Question · Q3 2025
Michael Frank Ciarmoli inquired about the incremental margins required to reach the 18% target, potential disruptions from labor additions, and Hexcel's confidence in pricing power given annual contract renewals and the significant Airbus renewal in 2030. He also asked about the dilutive effect and interest headwind of the ASR for the full year 2026.
Answer
Tom Gentile, CEO, Chairman, and President, stated that increased volumes would drive significant operating leverage without substantial capital investment, with productivity programs offsetting inflation and other costs, leading to margin recovery. Patrick Winterlich, EVP and CFO, projected that the ASR would be net positive for 2026 on a full-year basis, as the benefit from the reduced share count (80% of shares surrendered soon) would offset the interest charges as debt is paid down quickly.