Hexcel Q1 Revenue Rises 8.8% to $502M, EBITDA Surges 26%
Hexcel's Q1 revenue rose to $502 million, up 8.8% in constant currency, with commercial aerospace sales up 19% to $333 million and gross margin expanding to 26.9%. Adjusted EPS was $0.59, adjusted EBITDA jumped 26% to $107 million, and company refinanced its $750 million revolver to extend maturity to 2031.
1. Q1 Financial Results
Hexcel reported Q1 revenue of $502 million, an 8.8% increase in constant currency, while gross margin expanded to 26.9% from 22.4% year-over-year. Adjusted EPS reached $0.59 and adjusted EBITDA rose 26% to $107 million, reflecting stronger capacity utilization and cost control.
2. Segment Performance
Commercial aerospace sales climbed to $333 million, up 19% driven by Airbus A350, A320 and Boeing 787 and 737 MAX programs. Defense, Space & Other sales fell 6.9% to $169 million due to the divestment of an Austrian facility and a roughly 80-basis-point foreign exchange headwind.
3. Balance Sheet and Outlook
Net cash from operations was $19 million with free cash flow use of $6 million and capital expenditures of $18 million. The company refinanced its $750 million revolver to 2031 at a 2.6x net debt/EBITDA leverage, declared a $0.18 dividend and maintained full-year guidance while noting oil price, engine availability and UK restructuring headwinds.