What is the revenue and EPS growth rate for Hexcel year over year?

What is the market's earnings forecast for Hexcel next quarter?

What is Hexcel's latest dividend and current dividend yield?

What were the key takeaways from Hexcel’s earnings call?

What does Hexcel do and what are its main business segments?

What factors drove the changes in Hexcel's revenue and profit?

Did Hexcel beat or miss consensus estimates last quarter?

What were the key takeaways from Hexcel's earnings call?

- **Aerospace Recovery Accelerating**: A350 production target of 12/month by 2028 and 737 MAX ramp to 42/month by end-2025 underpin 2026 gross margin expansion to 18%. 
- **Defense Strength**: 11.7% YoY growth in Defense, Space & Other segment, led by F-35, Rafale, and CH-53K programs. 
- **Share Buyback Signal**: $600M buyback program reflects confidence in 2026+ production ramp and $1B+ free cash flow generation. 
- **Tariff Headwinds**: $3-4M/Q tariff impact expected to persist, but regional sourcing and pass-throughs being explored.

**【CEO Summary Section】**
- Hexcel sees a multiyear growth cycle in commercial aerospace, driven by rising production rates for key programs like the A350 (targeting 12/month by 2028) and 737 MAX (42/month by end-2025). 
- Gross margin expected to expand to 18% in 2026 as sales volume increases, offsetting $3-4M/Q tariff headwinds. 
- Defense, Space & Other segment grew 11.7% YoY, led by F-35, Rafale, and CH-53K programs. 
- $600M share buyback program announced, with $350M ASR executed to capitalize on inflection point in aerospace demand. 

**【CFO Financial Commentary】**
- Q3 2025 revenue $456M, flat YoY, with Commercial Aerospace down 7.3% due to destocking on A350 and 787. 
- Gross margin 21.9% (vs. 23.3% YoY), pressured by lower sales, tariffs, and inventory reduction. 
- Adjusted operating income $44.8M (9.8% of sales), down 15.3% YoY. 
- Free cash flow guidance: >$1B over 2025-2028, driven by operating leverage and cost control. 
- 2025 EPS revised to $1.75-$1.85 (from $1.95-$2.05) due to destocking and tariff impact. 

**【Q&A Highlights】**
- **Margins & Incrementals**: 200bps margin headwind from inflation absorbed in long-term contracts; 2026 incremental margins ~40%+ as production rates ramp. 
- **Inventory & Hiring**: 90-day inventory cushion to be reduced to 70 days; hiring to begin in Q4 2025 for 2026 production ramp. 
- **Tariffs & Pass-Throughs**: $3-4M/Q tariff impact expected to persist; working on regional sourcing and pass-throughs for mitigation. 
- **Defense Growth**: European defense spending up 18% Q3, driven by Rafale and Eurofighter programs; CH-53K multiyear deal with Lockheed to deliver 99 units by 2032.

Hexcel (HXL)-23 Oct 25-2025 Q3 Earnings call transcript

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