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 ...

分组1 - Hexcel reported quarterly earnings of $0.52 per share, exceeding the Zacks Consensus Estimate of $0.50 per share, with an earnings surprise of +4.31% [1] - The company posted revenues of $491.3 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.70%, compared to year-ago revenues of $473.8 million [2] - Hexcel has surpassed consensus EPS estimates two times over the last four quarters and topped consensus revenue estimates three times during the same period [2] 分组2 - The stock has gained approximately 10.4% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] - The current consensus EPS estimate for the upcoming quarter is $0.43 on revenues of $487.4 million, and for the current fiscal year, it is $2.29 on revenues of $2.07 billion [7] - The Aerospace - Defense Equipment industry, to which Hexcel belongs, is currently ranked in the top 22% of over 250 Zacks industries, indicating a favorable outlook [8]

Financial Performance - Q4 2025 net sales were $491.3 million, a 3.7% increase from Q4 2024 sales of $473.8 million[3] - FY 2025 sales totaled $1,893.9 million, a slight decrease of 0.5% compared to FY 2024 sales of $1,903.0 million[10] - Q4 2025 GAAP diluted EPS was $0.60, significantly up from $0.07 in Q4 2024, while adjusted diluted EPS remained stable at $0.52[4] - FY 2025 adjusted diluted EPS decreased to $1.76 from $2.03 in FY 2024, reflecting a 13.3% decline[4] - Operating income for Q4 2025 was $61.4 million, significantly higher than $8.9 million in Q4 2024, while annual operating income decreased to $171.6 million from $186.1 million[23] - Net income for Q4 2025 was $46.4 million, a substantial increase from $5.8 million in Q4 2024, with annual net income at $109.4 million, down from $132.1 million in 2024[23] Cash Flow and Capital Expenditures - Free cash flow for FY 2025 was $157.2 million, down from $202.9 million in FY 2024[14] - The company plans to continue investing in capital expenditures, with $76.7 million allocated for 2025[28] Sales by Segment - Commercial Aerospace sales in Q4 2025 were $299.5 million, a 7.6% increase driven by strong A320neo sales[7] - Defense, Space & Other sales for Q4 2025 were $191.8 million, a decrease of 1.9% compared to Q4 2024[8] - The commercial aerospace segment generated $299.5 million in Q4 2025, up 7.6% from $278.3 million in Q4 2024[26] - The defense, space, and other segment saw a 5.4% increase in net sales for the year, totaling $747.0 million in 2025 compared to $708.8 million in 2024[28] Margins and Expenses - Gross margin for Q4 2025 was 24.6%, slightly down from 25.0% in Q4 2024[9] - Gross margin for Q4 2025 was 24.6%, compared to 25.0% in Q4 2024, with annual gross margin at 23.0% for 2025, down from 24.7% in 2024[23] - Research and technology expenses for 2025 were $56.4 million, slightly down from $57.1 million in 2024[23] - Hexcel's operating expenses for Q4 2025 included $3.7 million in other operating expenses, significantly lower than $48.2 million in Q4 2024[28] Debt and Liquidity - Cash and cash equivalents decreased to $71.0 million at the end of 2025 from $125.4 million at the end of 2024[24] - Total assets decreased to $2,704.0 million in 2025 from $2,725.6 million in 2024, while total liabilities increased to $1,453.3 million from $1,197.7 million[24] - Total debt, net of cash, increased to $922.0 million in December 2025 from $575.3 million in December 2024, representing a 60% increase year-over-year[35] - Total long-term debt rose to $993.0 million in December 2025, up from $700.6 million in December 2024, indicating a 42% increase[35] - The company has $295.0 million in a senior unsecured credit facility as of December 2025[35] Share Repurchase and Future Outlook - An accelerated share repurchase program of $350 million was initiated in October 2025, with 80% of shares expected to be repurchased already delivered[14] - The company anticipates continued challenges from macroeconomic factors and geopolitical issues affecting future performance and share repurchase programs[21] - The company expects 2026 sales growth of 8% and adjusted EPS growth of 25% at the midpoint[5]

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].

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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]

Core Viewpoint - Hexcel Corporation will report its financial results for the fourth quarter of 2025 on January 28, 2026, after market close [1] Financial Reporting - The financial results will be discussed in a webcast and conference call on January 29, 2026, at 9 a.m. ET [1] - The call will be hosted by Chairman, CEO, and President Tom Gentile, along with Interim Chief Financial Officer Mike Lenz [1]

[music] It is time. It's time for the lightning round for the slo [music] and then the lightning round is over. Are you ready.Ski dad light. Let's start with Jim in Connecticut. Jim.>> Jim, you add Boeing to your trust. Hexel makes lightweight material for Boeing and many other companies. [music] >> Hexel is a very good company, sir.The only reason I said to buy Boeing is both Hexel and Helmet had gone up too high. Boeing is still lagging. Let's go to Steve in Pennsylvania.Steve. >> Yeah, Jim. Steve from Ph ...

Core Viewpoint - ATI reported strong earnings for Q3 2025, with adjusted earnings exceeding estimates, but net sales fell short of expectations, indicating mixed performance in the market [2][3]. Financial Performance - ATI recorded a profit of $110 million or 78 cents per share for Q3 2025, an increase from $82.7 million or 57 cents in the same quarter last year [2]. - Adjusted earnings were 85 cents, up 42% from the previous year's 60 cents, surpassing the Zacks Consensus Estimate of 75 cents [2]. - Net sales for Q3 were $1,125.5 million, missing the Zacks Consensus Estimate of $1,139.8 million, but showing a 7% year-over-year increase [3]. Segment Highlights - HPMC segment reported sales of $602.9 million, up 9% year-over-year, but below the consensus estimate of $623 million; segment EBITDA rose 18.3% to $145.8 million [4]. - Advanced Alloys & Solutions (AA&S) recorded sales of $522.6 million, a 4.8% increase from $498.8 million, exceeding the consensus estimate of $507 million; however, segment EBITDA decreased by 23% year-over-year to $90.4 million [5]. Financial Position - As of Q3 2025, cash and cash equivalents were $372.2 million, down 8.6% year-over-year; long-term debt decreased by 7.6% to $1,715.2 million [6]. Outlook - For Q4 2025, adjusted EBITDA is expected to be between $221 million and $231 million, with full-year guidance raised to $848 million-$858 million from the previous $810 million-$840 million [7]. - Adjusted earnings per share for Q4 are projected at 84-90 cents, and for the full year at $3.15 to $3.21, an increase from earlier expectations of $2.90-$3.07 [7]. - Adjusted free cash flow for the full year is estimated between $330 million and $370 million, with capital expenditures anticipated to be $260 million to $280 million [7]. Market Sentiment - Since the earnings release, there has been an upward trend in estimates for ATI, indicating positive market sentiment [8][10]. - ATI holds a Zacks Rank 2 (Buy), suggesting expectations for above-average returns in the coming months [10]. Industry Comparison - ATI operates within the Zacks Aerospace - Defense Equipment industry, where competitor Hexcel (HXL) reported a slight revenue decline of 0.1% year-over-year, with a Zacks Rank 4 (Sell) [11][12].