Hexcel Corporation reported first-quarter 2025 net sales of $456.5 million, a 3.3% decrease compared to the first quarter of 2024. Adjusted diluted earnings per share (EPS) for the quarter was $0.37, representing a 15.9% decline year-over-year.
Commercial Aerospace sales decreased by 6.4% year-over-year, primarily due to continued supply chain-driven delays in commercial aircraft production rate ramps, particularly impacting the Airbus A350 program. Conversely, the newly combined Defense, Space & Other segment saw a 2.0% increase in sales.
As a result of these ongoing challenges, Hexcel revised its full-year 2025 guidance, indicating that growth will not meet initial forecasts. The revised guidance projects adjusted diluted earnings of $1.85 to $2.05 and free cash flow of $190 million.
The company is implementing cost management measures, including tightly managing headcount by generally not replacing attrition, resulting in approximately 100 fewer individuals than at December 31, 2024. Hexcel also completed the divestiture of its Hartford, Connecticut 3D printing business in the first quarter, incurring charges of $1.1 million related to this action.
Despite the headwinds, Hexcel repurchased $50 million of its common stock during the first quarter, demonstrating confidence in its long-term value proposition. The gross margin for the quarter was 22.4%, down from 25.0% in the prior year, reflecting lower sales leverage.
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