STAMFORD, Conn. - Hexcel Corporation (NYSE:HXL) announced its second quarter 2024 financial results, surpassing analyst expectations with an adjusted diluted EPS of $0.60, which was $0.04 higher than the consensus estimate of $0.56.
The company's revenue also exceeded forecasts, reaching $500.4 million against the anticipated $485.82 million.
Hexcel's second quarter performance showcased a 10.1% increase in sales compared to the same period last year, with a reported $454 million in Q2 2023. This growth was even more pronounced in constant currency terms, registering a 10.5% rise. The improved financial metrics are attributed to robust demand across the company's commercial aerospace sector, which saw a 21.3% jump in sales, driven by double-digit percentage increases in both widebody and narrowbody aircraft sales.
President and CEO Tom Gentile commented on the results, highlighting the strong revenue growth that contributed to the company's margin recovery. Despite this, Gentile noted a more cautious approach reflected in the revised full-year 2024 guidance due to the current aircraft delivery levels and production plans announced by customers. The revised guidance anticipates sales between $1.90 billion and $1.98 billion, with adjusted diluted EPS ranging from $2.02 to $2.18, which is slightly below the analyst consensus of $2.21 for EPS.
Hexcel's gross margin for the quarter improved to 25.3% from 24.4% in Q2 2023, benefiting from higher sales and favorable cost leverage. The company continues to focus on high-end premium industrial segments utilizing carbon fiber, despite a 22.3% decline in total industrial sales for the quarter.
For the first six months of 2024, Hexcel reported sales of $972.7 million, a 6.7% increase from the same period in 2023. Gross margin for the first half of the year came in at 25.2%, slightly lower than the 26.2% reported in the previous year.
Hexcel's strategic initiatives, including a $100 million share repurchase during the second quarter, reflect the company's confidence in its future growth. Gentile also emphasized the importance of Hexcel's lightweight materials in reducing carbon emissions and the ongoing development of technologies for more sustainable aviation.
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