HXL Hexcel Corporation

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 21, 2024

 

 

Hexcel Corporation

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware			1-8472	94-1109521
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
Two Stamford Plaza 281 Tresser Boulevard
Stamford, Connecticut				06901-3238
(Address of Principal Executive Offices)				(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (203) 969-0666

 

N/A

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.01		HXL		The New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

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Section 2 – Financial Information

Item 2.02 Results of Operations and Financial Condition.

On October 21, 2024 Hexcel Corporation (the “Company”) issued a press release in which the Company announced its financial results for its fiscal quarter ended September 30, 2024. A copy of this earnings press release is being furnished as Exhibit 99.1 and is incorporated herein by reference.

 

Section 7 – Regulation FD

Item 7.01 Regulation FD Disclosure.

The information contained in Item 2.02 of this Current Report on Form 8-K is incorporated by reference into this Item 7.01.

 

The information contained in Items 2.02 and 7.01 of this Current Report on Form 8-K (including Exhibit 99.1) shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, except as shall be expressly set forth by specific reference in such a filing.

 

Section 8 – Other Events

 

Item 8.01 Other Events.

 

On October 21, 2024 the Company posted to its website a table which summarizes sales by segment and market for the quarters ended September 30, 2024 and 2023, June 30, 2024 and 2023 and the nine-month periods ended September 30, 2024 and 2023. A copy of this information is being filed as Exhibit 99.2 and is incorporated herein by reference. Other information appearing on the Company’s website is not incorporated by reference herein.

 

Section 9 – Financial Statements and Exhibits

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits

 

99.1	Press Release issued by the Company on October 21, 2024.
99.2	Sales by segment and market for the quarters ended September 30, 2024 and 2023, June 30, 2024 and 2023 and the nine-month periods ended September 30, 2024 and 2023.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

		HEXCEL CORPORATION
October 21, 2024		/s/ Amy S. Evans
		Amy S. Evans
		Senior Vice President,
		Chief Accounting Officer

 

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Exhibit 99.1

 

HEXCEL REPORTS 2024 THIRD QUARTER RESULTS

 

• Q3 2024 Sales were $457 million, an increase of 8.8% over Q3 2023 sales of $420 million (8.3% increase in constant currency). • Q3 2024 GAAP diluted EPS of $0.49 compared to Q3 2023 GAAP diluted EPS of $0.45. • Q3 2024 adjusted diluted EPS of $0.47, compared to Q3 2023 adjusted diluted EPS of $0.38. • Full year 2024 results expected to be at the lower end of guidance ranges and to benefit from lower tax rates.

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									Nine Months Ended
		September 30,									September 30,
(In millions, except per share data)		2024				2023				% Change	2024			2023			% Change
Net Sales		$	456.5			$	419.5			8.8 %	$	1,429.2		$	1,331.5		7.3 %
Net sales change in constant currency										8.3 %							7.2 %
Operating Income			52.5				43.6			20.4 %		177.2			167.7		5.7 %
Net Income			39.8				38.7			2.8 %		126.3			123.9		1.9 %
Diluted net income per common share		$	0.49			$	0.45			8.9 %	$	1.52		$	1.45		4.8 %
Non-GAAP measures for year-over-year comparison (Table C)
Adjusted Operating Income		$	52.9			$	42.8			23.6 %	$	179.0		$	167.6		6.8 %
As a % of sales			11.6	%			10.2	%				12.5	%		12.6	%
Adjusted Net Income			38.3				32.5			17.8 %		125.9			118.2		6.5 %
Adjusted diluted net income per share		$	0.47			$	0.38			23.7 %	$	1.51		$	1.38		9.4 %

 

STAMFORD, Conn. October 21, 2024 – Hexcel Corporation (NYSE: HXL) today reported third quarter 2024 results including net sales of $457 million and adjusted diluted EPS of $0.47 per share.

