Hexcel Corporation (NYSE: HXL):
- Q4 2024 Sales were $474 million, compared to $458 million in
Q4 2023.
- Q4 2024 GAAP diluted EPS of $0.07, compared to Q4 2023 GAAP
diluted EPS of $(0.21).
- Q4 2024 adjusted diluted EPS of $0.52, compared to Q4 2023
adjusted diluted EPS of $0.43.
- FY 2024 sales were $1,903 million, compared to $1,789
million for FY 2023.
- FY 2024 GAAP diluted EPS of $1.59 compared to FY 2023 GAAP
diluted EPS of $1.24.
- FY 2024 adjusted diluted EPS of $2.03, compared to FY 2023
adjusted diluted EPS of $1.81.
- Free Cash Flow of $203 million in FY 2024.
- Quarterly dividend increased 13% to $0.17.
- 2025 Guidance: Sales - $1.95 billion to $2.05
billion; Adj EPS - $2.05 to $2.25; FCF - >$220 million
See Table C for reconciliation of GAAP and non-GAAP operating
income, net income, earnings per share and operating cash flow to
free cash flow. Free cash flow is cash from operations less capital
expenditures.
Summary of Results from
Operations
Quarters Ended
Years Ended
December 31,
December 31,
(In millions, except per share data)
2024
2023
% Change
2024
2023
% Change
Net Sales
$
473.8
$
457.5
3.6
%
$
1,903.0
$
1,789.0
6.4
%
Net sales change in constant currency
4.0
%
6.4
%
Operating Income
8.9
47.6
(81.3
)%
186.1
215.3
(13.6
)%
Net Income (loss)
5.8
(18.2
)
131.9
%
132.1
105.7
25.0
%
Diluted net income (loss) per common
share
$
0.07
$
(0.21
)
133.3
%
$
1.59
$
1.24
28.2
%
Non-GAAP measures for year-over-year
comparison (Table C)
Adjusted Operating Income
$
57.1
$
49.1
16.3
%
$
236.1
$
216.7
9.0
%
As a % of sales
12.1
%
10.7
%
12.4
%
12.1
%
Adjusted Net Income
42.6
36.6
16.4
%
168.5
154.8
8.9
%
Adjusted diluted net income per share
$
0.52
$
0.43
20.9
%
$
2.03
$
1.81
12.2
%
Hexcel Corporation (NYSE: HXL) today reported fourth quarter
2024 results including net sales of $474 million and adjusted
diluted EPS of $0.52 per share.
“Hexcel’s sales increased 6% in 2024, including 12% 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%,
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% 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 Mr. 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 programs 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 Mr. Gentile.
Markets
Sales in the fourth quarter of 2024 were $473.8 million compared
to $457.5 million, a 3.6% increase from the fourth quarter of
2023.
Commercial Aerospace
- Commercial Aerospace sales of $278.3 million for the fourth
quarter of 2024 increased 4.0% (4.6% 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.
Space & Defense
- Space & Defense sales of $163.3 million increased 7.2%
(7.6% 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.
Industrial
- Total Industrial sales of $32.2 million in the fourth quarter
of 2024 decreased 14.6% (14.8% in constant currency) due to
declines in all sub-markets except for recreation.
Consolidated Operations
Gross margin for the fourth quarter of 2024 was 25.0% compared
to 22.5% in the fourth quarter of 2023. As a percentage of sales,
selling, general and administrative for the fourth quarter of 2024
were 10.1% compared to 9.2% for the fourth quarter of 2023. R&T
expenses as a percentage of net sales were 2.8% for the fourth
quarter of 2024 compared to 2.6% for the fourth quarter of 2023.
Adjusted operating income in the fourth quarter of 2024 was $57.1
million or 12.1% of sales, compared to $49.1 million, or 10.7% of
sales in 2023. Other operating expense for the fourth quarter of
2024 included asset impairments and other charges primarily
associated with the announced potential divestiture for the
Neumarkt, Austria plant that solely serves Industrial markets. In
addition, other operating expenses for both the fourth quarter of
2024 and 2023 included restructuring costs. Other non-operating
expense in the fourth quarter of 2023 primarily included charges
related to the buy-out of the UK pension plan. Foreign exchange
rates had a favorable impact of approximately 60 basis points on
operating income as a percentage of sales in the fourth quarter of
2024 compared to the fourth quarter of 2023.
