Core Insights - Hexcel (HXL) reported quarterly earnings of $0.37 per share, missing the Zacks Consensus Estimate of $0.38 per share, and down from $0.47 per share a year ago, representing an earnings surprise of -2.63% [1] - The company posted revenues of $456.2 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.57%, but slightly down from year-ago revenues of $456.5 million [2] - Hexcel shares have increased about 2.3% since the beginning of the year, underperforming the S&P 500's gain of 14.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.61 on revenues of $506.04 million, and for the current fiscal year, it is $1.88 on revenues of $1.9 billion [7] - The estimate revisions trend for Hexcel was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Aerospace - Defense Equipment industry, to which Hexcel belongs, is currently in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, Loar Holdings Inc. (LOAR), is expected to report quarterly earnings of $0.22 per share, reflecting a year-over-year change of +46.7% [9]

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 ...

Financial Performance - Net sales for Q3 2025 were $456.2 million, a slight decrease of 0.1% compared to Q3 2024's $456.5 million, while net sales for the first nine months of 2025 were $1,402.6 million, down 1.9% from $1,429.2 million in the same period last year [88]. - Operating income for Q3 2025 was $36.0 million, a decline of 31.4% from $52.5 million in Q3 2024, and for the first nine months of 2025, it was $110.2 million, down 37.8% from $177.2 million in the prior year [104]. - Net income for Q3 2025 was $20.6 million, a decrease of 48.2% from $39.8 million in Q3 2024, and for the first nine months of 2025, net income was $63.0 million, down 50.1% from $126.3 million in the same period last year [88]. - Gross margin for Q3 2025 was 21.9%, down from 23.3% in Q3 2024, and for the first nine months of 2025, it was 22.4%, compared to 24.6% in the same period last year [100]. - Adjusted operating income for Q3 2025 was $44.8 million, compared to $52.9 million in Q3 2024, while for the nine months, it was $144.3 million versus $179.0 million in the prior year [124]. - GAAP net income for Q3 2025 was $20.6 million, down from $39.8 million in Q3 2024, with adjusted net income at $29.8 million compared to $38.3 million in the same quarter last year [125]. - Free cash flow for the first nine months of 2025 was $49.9 million, down from $58.9 million in the same period of 2024 [126]. Segment Performance - Composite Materials segment net sales for Q3 2025 were $363.2 million, a decrease of 1.2% from $367.6 million in Q3 2024, while Engineered Products segment net sales increased by 4.6% to $93.0 million in Q3 2025 [93][94]. - Commercial Aerospace sales decreased by 7.3% to $274.2 million in Q3 2025, primarily due to inventory destocking on Airbus and Boeing programs, while Defense, Space & Other sales increased by 13.3% to $182.0 million [96][97]. Operating Expenses and Income - Operating expenses for Q3 2025 included a loss of $3.4 million related to the divestiture of the Neumarkt plant and restructuring charges of $1.1 million related to the closure of the Belgium facility [103]. - Interest expense for Q3 2025 was $9.2 million, an increase of 8.2% from $8.5 million in Q3 2024, primarily due to higher average borrowings and interest rates [107]. - Tax expense for Q3 2025 was $6.2 million, up from $4.2 million in Q3 2024, while the nine-month tax expense decreased to $21.6 million from $27.8 million in the prior year [109]. Cash Flow and Debt - Cash on hand as of September 30, 2025, was $90.5 million, down from $125.4 million at the end of 2024, with total debt increasing to $757.9 million from $700.7 million [110]. - Net cash provided by operating activities for the first nine months of 2025 was $105.0 million, compared to $127.3 million in the same period of 2024 [116]. - The weighted average interest rate for the credit facility was 5.57% for the nine months ended September 30, 2025 [111]. - The next significant debt maturity is not until February 2027, when the 3.95% Senior Unsecured Notes are due [119]. - The company expects to meet short-term liquidity requirements through net cash from operating activities and cash on hand, with no significant debt repayments required until 2027 [112]. Risks and Challenges - The company is facing challenges from global logistics, supply chain issues, and tariffs, which have increased material costs and may impact future sales and operations [87]. - The company faces known and unknown risks that may cause actual results to differ materially from forward-looking statements, including macroeconomic factors and geopolitical issues [130]. - Significant customers like Airbus and Boeing are critical, with potential reductions in sales impacting overall performance [130]. - There are concerns regarding the availability and cost of raw materials, influenced by supply disruptions, inflation, and tariffs [130]. - Changes in government defense procurement or investment budgets could significantly impact the company's operations [130]. - The company acknowledges risks related to cybersecurity, including potential breaches or intrusions [130]. - The ability to complete share repurchases and the timing of such actions remain uncertain [130]. Strategic Initiatives - The company is taking actions to mitigate risks, including seeking exemptions, alternative sourcing, and implementing price increases where feasible [87]. - Strategic initiatives, including sustainability goals and restructuring activities, are crucial for the company's future success [130]. - The company has a remaining authorization of $134.0 million under the 2024 Share Repurchase Plan and approved an additional $600 million share repurchase plan on October 22, 2025 [113][114]. - The company does not undertake any obligation to update forward-looking statements or risk factors unless required by law [131].

