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Jun 30, 2023

Hexcel Q2 2023 Earnings Report

Hexcel's second quarter demonstrated strong execution, delivering a 16% year-over-year increase in sales and a more than 50% increase in adjusted earnings per share.

Key Takeaways

Hexcel Corporation reported second quarter 2023 results with net sales of $454 million and adjusted diluted EPS of $0.50 per share. The company raised its full year sales and adjusted EPS guidance based on confidence for the remainder of the year.

Q2 2023 GAAP diluted EPS was $0.50, compared to $0.53 in Q2 2022.

Q2 2023 adjusted diluted EPS was $0.50, compared to $0.33 in Q2 2022.

Q2 2023 Sales were $454 million, a 15.6% increase over Q2 2022 sales of $393 million (14.7% increase in constant currency).

FY 2023 sales guidance revised to $1.765 billion to $1.835 billion, previously $1.725 billion to $1.825 billion. Adjusted EPS revised to $1.80 to $1.94, previously $1.70 to $1.90.

Total Revenue
$454M
Previous year: $393M
+15.6%
EPS
$0.5
Previous year: $0.33
+51.5%
Adjusted Operating Income %
13.6%
Previous year: 11.4%
+19.3%
Gross Profit
$111M
Cash and Equivalents
$104M
Previous year: $99.2M
+5.0%
Free Cash Flow
-$44.7M
Total Assets
$2.92B

Hexcel

Hexcel

Hexcel Revenue by Segment

Forward Guidance

Hexcel provided the following guidance for 2023:

Positive Outlook

  • Sales of $1.765 billion to $1.835 billion (previously $1.725 billion to $1.825 billion)
  • Adjusted diluted earnings per share of $1.80 to $1.94 (previously $1.70 to $1.90)
  • Free cash flow of greater than $110 million (previously greater than $140 million)
  • Accrual basis capital expenditures of approximately $130 million (previously approximately $90 million)
  • Underlying annual effective tax rate is estimated to be 23% (unchanged)

Revenue & Expenses

Visualization of income flow from segment revenue to net income