Hexcel reports Q3 EPS 38c, consensus 43c

Reports Q3 revenue $419.5M, consensus $427.3M. Chairman, CEO and President Nick Stanage said, “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. As we previously forecasted, the third quarter was seasonally impacted, and this combined with some general Commercial Aerospace market supply chain challenges, led to the lower sequential sales level. We delivered double-digit operating margin of 10.2% and an adjusted EPS of $0.38, an increase of 15% year over year. Year to date adjusted EPS has now increased nearly 57% year over year. Hexcel is well positioned, with infrastructure and headcount in place, to meet the expected strong growth ahead driven by the record backlog levels for new commercial aircraft. Our continued focus and strong execution led to Cash from Operations of $68 million compared to $38 million in the third quarter of 2022. We remain committed to delivering our guidance for 2023, including expectations for strong free cash flow generation in the fourth quarter.”