Hexcel
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Hexcel (HXL) investor relations material

Hexcel Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary29 Jan, 2026

Executive summary

  • Strong momentum entering 2026, with commercial aerospace recovery and robust defense demand driving growth.

  • 2025 was challenging due to OEM destocking, schedule delays, and supply chain constraints, but ended with positive order trends.

  • Leading provider of aerospace composites with 19 manufacturing plants and 5,563 employees as of December 31, 2025, serving both commercial aerospace (61% of 2025 sales) and defense, space, and other sectors (39%).

  • Strategic focus on operational excellence, cost control, and portfolio streamlining, including divestitures and facility closures.

  • Benefiting from secular growth in composites adoption, driven by demand for lightweighting, fuel efficiency, and emissions reduction in aerospace and transportation.

Financial highlights

  • 2025 sales: $1.894 billion; adjusted EPS: $1.76; free cash flow: $157 million.

  • Q4 2025 sales: $492 million, up 3.7% year-over-year; commercial aerospace Q4 sales: $299.5 million, up 7.6%.

  • Adjusted operating income Q4: $65 million (13.3% of sales), up from $57 million (12.1%) in Q4 2024.

  • Adjusted EBITDA 2025: $346 million, down from $382 million in 2024.

  • Return on invested capital improved to 8.7% in 2025 from 8.1% in 2024.

Outlook and guidance

  • 2026 sales guidance: $2.0–$2.1 billion; adjusted EPS: $2.10–$2.30; free cash flow: >$195 million.

  • Management expects 8% sales growth and 25% adjusted EPS growth at the midpoint for 2026.

  • Commercial aerospace expected to grow low to mid double digits; defense and space low to mid single digits.

  • Cumulative free cash flow expected to exceed $1 billion from 2026–2029.

  • Capital expenditures expected below $100 million in 2026; effective tax rate of 20%.

Path to $500M incremental aero revenue
Future capital allocation priorities given debt
A350 destocking impact on 2026 margins
Detail next-gen aircraft production tech focus
What supports A350 2026 production rate confidence?
Outline path to 18% margins by decade end
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Frequently asked questions

Hexcel Corporation develops, manufactures, and markets structural materials for use in commercial aerospace, space and defense, and industrial markets. The company offers closed-cell liquid crystal polymer (LCP) foam; carbon composite structures; graphite sheet; high performance matrix; prepregs; adhesive systems; and specialty components. It also provides precision machined extrusions, electrical discharge machining services, metalizing services, and air-gap free molded products. The company distributes its products through a network of distributors and dealers to customers in the original equipment manufacturers, repair stations, and aerospace component replacement markets worldwide.

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