Back to top

Image: Bigstock

Hexcel's Q4 Earnings Surpass Estimates, Revenues Improve Y/Y

Read MoreHide Full Article

Hexcel Corporation (HXL - Free Report) reported fourth-quarter 2024 adjusted earnings of 52 cents per share, which improved 20.9% from the year-ago quarter’s figure of 43 cents. The bottom line also surpassed the Zacks Consensus Estimate of 51 cents by 2%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The company reported GAAP earnings of 7 cents per share, which surpassed the year-ago quarter’s loss of 21 cents per share.

HXL reported 2024 adjusted earnings of $2.03 per share, which were higher than the year-ago figure of $1.81. The year-over-year bottom-line improvement can be attributed to higher net sales and net income compared with the prior-year quarter.

HXL’s Total Sales

The company’s net sales totaled $473.8 million, which beat the Zacks Consensus Estimate of $471 million by 0.6%. The top line also witnessed an improvement of 3.6% from the year-ago quarter’s figure of $457.5 million.

The company reported sales of $1.90 billion in 2024, which were higher than $1.79 billion reported in 2023. The year-over-year improvement can be attributed to sales growth in the Commercial Aerospace and Space & Defense markets.

Hexcel Corporation Price, Consensus and EPS Surprise

Hexcel Corporation Price, Consensus and EPS Surprise

Hexcel Corporation price-consensus-eps-surprise-chart | Hexcel Corporation Quote

Hexcel’s Operational Update

Hexcel's gross margin was 25%, which increased 250 basis points from the prior-year quarter. The improvement can be attributed to favorable cost leverage driven by higher sales.

Selling, general and administrative (SG&A) expenses increased 14.3% year over year to $47.9 million. Meanwhile, research and technology expenses rose 11.6% year over year to $13.5 million.
HXL’s adjusted operating income was $8.9 million compared with $47.6 million in the year-ago period.

Contribution From Different Markets

Commercial Aerospace: Net sales increased 4% year over year to $278.3 million, driven by sales growth from Airbus A320neo and Boeing 787 programs. This market contributed 58.7% to total revenues in the quarter.

Space and Defense: Net sales increased 7.2% year over year to $163.3 million, driven by sales growth from Sikorsky CH-53K and Lockheed F-35 programs as well as domestic and international space sales. This market contributed 34.5% to total revenues in the quarter.

Industrial: Net sales decreased 14.6% year over year to $32.2 million due to a decline witnessed in sub-markets. This market contributed 6.8% to total revenues in the quarter.

HXL’s Financial Details

As of Dec. 31, 2024, Hexcel’s cash and cash equivalents were $125.4 million compared with $227 million as of Dec. 31, 2023.

The company’s long-term debt totaled $700.6 million as of Dec. 31, 2024, up from $699.4 million as of 2023-end.

HXL’s cash flow from operating activities was $289.9 million compared with $257.1 million in the prior year.

Hexcel’s adjusted free cash flow as of Dec. 31, 2024, was $202.9 million compared with $148.9 million in the year-ago period.

Hexcel’s Guidance

Hexcel expects to generate sales in the range of $1.95-$2.05 billion. The Zacks Consensus Estimate is pegged at $2 billion, which lies at the midpoint of the company’s sales guidance.

HXL also expects its adjusted earnings per share to be in the range of $2.05-$2.25. The Zacks Consensus Estimate is currently pegged at $2.34 per share, which is above the company’s guided range.

Hexcel expects to generate a free cash flow of more than $220 million in 2025. It also expects capital expenditure to be less than $100 million.

HXL’s Zacks Rank

Hexcel currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

Teledyne Technologies Inc. (TDY - Free Report) reported fourth-quarter 2024 adjusted earnings of $5.52 per share, which surpassed the Zacks Consensus Estimate of $5.23 by 5.5%. Total sales were $1.50 billion, which beat the consensus estimate of $1.45 billion by 3.7%.

Textron Inc. (TXT - Free Report) reported fourth-quarter 2024 adjusted earnings of $1.34 per share, which beat the Zacks Consensus Estimate of $1.25 by 7.2%. The company reported total revenues of $3.61 billion, which missed the consensus estimate of $3.74 billion by 3.5%.

An Upcoming Defense Release

Leidos Holdings, Inc. (LDOS - Free Report) is set to report fourth-quarter 2024 earnings on Feb. 11, 2025, before market open. It has an Earnings ESP of +12.08% and a Zacks Rank #2 (Buy) at present.

The Zacks Consensus Estimate for LDOS’ earnings is pegged at $2.18 per share. The consensus estimate for its sales is pegged at $4.12 billion, indicating year-over-year growth of 3.6%.


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in