Latest news with #Hexcel
Yahoo
4 days ago
- Business
- Yahoo
Why Hexcel (HXL) Shares Are Falling Today
What Happened? Shares of aerospace and defense company Hexcel (NYSE:HXL) fell 3.2% in the afternoon session after the company reported second-quarter 2025 financial results that showed year-over-year declines in revenue and profit. The aerospace materials supplier's sales fell 2.1% to $490 million compared to the prior-year quarter. Adjusted earnings per share also decreased to $0.50 from $0.60. The company's profitability took a hit as gross margins contracted to 22.8% from 25.3%, which Hexcel attributed to lower production and inventory reduction efforts. Furthermore, operating income plunged by 58.2%, impacted by a $24.2 million restructuring charge related to a facility closure. Despite the yearly declines, both revenue and adjusted earnings per share did manage to beat Wall Street expectations for the quarter. The company also maintained its full-year guidance. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Hexcel? Access our full analysis report here, it's free. What Is The Market Telling Us Hexcel's shares are not very volatile and have only had 3 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 3 months ago when the stock dropped 9.9% on the news that the company reported weak first quarter 2025 results. Its revenue, EPS, and EBITDA missed analysts' estimates. Hexcel also cut its full-year revenue and profit forecasts in response to continued supply chain delays. A key concern was the commercial aerospace sales which dropped over 6%, hit hard by slower production on jets like the 787 and A350. That dragged overall sales down 3%, and profits dropped too, with lower volumes making it harder to cover fixed costs. Defense and space did okay, up almost 3%, but that just wasn't enough to balance out the hit in commercial. Overall, this quarter could have been better. Hexcel is down 1.5% since the beginning of the year, and at $60.85 per share, it is trading 13.9% below its 52-week high of $70.69 from January 2025. Investors who bought $1,000 worth of Hexcel's shares 5 years ago would now be looking at an investment worth $1,363. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
5 days ago
- Business
- Business Wire
Hexcel Reports 2025 Second Quarter Results
STAMFORD, Conn.--(BUSINESS WIRE)--Hexcel Corporation (NYSE: HXL): See Table C for reconciliation of GAAP and non-GAAP operating income, net income, earnings per share and operating cash flow to free cash flow. Free cash flow is cash from operations less capital expenditures. Hexcel Corporation (NYSE: HXL) today reported second quarter 2025 results including net sales of $490 million and adjusted diluted EPS of $0.50 per share. Chairman, CEO and President Tom Gentile said, 'Hexcel delivered sales and adjusted EPS in line with expectations for the second quarter of 2025, based on modest sequential growth in three of our four major commercial aerospace programs, with the exception being softness in the Airbus A350 as expected and previously communicated due to production rate decreases announced by Airbus and destocking of excess inventory in the supply chain. There was continued growth in the Other Commercial Aerospace market, and we were pleased to see Defense, Space and Other providing robust growth yet again with a high single digit step-up over the second quarter of 2024. Overall production levels and reduced capacity utilization, along with actions to reduce inventory meant gross margin remained subdued. The opportunity for significant margin leverage and cash flow generation remains strong, and we are encouraged by the more positive tones and progress conveyed by the commercial airframe and engine OEM's in recent months.' Mr. Gentile continued, 'We also completed the previously announced closure of our Welkenraedt, Belgium facility resulting in restructuring charges of $24.2 million. Combined with the announced strategic review of our Neumarkt, Austria facility, and our recent divestiture of our US additive printing business, we continue to streamline our