Hexcel Lowers Full‑Year Outlook, Cuts Guidance

Hexcel reported Q3 net income of $20.6 million (GAAP $0.26 per share) and adjusted EPS of $0.37 on revenue of $456.2 million, roughly flat year‑over‑year. The company lowered its full‑year 2025 revenue outlook to about $1.88 billion and cut adjusted EPS guidance to about $1.70–$1.80, saying it expects to be at the bottom end of that sales outlook. Management cited tariffs, inflation and ongoing commercial aerospace destocking (notably tied to the Airbus A350) and reported operating margin pressure (about 7.9% versus 11.5% a year ago) even as free‑cash‑flow metrics improved. Hexcel said supply‑chain stabilization and higher OEM build rates in 2026 could drive roughly $500 million of incremental annual revenue from existing contracts. The board authorized an additional $600 million for share repurchases, and CFO Patrick Winterlich is resigning effective Nov. 30 as a search for his replacement begins. Market reaction was muted and analysts highlighted the guidance cuts and near‑term destocking as the primary risks for the stock.