Hexcel(US:HXL)2025-04-21 20:25Financial Performance - Q1 2025 net sales were $456.5 million, a decrease of 3.3% compared to Q1 2024 sales of $472.3 million[5] - Q1 2025 adjusted diluted EPS was $0.37, down from $0.44 in Q1 2024, reflecting a decrease of 15.9%[5] - The gross margin for Q1 2025 was 22.4%, compared to 25.0% in the prior year, indicating lower sales leverage[11] - Net income for Q1 2025 was $28.9 million, down 20.8% from $36.5 million in Q1 2024[22] - Operating income for Q1 2025 was $44.2 million, down from $52.9 million in Q1 2024, reflecting a decrease in operating margin from 11.2% to 9.7%[25] Sales Breakdown - Commercial Aerospace sales, which accounted for 61% of YTD sales, decreased by 6.4% to $280.1 million due to production challenges[9] - Defense, Space & Other sales increased by 2.0% to $176.4 million, driven by growth in Defense & Space programs[10] - Total net sales for Q1 2025 were $456.5 million, a decrease of 3.3% compared to $472.3 million in Q1 2024[23] - Commercial Aerospace segment sales decreased by 6.4% to $280.1 million in Q1 2025 from $299.3 million in Q1 2024[23] - Defense, Space & Other segment sales increased by 2.0% to $176.4 million in Q1 2025 from $173.0 million in Q1 2024[23] Cash Flow and Debt - Free cash flow for Q1 2025 was ($54.6) million, compared to ($35.7) million in Q1 2024[15] - Long-term debt increased to $787.1 million in Q1 2025 from $700.6 million in Q4 2024[21] - Total debt, net of cash, as of March 31, 2025, is $698.0 million, an increase from $575.3 million on December 31, 2024[29] - Cash and cash equivalents at the end of Q1 2025 were $89.2 million, down from $125.4 million at the end of Q4 2024[22] - The company refinanced $300 million of fixed-rate debt in Q1 2025[5] Shareholder Returns and Guidance - The company returned $64 million to stockholders in Q1 2025 through share repurchases and dividends[5] - Full year 2025 sales guidance was revised to $1.88 billion to $1.95 billion, down from $1.95 billion to $2.05 billion[15] - Adjusted diluted earnings per share guidance was reduced to $1.85 - $2.05, down from $2.05 to $2.25[15] - The company repurchased $50.4 million of common stock in Q1 2025, compared to $100.7 million in Q1 2024[22] Asset Management - Total assets increased to $2,779.2 million in Q1 2025 from $2,725.6 million in Q4 2024[21] - Cash and cash equivalents decreased to $89.2 million as of March 31, 2025, down from $125.4 million on December 31, 2024[29] - Other debt increased slightly to $1.9 million as of March 31, 2025, from $1.7 million in the previous year[29] - The total current debt remains stable at $0.1 million across the reported periods[29] - Senior unsecured credit facility stands at $90.0 million as of March 31, 2025, with no previous balance reported[29]