operations and focus on upcoming aircraft production rate ramps. Hexcel also participated in the Paris Air Show last month where we reinforced existing relationships, announced some new relationships, and highlighted recent advances with our innovative technology. We forecast a compelling growth trajectory for the business as production rates on all commercial and military programs continue to increase. Based on this confidence, we continued to repurchase stock with another $50 million of repurchases executed in the second quarter. We have repurchased stock in five of the past six quarters and have now repurchased almost six percent of the shares outstanding since the beginning of 2024.' Markets Sales in the second quarter of 2025 were $489.9 million compared to $500.4 million in the second quarter of 2024. Beginning with the first quarter of 2025, sales are being reported for two markets, including Commercial Aerospace, unchanged from past practice, and Defense, Space & Other, which combines the previous Space & Defense market and Industrial market. Prior period sales amounts have been reclassified for comparative purposes. Commercial Aerospace Commercial Aerospace sales of $293.1 million for the second quarter of 2025 decreased 8.6% (8.9% in constant currency) compared to the second quarter of 2024. Sales decreased year over year for each of the four major programs including the Airbus A350 and A320neo and the Boeing 787 and 737 MAX. Other Commercial Aerospace increased 5.1% for the second quarter of 2025 compared to the second quarter of 2024. Defense, Space & Other Defense, Space & Other sales of $196.8 million in the second quarter of 2025 increased 9.5% (7.6% in constant currency) for the quarter as compared to the second quarter of 2024. Growth was driven by Sikorsky CH-53K, two international fighter programs and space programs including launchers, rocket motors and satellites. Consolidated Operations Gross margin for the second quarter of 2025 was 22.8% compared to 25.3% in the second quarter of 2024 as lower sales and inventory reduction actions drove unfavorable cost leverage. We are also now beginning to feel the impact of tariffs. As a percentage of sales, selling, general and administrative expenses for the second quarter of 2025 were 8.8% compared to 8.0% for the second quarter of 2024. R&T expenses as a percentage of sales were 2.9% in the second quarter of 2025, unchanged from the comparable prior year period. Adjusted operating income in the second quarter of 2025 was $54.2 million or 11.1% of sales, compared to $72.0 million, or 14.4% of sales in the second quarter of 2024. Other operating expense in the second quarter of 2025 included restructuring charges of $24.2 million related to the previously announced closure of the Welkenraedt, Belgium facility, which is reported within the Engineered Products segment. The impact of exchange rates on operating income as a percent of sales was favorable by approximately 10 basis points in the second quarter of 2025 compared to the second quarter of 2024. Year-to-Date 2025 Results Sales for the first six months of 2025 were $946.4 million compared to $972.7 million, a 2.7% decrease from the same period in 2024. Commercial Aerospace (61% of YTD sales) Commercial Aerospace sales of $573.2 million decreased 7.5% (7.7% in constant currency) for the first six months of 2025 compared to the first six months of 2024 as sales to all four major programs were lower, led by the 787 and A350. Other Commercial Aerospace increased 6.0% for the first six months of 2025 compared to the same period in 2024. Defense, Space & Other (39% of YTD sales) Defense, Space & Other sales of $373.2 million increased 5.8% (5.2% in constant currency) for the first six months of 2025 as compared to the first six months of 2024. Growth was broad based including military helicopters, fighters and space programs. Consolidated Operations Gross margin for the first six months of 2025 was 22.6% compared to 25.2% in the prior year period. As a percentage of sales, selling, general and administrative expenses for