FY 2024 Results
Sales for the full year of 2024 were $1,903.0 million compared
to $1,789.0 million, a 6.4% increase from 2023 sales.
Commercial Aerospace (63% of sales)
- Commercial Aerospace sales of $1,194.2 million increased 11.8%
(11.9% in constant currency) for the full year of 2024 compared to
the full year of 2023. Widebodies led the growth including the
Boeing 787 and Airbus A350, followed by the Airbus A320neo. Sales
for the Boeing 737 MAX were down year-over-year. Other Commercial
Aerospace increased 9.5% reflecting growth in regional jets.
Space & Defense (30% of sales)
- Space & Defense sales of $569.5 million increased 4.5%
(4.6% in constant currency) for the full year of 2024 as compared
to the full year of 2023. Growth was driven by military helicopters
including the CH-53-K, as well as the F-35 and classified programs.
As expected, growth was partially offset by declining sales for the
Bell Boeing V-22.
Industrial (7% of sales)
- Total Industrial sales of $139.3 million in the full year of
2024 decreased 20.9% (21.1% in constant currency) compared to the
full year of 2023 as all sub-markets declined.
Consolidated Operations
Gross margin for 2024 was 24.7% compared to 24.2% in the prior
year, benefiting from higher sales volume leverage. As a percentage
of sales, selling, general and administrative for the full year of
2024 were 9.3% compared to 9.2% for 2023. R&T expenses as a
percentage of net sales were 3.0% for the full year of 2024
compared to 2.9% for the full year of 2023. Adjusted operating
income for the full year of 2024 was $236.1 million or 12.4% of
sales, compared to $216.7 million or 12.1% of sales in 2023. Other
operating expense for 2024 included asset impairments and other
charges primarily associated with the announced potential
divestiture of the Neumarkt, Austria plant. Other operating
expenses for the full year of 2023 included restructuring costs
partially offset by a pre-tax net gain of $0.8 million from the
sale of a facility in Colorado. Other non-operating expense for the
full year of 2023 primarily included charges related to the buy-out
of the UK pension plan. The impact of foreign exchange rates on
operating income as a percentage of sales was favorable by
approximately 40 basis points for 2024 compared to 2023.
Cash and other
- Net cash provided by operating activities in 2024 was $289.9
million, compared to $257.1 million in 2023. Working capital was a
cash use of $0.8 million in 2024 compared to a use of $27.4 million
in 2023. Capital expenditures on a cash basis were $87.0 million in
2024. Capital expenditures in 2023 were $108.2 million including
approximately $38 million for the purchase of the land and building
at the Hexcel Amesbury, Massachusetts facility. Net cash used for
investing activities in 2023 included net proceeds of $44.7 million
from the sale of the joint venture interest in Malaysia and net
proceeds of $10.3 million received from the sale of a facility in
Windsor, Colorado. Free cash flow was $202.9 million in 2024
compared to $148.9 million in 2023. Free cash flow is defined as
cash generated from operating activities less cash paid for capital
expenditures. Capital expenditures on an accrual basis were $81.1
million in 2024 and $121.6 million in 2023.
- The Company did not repurchase shares of its common stock
during the fourth quarter. For 2024, the Company used $252.2
million to repurchase shares of common stock. The remaining
authorization under the share repurchase program on December 31,
2024 was $234.9 million.
- As announced today, the Board of Directors declared a quarterly
dividend of $0.17 per share, an increase of $0.02 per share,
payable to stockholders of record as of February 7, 2025, with a
payment date of February 14, 2025.
