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Sheila Karin Kahyaoglu

Managing Director in Equity Research at Jefferies Financial Group Inc.

Sheila Kahyaoglu is a Managing Director in Equity Research at Jefferies, specializing in the Aerospace, Defense, and Airlines sectors with coverage extending to major companies such as Boeing, American Airlines, and Hexcel. She has demonstrated a high level of performance, achieving a 64% success rate with an average annual return of 12.9% according to TipRanks, and her price target met ratio stands at 89.79% on tracked calls with a top recommendation producing a 127.6% return. Joining Jefferies in March 2012, Kahyaoglu previously held analyst roles at Credit Suisse in Electrical Equipment and Multi-Industry coverage and began her career as a Leveraged Finance analyst at JPMorgan in 2005. She earned a BA in Economics from NYU, has been repeatedly recognized in Institutional Investor’s All-America Research poll, and holds FINRA registration as well as required securities licenses.

Sheila Karin Kahyaoglu's questions to HEXCEL CORP /DE/ (HXL) leadership

Question · Q3 2025

Sheila Karin Kahyaoglu asked about the expected inventory unwind and its implications for Hexcel's projected $1 billion in free cash flow over the next four years, considering the additional $500 million in revenue and 35% incremental margins. She also sought clarification on the factors contributing to the implied 100 basis point margin decline in the 2025 guidance, beyond the impact of tariffs.

Answer

Tom Gentile, CEO, Chairman, and President, stated that the goal is to reduce inventory from the current 90-95 days to a steady-state of 70 days, with unwinding expected in coming quarters. He attributed the remaining margin pressure (beyond tariffs) to absorption impacts from inventory drawdown, investments in the new Microsoft D365 ERP system, lower volumes due to destocking, and changes in product mix.

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