the first six months of 2025 were 9.1%, unchanged from the comparable prior year period. R&T expenses as a percentage of sales were 3.0% in the first six months of 2025 compared to 3.1% in the first six months of 2024. Adjusted operating income for the first six months of 2025 was $99.5 million or 10.5% of sales, compared to $126.1 million or 13.0% of sales in 2024. Other operating expense for the first six months of 2025 included restructuring charges of $25.3 million related to the previously announced closure of the Belgium facility and the divestiture of the Hartford, Connecticut business. Other operating expense of $1.4 million for the first six months of 2024 included restructuring costs. The impact of exchange rates on operating income as a percent of sales was favorable by approximately 30 basis points in the first six months of 2025 compared to the first six months of 2024. Cash and other Net cash used for operating activities in the first six months of 2025 was $5.2 million, compared to net cash provided of $37.2 million for the first six months of 2024. Working capital was a cash use of $124.5 million for the first six months of 2025 and a use of $118.3 million for the comparable period in 2024. Capital expenditures on a cash basis were $41.4 million for the first six months of 2025. For the first six months of 2024, capital expenditures on a cash basis were $51.6 million. Free cash flow was ($46.6) million in the first six months of 2025 compared to ($14.4) million in the first six months of 2024. Free cash flow is defined as cash generated from operating activities less cash paid for capital expenditures. Capital expenditures on an accrual basis were $31.8 million and $41.1 million for the first six months of 2025 and 2024, respectively. The Company used $50.5 million to repurchase shares of its common stock during the second quarter of 2025 and $100.9 million during the first six months of 2025. The aggregate remaining authorization under the share repurchase program as of June 30, 2025 was approximately $134 million. As announced today, the Board of Directors declared a quarterly dividend of $0.17 per share payable to stockholders of record as of August 8, 2025, with a payment date of August 15, 2025. 2025 Guidance (Unchanged – tariff impact not included) Sales of $1.88 billion to $1.95 billion Adjusted diluted earnings per share of $1.85 to $2.05 Free cash flow of approximately $190 million Capital expenditures less than $90 million Effective tax rate of 21.0%, excluding discrete tax items and subject to final review of the OBBB (One Big Beautiful Bill) Hexcel will host a conference call at 9:00 a.m. ET, on July 25, 2025 to discuss second quarter 2025 results. The live webcast will be available on the Investor Relations section of the Hexcel website via the following link: The event can also be accessed by dialing +1 (646) 307-1963. The conference ID is 2360739. Replays of the call will be available on the website. About Hexcel Hexcel Corporation is a global leader in advanced lightweight composites technology. We propel the future of flight and transportation through excellence in advanced material lightweighting solutions that create a better world for us all. Our broad and unrivaled product range includes carbon fiber, specialty reinforcements, prepregs and other fiber-reinforced matrix materials, honeycomb, resins, engineered core and composite structures for use in commercial aerospace, defense and space, and industrial applications. Disclaimer on Forward Looking Statements This news release contains statements that are forward looking within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the estimates and expectations based on aircraft production rates provided by Airbus, Boeing and others, and the revenues we may generate from an aircraft model or program; expectations with regard to the impact of regulatory activity related to the Boeing 737 MAX on our revenues; expectations with regard to raw material cost and availability, including any impact associated with quotas, duties, tariffs, taxes or other