- Hexcel (NYSE:HXL) reported Q2 sales growth of 11.2% Y/Y to $609M, and +12.1% Y/Y on constant currency basis.
- Net sales by end market: Commercial Aerospace: $416.5M (+8.5%); Space & Defense $111.8M (+21/9%); and Industrial $80.7M (+12.1%).
- Q2 Gross margin improved by 127 bps to 27.7%, reflecting strong operational execution and decline in operational headwinds.
- Operating margin expanded by 127 bps to 18.9%, as exchange rates favorably impacted the quarter by ~40 bps.
- Q2 Operating expenses: SG&A $39.5M (+11.9% Y/Y) and Research and technology $14.2M (+9.2% Y/Y).
- Net cash provided by operating activities YTD was $157.2M, in line with last year; and FCF was $57.9M.
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FY19 Guidance: Sales of $2.375B to $2.475B; Adj. diluted EPS of $3.43 to $3.53 (prior $3.38 - $3.52); Free cash flow greater than $250M; and Capex of $170M to $190M.
- Previously: Hexcel EPS beats by $0.05, beats on revenue (July 22)
- Previously: Hexcel declares $0.17 dividend (July 22)