Aircraft parts supplier Hexcel beats Q3 sales, adjusted EPS expectations, lowers 2025 profit forecast on tariff uncertainity

Hexcel

22/10/2025 21:42

Overview

Hexcel Q3 2025 sales of $456 mln beat analyst expectations

Adjusted EPS of $0.37 for Q3 2025 beats analyst expectations

Company announces $350 mln accelerated share repurchase as part of $600 mln authorization

Commercial aerospace sales decline due to Airbus A350 inventory destocking

Outlook

Hexcel revises 2025 sales guidance to around $1.88 bln due to tariffs

Hexcel lowers 2025 EPS guidance to $1.70-$1.80 due to tariffs

Hexcel expects $500 mln in incremental revenue from aerospace build rates in 2026

Result Drivers

COMMERCIAL AEROSPACE DESTOCKING - Sales decline attributed to inventory destocking, particularly with Airbus A350 and Boeing 787

DEFENSE AND SPACE GROWTH - Sales increase driven by strong demand in fighter and space programs

DIVESTITURE IMPACT - Operating expenses reflect charges related to divestiture of Austria plant

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Beat
$456.20 mln
$443.41 mln (13 Analysts)
Q3 Adjusted EPS
Beat
$0.37
$0.36 (15 Analysts)
Q3 EPS
$0.26
Q3 Adjusted operating income
Miss
$44.80 mln
$47.22 mln (12 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 11 "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 $65.00, about 1.4% above its October 21 closing price of $64.11

The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release: ID:nBw4zRvNma

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(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.)