2025 Guidance
- Sales of $1.95 billion to $2.05 billion
- Adjusted diluted earnings per share of $2.05 to $2.25
- Free cash flow of greater than $220 million
- Capital Expenditures less than $100 million
- Effective tax rate of 21%
*****
Hexcel will host a conference call at 10:00 a.m. ET, on January
23, 2025 to discuss fourth quarter and full- year 2024 results. The
live webcast will be available on the Investor Relations section of
the Hexcel website via the following link:
https://events.q4inc.com/attendee/820361331. The event can also be
accessed by dialing +1 (646) 307-1963. The conference ID is
2360739. Replays of the call will be available on the website.
*****
About Hexcel
Hexcel Corporation is a global leader in advanced lightweight
composites technology. We propel the future of flight and
transportation through excellence in advanced material
lightweighting solutions that create a better world for us all. Our
broad and unrivaled product range includes carbon fiber, specialty
reinforcements, prepregs and other fiber-reinforced matrix
materials, honeycomb, resins, engineered core and composite
structures for use in commercial aerospace, space and defense, and
industrial applications.
*****
Disclaimer on Forward Looking Statements
This news release contains statements that are forward looking
within the meaning of the Private Securities Litigation Reform Act
of 1995, including statements relating to the estimates and
expectations based on aircraft production rates provided by Airbus,
Boeing and others, and the revenues we may generate from an
aircraft model or program; expectations with regard to the impact
of regulatory activity related to the Boeing 737 MAX on our
revenues; expectations with regard to raw material cost and
availability; expectations of composite content on new commercial
aircraft programs and our share of those requirements; expectations
regarding revenues from space and defense applications, including
whether certain programs might be curtailed or discontinued;
expectations regarding sales for industrial applications;
expectations regarding cash generation, working capital trends, and
inventory levels; expectations as to the level of capital
expenditures, capacity, including the timing of completion of
capacity expansions, and qualification of new products;
expectations regarding our ability to improve or maintain margins;
expectations regarding our ability to attract, motivate, and retain
the workforce necessary to execute our business strategy;
projections regarding our tax rate; expectations with regard to the
continued impact of macroeconomic factors or geopolitical issues or
conflicts; expectations regarding our strategic initiatives,
including, our sustainability goals; expectations with regard to
the effectiveness of cybersecurity measures; expectations regarding
the outcome of legal matters or the impact of changes in laws or
regulations; and our expectations of financial results for 2024 and
beyond. Actual results may differ materially from the results
anticipated in the forward looking statements due to a variety of
factors, including but not limited to the extent of the impact of
macroeconomic factors or geopolitical issues or conflicts;
reductions in sales to any significant customers, particularly
Airbus or Boeing, including related to regulatory activity or
public scrutiny impacting the Boeing 737 MAX; our ability to
effectively adjust production and inventory levels to align with
customer demand; our ability to effectively motivate, retain and
hire the necessary workforce; the availability and cost of raw
materials, including the impact of supply disruptions and
inflation; our ability to successfully implement or realize our
strategic initiatives, including our sustainability goals and any
restructuring or alignment activities in which we may engage;
changes in sales mix; changes in current pricing due to cost
levels; changes in aerospace delivery rates; changes in government
defense procurement budgets; timely new product development or
introduction; our ability to install, staff and qualify necessary
capacity or complete capacity expansions to meet customer demand;
cybersecurity-related risks, including the potential impact of
breaches or intrusions; currency exchange rate fluctuations;
changes in political, social and economic conditions, including the
effect of change in global trade policies, tariff rates, economic
sanctions and embargoes; work stoppages or other labor disruptions;
our ability to successfully complete any strategic acquisitions,
investments or dispositions; compliance with environmental, health,
safety and other related laws and regulations, including those
related to climate change; the effects of natural disasters or
other severe weather events, which may be worsened by the impact of
climate change, and other severe catastrophic events, including any
public health crisis; and the unexpected outcome of legal matters
or impact of changes in laws or regulations. Additional risk
factors are described in our filings with the Securities and
Exchange Commission. We do not undertake an obligation to update
our forward-looking statements to reflect future events.
