894 billion, adjusted EPS of $1.76, and free cash flow of $157 million [11] - Fourth quarter sales were $492 million, up 3.7% from 2024, indicating a positive trend in commercial orders [11] - Commercial aerospace sales in Q4 were $299.5 million, an increase of 7.6% compared to 2024, driven by strong growth in A320, 787, and 737 volumes [12] - Full-year adjusted EBITDA totaled $346 million in 2025, compared to $382 million in 2024 [28] Business Line Data and Key Metrics Changes - The composite materials segment represented 80% of total Q4 sales and generated an adjusted operating margin of 20.5%, up from 15.3% in the prior year [25] - The engineered products segment, comprising structures and engineered core businesses, represented 20% of total sales with an adjusted operating margin of 11.1%, compared to 10.7% in the prior year [25] Market Data and Key Metrics Changes - The commercial aerospace market saw a sales increase of 5.8% in Q4 2025 compared to Q4 2024, with notable growth in A320, 787, and 737 programs [22] - Defense, space, and other sales totaled $192 million in Q4, decreasing 4.3% on a constant currency basis from the same period in 2024 [23] Company Strategy and Development Direction - Hexcel is focused on developing advanced material solutions for next-generation aircraft, positioning itself to benefit from increased commercial aircraft production and defense spending [4][10] - The company initiated a $350 million Accelerated Share Repurchase program, reflecting confidence in long-term growth and operational excellence [17] - A 6% increase in the quarterly dividend to $0.18 per share was announced, indicating a positive outlook on long-term growth [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a sustained ramp-up in commercial aircraft production rates, with a backlog exceeding 17,000 aircraft [3] - The company anticipates sales in the range of $2.0 billion to $2.1 billion for 2026, with adjusted EPS between $2.10 and $2.30 [20] - Management noted that the majority of destocking by OEMs is behind them, and they expect a stronger 2026 [13] Other Important Information - The company closed a facility in Belgium and divested its Austrian-based industrial business, which impacted overall sales and operational focus [13] - Hexcel's leverage was temporarily elevated at just under 2.7 times at year-end 2025, with a commitment to return to a target range of 1.5-2.0 times in 2026 [29] Q&A Session Summary Question: Can you provide more detail on the revenue growth assumptions for commercial aerospace? - Management indicated that commercial aerospace growth is expected to be low to mid double digits for 2026, with specific assumptions for A350 deliveries at around 80 units [37][39] Question: What is the outlook for incremental margins? - Management expects mid-30s incremental margins, driven by operating leverage as production rates increase [68] Question: How will the divestment of the Austrian facility impact future sales? - The divestment will result in a loss of approximately $30 million in sales, impacting the defense and space segment [87] Question: What is the company's strategy regarding share repurchases in 2026? - The primary focus will be on debt reduction to achieve target leverage, with potential for continued share repurchase after that [71]

HXL Investor Briefing 2 ©2026 Hexcel. All rights reserved. January 2026 1 ©2026 Hexcel. All rights reserved. Risks, Uncertainties and Other Factors with Respect to Forward-Looking Statements Disclaimer Certain statements contained in this presentation constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements that are not of historical fact constitute "forward-looking statements" and accordingly, involve estimates, assumptions, judgmen ...

Hexcel (HXL) came out with quarterly earnings of $0.52 per share, beating the Zacks Consensus Estimate of $0.5 per share. This compares to earnings of $0.52 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +4.31%. A quarter ago, it was expected that this maker of lightweight composite materials would post earnings of $0.38 per share when it actually produced earnings of $0.37, delivering a surprise of -2.63%.Over the last four ...

Hexcel Corporation Two Stamford Plaza| 281 Tresser Blvd., 16 Floor Stamford, CT 06901 USA www.hexcel.com th Exhibit 99.1 | Summary of Results from Operations | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | Quarters Ended | | | | Years Ended | | | | | | | | December 31, | | | | December 31, | | | | | (In millions, except per share data) | | 2025 | | 2024 | % Change | | 2025 | | 2024 | % Change | | Net Sales | $ | 491.3 | $ | 473.8 | 3.7 % | $ | 1,893.9 | $ | ...

