From StockStory Communications: 2025-05-10 17:20:00

Aerospace and defense company Hexcel (NYSE:HXL) missed Wall Street’s revenue expectations in Q1 CY2025, with sales falling 3.3% year on year to $456.5 million. Its non-GAAP profit of $0.37 per share was 12.4% below analysts’ consensus estimates. The company dropped its revenue guidance for the full year to $1.92 billion at the midpoint from $2 billion, a 4.3% decrease. Hexcel’s first quarter results were impacted by lower than expected demand from key commercial aerospace customers, especially Airbus and Boeing, leading to reduced sales and margins.

For the remainder of the year, Hexcel’s guidance reflects a more cautious outlook, with significant reductions in both expected revenue and adjusted EPS. The company attributed this to revised demand forecasts from major customers, especially Airbus, and ongoing uncertainties tied to tariffs and supply chain issues. Management emphasized ongoing cost control and operational efficiency as priorities. Key operational factors included lower demand for A350 materials, stable growth in defense and space, operational disruptions due to power outage, cost control measures, and minimal direct tariff exposure.

Looking ahead, Hexcel’s guidance for the year is driven by ongoing production challenges in commercial aerospace, efforts to manage costs, and uncertainty surrounding tariffs and customer demand. Top analyst questions focused on the impact of new tariffs on profitability, ability to offset costs through pricing, headcount management, inventory levels at Airbus, and opportunities to reprice long-term agreements. In upcoming quarters, monitoring Airbus and Boeing production rate developments, cost control efforts, and progress on divestiture of non-core assets will be key factors.



Read more at StockStory Communications: Guidance Cut as Commercial Aerospace Demand Softens