*****
Hexcel Corporation and
Subsidiaries
Condensed Consolidated Statements of
Operations
Unaudited
Quarters Ended
Years Ended
December 31,
December 31,
(In millions, except per share data)
2024
2023
2024
2023
Net sales
$
473.8
$
457.5
$
1,903.0
$
1,789.0
Cost of sales
355.3
354.4
1,433.2
1,355.8
Gross margin
118.5
103.1
469.8
433.2
% Gross Margin
25.0
%
22.5
%
24.7
%
24.2
%
Selling, general and administrative
expenses
47.9
41.9
176.6
163.8
Research and technology expenses
13.5
12.1
57.1
52.7
Other operating expense
48.2
1.5
50.0
1.4
Operating income
8.9
47.6
186.1
215.3
Interest expense, net
8.1
7.6
31.2
34.0
Other expense
-
71.6
-
71.6
Income (loss) before income taxes, and
equity in earnings of affiliated companies
0.8
(31.6
)
154.9
109.7
Income tax (benefit) expense
(5.0
)
(10.4
)
22.8
12.1
Income (loss) before equity in earnings of
affiliated companies
5.8
(21.2
)
132.1
97.6
Equity in earnings from affiliated
companies
-
3.0
-
8.1
Net income (loss)
$
5.8
$
(18.2
)
$
132.1
$
105.7
Basic net income (loss) per common
share:
$
0.07
$
(0.21
)
$
1.61
$
1.25
Diluted net income (loss) per common
share:
$
0.07
$
(0.21
)
$
1.59
$
1.24
Weighted-average common shares:
Basic
81.2
84.4
82.3
84.6
Diluted
81.9
84.4
83.0
85.5
Hexcel Corporation and
Subsidiaries
Condensed Consolidated Balance
Sheets
Unaudited
December 31,
December 31,
(In millions)
2024
2023
Assets
Cash and cash equivalents
$
125.4
$
227.0
Accounts receivable, net
212.0
234.7
Inventories, net
356.2
334.4
Contract assets
29.8
25.1
Prepaid expenses and other current
assets
50.6
43.0
Assets held for sale
7.5
-
Total current assets
781.5
864.2
Property, plant and equipment
3,163.1
3,195.5
Less accumulated depreciation
(1,566.4
)
(1,516.8
)
Net property, plant and equipment
1,596.7
1,678.7
Goodwill and other intangible assets,
net
237.0
251.3
Investments in affiliated companies
5.0
5.0
Other assets
105.4
119.3
Total assets
$
2,725.6
$
2,918.5
Liabilities and Stockholders'
Equity
Liabilities:
Short-term borrowings
$
0.1
$
0.1
Accounts payable
142.3
159.1
Accrued compensation and benefits
99.7
75.7
Accrued liabilities
107.2
81.0
Liabilities held for sale
4.2
-
Total current liabilities
353.5
315.9
Long-term debt
700.6
699.4
Retirement obligations
31.9
42.6
Other non-current liabilities
111.7
144.1
Total liabilities
$
1,197.7
$
1,202.0
Stockholders' equity:
Common stock, $0.01 par value, 200.0
shares authorized, 111.6 shares issued at December 31, 2024 and
110.8 shares issued at December 31, 2023
$
1.1
$
1.1
Additional paid-in capital
970.0
936.8
Retained earnings
2,251.5
2,168.7
Accumulated other comprehensive loss
(115.0
)
(74.1
)
3,107.6
3,032.5
Less – Treasury stock, at cost, 30.6
shares at December 31, 2024 and 26.7 shares at December 31,
2023
(1,579.7
)
(1,316.0
)
Total stockholders' equity
1,527.9
1,716.5
Total liabilities and stockholders'
equity
$
2,725.6
$
2,918.5
Hexcel Corporation and Subsidiaries
Condensed Consolidated Statements of
Cash Flows
Unaudited
Years Ended
December 31,
(In millions)
2024
2023
Cash flows from operating
activities
Net income
$
132.1
$
105.7
Reconciliation to net cash used for
operating activities:
Depreciation and amortization
124.0
124.8
Amortization related to financing
0.4
0.6