 

CEO and President Tom Gentile said, “Hexcel saw 9% growth in total revenue year over year, driven by a robust 17% growth in commercial aerospace. Year-to-date commercial aerospace is now up 14%. Air traffic continues to grow post pandemic leading to record demand for aircraft that use Hexcel lightweight materials, but supply chain challenges in the global aerospace industry continue to delay planned production rate increases at our major customers. Our customers are currently indicating that production rates will increase in 2025. We will continue to monitor our cost and labor training position to meet those projected production rate increases as schedules firm.”

 

Mr. Gentile continued, “Whereas the overall aerospace supply chain seemed to be recovering in late-2023, new challenges and shortages have developed as 2024 has progressed. As our business is impacted by the near-term slowing of previously planned production rate ramps by our key customers, we now expect FY 2024 sales and adjusted EPS to be at the lower end of our 2024 guidance ranges and

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will benefit from lower tax rates. Further, given recent developments, the assumptions for future production rates that were the basis for our mid-term guidance for the three-year period 2024-2026 provided in February 2024 are no longer valid. We are therefore withdrawing our previously issued mid-term guidance and will provide guidance for 2025, with our Q4 earnings in January.”

 

Mr. Gentile concluded: “Our longer-term growth outlook remains robust, driven by the ongoing recovery of commercial aerospace production to meet historically strong backlogs. Hexcel lightweight materials are also in demand for military aerospace and next generation commercial aircraft that seek composite lightweighting to reduce fuel consumption, increase range, and decrease carbon emissions. We are continuing to focus on execution and cash generation. We see compelling value in our business and repurchased another $50 million of Hexcel common stock in the third quarter bringing the year-to-date total to $252 million.”

 

Markets

Sales in the third quarter of 2024 were $456.5 million compared to $419.5 million in the third quarter of 2023.

Commercial Aerospace

 

Space & Defense

 

 

Industrial

 

Consolidated Operations

Gross margin for the third quarter of 2024 was 23.3% compared to 21.8% in the third quarter of 2023. As a percentage of sales, selling, general and administrative expenses for the third quarter of 2024 was 8.7% compared to 8.4% for the third quarter of 2023. R&T expenses as a percentage of sales was 3.0% for the third quarter of 2024 compared to 3.2% for the third quarter of 2023. Adjusted operating income in the third quarter of 2024 was $52.9 million or 11.6% of sales, compared to $42.8 million, or 10.2% of sales in 2023. The impact of exchange rates on operating income as a percent of sales was favorable by approximately 10 basis points in the third quarter of 2024 compared to the third quarter of 2023.

 

Year-to-Date 2024 Results

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Sales for the first nine months of 2024 were $1,429.2 million compared to $1,331.5 million, a 7.3% increase from the same period in 2023.

Commercial Aerospace (64% of YTD sales)

Space & Defense (28% of YTD sales)

 

Industrial (8% of YTD sales)

 

Consolidated Operations

Gross margin for the first nine months of 2024 was 24.6% compared to 24.8% in the prior year period. As a percentage of sales, selling, general and administrative for the first nine months of 2024 was 9.0% compared to 9.2% for the first nine months of 2023. R&T expenses as a percentage of sales for the first nine months of 2024 was 3.1% compared to 3.0% for the first nine months of 2023. Adjusted operating income for the first nine months of 2024 was $179.0 million or 12.5% of sales, compared to $167.6 million or 12.6% of sales in 2023. Other operating expense (income) for the first nine months of 2024 and 2023 included restructuring costs and the first nine months of 2023 included a pre-tax net gain of $0.8 million from the sale of a facility in Windsor, Colorado. The impact of exchange rates on operating income as a percent of sales was favorable by approximately 30 basis points in the first nine months of 2024 compared to the first nine months of 2023.

 

Cash and other

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2024 Guidance

 

*****

Hexcel will host a conference call at 10:00 a.m. ET, on October 22, 2024 to discuss third quarter 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/273321724 TThe 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.