Core Viewpoint - Hexcel Corporation is expected to report a decline in earnings despite an increase in revenues for the quarter ending December 2025, with significant implications for its stock price depending on actual results compared to estimates [2][6]. Financial Performance Expectations - Analysts anticipate earnings per share (EPS) of $0.50 and revenue of approximately $481.8 million for the upcoming quarterly earnings release on January 28, 2026 [1]. - The consensus indicates a potential decline in earnings, which could lead to stock price volatility based on the comparison of actual results to these estimates [2]. Market Valuation Metrics - Hexcel has a high price-to-earnings (P/E) ratio of 95.13, suggesting that investors are willing to pay $95.13 for every dollar of earnings, reflecting strong investor confidence in future growth [3][6]. - The price-to-sales ratio stands at 3.48, indicating that investors pay $3.48 for every dollar of sales, which highlights Hexcel's strong market position [3]. Financial Stability Indicators - The enterprise value to sales ratio is 3.84, showing Hexcel's total valuation relative to its sales [4]. - The enterprise value to operating cash flow ratio of 26.89 indicates how many times the operating cash flow can cover the enterprise value [4]. - Hexcel's debt-to-equity ratio of 0.48 reflects a moderate level of debt relative to its equity, suggesting a balanced financial structure [5][6]. - A current ratio of 2.75 indicates a strong ability to cover short-term liabilities with short-term assets, reflecting financial stability [5][6].

Group 1 - FTAI Aviation and Hexcel are complementary stocks in the aviation sector, with Hexcel being a better long-term investment currently [1] - FTAI focuses on the aerospace aftermarket, while Hexcel specializes in advanced composite materials for the original equipment market [2] - Owning both stocks allows investors to benefit from strong aircraft production (Hexcel) and increased usage of older planes during manufacturing delays (FTAI) [2] Group 2 - GE Aerospace has performed well due to its relevance in both the OEM and aftermarket, similar to the dual roles of FTAI and Hexcel [3] - FTAI competes with GE Aerospace in engine maintenance and servicing after long-term service agreements expire, while also supporting GE's engine sales [4][5] - FTAI's recent stock surge is attributed to the launch of FTAI Power, which converts CFM56 engines into power turbines for data centers, capitalizing on AI demand [6] Group 3 - Hexcel's advanced composite materials are increasingly important for future aircraft, providing strength and weight advantages over traditional materials [9] - The use of composite materials helps airlines improve productivity and meet emissions goals, indicating long-term growth potential for Hexcel [9]

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Core Insights - Hexcel Corporation (HXL) has delivered a 27.1% return since the last report, significantly outperforming the S&P 500's 3.1% gain, highlighting the investment potential in aerospace and defense companies [1] Company Analysis - The aerospace, defense, and airline analyst Dhierin-Perkash Bechai leads The Aerospace Forum, focusing on identifying investment opportunities within the aerospace sector [1] - The company utilizes data-informed analysis to provide insights into the complex aerospace industry, which is characterized by significant growth prospects [1] Industry Context - The Aerospace Forum aims to discover investment opportunities in the aerospace, defense, and airline industry, emphasizing the importance of data analytics in shaping investment theses [1]

Investment Rating - The report maintains a positive outlook on the civil aviation manufacturing industry, indicating it will become a significant growth area for China's aerospace manufacturing sector [1][5]. Core Insights - The civil aviation manufacturing sector is expected to mirror the success of the U.S. aerospace industry, where commercial aircraft manufacturing is a major source of revenue and profit for companies like Boeing and GE Aviation [2][55]. - The C919 aircraft is set to lead the development of China's civil aviation manufacturing industry, with a production capacity expected to reach 200 units per year by 2029 [3][56]. - The aftermarket for civil aviation in China is projected to be vast, with the country potentially becoming the largest single aviation market globally by 2044 [4][5]. Summary by Sections Civil Aviation Manufacturing Growth - Civil aviation manufacturing in China is anticipated to grow significantly, driven by the C919's commercial operations and the development of a domestic supply chain [1][5]. - The report highlights that the domestic aviation manufacturing industry is beginning to catch up, with a focus on increasing the localization rate of components [3][4]. C919 Aircraft Development - The C919 aircraft, with over 1,000 orders, is expected to enhance production and delivery capabilities, marking a significant milestone in China's aviation history [3][56]. - The aircraft's production model involves a high degree of localization, with over 50% of its components sourced domestically [3][56]. Aftermarket Opportunities - The civil aviation aftermarket in China is projected to expand, with an increase in the number of approved civil aviation products and components [4][5]. - The report notes that the penetration of domestic materials is expected to rise, helping airlines reduce procurement costs and improve supply chain reliability [4][5]. Investment Opportunities - The report suggests focusing on investment opportunities within the civil aviation manufacturing supply chain, including companies involved in aircraft body manufacturing, materials, engines, and onboard equipment [5]. - Key companies mentioned include AVIC Xi'an Aircraft Industry, AVIC Harbin Aircraft Industry, and various suppliers of materials and components [5].