Deferred income taxes
(16.7
)
(32.7
)
Equity in earnings from affiliated
companies
-
(8.1
)
Stock-based compensation
22.2
20.9
Restructuring expenses, net of
payments
-
(4.4
)
Pension settlement
-
70.5
Gain on sale of assets
-
(0.8
)
Impairment of assets
28.9
3.1
Loss on sale of investments
-
3.0
Changes in assets and liabilities:
Decrease (increase) in accounts
receivable
10.7
(8.9
)
Increase in inventories
(34.0
)
(8.9
)
(Increase) decrease in prepaid expenses
and other current assets
(6.7
)
2.6
Increase (decrease) in accounts
payable/accrued liabilities
29.2
(12.2
)
Other - net
(0.2
)
1.9
Net cash provided by operating activities
(a)
289.9
257.1
Cash flows from investing
activities
Capital expenditures (b)
(87.0
)
(108.2
)
Proceeds from sale of assets
-
10.3
Proceeds from sale of investments
-
47.2
Net cash used for investing activities
(87.0
)
(50.7
)
Cash flows from financing
activities
Borrowings from senior unsecured credit
facilities
160.0
103.0
Repayments of senior unsecured credit
facilities
(160.0
)
(128.0
)
Repurchases of common stock
(252.2
)
(30.1
)
Issuance costs related to senior unsecured
credit facilities
-
(2.5
)
Repayment of finance lease obligation and
other debt, net
0.3
(0.2
)
Dividends paid
(49.3
)
(42.2
)
Activity under stock plans
(0.5
)
7.4
Net cash used for financing activities
(301.7
)
(92.6
)
Effect of exchange rate changes on cash
and cash equivalents
(2.8
)
1.2
Net (decrease) increase in cash and cash
equivalents
(101.6
)
115.0
Cash and cash equivalents at beginning of
period
227.0
112.0
Cash and cash equivalents at end of
period
$
125.4
$
227.0
Supplemental data:
Free Cash Flow (a)+(b)
202.9
148.9
Accrual basis additions to property, plant
and equipment
81.1
121.6
Hexcel Corporation and
Subsidiaries
Net Sales to Third-Party Customers by
Market
Quarters Ended December 31, 2024 and
2023
Unaudited
Table A
(In millions)
As Reported
Constant Currency (a)
B/(W)
FX
B/(W)
Market
2024
2023
%
Effect (b)
2023
%
Commercial Aerospace
$
278.3
$
267.5
4.0
$
(1.5
)
$
266.0
4.6
Space & Defense
163.3
152.3
7.2
(0.6
)
151.7
7.6
Industrial
32.2
37.7
(14.6
)
0.1
37.8
(14.8
)
Consolidated Total
$
473.8
$
457.5
3.6
$
(2.0
)
$
455.5
4.0
Consolidated % of Net Sales
%
%
%
Commercial Aerospace
58.7
58.5
58.4
Space & Defense
34.5
33.3
33.3
Industrial
6.8
8.2
8.3
Consolidated Total
100.0
100.0
100.0
Years Ended December 31, 2024 and
2023
Unaudited
(In millions)
As Reported
Constant Currency (a)
B/(W)
FX
B/(W)
Market
2024
2023
%
Effect (b)
2023
%
Commercial Aerospace
$
1,194.2
$
1,068.2
11.8
$
(1.2
)
$
1,067.0
11.9
Space & Defense
569.5
544.8
4.5
(0.3
)
544.5
4.6
Industrial
139.3
176.0
(20.9
)
0.6
176.6
(21.1
)
Consolidated Total
$
1,903.0
$
1,789.0
6.4
$
(0.9
)
$
1,788.1
6.4
Consolidated % of Net Sales
%
%
%
Commercial Aerospace
62.8
59.7
59.7
Space & Defense
29.9
30.5
30.4
Industrial
7.3
9.8
9.9
Consolidated Total
100.0
100.0
100.0
(a)
To assist in the analysis of the Company’s
net sales trend, total net sales and sales by market for the
quarter and year ended December 31, 2023, have been estimated using
the same U.S. dollar, British pound and Euro exchange rates as
applied for the respective periods in 2024 and are referred to as
“constant currency” sales.
