Hexcel Corporation reported second-quarter 2025 net sales of $489.9 million, a 2.1% decrease compared to the second quarter of 2024. Adjusted diluted earnings per share (EPS) for the quarter was $0.50, representing a 16.7% decline year-over-year.
Commercial Aerospace sales experienced softness in the Airbus A350 program due to production rate decreases and destocking of excess inventory, as previously communicated. However, the Defense, Space & Other segment demonstrated robust growth, showing a high single-digit increase over the second quarter of 2024.
Despite the challenging first half, Hexcel reaffirmed its full-year 2025 guidance, projecting sales between $1.95 billion and $2.05 billion, adjusted EPS between $2.05 and $2.25, and free cash flow greater than $220 million. This confidence is rooted in anticipated recovery of commercial aerospace build rates in the second half of 2025.
The company completed the closure of its Welkenraedt, Belgium facility, resulting in restructuring charges of $24.2 million. This action, combined with the announced strategic review of the Neumarkt, Austria facility and the divestiture of its US additive printing business, streamlines operations for upcoming aircraft production rate ramps. Total restructuring charges for the first six months of 2025 amounted to $25.3 million.
Gross margin for the second quarter of 2025 was 22.8%, down from 25.3% in the prior year, attributed to lower sales volumes, inventory reduction actions, and the initial impact of increased tariffs. Hexcel continued its share repurchase program, buying back another $50 million of stock in the second quarter, bringing the year-to-date total to $100.9 million.
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