Hexcel Corp (HXL) reported fourth-quarter 2025 net sales of $491.3 million, a 3.7% increase compared to $473.8 million in the prior-year period. The results were driven by a 7.6% increase in commercial aerospace sales, as order trends accelerated in December. Adjusted diluted earnings per share (EPS) for the quarter was $0.52, flat year-over-year but surpassing the consensus analyst estimate of $0.49.
The company reported a significant recovery in GAAP operating margin, which rose to 12.5% from 1.9% in the fourth quarter of 2024. This improvement was attributed to higher capacity utilization and the absence of prior-year restructuring charges. For the full year 2025, total sales were $1.894 billion, down slightly from $1.903 billion in 2024, as the company navigated a “challenging year” of OEM destocking and production schedule revisions, particularly for the Airbus A350.
While Hexcel operates in the industrial aerospace sector, its valuation is currently facing pressures similar to those in the high-growth SaaS and software sectors. Investors have become more sensitive to free cash flow margins — which for Hexcel fell to 21.8% this quarter from 30.4% a year ago — amid broader macro uncertainty and a “higher for longer” interest rate environment.