(b)
FX effect is the estimated impact on “as
reported” net sales due to changes in foreign currency exchange
rates.
Hexcel Corporation and
Subsidiaries
Segment Information
Unaudited
Table B
(In millions)
Composite Materials
Engineered Products
Corporate & Other
(a)
Total
Fourth Quarter 2024
Net sales to external customers
$
375.3
$
98.5
$
-
$
473.8
Intersegment sales
20.2
0.2
(20.4
)
-
Total sales
395.5
98.7
(20.4
)
473.8
Other operating expense
39.8
6.9
1.5
48.2
Operating income (loss)
20.7
3.7
(15.5
)
8.9
% Operating margin
5.2
%
3.7
%
1.9
%
Depreciation and amortization
27.3
3.7
-
31.0
Stock-based compensation expense
1.1
0.2
1.6
2.9
Accrual based additions to capital
expenditures
15.8
5.7
-
21.5
Fourth Quarter 2023
Net sales to external customers
$
377.0
$
80.5
$
-
$
457.5
Intersegment sales
16.6
0.7
(17.3
)
-
Total sales
393.6
81.2
(17.3
)
457.5
Other operating expense (income)
1.5
-
-
1.5
Operating income (loss)
56.8
7.8
(17.0
)
47.6
% Operating margin
14.4
%
9.6
%
10.4
%
Depreciation and amortization
27.9
3.7
-
31.6
Stock-based compensation expense
1.0
0.3
1.3
2.6
Accrual based additions to capital
expenditures
29.3
3.6
-
32.9
Year Ended December 31, 2024
Net sales to external customers
$
1,531.0
$
372.0
$
-
$
1,903.0
Intersegment sales
90.0
1.2
(91.2
)
-
Total sales
1,621.0
373.2
(91.2
)
1,903.0
Other operating expense
40.8
7.7
1.5
50.0
Operating income (loss)
215.0
39.6
(68.5
)
186.1
% Operating margin
13.3
%
10.6
%
9.8
%
Depreciation and amortization
109.1
14.9
-
124.0
Stock-based compensation expense
6.1
1.5
14.6
22.2
Accrual based additions to capital
expenditures
67.1
14.0
-
81.1
Year Ended December 31, 2023
Net sales to external customers
$
1,474.2
$
314.8
$
-
$
1,789.0
Intersegment sales
70.6
2.4
(73.0
)
-
Total sales
1,544.8
317.2
(73.0
)
1,789.0
Other operating expense (income)
1.2
0.2
-
1.4
Operating income (loss)
237.9
32.8
(55.4
)
215.3
% Operating margin
15.4
%
10.3
%
12.0
%
Depreciation and amortization
110.4
14.4
-
124.8
Stock-based compensation expense
6.2
1.7
13.0
20.9
Accrual based additions to capital
expenditures
70.9
50.7
-
121.6
(a) Hexcel does not allocate corporate
expenses to the operating segments.
