NYSE$HXL

Hexcel Corp · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Hexcel reported an increase in sales and EPS for the third quarter of 2024, driven by commercial aerospace growth, but expects results to be at the lower end of guidance due to supply chain challenges.

Hexcel Corporation reported Q3 2024 results with net sales of $457 million, an 8.8% increase year-over-year, and adjusted diluted EPS of $0.47. The growth was primarily driven by a 17% increase in commercial aerospace sales. However, the company expects full-year results to be at the lower end of guidance due to ongoing supply chain challenges and has withdrawn its mid-term guidance.

  • Q3 2024 sales increased by 8.8% to $457 million compared to Q3 2023.
  • GAAP diluted EPS for Q3 2024 was $0.49, up from $0.45 in Q3 2023.
  • Adjusted diluted EPS for Q3 2024 was $0.47, compared to $0.38 in Q3 2023.
  • Full-year 2024 results are expected to be at the lower end of guidance ranges, benefiting from lower tax rates.

Headline financials

Total Revenue

$457M

Previous: $420M+8.8%
EPS (adj)

$0.47

Previous: $0.38+23.7%
Capital Expenditures

-$68.4M

Previous: -$94.4M+27.5%
Free Cash Flow

$57.9M

Previous: $29.5M+96.3%
Net Income

$126M

Previous: $124M+1.9%
Operating Income

$52.5M

Previous: $43.6M+20.4%
Gross Profit

$107M

Previous: $91.6M+16.3%
Cash & Equivalents

$98.2M

Previous: $97.7M+0.5%
Total Assets

$2.86B

Previous: $2.85B+0.6%

Revenue & EPS history

Hexcel · Revenue · Quarterly

$457M

Q3 2024+8.8%vs Q3 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Hexcel · $420M total across 2 segments · Q3 2023

  • Composite Materials
    $341M+16.0%
  • Engineered Products
    $79M+11.0%

Forward guidance

Hexcel expects full year 2024 sales and adjusted EPS to be at the lower end of the 2024 guidance ranges and will benefit from lower tax rates. The company is withdrawing its previously issued mid-term guidance and will provide guidance for 2025 with the Q4 earnings in January.

Tailwinds

  • Ongoing recovery of commercial aerospace production to meet historically strong backlogs.
  • Demand for lightweight materials in military aerospace.
  • Demand for lightweight materials in next generation commercial aircraft.
  • Focus on execution and cash generation.
  • Repurchased $50 million of Hexcel common stock in Q3 2024.

Headwinds

  • Near-term slowing of previously planned production rate ramps by key customers.
  • New challenges and shortages have developed as 2024 has progressed.
  • Assumptions for future production rates that were the basis for our mid-term guidance for the three-year period 2024-2026 provided in February 2024 are no longer valid.
  • Overall aerospace supply chain seemed to be recovering in late-2023, new challenges and shortages have developed as 2024 has progressed.
  • Company is withdrawing its previously issued mid-term guidance.

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 Q3 2024

Historical avgQ3 2024

+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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