similar restrictions upon the import or export of materials; expectations of composite content on new commercial aircraft programs and our share of those requirements; expectations regarding revenues from space and defense applications, including whether certain programs might be curtailed or discontinued; expectations regarding sales for industrial applications; expectations regarding cash generation, working capital trends, and inventory levels; expectations as to the level of capital expenditures, capacity, including the timing of completion of capacity expansions, and qualification of new products; expectations regarding our ability to improve or maintain margins; expectations regarding our ability to attract, motivate, and retain the workforce necessary to execute our business strategy; projections regarding our tax rate; expectations with regard to the continued impact of macroeconomic factors or geopolitical issues or conflicts, including retaliatory actions taken in response to U.S. trade policy; expectations regarding our strategic initiatives, including our sustainability goals; expectations with regard to the effectiveness of cybersecurity measures; expectations regarding the outcome of legal matters or the impact of changes in laws or regulations; and our expectations of financial results for 2025 and beyond. Actual results may differ materially from the results anticipated in the forward looking statements due to a variety of factors, including but not limited to the extent of the impact of macroeconomic factors or geopolitical issues or conflicts; reductions in sales to any significant customers, particularly Airbus or Boeing, including related to regulatory activity or public scrutiny impacting the Boeing 737 MAX; our ability to effectively adjust production and inventory levels to align with customer demand; our ability to effectively motivate, retain and hire the necessary workforce; the availability and cost of raw materials, including the impact of supply disruptions, inflation and tariffs; our ability to successfully implement or realize our strategic initiatives, including our sustainability goals and any restructuring or alignment activities in which we may engage; changes in sales mix; changes in current pricing due to cost levels; changes in aerospace delivery rates; changes in government defense procurement budgets; timely new product development or introduction; our ability to install, staff and qualify necessary capacity or complete capacity expansions to meet customer demand; cybersecurity-related risks, including the potential impact of breaches or intrusions; currency exchange rate fluctuations; uncertainty related to government actions and changes in domestic and international political, social and economic conditions, including the effect of change in global trade policies, tariff rates, economic sanctions and embargoes; work stoppages or other labor disruptions; our ability to successfully complete any strategic acquisitions, investments or dispositions; compliance with environmental, health, safety and other related laws and regulations, including those related to climate change; the effects of natural disasters or other severe weather events, which may be worsened by the impact of climate change, and other severe catastrophic events, including any public health crisis; and the unexpected outcome of legal matters or impact of changes in laws or regulations. Additional risk factors are described in our filings with the Securities and Exchange Commission. We do not undertake an obligation to update our forward-looking statements to reflect future events. Hexcel Corporation and Subsidiaries Condensed Consolidated Balance Sheets Unaudited June 30, December 31, (In millions) 2025 2024 Assets Cash and cash equivalents $ 77.2 $ 125.4 Accounts receivable, net 271.4 212.0 Inventories, net 375.4 356.2 Contract assets 40.7 29.8 Prepaid expenses and other current assets 75.2 50.6 Assets held for sale 7.5 7.5 Total current assets 847.4 781.5 Property, plant and equipment 3,298.1 3,163.1 Less accumulated