Hexcel Corporation and
Subsidiaries
Reconciliation of GAAP to Non-GAAP
Operating Income, Net Income (Loss), EPS and Operating Cash Flow to
Free Cash Flow
Table C
Unaudited
Quarters Ended
Years Ended
December 31,
December 31,
(In millions)
2024
2023
2024
2023
GAAP operating income
$
8.9
$
47.6
$
186.1
$
215.3
Other operating expense (a)
48.2
1.5
50.0
1.4
Non-GAAP operating income
$
57.1
$
49.1
$
236.1
$
216.7
Unaudited
Quarters Ended December 31,
2024
2023
(In millions, except per diluted share
data)
Net Income
EPS
Net (Loss) Income
EPS
GAAP
$
5.8
$
0.07
$
(18.2
)
$
(0.21
)
Other operating expense, net of tax
(a)
39.1
0.48
1.1
0.01
Other expense, net of tax (b)
-
-
57.4
0.67
Tax benefit (c)
(2.3
)
(0.03
)
(3.7
)
(0.04
)
Non-GAAP
$
42.6
$
0.52
$
36.6
$
0.43
Unaudited
Years Ended December 31,
2024
2023
(In millions, except per diluted share
data)
Net Income
EPS
Net Income
EPS
GAAP
$
132.1
$
1.59
$
105.7
$
1.24
Other operating expense, net of tax
(a)
40.5
0.49
1.0
0.01
Other expense net of tax (b)
-
-
57.4
0.67
Tax benefit (c)
(4.1
)
(0.05
)
(9.3
)
(0.11
)
Non-GAAP
$
168.5
$
2.03
$
154.8
$
1.81
Unaudited
Years Ended December 31,
(In millions)
2024
2023
Net cash provided by operating
activities
$
289.9
$
257.1
Less: Capital expenditures
(87.0
)
(108.2
)
Free cash flow (non-GAAP)
$
202.9
$
148.9
(a)
The quarter and year ended December 31,
2024 included asset impairments and other charges primarily
associated with our announced potential divestiture for our
Neumarkt, Austria plant. The quarter and year ended December 31,
2024 also included restructuring costs. The quarter and year ended
December 31, 2023 included restructuring costs. The year ended
December 31, 2023 also included the net gain of $0.8 million from
the sale of the facility in Windsor, Colorado.
(b)
Both the quarter and year ended December
31, 2023, included (i) a charge of $70.5 million related to the
buy-out of the UK pension plan; (ii) a charge of $3.0 million
(including the write-off of approximately $9 million in currency
translation amounts) related to the sale of the joint venture
interest in Malaysia; and (iii) a pre-tax gain of $1.9 million for
the reversion of excess assets related to the UK pension plan.
(c)
The quarter and year ended December 31,
2024 included benefits associated with our R&D expenditures,
partially offset by the recording of a valuation allowance in a
foreign jurisdiction. The year ended December 31, 2024 also
included a discrete tax benefit related to adjustments to our
provision based on the finalization of prior year tax returns. The
quarter ended December 31, 2023 included a discrete tax benefit
primarily related to the true up of deferred tax items and the year
ended December 31, 2023 also included a discrete tax benefit,
primarily related to adjustments to the provision based on the
finalization of prior year tax returns.
NOTE: Management believes that
adjusted operating income, adjusted net income, adjusted diluted
net income per share and free cash flow, which are non-GAAP
measures, are meaningful to investors because they provide a view
of Hexcel with respect to the underlying operating results
excluding special items. Special items represent significant
charges or credits that are important to an understanding of
Hexcel’s overall operating results in the periods presented.
Non-GAAP measurements are not recognized in accordance with
generally accepted accounting principles and should not be viewed
as an alternative to GAAP measures of performance.
Hexcel Corporation and Subsidiaries
Schedule of Total Debt, Net of
Cash
Table D
Unaudited
December 31,
December 31,
December 31,
(In millions)
2024
2023
2022
Current portion finance lease
$
0.1
$
0.1
$
0.2
Total current debt
0.1
0.1
0.2
Senior unsecured credit facility
-
-
25.0
4.7% senior notes due 2025
300.0
300.0
300.0
3.95% senior notes due 2027
400.0
400.0
400.0
Senior notes original issue discounts
(0.4
)
(0.7
)
(0.9
)
Senior notes deferred financing costs
(0.9
)
(1.6
)
(2.2
)
Other debt
1.9
1.7
1.4
Total long-term debt
700.6
699.4
723.3
Total Debt
700.7
699.5
723.5
Less: Cash and cash equivalents
(125.4
)
(227.0
)
(112.0
)
Total debt, net of cash
$
575.3
$
472.5
$
611.5
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250122654067/en/
Kurt Goddard | Vice President Investor Relations |
Kurt.Goddard@Hexcel.com | +1 (203)-352-6826
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