Hexcel Corporation ( (HXL) ) has released its Q3 earnings. Here is a breakdown of the information Hexcel Corporation presented to its investors.
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Hexcel Corporation is a leading global provider of advanced lightweight composites technology, specializing in high-performance material solutions for industries such as aerospace, defense, and industrial applications. In its third-quarter earnings report for 2025, Hexcel Corporation announced sales of $456 million, which remained relatively flat compared to the same period in 2024. The company reported a GAAP diluted EPS of $0.26, down from $0.49 in the previous year, and an adjusted diluted EPS of $0.37, compared to $0.47 in 2024.
The company’s financial performance saw a slight decline, with net sales decreasing by 0.1% year-over-year. Operating income fell by 31.4%, and net income dropped by 48.2%. Hexcel’s commercial aerospace sales decreased by 7.3% due to inventory destocking, notably on the Airbus A350 and Boeing 787 programs. However, the Defense, Space & Other segment experienced a 13.3% increase in sales, driven by growth in fighter, rotorcraft, and space programs.
Hexcel announced a $350 million accelerated share repurchase program as part of a broader $600 million share repurchase authorization, reflecting confidence in its free cash flow generation. The company also revised its 2025 guidance, anticipating sales of around $1.88 billion and adjusted diluted EPS between $1.70 and $1.80, considering the impact of tariffs.
Looking ahead, Hexcel’s management expressed optimism about the future, citing strong orders from commercial aerospace OEMs and a stabilizing supply chain. The company expects to benefit from increased production rates of key programs by Airbus and Boeing, potentially generating an additional $500 million in annual revenue. Hexcel aims to leverage these opportunities to drive higher capacity utilization and margin expansion in the coming years.