Hexcel Exceeds Expectations with Q2 Non-GAAP EPS of $0.50 and Revenue of $489.9M

Hexcel reported Q2 Non-GAAP EPS of $0.50, beating expectations by $0.04. Revenue was $489.9M, exceeding forecasts by $13.49M. The company maintained its 2025 guidance, with sales expected to be between $1.88 billion and $1.95 billion and adjusted diluted earnings.

Hexcel Corporation (NYSE: HXL) reported its second-quarter 2025 financial results, showing a strong performance that exceeded market expectations. The company reported a Non-GAAP earnings per share (EPS) of $0.50, which surpassed the consensus estimate of $0.46. Revenue for the quarter was $489.9 million, a 2.1% decrease from the same period in 2024, but it still exceeded forecasts by $13.49 million.

Chairman, CEO, and President Tom Gentile commented on the results, stating, "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."

The company's gross margin for the quarter was 22.8%, a decrease from 25.3% in the same period last year, driven by lower sales and inventory reduction actions. Selling, general, and administrative expenses as a percentage of sales were 8.8%, compared to 8.0% in the second quarter of 2024. Research and development expenses remained at 2.9% of sales.

Hexcel maintained its full-year 2025 guidance, with sales expected to be between $1.88 billion and $1.95 billion, adjusted diluted EPS of $1.85 to $2.05, and free cash flow of approximately $190 million. Capital expenditures are expected to be less than $90 million, and the effective tax rate is projected to be 21.0%, excluding discrete tax items and subject to final review of the OBBB (One Big Beautiful Bill).

The company also announced the closure of its Welkenraedt, Belgium facility, resulting in restructuring charges of $24.2 million. Additionally, Hexcel repurchased $64 million in stock in the second quarter, bringing the total repurchases since the beginning of 2024 to nearly six percent of the shares outstanding.

Hexcel will host a conference call on July 25, 2025, at 9:00 a.m. ET, to discuss the second-quarter 2025 results. The live webcast will be available on the Investor Relations section of the Hexcel website.

References:
[1] https://www.businesswire.com/news/home/20250724338717/en/Hexcel-Reports-2025-Second-Quarter-Results