Hexcel Corp
NYSE:HXL

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Hexcel Corp
NYSE:HXL
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Price: 78.61 USD 2.62% Market Closed
Market Cap: 6.3B USD

Hexcel Corp
Investor Relations

Hexcel Corporation, a name that resonates with innovation and advanced materials, finds its roots nestled deep in the aeronautics and industrial realms. Born out of an ambition to redefine material strength and efficiency, Hexcel has steadfastly positioned itself at the forefront of composite technology, focusing on the development and manufacturing of lightweight, high-performance materials. These include carbon fiber, honeycomb materials, and matrix systems used predominantly in the aerospace, defense, and industrial sectors. The company's approach involves an intricate weaving of science and technology to produce materials that offer unparalleled strength-to-weight ratios, crucial for applications where performance and reliability are non-negotiable.

The financial gears of Hexcel turn through strategic engagements with major aerospace giants like Boeing and Airbus, alongside defense contractors and various industrial players. The corporation capitalizes on its sophisticated technology to fulfill the ever-growing demands of reducing weight and increasing energy efficiency in aircraft, wind turbines, cars, and even sports equipment. While aerospace remains its flagship market, lately the spotlight has shifted towards renewables, reflecting a broader market trend towards sustainability. Hexcel's revenues are thus typically driven by long-term contracts and a diversified customer base, bolstered by its continuous investment in R&D, ensuring that it maintains its competitive edge by consistently innovating and expanding its product offerings.

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Last Earnings Call
Fiscal Period
Q3 2025
Call Date
Oct 23, 2025
AI Summary
Q3 2025

Q3 Revenue & EPS: Hexcel reported Q3 2025 sales of $456 million and adjusted diluted EPS of $0.37, both in line with company expectations.

Margin Pressure: Gross margin declined to 21.9% from 23.3% last year, impacted by tariffs, lower production, and inventory reduction.

Guidance Lowered: Management narrowed full-year sales guidance to the bottom of the prior range and reduced EPS guidance, citing ongoing destocking and tariffs.

Share Buyback: Hexcel announced a $600 million share repurchase authorization and a $350 million accelerated share repurchase program.

Defense Strength: Defense, Space and Other segment sales rose 11.7% year-over-year, offsetting some commercial aerospace weakness.

Commercial Aerospace Lag: Commercial Aerospace sales fell 7.3% year-over-year due to destocking, particularly on the A350 program.

2026 Outlook: Management expects to exit 2025 aligned with customer build rates and projects growth, margin expansion, and strong cash generation in 2026 and beyond.

CFO Departure: CFO Patrick Winterlich will depart, with a search underway for his replacement.

Key Financials
Sales
$456 million
Adjusted Diluted EPS
$0.37
Gross Margin
21.9%
Commercial Aerospace Sales
$274.2 million
Defense, Space and Other Sales
$182 million
Adjusted Operating Income
$44.8 million
Adjusted Operating Margin
9.8%
Composite Materials Segment Operating Margin
11.2%
Engineered Products Segment Operating Margin
15.5%
Net Cash from Operating Activities (first 9 months 2025)
$105 million
Free Cash Flow (first 9 months 2025)
$49.9 million
Adjusted EBITDA (first 9 months 2025)
$249.2 million
Dividend
$0.17 per share
Share Repurchase Authorization
$600 million
Accelerated Share Repurchase Program
$350 million
Earnings Call Recording
Other Earnings Calls

Management

Mr. Nick L. Stanage
Executive Chairman
No Bio Available
Mr. Patrick Joseph Winterlich
Executive VP, CFO & Acting Corporate Controller
No Bio Available
Ms. Gail Eileen Lehman J.D.
Executive VP, General Counsel & Secretary
No Bio Available
Mr. Thierry Philippe Merlot
President of Aerospace, Europe, Middle East, Africa & Asia Pacific and Industrial
No Bio Available
Mr. Philippe Chevrier
President of Americas & Global Fibers
No Bio Available
Mr. Thomas C. Gentile III
CEO, President & Director
No Bio Available
Ms. Amy S. Evans
Senior VP & Chief Accounting Officer
No Bio Available
Mr. Don Morrison
Senior VP & Chief Information Officer
No Bio Available
Mr. Kurt Goddard
Vice President of Investor Relations
No Bio Available
Ms. Gina Calvario Fitzsimons
Executive VP & Chief Human Resources Officer
No Bio Available

Contacts

Address
CONNECTICUT
Stamford
281 Tresser Blvd Fl 16
Contacts
+12039690666.0
www.hexcel.com