 

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About Hexcel

Hexcel Corporation is a global leader in advanced lightweight composites technology. We propel the future of flight, energy generation, transportation, and recreation through excellence in providing innovative high-performance material solutions that are lighter, stronger and tougher, helping to 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.

 

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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 or Boeing 787 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

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to regulatory activity or public scrutiny impacting the Boeing 737 MAX or the Boeing 787; 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, such as sanctions; 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.

 

Contact

Kurt Goddard | Vice President Investor Relations | Kurt.Goddard@Hexcel.com | +1 (203)-352-6826

 

 

*****

 

 

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Hexcel Corporation and Subsidiaries
Condensed Consolidated Statements of Operations
		Unaudited
		Quarters Ended								Nine Months Ended
		September 30,								September 30,
(In millions, except per share data)		2024				2023				2024				2023
Net sales		$	456.5			$	419.5			$	1,429.2			$	1,331.5
Cost of sales			350.0				327.9				1,077.9				1,001.4
Gross margin			106.5				91.6				351.3				330.1
% Gross Margin			23.3	%			21.8	%			24.6	%			24.8	%
Selling, general and administrative expenses			39.8				35.4				128.7				121.9
Research and technology expenses			13.8				13.4				43.6				40.6
Other operating expense (income)			0.4				(0.8	)			1.8				(0.1	)
Operating income			52.5				43.6				177.2				167.7
Interest expense, net			8.5				7.8				23.1				26.4
Income before income taxes, and equity in earnings of affiliated companies			44.0				35.8				154.1				141.3
Income tax expense (benefit)			4.2				(0.7	)			27.8				22.5
Income before equity in earnings of affiliated companies			39.8				36.5				126.3				118.8
Equity in earnings from affiliated companies			-				2.2				-				5.1
Net income		$	39.8			$	38.7			$	126.3			$	123.9
Basic net income per common share:		$	0.49			$	0.46			$	1.53			$	1.46
Diluted net income per common share:		$	0.49			$	0.45			$	1.52			$	1.45
Weighted-average common shares:
Basic			81.5				84.6				82.6				84.6
Diluted			82.1				85.6				83.3				85.5

 

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Hexcel Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
		Unaudited
		September 30,				December 31,
(In millions)		2024				2023
Assets
Cash and cash equivalents		$	98.2			$	227.0
Accounts receivable, net			258.6				234.7
Inventories, net			376.0				334.4
Contract assets			35.5				25.1
Prepaid expenses and other current assets			59.7				43.0
Total current assets			828.0				864.2
Property, plant and equipment			3,270.5				3,195.5
Less accumulated depreciation			(1,612.9	)			(1,516.8	)
Net property, plant and equipment			1,657.6				1,678.7
Goodwill and other intangible assets, net			247.7				251.3
Investments in affiliated companies			5.0				5.0
Other assets			124.0				119.3
Total assets		$	2,862.3			$	2,918.5
Liabilities and Stockholders' Equity
Liabilities:
Short-term borrowings		$	0.1			$	0.1
Accounts payable			124.2				159.1
Accrued compensation and benefits			95.6				75.7
Accrued liabilities			80.1				81.0
Total current liabilities			300.0				315.9
Long-term debt			805.1				699.4
Retirement obligations			32.7				42.6
Other non-current liabilities			135.0				144.1
Total liabilities		$	1,272.8			$	1,202.0
Stockholders' equity:
Common stock, $0.01 par value, 200.0 shares authorized, 111.5 shares issued at September 30, 2024 and 110.8 shares issued at December 31, 2023		$	1.1			$	1.1
Additional paid-in capital			964.1				936.8
Retained earnings			2,257.8				2,168.7
Accumulated other comprehensive loss			(53.9	)			(74.1	)
			3,169.1				3,032.5
Less – Treasury stock, at cost, 30.5 shares at September 30, 2024 and 26.7 shares at December 31, 2023			(1,579.6	)			(1,316.0	)
Total stockholders' equity			1,589.5				1,716.5
Total liabilities and stockholders' equity		$	2,862.3			$	2,918.5

 

 

 

