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Sep 30, 2025
Hexcel Q3 2025 Earnings Report
Hexcel reported Q3 2025 results with flat sales and a notable decline in profitability.
Key Takeaways
Hexcel's Q3 2025 revenue was virtually unchanged year-over-year, but net income and operating income declined significantly due to lower margins and restructuring expenses. The company announced a $350 million accelerated share repurchase and lowered its EPS guidance due to tariffs and destocking impacts.
Q3 2025 revenue was $456.2 million, flat compared to Q3 2024.
Net income fell to $20.6 million from $39.8 million a year ago.
Gross margin declined to 21.9% due to unfavorable cost leverage.
Company initiated $350 million in share repurchases and lowered EPS guidance for FY25.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Hexcel revised its 2025 outlook, reducing EPS guidance due to the impact of tariffs and continued aerospace destocking, while reaffirming revenue and free cash flow expectations.
Positive Outlook
- Free cash flow guidance maintained at $190 million.
- Revenue outlook reaffirmed at approximately $1.88 billion.
- Commercial aerospace OEMs indicating strong order pipelines.
- Supply chain stabilization expected to support growth in 2026.
- Additional $600 million share repurchase authorization approved.
Challenges Ahead
- EPS guidance lowered to $1.70–$1.80 (previously $1.85–$2.05).
- Tariffs expected to reduce earnings.
- Q4 2025 expected to face continued destocking headwinds.
- Gross margins declined due to unfavorable cost leverage.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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