S&P 500 cuts losses as Nvidia climbs ahead of results
STAMFORD - Hexcel Corporation (NYSE:HXL) reported second quarter adjusted earnings of $0.50 per share, exceeding analyst expectations of $0.46, while revenue reached $489.9 million compared to the consensus estimate of $474.69 million. The company’s stock edged up 0.6% following the announcement.
Despite beating estimates, Hexcel’s results showed a decline compared to the same period last year, with revenue decreasing 2.1% from $500.4 million in Q2 2024 (2.9% decrease in constant currency). Adjusted diluted EPS fell from $0.60 in the year-ago quarter to $0.50 in the current period.
The company’s Commercial Aerospace segment, which represents nearly 60% of total sales, decreased 8.6% year-over-year to $293.1 million. However, the Defense, Space & Other segment provided a bright spot with 9.5% growth to $196.8 million, driven by military helicopter programs, international fighter programs, and space applications.
"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," said Chairman, CEO and President Tom Gentile.
Gross margin contracted to 22.8% compared to 25.3% in the second quarter of 2024, primarily due to lower sales and inventory reduction actions. The company also recorded $24.2 million in restructuring charges related to the closure of its Welkenraedt, Belgium facility.
Hexcel maintained its full-year 2025 guidance, projecting sales between $1.88 billion and $1.95 billion and adjusted diluted earnings per share of $1.85 to $2.05. The company returned $64 million to stockholders during the quarter through share repurchases and dividends.
"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 OEMs in recent months," Gentile added.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.