Hexcel (HXL) Reports Q2 Earnings: What Key Metrics Have to Say

Core Insights - Hexcel reported revenue of $489.9 million for the quarter ended June 2025, a year-over-year decline of 2.1%, with EPS of $0.50 compared to $0.60 a year ago, exceeding the Zacks Consensus Estimate of $471.17 million by 3.98% and delivering an EPS surprise of 8.7% [1] Financial Performance - Net Sales in Commercial Aerospace - Composite Materials reached $249.9 million, slightly above the average estimate of $248.24 million, but down 8.3% year-over-year [4] - Net Sales in Defense, Space & Other - Composite Materials were $143.3 million, significantly exceeding the estimated $112.99 million, reflecting a year-over-year increase of 49.3% [4] - Net Sales in Commercial Aerospace - Engineered Products totaled $43.2 million, below the average estimate of $44.46 million, marking a decline of 10.2% year-over-year [4] - Total Net Sales in Commercial Aerospace amounted to $293.1 million, below the estimated $297.01 million, representing an 8.6% year-over-year decline [4] - Total Net Sales in Defense, Space & Other reached $196.8 million, surpassing the average estimate of $163.52 million, with a year-over-year increase of 41.7% [4] - Composite Materials Net Sales were $393.2 million, exceeding the average estimate of $371.23 million, but down 3.8% year-over-year [4] - Operating income for Composite Materials was $58.3 million, below the estimated $64.11 million [4] - Operating income for Corporate & Other was -$14.7 million, better than the estimated -$22.93 million [4] - Operating income for Engineered Products was -$13.6 million, significantly below the estimated $11.76 million [4] Stock Performance - Hexcel's shares have returned 12.4% over the past month, outperforming the Zacks S&P 500 composite's 5.7% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]