Apr. 22 at 2:30 AM
$HXL Hexcel reports Q1 EPS 37c, consensus 42c
Reports Q1 revenue
$456.5M, consensus
$474.7M. "The underlying value proposition of Hexcel remains robust, driven by the demand for our innovative lightweight composites, which will generate strong cyclical and secular sales growth over time," said Tom Gentile, CEO. "Hexcel's value proposition is fortified by our extensive intellectual property, scale, and deep customer relationships globally. With a strong balance sheet and a compelling multi-year cash generation profile, Hexcel is well-positioned to navigate the current environment and for the future.
However, as a result of continued supply chain driven delays in commercial aircraft production rate ramps, particularly on the Airbus A350 program, our 2025 growth will not be what we initially forecasted. As a result, we are revising our 2025 guidance." "We will continue to focus on the fundamentals of our business this year, carefully managing costs given the current realities in the commercial aerospace market. This includes tightly managing our headcount as we right size for the demand we have and not outpacing the future rate increases by our OEM customers.
We are generally not replacing headcount lost to attrition and our current headcount is roughly 100 individuals lower than December 31 and about five percent lower than our 2025 planning had previously targeted for the end of March. Despite these near-term challenges in the commercial aerospace market, we are seeing growth in our Defense and Space business, and we remain focused on enhancing the value Hexcel brings to our customers and strengthening the overall business through innovation and continual improvement. Reflecting our underlying confidence, we repurchased
$50 million of stock in first quarter as we also successfully refinanced
$300 million of fixed rate debt."