Financial Performance - Q3 2025 net sales were $456.2 million, a slight decrease of 0.1% compared to Q3 2024 sales of $456.5 million[3]. - Q3 2025 GAAP diluted EPS was $0.26, down 46.9% from $0.49 in Q3 2024; adjusted diluted EPS was $0.37, a decrease of 21.3% from $0.47[5]. - Adjusted operating income for Q3 2025 was $44.8 million, or 9.8% of sales, down from $52.9 million, or 11.6% of sales in Q3 2024[10]. - Gross margin for Q3 2025 was 21.9%, down from 23.3% in Q3 2024, reflecting a decrease in profitability[22]. - Net income for the nine months ended September 30, 2025, was $63.0 million, a decline of 50.5% from $126.3 million in the same period of 2024[22]. - The company reported a basic net income per share of $0.26 for Q3 2025, down from $0.49 in Q3 2024[22]. - The company reported a GAAP net income of $63.0 million for the first nine months of 2025, compared to $126.3 million in the same period of 2024[29]. Sales Breakdown - Commercial Aerospace sales for Q3 2025 were $274.2 million, a decrease of 7.3% compared to Q3 2024, primarily due to inventory destocking related to the Airbus A350[8]. - Defense, Space & Other sales increased by 13.3% to $182.0 million in Q3 2025, driven by growth in fighters, rotorcraft, and space programs[9]. - For the first nine months of 2025, net sales to external customers totaled $1,402.6 million, a decrease from $1,429.2 million in the same period of 2024[27]. - Commercial Aerospace sales for Q3 2025 were $274.2 million, down 7.3% from $295.9 million in Q3 2024[25]. - Defense, Space & Other sales increased by 13.3% to $182.0 million in Q3 2025, compared to $160.6 million in Q3 2024[25]. Cash Flow and Capital Management - Hexcel expects to generate over $1 billion in free cash flow over the next four years, with a free cash flow of $49.9 million reported for the first nine months of 2025[6]. - Free cash flow for the nine months ended September 30, 2025, was $49.9 million, down from $58.9 million in the same period of 2024[24]. - Free cash flow for the first nine months of 2025 was $49.9 million, down from $58.9 million in the same period of 2024[29]. - An additional $600 million share repurchase authorization was approved, with a $350 million accelerated share repurchase program initiated[6]. - The company declared a quarterly dividend of $0.17 per share, payable on November 10, 2025[16]. Guidance and Future Outlook - The company revised its 2025 sales guidance to around $1.88 billion, reflecting the impact of tariffs[16]. - For 2025, adjusted diluted EPS guidance is revised to $1.70 to $1.80, reflecting the impact of tariffs[19]. Balance Sheet Highlights - Cash and cash equivalents decreased to $90.5 million as of September 30, 2025, from $125.4 million at the end of 2024[23]. - Total assets increased to $2,758.4 million as of September 30, 2025, compared to $2,725.6 million at the end of 2024[23]. - Total liabilities decreased slightly to $1,191.7 million as of September 30, 2025, from $1,197.7 million at the end of 2024[23]. - The total debt as of September 30, 2025, was $757.9 million, an increase from $700.7 million at the end of 2024[34]. - Hexcel's total debt, net of cash, was $667.4 million as of September 30, 2025, compared to $575.3 million at the end of 2024[34]. Operating Expenses - Capital expenditures for the first nine months of 2025 were $55.1 million, compared to $68.4 million in the same period of 2024[29]. - The company incurred other operating expenses of $34.1 million for the first nine months of 2025, significantly higher than $1.8 million in the same period of 2024[29].

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. ...

Core Viewpoint - The market anticipates a year-over-year decline in Hexcel's earnings due to lower revenues, with a focus on how actual results compare to estimates [1][2]. Earnings Expectations - Hexcel is expected to report quarterly earnings of $0.39 per share, reflecting a 17% decrease year-over-year [3]. - Revenue projections stand at $450.82 million, indicating a 1.2% decline from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.13% higher in the last 30 days, suggesting a slight positive adjustment by analysts [4]. - The Most Accurate Estimate for Hexcel is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -5.94%, indicating a bearish outlook from analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank of 1, 2, or 3 [10]. - Hexcel currently holds a Zacks Rank of 3, making it challenging to predict a consensus EPS beat [12]. Historical Performance - In the last reported quarter, Hexcel exceeded earnings expectations by delivering $0.50 per share against an expected $0.46, resulting in a surprise of +8.70% [13]. - Over the past four quarters, Hexcel has beaten consensus EPS estimates three times [14]. Conclusion - While Hexcel does not appear to be a strong candidate for an earnings beat, investors should consider other factors influencing stock performance ahead of the earnings release [17].

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].