depreciation (1,669.1 ) (1,566.4 ) Net property, plant and equipment 1,629.0 1,596.7 Goodwill and other intangible assets, net 243.2 237.0 Investments in affiliated companies 5.0 5.0 Other assets 118.7 105.4 Total assets $ 2,843.3 $ 2,725.6 Liabilities and Stockholders' Equity Liabilities: Short-term borrowings $ - $ 0.1 Accounts payable 111.1 142.3 Accrued compensation and benefits 71.3 99.7 Accrued liabilities 128.9 107.2 Liabilities held for sale 4.2 4.2 Total current liabilities 315.5 353.5 Long-term debt 827.7 700.6 Retirement obligations 31.0 31.9 Other non-current liabilities 115.2 111.7 Total liabilities $ 1,289.4 $ 1,197.7 Stockholders' equity: Common stock, $0.01 par value, 200.0 shares authorized, 112.0 shares issued at June 30, 2025 and 111.6 shares issued at December 31, 2024 $ 1.1 $ 1.1 Additional paid-in capital 985.4 970.0 Retained earnings 2,266.4 2,251.5 Accumulated other comprehensive loss (13.6 ) (115.0 ) 3,239.3 3,107.6 Less – Treasury stock, at cost, 32.4 shares at June 30, 2025 and 30.6 shares at December 31, 2024 (1,685.4 ) (1,579.7 ) Total stockholders' equity 1,553.9 1,527.9 Total liabilities and stockholders' equity $ 2,843.3 $ 2,725.6 Expand Hexcel Corporation and Subsidiaries Condensed Consolidated Statements of Cash Flows Unaudited Six Months Ended June 30, (In millions) 2025 2024 Cash flows from operating activities Net income $ 42.4 $ 86.5 Reconciliation to net cash (used in) provided by operating activities: Depreciation and amortization 60.6 62.0 Amortization related to financing 0.1 0.2 Deferred income taxes (2.7 ) (3.0 ) Stock-based compensation 12.4 16.4 Restructuring expenses, net of payments 23.1 0.2 Debt extinguishment costs 0.4 - Loss on divestiture of assets 1.1 - Changes in assets and liabilities: Increase in accounts receivable (44.2 ) (50.4 ) Decrease (increase) in inventories 7.2 (21.8 ) Increase in prepaid expenses and other current assets (19.5 ) (28.2 ) Decrease in accounts payable/accrued liabilities (68.0 ) (17.9 ) Other - net (18.1 ) (6.8 ) Net cash (used for) provided by operating activities (a) (5.2 ) 37.2 Cash flows from investing activities Capital expenditures (b) (41.4 ) (51.6 ) Payments on divestiture of assets (1.1 ) - Net cash used for investing activities (42.5 ) (51.6 ) Cash flows from financing activities Borrowings from senior unsecured credit facilities 160.0 95.0 Repayments of senior unsecured credit facilities (30.0 ) - Redemption of 4.7% senior notes due 2025 (300.0 ) - Proceeds from issuance of 5.875% senior notes due 2035 300.0 - Repurchases of common stock (100.9 ) (201.8 ) Repayment of finance lease obligation and other debt, net (3.9 ) 0.1 Dividends paid (27.5 ) (25.0 ) Activity under stock plans (1.8 ) (4.3 ) Net cash used for financing activities (4.1 ) (136.0 ) Effect of exchange rate changes on cash and cash equivalents 3.6 (1.2 ) Net decrease in cash and cash equivalents (48.2 ) (151.6 ) Cash and cash equivalents at beginning of period 125.4 227.0 Cash and cash equivalents at end of period $ 77.2 $ 75.4 Supplemental data: Free Cash Flow (a)+(b) $ (46.6 ) $ (14.4 ) Accrual basis additions to property, plant and equipment $ 31.8 $ 41.1 Expand Hexcel Corporation and Subsidiaries Net Sales to Third-Party Customers by Market Quarters Ended June 30, 2025 and 2024 Unaudited Table A (In millions) As Reported Constant Currency (a) B/(W) FX B/(W) Market 2025 2024 % Effect (b) 2024 % Commercial Aerospace $ 293.1 $ 320.7 (8.6 ) $ 1.1 $ 321.8 (8.9 ) Defense, Space & Other 196.8 179.7 9.5 3.2 182.9 7.6 Consolidated Total $ 489.9 $ 500.4 (2.1 ) $ 4.3 $ 504.7 (2.9 ) Consolidated % of Net Sales % % % Commercial Aerospace 59.8 64.1 63.8 Defense, Space & Other 40.2 35.9 36.2 Consolidated Total 100.0 100.0 100.0 Six Months Ended June 30, 2025 and 2024 Unaudited (In millions) As Reported Constant Currency (a) B/(W) FX B/(W) Market 2025 2024 % Effect (b) 2024 % Commercial Aerospace $ 573.2 $ 620.0 (7.5 ) $ 0.8 $ 620.8 (7.7 ) Defense, Space & Other 373.2 352.7 5.8 1.9 354.6 5.2 Consolidated Total $ 946.4 $ 972.7 (2.7 ) $ 2.7 $ 975.4 (3.0 ) Consolidated % of Net Sales % % % Commercial