Hexcel Corp (NYSE:HXL) stock fell 6.10% (As on April 22, 11:29:12 AM UTC-4, Source: Google Finance) after the company revised its full-year outlook downward. The aerospace materials manufacturer also reported weaker-than-expected earnings and revenue in the first quarter, attributing the shortfall primarily to slower production ramps in the commercial aerospace sector. As a result of continued supply chain driven delays in commercial aircraft production rate ramps, particularly on the Airbus A350 program, the 2025 growth will not be what the company had initially forecasted. The company added that its revised guidance does not account for any potential effects from new tariffs implemented after March 31. Further, the company will prioritize cost control measures, including limiting hiring. Positions lost through attrition are generally not being refilled, and the workforce is currently around 100 employees smaller than at the end of 2024. First-quarter net income fell to $28.9 million, or $0.35 a share, from $36.5 million, or $0.43 a share, in the same period last year.

HXL in the first quarter of FY25 has reported the adjusted earnings per share of 37 cents, missing the analysts’ estimates for the adjusted earnings per share of 42 cents. The company had reported the adjusted revenue decline of 3.3 percent to $456.5 million in the first quarter of FY25, missing the analysts’ estimates for revenue of $474.7 million. Commercial Aerospace sales of $280.1 million decreased 6.4% (6.3% in constant currency) for the first quarter of 2025 compared to the first quarter of 2024 as customers faced continued challenges to increase production rate ramps. Lower Boeing 787 and MAX sales drove the year-over-year decrease. Defense, Space & Other sales of $176.4 million increased 2.0% (2.7% in constant currency) for the quarter as compared to the first quarter of 2024, including 2.9% (3.3% in constant currency) sales growth for the sub-component of Defense & Space, partially offset by a sales decrease of 1.8% (0.3% increase in constant currency) in Industrial. Gross margin for the first quarter of 2025 was 22.4% compared to 25.0% in the prior year, reflecting the impact of lower sales leverage. Adjusted operating income in the first quarter of 2025 was $45.3 million or 9.9% of sales, compared to $54.1 million or 11.5% of sales in 2024.

Additionally, the company has repurchased $50 million of stock in first quarter as it has also successfully refinanced $300 million of fixed rate debt.

Management anticipates adjusted earnings per share to be between $1.85 and $2.05, trimmed from a previous forecast of $2.05 to $2.25. Its revenue guidance has also been reduced to a range of $1.88 billion to $1.95 billion, down from the earlier projection of $1.95 billion to $2.05 billion. Wall Street analysts had expected adjusted EPS of $2.11 and annual revenue of $1.98 billion.