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Hexcel Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows
		Unaudited
		Nine Months Ended
		September 30,
(In millions)		2024				2023
Cash flows from operating activities
Net income		$	126.3			$	123.9
Reconciliation to net cash provided by operating activities:
Depreciation and amortization			93.0				93.2
Amortization related to financing			0.3				0.5
Deferred income taxes			(4.4	)			(12.3	)
Equity in earnings from affiliated companies			-				(5.1	)
Stock-based compensation			19.3				18.3
Restructuring expenses, net of payments			0.4				(4.1	)
Impairment of assets			-				1.7
Gain on sale of assets			-				(0.8	)
Changes in assets and liabilities:
Increase in accounts receivable			(19.7	)			(15.8	)
Increase in inventories			(37.5	)			(33.2	)
Increase in prepaid expenses and other current assets			(20.8	)			(9.4	)
Decrease in accounts payable/accrued liabilities			(15.1	)			(53.7	)
Other - net			(14.5	)			(5.1	)
Net cash provided by operating activities (a)			127.3				98.1
Cash flows from investing activities
Capital expenditures (b)			(68.4	)			(94.4	)
Proceeds from sale of assets			-				10.3
Proceeds from sale of investments			-				2.5
Net cash used for investing activities			(68.4	)			(81.6	)
Cash flows from financing activities
Borrowings from senior unsecured credit facilities			160.0				163.0
Repayments of senior unsecured credit facilities			(55.0	)			(133.0	)
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			(0.1	)			(0.1	)
Dividends paid			(37.2	)			(31.7	)
Activity under stock plans			(3.3	)			4.7
Net cash used for financing activities			(187.8	)			(29.7	)
Effect of exchange rate changes on cash and cash equivalents			0.1				(1.1	)
Net decrease in cash and cash equivalents			(128.8	)			(14.3	)
Cash and cash equivalents at beginning of period			227.0				112.0
Cash and cash equivalents at end of period		$	98.2			$	97.7
Supplemental data:
Free Cash Flow (a)+(b)		$	58.9			$	3.7
Accrual basis additions to property, plant and equipment		$	59.6			$	88.7

 

 

 

 

 

 

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Hexcel Corporation and Subsidiaries
Net Sales to Third-Party Customers by Market
Quarters Ended September 30, 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		$	295.9			$	251.9				17.5			$	1.0			$	252.9				17.0
Space & Defense			128.2				128.8				(0.5	)			0.5				129.3				(0.9	)
Industrial			32.4				38.8				(16.5	)			0.4				39.2				(17.3	)
Consolidated Total		$	456.5			$	419.5				8.8			$	1.9			$	421.4				8.3
Consolidated % of Net Sales		%				%												%
Commercial Aerospace			64.8				60.0												60.0
Space & Defense			28.1				30.7												30.7
Industrial			7.1				9.3												9.3
Consolidated Total			100.0				100.0												100.0
Nine Months Ended September 30, 2024 and 2023														Unaudited
(In millions)		As Reported												Constant Currency (a)
										B/(W)				FX								B/(W)
Market		2024				2023				%				Effect (b)				2023				%
Commercial Aerospace		$	915.9			$	800.7				14.4			$	0.3			$	801.0				14.3
Space & Defense			406.2				392.5				3.5				0.3				392.8				3.4
Industrial			107.1				138.3				(22.6	)			0.5				138.8				(22.8	)
Consolidated Total		$	1,429.2			$	1,331.5				7.3			$	1.1			$	1,332.6				7.2
Consolidated % of Net Sales		%				%												%
Commercial Aerospace			64.1				60.1												60.1
Space & Defense			28.4				29.5												29.5
Industrial			7.5				10.4												10.4
Consolidated Total			100.0				100.0												100.0

 

 