Aerospace 60.6 63.7 63.6 Defense, Space & Other 39.4 36.3 36.4 Consolidated Total 100.0 100.0 100.0 Expand (a) To assist in the analysis of the Company's net sales trend, total net sales and sales by market for the quarter and six months ended June 30, 2024 have been estimated using the same U.S. dollar, British pound and Euro exchange rates as applied for the respective periods in 2025 and are referred to as 'constant currency' sales. (b) FX effect is the estimated impact on 'as reported' net sales due to changes in foreign currency exchange rates. Expand Hexcel Corporation and Subsidiaries Segment Information Unaudited Table B (In millions) Composite Materials Engineered Products Corporate & Other (a) Total Second Quarter 2025 Net sales to external customers $ 393.2 $ 96.7 $ - $ 489.9 Intersegment sales 19.4 0.4 (19.8 ) - Total sales 412.6 97.1 (19.8 ) 489.9 Other operating expense - 24.2 - 24.2 Operating income (loss) 58.3 (13.6 ) (14.7 ) 30.0 % Operating margin 14.1 % (14.0 )% 6.1 % Depreciation and amortization 27.5 3.3 - 30.8 Stock-based compensation expense 0.9 0.2 1.6 2.7 Accrual based additions to capital expenditures 13.1 1.6 - 14.7 Second Quarter 2024 Net sales to external customers $ 408.6 $ 91.8 $ - $ 500.4 Intersegment sales 23.9 0.6 (24.5 ) - Total sales 432.5 92.4 (24.5 ) 500.4 Other operating expense - 0.2 - 0.2 Operating income (loss) 74.3 13.0 (15.5 ) 71.8 % Operating margin 17.2 % 14.1 % 14.3 % Depreciation and amortization 27.3 3.7 - 31.0 Stock-based compensation expense 1.1 0.3 1.9 3.3 Accrual based additions to capital expenditures 18.6 3.9 - 22.5 First Six Months 2025 Net sales to external customers $ 758.5 $ 187.9 $ - $ 946.4 Intersegment sales 39.5 0.7 (40.2 ) - Total sales 798.0 188.6 (40.2 ) 946.4 Other operating expense - 25.3 - 25.3 Operating income (loss) 112.9 (8.5 ) (30.2 ) 74.2 % Operating margin 14.1 % (4.5 )% 7.8 % Depreciation and amortization 54.1 6.5 - 60.6 Stock-based compensation expense 3.9 1.0 7.5 12.4 Accrual based additions to capital expenditures 28.6 3.2 - 31.8 First Six Months 2024 Net sales to external customers $ 788.1 $ 184.6 $ - $ 972.7 Intersegment sales 47.2 0.9 (48.1 ) - Total sales 835.3 185.5 (48.1 ) 972.7 Other operating expense 0.8 0.6 - 1.4 Operating income (loss) 138.0 25.9 (39.2 ) 124.7 % Operating margin 16.5 % 14.0 % 12.8 % Depreciation and amortization 54.5 7.5 - 62.0 Stock-based compensation expense 4.2 1.1 11.1 16.4 Accrual based additions to capital expenditures 35.3 5.8 - 41.1 Expand (a) Hexcel does not allocate corporate expenses to the operating segments. Expand Unaudited Quarters Ended June 30, 2025 2024 (In millions, except per diluted share data) Net Income EPS Net Income EPS GAAP $ 13.5 $ 0.17 $ 50.0 $ 0.60 Other operating expense, net of tax (a) 24.2 0.30 0.2 - Other income, net of tax (b) (0.7 ) (0.01 ) - - Tax expense (c) 3.4 0.04 - - Non-GAAP $ 40.4 $ 0.50 $ 50.2 $ 0.60 Expand Unaudited Six Months Ended June 30, 2025 2024 (In millions, except per diluted share data) Net Income EPS Net Income EPS GAAP $ 42.4 $ 0.52 $ 86.5 $ 1.03 Other operating expense, net of tax (a) 25.1 0.31 1.1 0.01 Other income, net of tax (b) (0.4 ) - - - Tax expense (c) 3.4 0.04 - - Non-GAAP $ 70.5 $ 0.87 $ 87.6 $ 1.04 Expand Unaudited Six Months Ended June 30 (In millions) 2025 2024 Net cash provided by operating activities $ (5.2 ) $ 37.2 Less: Capital expenditures (41.4 ) (51.6 ) Free cash flow (non-GAAP) $ (46.6 ) $ (14.4 ) Expand (a) The quarter and six months ended June 30, 2025 included restructuring charges of $24.2 million related to the closure of the Welkenraedt facility in Belgium. The six months ended June 30, 2025 also included a loss of $1.1 million for the divestiture of the Hartford, Connecticut business. The quarter and six months ended June 30, 2024 included restructuring costs. (b) The quarter and six months ended June 30, 2025 included a gain of $0.9 million related to a lump-sum pension settlement. The six months ended June 30, 2025 also included debt extinguishment costs. (c) The quarter and six months ended June 30, 2025 included a tax charge of $3.4 