NYSE$HXL

Hexcel Corp · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

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.

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.

Headline financials

Total Revenue

$454M

Previous: $393M+15.6%
EPS (adj)

$0.50

Previous: $0.33+51.5%
Adj. Op. Inc. % of Sales

13.6%

Previous: 11.4%+19.3%
Capital Expenditures

-$74.8M

Previous: -$37.9M-97.4%
Free Cash Flow

$10.4M

Previous: $24.6M-57.7%
Net Income

$85.2M

Previous: $62.5M+36.3%
Operating Income

$61.3M

Previous: $63.8M-3.9%
Gross Profit

$111M

Previous: $89.5M+23.8%
Cash & Equivalents

$104M

Previous: $99.2M+5.0%
Total Assets

$2.92B

Previous: $2.82B+3.6%

Revenue & EPS history

Hexcel · Revenue · Quarterly

$454M

Q2 2023+15.6%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Hexcel · $454M total across 2 segments · Q2 2023

  • Composite Materials
    $379M+19.0%
  • Engineered Products
    $75.8M+1.2%

Forward guidance

Hexcel provided the following guidance for 2023:

Tailwinds

  • 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)

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.1%

Avg return

Earnings day

-0.5%

Avg return

5 days after

+3.6%

Avg return

30 days after

55%

38 / 69 earnings

Positive

+11.1%

Q3 2025

Best reaction

-11.6%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.6%+6.8%-1.1%
Q4 2025+5.5%+3.4%+15.5%
Q3 2025+11.1%+13.9%+13.8%
Q2 2025-1.2%-2.8%-0.8%
Q1 2025-4.3%-0.4%+3.1%
Q4 2024+3.2%-2.4%-8.5%
Q3 2024+2.7%-0.3%-6.6%
Q2 2024-7.6%-5.4%-7.9%
Q1 2024+3.0%+4.0%+15.5%
Q4 2023-8.9%-7.3%+2.4%
Q3 2023-7.6%-8.1%+3.7%
Q2 2023-6.3%-7.0%-4.3%
Q1 2023+6.2%+5.7%+3.9%
Q4 2022+9.0%+10.7%+16.5%
Q3 2022-2.8%-2.4%+6.0%
Q2 2022+1.4%+6.0%+7.0%
Q1 2022+1.2%-2.2%-0.8%
Q4 2021-6.2%-0.8%+8.4%
Q3 2021-4.4%-5.6%+1.3%
Q2 2021+1.8%-5.7%-1.0%
Q1 2021-0.2%-0.3%-9.8%
Q4 2020-6.9%-9.7%+17.7%
Q3 2020-4.0%-0.1%+41.0%
Q2 2020-9.0%-18.3%-13.8%
Q1 2020-11.6%-12.5%-5.0%
Q4 2019+0.6%+0.0%-6.4%
Q3 2019-0.8%-3.2%+4.4%
Q2 2019+4.4%+4.0%+2.0%
Q1 2019+0.3%+4.1%+7.4%
Q4 2018+7.4%+6.6%+16.5%
Q3 2018-4.0%-7.3%-5.8%
Q2 2018-2.4%-0.6%-1.4%
Q1 2018+3.5%+2.2%+9.1%
Q4 2017+2.1%+4.8%+3.7%
Q3 2017+4.9%+7.4%+1.0%
Q2 2017-4.6%-5.2%-3.5%
Q1 2017-2.3%-1.5%-5.1%
Q4 2016-0.3%-1.0%+6.4%
Q3 2016+3.6%+4.7%+14.1%
Q2 2016+6.5%+4.4%+7.3%
Q1 2016+0.7%
Q4 2015+8.2%
Q3 2015-7.6%
Q2 2015-1.4%
Q1 2015+0.2%
Q4 2014+4.8%
Q3 2014+1.6%
Q2 2014-3.0%
Q1 2014-3.3%
Q4 2013-7.8%
Q3 2013+1.3%
Q2 2013+3.6%
Q1 2013+9.1%
Q4 2012+0.3%
Q3 2012-1.2%
Q2 2012-7.2%
Q1 2012+5.1%
Q4 2008+3.5%
Q4 2011+3.5%
Q3 2011-1.3%
Q2 2011+0.4%
Q1 2010+8.1%
Q1 2011+1.9%
Q4 2010+2.4%
Q3 2009-2.3%
Q3 2010-2.3%
Q2 2010+4.1%
Q4 2009+4.1%
Q2 2009+4.1%

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