Hexcel Provides Financial Outlook
February 20 2024 - 12:00PM
Business Wire
Hexcel Corporation (NYSE: HXL), a global leader in advanced
lightweight composites technology, announced today its longer-term
financial outlook during the Company’s Investor Day held in New
York City.
Chairman, CEO and President Nick Stanage said: “Hexcel is
benefitting from both cyclical growth as aircraft production rates
increase to support strong demand, and from secular growth
reflecting our advanced composite technology value proposition as
lightweighting supports fuel efficiency and emissions reduction. We
are forecasting strong sales growth over the next three years, and
we expect robust earnings expansion as we leverage our global
manufacturing footprint. We are entering a period of strong cash
generation, which will support continued investment in operational
excellence and organic growth, the potential for strategic
acquisitions, and returning cash to stockholders.”
Outlook
For the three-year period 2024 to 2026:
- Total Sales to grow at a compounded annual growth rate (CAGR)
of 10%-12%
- Commercial Aerospace 12%-16% CAGR
- Space & Defense 5%-10% CAGR
- Industrial 3%-6% CAGR
- Adjusted Diluted Earnings Per Share* to grow at greater than a
25% CAGR
- Capital Expenditures of less than $100 million per year during
this three-year period
Cumulatively for the three-year period 2024 to 2026:
- Adjusted EBITDA* greater than $1.5 billion
- Free Cash Flow* greater than $800 million
Share repurchase update:
- Approximately $65 million in Hexcel stock purchased year to
date through Feb 16
- Board of Directors approved an additional $300 million share
repurchase program
Mr. Stanage continued, “We have the right team in place, our
innovation is a powerful competitive advantage, our long-term
customer relationships are broad and deep, and our markets are
growing - all of which support continued and compelling value
creation for our stockholders.”
As previously disclosed, the management audio presentation was
webcast live and a supporting slide deck is available on the
investor relations webpage of the Hexcel website at www.Hexcel.com.
A replay will be available on the investor relations webpage of the
Hexcel website.
*Non-GAAP Measures
Adjusted diluted earnings per share, adjusted earnings before
interest, taxes, depreciation and amortization, and free cash flow
(defined as cash provided by operating activities less cash
payments for capital expenditures) are non-GAAP measures.
Management believes that adjusted diluted earnings per share,
EBITDA and free cash flow are meaningful to investors because they
provide a view of Hexcel with respect to ongoing 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. The Company is
not providing a quantitative reconciliation of our non-GAAP outlook
or targets to the corresponding GAAP information because the GAAP
measures that we exclude from our non-GAAP outlook and targets are
difficult to predict and are primarily dependent on future
uncertainties.
Disclaimer on Forward Looking Statements
This news release contains certain statements that constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements that are
not of historical fact constitute “forward-looking statements” and
accordingly, involve estimates, assumptions, forecasts, judgments
and uncertainties. There are a number of factors that could cause
actual results or outcomes to differ materially from those
addressed in the forward-looking statements. Such factors are
detailed in the Forward Looking Statements and Risk Factors
sections of the Company’s Annual Report on Form 10-K for the fiscal
year ended December 31, 2023 filed with the Securities and Exchange
Commission. We do not undertake an obligation to update our
forward-looking statements to reflect future events.
*****
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240220964232/en/
Kurt Goddard | Vice President Investor Relations |
Kurt.Goddard@Hexcel.com | +1 (203) 352-6826
Hexcel (NYSE:HXL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Hexcel (NYSE:HXL)
Historical Stock Chart
From Apr 2023 to Apr 2024