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Sep 30, 2023

Hexcel Q3 2023 Earnings Report

Hexcel reported Q3 2023 results with net sales of $420 million and adjusted diluted EPS of $0.38 per share.

Key Takeaways

Hexcel's Q3 2023 sales increased by 15% year-over-year, driven by robust growth in Commercial Aerospace and sustained demand in Space and Defense markets. The company delivered a double-digit operating margin of 10.2% and an adjusted EPS of $0.38, a 15% increase year-over-year.

Q3 2023 Sales were $420 million, an increase of 15.0% over Q3 2022 sales of $365 million (13.2% increase in constant currency).

Q3 2023 GAAP diluted EPS of $0.45 compared to Q3 2022 GAAP diluted EPS of $0.31.

Q3 2023 adjusted diluted EPS of $0.38, compared to Q3 2022 adjusted diluted EPS of $0.33.

FY 2023 guidance is reaffirmed.

Total Revenue
$420M
Previous year: $365M
+15.0%
EPS
$0.38
Previous year: $0.33
+15.2%
Adjusted Operating Income %
10.2%
Previous year: 11.3%
-9.7%
Gross Profit
$91.6M
Previous year: $81.8M
+12.0%
Cash and Equivalents
$97.7M
Previous year: $90.9M
+7.5%
Free Cash Flow
$3.7M
Total Assets
$2.85B

Hexcel

Hexcel

Hexcel Revenue by Segment

Forward Guidance

Hexcel reaffirms its FY 2023 guidance, including sales of $1.765 billion to $1.835 billion, adjusted diluted earnings per share of $1.80 to $1.94, and free cash flow of greater than $110 million.

Positive Outlook

  • Sales of $1.765 billion to $1.835 billion
  • Adjusted diluted earnings per share of $1.80 to $1.94
  • Free cash flow of greater than $110 million
  • Accrual basis capital expenditures of approximately $130 million
  • Underlying annual effective tax rate is estimated to be 21% (previously 23%)

Revenue & Expenses

Visualization of income flow from segment revenue to net income