million for a valuation allowance related to the closure of the Welkenraedt facility. Expand NOTE: Management believes that adjusted operating income, adjusted net income, adjusted diluted net income per share and free cash flow, which are non-GAAP measures, are meaningful to investors because they provide a view of Hexcel with respect to the underlying operating results excluding special items. Special items represent significant charges or credits that are important to an understanding of Hexcel's overall operating results in the periods presented. Non-GAAP measurements are not recognized in accordance with generally accepted accounting principles and should not be viewed as an alternative to GAAP measures of performance. Expand Hexcel Corporation and Subsidiaries Schedule of Total Debt, Net of Cash Table D Unaudited June 30, December 31, June 30, (In millions) 2025 2024 2024 Current portion finance lease $ - $ 0.1 $ 0.1 Total current debt - 0.1 0.1 Senior unsecured credit facility 130.0 - 95.0 4.7% senior notes due 2025 - 300.0 300.0 3.95% senior notes due 2027 400.0 400.0 400.0 5.875% senior notes due 2035 300.0 - - Senior notes original issue discounts (0.3 ) (0.4 ) (0.5 ) Senior notes deferred financing costs (4.3 ) (0.9 ) (1.2 ) Other debt 2.3 1.9 1.6 Total long-term debt 827.7 700.6 794.9 Total Debt 827.7 700.7 795.0 Less: Cash and cash equivalents (77.2 ) (125.4 ) (75.4 ) Total debt, net of cash $ 750.5 $ 575.3 $ 719.6 Expand
Yahoo
23-07-2025
- Business
- Yahoo
Hexcel (HXL) To Report Earnings Tomorrow: Here Is What To Expect
Aerospace and defense company Hexcel (NYSE:HXL) will be reporting earnings this Thursday afternoon. Here's what investors should know. Hexcel missed analysts' revenue expectations by 3.4% last quarter, reporting revenues of $456.5 million, down 3.3% year on year. It was a disappointing quarter for the company, with full-year revenue guidance missing analysts' expectations significantly and full-year EPS guidance missing analysts' expectations significantly. Is Hexcel a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Hexcel's revenue to decline 5.2% year on year to $474.2 million, a reversal from the 10.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.46 per share. Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 6 downward revisions over the last 30 days (we track 16 analysts). Hexcel has missed Wall Street's revenue estimates five times over the last two years. Looking at Hexcel's peers in the aerospace and defense segment, some have already reported their Q2 results, giving us a hint as to what we can expect. AAR delivered year-on-year revenue growth of 14.9%, beating analysts' expectations by 8.6%, and Byrna reported revenues up 40.6%, in line with consensus estimates. AAR traded up 13.4% following the results while Byrna was down 28.8%. Read our full analysis of AAR's results here and Byrna's results here. There has been positive sentiment among investors in the aerospace and defense segment, with share prices up 7.9% on average over the last month. Hexcel is up 10.7% during the same time and is heading into earnings with an average analyst price target of $61.36 (compared to the current share price of $60.80). Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Yahoo
07-07-2025
- Business
- Yahoo
5 Insightful Analyst Questions From Hexcel's Q1 Earnings Call
Hexcel's first quarter results for 2025 fell short of Wall Street expectations, with management attributing the shortfall mainly to weaker-than-anticipated demand from commercial aerospace customers, especially Airbus and Boeing. CEO Tom Gentile highlighted that ongoing supply chain disruptions and delayed production increases led to reduced sales, particularly for the A350 and 737 MAX programs, stating, 'Production rate increases for commercial aircraft will not meet initial expectations due to ongoing supply chain disruption.' Gentile also noted that a power outage at the Decatur, Alabama facility contributed further to margin pressure this quarter. Is now the time to buy HXL? Find out in our full research report (it's