Hexcel reports Q3 adjusted EPS 37c, consensus 38c

Reports Q3 revenue $456M, consensus $447.91M. Chairman, CEO and President Tom Gentile said, “Hexcel’s (HXL) third quarter sales and adjusted EPS were in line with expectations as we experienced seasonally slower third quarter sales combined with the expected commercial aerospace destocking, particularly with the Airbus A350. As we consider tariffs, inflation and the fourth quarter 2025 impact of some lingering destocking, we expect to be at the bottom end of our 2025 sales guidance and we have reduced our EPS guidance. Looking forward to 2026, we are seeing strong orders from the commercial aerospace OEMs to support the production rate increases they are forecasting for their key programs. With the supply chain stabilizing, we are increasingly confident in the outlook for commercial aerospace original equipment build rates. Once Airbus and Boeing hit their publicly announced peak build rates, Hexcel expects to benefit with an additional $500 million in incremental annual revenue from existing contracts. These increasing sales in 2026 and beyond will drive higher capacity utilization, unlocking the volume leverage that will fuel future margin expansion. With the incremental revenue Hexcel is expected to generate more than $1 billion in free cash flow over the next four years.”