Aircraft parts supplier Hexcel beats Q2 sales estimates

Hexcel

24/07/2025 21:51

Overview

Hexcel Q2 sales decline 2.1% to $490 mln, beating analyst expectations

Adjusted EPS of $0.50 beats analyst forecasts, adjusted operating income misses estimates

Co completes Belgium facility closure, incurs $24.2 mln in restructuring charges

Outlook

Co maintains 2025 guidance and the guidance does not include tariff impact

Hexcel maintains 2025 sales guidance at $1.88 bln to $1.95 bln

Company projects 2025 adjusted EPS between $1.85 and $2.05

Hexcel expects 2025 free cash flow of approximately $190 mln

Company anticipates capital expenditures below $90 mln in 2025

Result Drivers

COMMERCIAL AEROSPACE - Sales decreased 8.6% due to lower demand in major programs like Airbus A350 and Boeing 787

DEFENSE, SPACE & OTHER - Sales increased 9.5%, driven by growth in military helicopters, fighter programs, and space initiatives

GROSS MARGIN PRESSURE - Lower sales and inventory reduction actions led to reduced gross margin, with tariffs beginning to impact costs

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$489.90 mln
$475.60 mln (13 Analysts)
Q2 Adjusted EPS
Beat
$0.5
$0.47 (16 Analysts)
Q2 EPS
$0.17
Q2 Adjusted operating income
Miss
$54.20 mln
$56.70 mln (13 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 13 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the aerospace & defense peer group is "buy."

Wall Street's median 12-month price target for Hexcel Corp is $60.36, about 3.7% below its July 23 closing price of $62.60

The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nBw227lzya

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)