free). Revenue: $456.5 million vs analyst estimates of $472.4 million (3.3% year-on-year decline, 3.4% miss) Adjusted EPS: $0.37 vs analyst expectations of $0.42 (12.4% miss) Adjusted EBITDA: $75.1 million vs analyst estimates of $88.98 million (16.5% margin, 15.6% miss) The company dropped its revenue guidance for the full year to $1.92 billion at the midpoint from $2 billion, a 4.3% decrease Management lowered its full-year Adjusted EPS guidance to $1.95 at the midpoint, a 9.3% decrease Operating Margin: 9.7%, down from 11.2% in the same quarter last year Market Capitalization: $4.61 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Sheila Kahyaoglu (Jefferies) asked about the potential impact of tariffs on profitability and margin improvement drivers. CEO Tom Gentile explained that while the direct impact is minimal, indirect effects are uncertain and not included in guidance, and margin improvement will depend on regaining operating leverage. Michael Ciarmoli (Truist) questioned Hexcel's ability to offset tariff costs through contract pricing or productivity. Gentile noted that some contracts enable pass-through of tariff costs, and productivity initiatives are expected to mitigate some direct impacts. Myles Walton (Wolfe Research) probed whether the reduction in A350 rates was due to flattening production or inventory destocking. Gentile clarified that the lower guidance reflects both reduced demand and some destocking at Airbus. John McNulty (BMO Capital Markets) asked about Hexcel's more aggressive approach to managing headcount and CapEx. Gentile responded that the company is taking a practical approach by aligning staffing with current demand and prioritizing only essential capital projects. Ken Herbert (RBC Capital Markets) inquired about inventory levels at Airbus and Hexcel's capacity to support future rate increases. Gentile stated that current plans assume some inventory drawdown, and Hexcel has sufficient capacity to support higher production rates when the market recovers. Over the coming quarters, the StockStory team will focus on (1) the trajectory of commercial aerospace production rates, particularly any changes in A350 and 737 MAX output from Airbus and Boeing; (2) the company's ability to execute further cost reductions and operational efficiency initiatives; and (3) the evolving impact of new tariffs and related supply chain responses. Progress on divesting non-core assets and maintaining momentum in defense and space will also be closely watched as indicators of strategic execution. Hexcel currently trades at $57.72, up from $50.49 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
01-07-2025
- Business
- Business Wire
Hexcel Schedules Second Quarter 2025 Earnings Release and Conference Call
STAMFORD, Conn.--(BUSINESS WIRE)--Hexcel Corporation (NYSE: HXL) announced today that it will report financial results for its second quarter of 2025 on Thursday, July 24 after the market close. The company will host a webcast and conference call to discuss highlights of its financial results on Friday, July 25 at 9:00 am ET. The call will be hosted by Chairman, CEO and President Tom Gentile and Chief Financial Officer Patrick Winterlich. The event will be webcast via the Investor Relations webpage at The event can also be accessed by dialing +1 (646) 307-1963. The conference ID is 2360739. A replay of the call will be available on the investor relations page of the Hexcel website approximately two hours after the conclusion of the call. About Hexcel Hexcel Corporation is a global leader in advanced lightweight composites technology. We propel the future of flight and transportation through excellence in providing innovative high-performance material solutions that are lighter, stronger and tougher, helping to create a better world for us all. Our broad and unrivaled product range includes carbon fiber, specialty reinforcements, prepregs and other fiber-reinforced matrix materials, honeycomb, resins, engineered core and composite structures for use in commercial aerospace, defense and space, and industrial applications.