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Hexcel Corporation and Subsidiaries
Segment Information		Unaudited												Table B
(In millions)		Composite Materials				Engineered Products				Corporate & Other (a)				Total
Third Quarter 2024
Net sales to external customers		$	367.6			$	88.9			$	-			$	456.5
Intersegment sales			22.6				0.1				(22.7	)			-
Total sales			390.2				89.0				(22.7	)			456.5
Other operating expense			0.2				0.2				-				0.4
Operating income (loss)			56.3				10.0				(13.8	)			52.5
% Operating margin			14.4	%			11.2	%							11.5	%
Depreciation and amortization			27.3				3.7				-				31.0
Stock-based compensation expense			0.8				0.2				1.9				2.9
Accrual based additions to capital expenditures			16.0				2.5				-				18.5
Third Quarter 2023
Net sales to external customers		$	340.5			$	79.0			$	-			$	419.5
Intersegment sales			16.2				0.2				(16.4	)			-
Total sales			356.7				79.2				(16.4	)			419.5
Other operating income			(0.8	)			-				-				(0.8	)
Operating income (loss)			43.7				6.2				(6.3	)			43.6
% Operating margin			12.3	%			7.8	%							10.4	%
Depreciation and amortization			27.8				3.7				-				31.5
Stock-based compensation expense			1.0				0.3				1.3				2.6
Accrual based additions to capital expenditures			15.6				2.6				-				18.2
First Nine Months 2024
Net sales to external customers		$	1,155.7			$	273.5			$	-			$	1,429.2
Intersegment sales			69.8				1.0				(70.8	)			-
Total sales			1,225.5				274.5				(70.8	)			1,429.2
Other operating expense			1.0				0.8				-				1.8
Operating income (loss)			194.3				35.9				(53.0	)			177.2
% Operating margin			15.9	%			13.1	%							12.4	%
Depreciation and amortization			81.8				11.2				-				93.0
Stock-based compensation expense			5.0				1.3				13.0				19.3
Accrual based additions to capital expenditures			51.3				8.3				-				59.6
First Nine Months 2023
Net sales to external customers		$	1,097.2			$	234.3			$	-			$	1,331.5
Intersegment sales			54.0				1.7				(55.7	)			-
Total sales			1,151.2				236.0				(55.7	)			1,331.5
Other operating (income) expense			(0.3	)			0.2				-				(0.1	)
Operating income (loss)			181.1				25.0				(38.4	)			167.7
% Operating margin			15.7	%			10.6	%							12.6	%
Depreciation and amortization			82.5				10.7				-				93.2
Stock-based compensation expense			5.2				1.4				11.7				18.3
Accrual based additions to capital expenditures			41.6				47.1				-				88.7

 

(a) Hexcel does not allocate corporate expenses to the operating segments.

 

 

 

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Hexcel Corporation and Subsidiaries
Reconciliation of GAAP to Non-GAAP Operating Income, Net Income, EPS and Operating Cash Flow to Free Cash Flow														Table C
		Unaudited
		Quarters Ended								Nine Months Ended
		September 30,								September 30,
(In millions)		2024				2023				2024				2023
GAAP operating income		$	52.5			$	43.6			$	177.2			$	167.7
Other operating expense (income) (a)			0.4				(0.8	)			1.8				(0.1	)
Non-GAAP operating income		$	52.9			$	42.8			$	179.0			$	167.6

 

 

		Unaudited
		Quarters Ended September 30,
		2024								2023
(In millions, except per diluted share data)		Net Income				EPS				Net Income				EPS
GAAP		$	39.8			$	0.49			$	38.7			$	0.45
Other operating expense (income), net of tax (a)			0.3				-				(0.6	)			(0.01	)
Tax benefit (b)			(1.8	)			(0.02	)			(5.6	)			(0.06	)
Non-GAAP		$	38.3			$	0.47			$	32.5			$	0.38

 

 

		Unaudited
		Nine Months Ended September 30,
		2024								2023
(In millions, except per diluted share data)		Net Income				EPS				Net Income				EPS
GAAP		$	126.3			$	1.52			$	123.9			$	1.45
Other operating expense (income), net of tax (a)			1.4				0.01				(0.1	)			-
Tax benefit (b)			(1.8	)			(0.02	)			(5.6	)			(0.07	)
Non-GAAP		$	125.9			$	1.51			$	118.2			$	1.38

 

 

		Unaudited
		Nine Months Ended September 30,
(In millions)		2024				2023
Net cash provided by operating activities		$	127.3			$	98.1
Less: Capital expenditures			(68.4	)			(94.4	)
Free cash flow (non-GAAP)		$	58.9			$	3.7

 

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.

