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Jun 30, 2020

Hexcel Q2 2020 Earnings Report

Hexcel's second quarter results were impacted by the unprecedented economic headwind in the Aerospace industry due to the COVID-19 pandemic.

Key Takeaways

Hexcel Corporation reported a significant decrease in sales and earnings per share for the second quarter of 2020, primarily due to the impact of the COVID-19 pandemic on the commercial aerospace industry. The company reacted quickly to restructure the business and align costs to the changing demand, and generated positive free cash flow during the quarter. Hexcel is positioning its cost structure for strong margin performance when markets stabilize.

Q2 2020 GAAP diluted EPS was ($0.01) with adjusted diluted EPS of $0.08, compared to Q2 2019 GAAP diluted EPS and adjusted diluted EPS of $0.94.

Q2 2020 Sales were $379 million, compared to $609 million in Q2 2019.

Free Cash Flow YTD of $33 million, with $52 million generated in the second quarter.

Liquidity remains strong, increasing to $689 million, with cash on hand of $257 million and revolver borrowing availability of $432 million, at June 30, 2020.

Total Revenue
$379M
Previous year: $609M
-37.8%
EPS
$0.08
Previous year: $0.94
-91.5%
Gross Margin
14.5%
Previous year: 27.7%
-47.7%
Adjusted Operating Income %
5.1%
Previous year: 18.9%
-73.0%
Gross Profit
$54.9M
Previous year: $169M
-67.5%
Cash and Equivalents
$257M
Previous year: $55.4M
+364.3%
Free Cash Flow
$52M
Previous year: $73.1M
-28.9%
Total Assets
$3.22B
Previous year: $3.2B
+0.9%

Hexcel

Hexcel

Forward Guidance

The Company continues to withhold financial guidance due to the market uncertainties arising from the global pandemic.