US' Hexcel Corporation's sales up 3.6% to $473.8 million in Q4

Commercial Aerospace sales of $278.3 million for the fourth quarter of 2024 increased 4.0 per cent (4.6 per cent in constant currency) compared to the fourth quarter of 2023 with modest growth in the Airbus A320neo and Boeing 787. Boeing 737 MAX sales were lower year-over-year, consisting primarily of LEAP 1-B and nacelle sales in the current quarter. Other Commercial Aerospace increased in the fourth quarter of 2024, led by strength in regional jets.

Sales in Space & Defense segment was registered at $163.3 million, a rise of 7.2 per cent (7.6 per cent in constant currency) for the quarter as compared to the fourth quarter of 2023. Growth was strong with the Sikorsky CH-53K and Lockheed F-35 along with strength in space, both domestically and internationally.

Total Industrial sales was $32.2 million in the fourth quarter of 2024, a decrease of 14.6 per cent (14.8 per cent in constant currency) due to declines in all sub-markets except for recreation.

“Hexcel’s sales increased 6 per cent in 2024, including 12 per cent growth in our commercial aerospace business despite the ongoing challenges in the OEM supply chain,” said Tom Gentile, chairman, CEO and president, Hexcel. “Our adjusted EPS of $2.03 increased 12 per cent, highlighting the inherent operating leverage opportunity within the business as production rates continue to recover from the pandemic.”

“Hexcel met its latest 2024 guidance, including $203 million of free cash flow generation, and we are now providing 2025 guidance. Our 2025 sales guidance includes roughly 10 per cent year-over-year growth in commercial aerospace, despite the ongoing rate-ramp challenges the commercial aircraft industry supply chain is experiencing. We are also forecasting increased cash generation for the year to exceed $220 million. With our multi-year cash generation potential remaining strong, growing the business and returning cash to shareholders remain key areas of focus.” continued Gentile.

“Our priorities for 2025 are operational excellence, focused on meeting our customer production rate increases, innovation to win positions for Hexcel lightweight materials on the next generation of aircraft, and growth. Growth is expected to come through build rate increases to meet the considerable backlog demand that exists, plus organic growth for existing programmes with increased adoption of lightweight advanced composite materials. We will also explore inorganic growth through disciplined strategic deployment of our robust and growing capital resources. Innovation is a core tenet of Hexcel as we continually work to enhance our leading-edge lightweight materials to enable our customers to design products that are stronger and lighter and that support their increased manufacturing throughput. And of course, we are continually working to improve our operational efficiencies and productivity.” concluded Gentile.

ALCHEMPro News Desk (RR)