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Hexcel Corporation HXL 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%.
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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-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.