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Dec 31, 2022

Hexcel Q4 2022 Earnings Report

Hexcel reported strong Q4 2022 results, driven by commercial aerospace recovery and strength in space and defense markets.

Key Takeaways

Hexcel Corporation reported Q4 2022 sales of $429 million, a 19.2% increase compared to Q4 2021. The company's GAAP diluted EPS was $0.43, and adjusted diluted EPS was $0.40. The results were driven by the robust recovery in the commercial aerospace market and broad global strength in space and defense markets. The company forecasts double-digit growth in sales and adjusted earnings per share for 2023 and expects free cash flow above $140 million.

Q4 2022 sales increased by 19.2% year-over-year to $429 million.

GAAP diluted EPS for Q4 2022 was $0.43, and adjusted diluted EPS was $0.40.

Commercial Aerospace sales increased by 28.3% compared to Q4 2021, driven by growth in major platforms.

Space & Defense sales increased by 19.5% compared to Q4 2021, reflecting broad global strength.

Total Revenue
$429M
Previous year: $360M
+19.2%
EPS
$0.4
Previous year: $0.16
+150.0%
Gross Profit
$99.1M
Previous year: $69.1M
+43.4%
Cash and Equivalents
$112M
Previous year: $128M
-12.3%
Free Cash Flow
$96.8M
Previous year: $124M
-21.8%
Total Assets
$2.84B
Previous year: $2.82B
+0.6%

Hexcel

Hexcel

Forward Guidance

Hexcel provided 2023 financial guidance with sales between $1.725 billion and $1.825 billion and adjusted diluted earnings per share between $1.70 and $1.90. The company expects free cash flow to be greater than $140 million and accrual basis capital expenditures of approximately $90 million.

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 of greater than $140 million

Challenges Ahead

  • Accrual basis capital expenditures of approximately $90 million
  • Underlying effective tax rate is estimated to be 23%