Hexcel Corp (HXL, Financial) released its Q3 2023 earnings report on October 23, 2023. The company reported net sales of $420 million, a 15% increase year-over-year, and an adjusted diluted EPS of $0.38 per share.
Financial Highlights
Hexcel Corp (HXL, Financial) reported a 15% increase in Q3 2023 sales, amounting to $420 million, compared to Q3 2022 sales of $365 million. The company's GAAP diluted EPS for Q3 2023 was $0.45, compared to $0.31 in Q3 2022. The adjusted diluted EPS for Q3 2023 was $0.38, marking a 15% increase year-over-year.
Commentary from the CEO
Chairman, CEO, and President Nick Stanage commented on the results, stating,
Year-over-year third quarter sales increased 15% reflecting the continued robust growth in Commercial Aerospace and Business Jets along with the sustained strong demand in our Space and Defense markets. We delivered double-digit operating margin of 10.2% and an adjusted EPS of $0.38, an increase of 15% year over year."
Market Performance
Commercial Aerospace sales for Q3 2023 increased by 20.5% compared to Q3 2022, driven by the Airbus A350 and Boeing 787 programs. Space & Defense sales increased by 18.6% for the quarter compared to Q3 2022. However, total Industrial sales decreased by 17.4% compared to Q3 2022 due to challenges in the global wind industry.
Year-to-Date 2023 Results
For the first nine months of 2023, sales were $1,331.5 million, a 16.0% increase from the same period in 2022. Commercial Aerospace sales increased by 22.1%, while Space & Defense sales increased by 15.9%. However, total Industrial sales decreased by 10.2% compared to the first nine months of 2022.
2023 Guidance
Hexcel Corp (HXL, Financial) reaffirms its FY 2023 guidance, expecting 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.