 

 

 

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Hexcel Corporation and Subsidiaries
Schedule of Total Debt, Net of Cash										Table D
		Unaudited
		September 30,				December 31,				September 30,
(In millions)		2024				2023				2023
Current portion finance lease		$	0.1			$	0.1			$	0.1
Total current debt			0.1				0.1				0.1
Senior unsecured credit facility			105.0				-				55.0
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			(0.5	)			(0.7	)			(0.7	)
Senior notes deferred financing costs			(1.1	)			(1.6	)			(1.7	)
Other debt			1.7				1.7				1.5
Total long-term debt			805.1				699.4				754.1
Total Debt			805.2				699.5				754.2
Less: Cash and cash equivalents			(98.2	)			(227.0	)			(97.7	)
Total debt, net of cash		$	707.0			$	472.5			$	656.5

 

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EXHIBIT 99.2

 

Hexcel Corporation and Subsidiaries
Net Sales by Segment and Market
For the Quarters Ended September 30, 2024 and 2023, June 30, 2024 and 2023
and the Nine-Months Ended September 30, 2024 and 2023
		Unaudited
		Commercial				Space &
(In millions)		Aerospace				Defense				Industrial				Total
Third Quarter 2024
Composite Materials		$	250.3			$	85.9			$	31.4			$	367.6
Engineered Products			45.6				42.3				1.0				88.9
Total		$	295.9			$	128.2			$	32.4			$	456.5
			65	%			28	%			7	%			100	%
Second Quarter 2024
Composite Materials		$	272.6			$	96.0			$	40.0			$	408.6
Engineered Products			48.1				42.9				0.8				91.8
Total		$	320.7			$	138.9			$	40.8			$	500.4
			64	%			28	%			8	%			100	%
Third Quarter 2023
Composite Materials		$	212.7			$	90.0			$	37.8			$	340.5
Engineered Products			39.2				38.8				1.0				79.0
Total		$	251.9			$	128.8			$	38.8			$	419.5
			60	%			31	%			9	%			100	%
Second Quarter 2023
Composite Materials		$	228.9			$	97.9			$	51.7			$	378.5
Engineered Products			35.4				39.6				0.8				75.8
Total		$	264.3			$	137.5			$	52.5			$	454.3
			58	%			30	%			12	%			100	%
Year to date September 30, 2024
Composite Materials		$	774.4			$	276.6			$	104.7			$	1,155.7
Engineered Products			141.5				129.6				2.4				273.5
Total		$	915.9			$	406.2			$	107.1			$	1,429.2
			64	%			29	%			7	%			100	%
Year to date September 30, 2023
Composite Materials		$	684.8			$	276.7			$	135.7			$	1,097.2
Engineered Products			115.9				115.8				2.6				234.3
Total		$	800.7			$	392.5			$	138.3			$	1,331.5
			60	%			30	%			10	%			100	%

 

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v3.24.3

Document And Entity Information	Oct. 21, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Oct. 21, 2024
Entity Registrant Name	Hexcel Corporation
Entity Central Index Key	0000717605
Entity Emerging Growth Company	false
Entity File Number	1-8472
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	94-1109521
Entity Address, Address Line One	Two Stamford Plaza
Entity Address, Address Line Two	281 Tresser Boulevard
Entity Address, City or Town	Stamford
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06901-3238
City Area Code	(203)
Local Phone Number	969-0666
Entity Information, Former Legal or Registered Name	N/A
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.01
Trading Symbol	HXL
Security Exchange Name	NYSE

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