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Mar 31, 2023

Hexcel Q1 2023 Earnings Report

Hexcel reported first quarter 2023 results, featuring net sales of $458 million and adjusted diluted EPS of $0.50 per share.

Key Takeaways

Hexcel Corporation reported a strong first quarter in 2023, with a significant increase in sales and adjusted operating income. The company's performance was driven by execution and growing demand, particularly in the commercial aerospace sector. Hexcel is well-positioned to benefit from production ramps and growth in various markets, leading to cash generation and shareholder value.

GAAP diluted EPS was $0.50, compared to $0.21 in Q1 2022.

Adjusted diluted EPS was $0.50, compared to $0.22 in Q1 2022.

Sales were $458 million, a 17.2% increase over Q1 2022 sales of $391 million (18.0% increase in constant currency).

Full year 2023 guidance is reaffirmed.

Total Revenue
$458M
Previous year: $391M
+17.2%
EPS
$0.5
Previous year: $0.22
+127.3%
Gross Margin
27.9%
Previous year: 22.2%
+25.7%
Gross Profit
$128M
Previous year: $86.7M
+47.3%
Cash and Equivalents
$106M
Previous year: $113M
-6.3%
Free Cash Flow
-$41.5M
Previous year: -$39.9M
+4.0%
Total Assets
$2.91B
Previous year: $2.85B
+1.9%

Hexcel

Hexcel

Forward Guidance

Hexcel reaffirmed its full year 2023 guidance, including sales of $1.725 billion to $1.825 billion, adjusted diluted earnings per share of $1.70 to $1.90, and free cash flow greater than $140 million. Accrual basis capital expenditures are expected to be approximately $90 million, with an underlying effective tax rate estimated at 23%.

Positive Outlook

  • Sales of $1.725 billion to $1.825 billion
  • Adjusted diluted earnings per share of $1.70 to $1.90
  • Free cash flow greater than $140 million
  • Accrual basis capital expenditures of approximately $90 million
  • Underlying effective tax rate is estimated to be 23%