EADSY - Hexcel's revenue grows 17% on aerospace strength

2023-04-24 17:16:52 ET

Hexcel ( NYSE: HXL ) on Monday reported that its revenue grew 17% from a year earlier to $457.7 million amid higher demand for materials to make airplanes. Adjusted EPS of $0.50 beat the consensus estimate of $0.38.

Its commercial aerospace unit boosted sales by 30% from the prior year to $284.5 million as Airbus ( OTCPK:EADSY ) ( OTCPK:EADSF ) expanded output of the A350 and A320neo commercial jets.

Aircraft manufacturers such Airbus ( OTCPK:EADSY ) ( OTCPK:EADSF ) and Boeing ( BA ) have worked to keep up with a surge in demand for new planes as airlines see a rebound in travel with the lifting of pandemic lockdowns.

Shortages of workers and aircraft parts have been blamed for difficulties in increasing output. Airbus ( OTCPK:EADSY ) ( OTCPK:EADSF ) delivered 127 commercial planes in Q1, compared with 140 a year earlier.

Gross Margin

Hexcel’s ( HXL ) gross margin expanded to about 28% for Q1 from 22% a year earlier.

“The margin expansion reflects strong operating leverage from higher production levels as our key markets grow,” Nick Stanage, chairman, CEO and president of Hexcel, said in prepared remarks.

The company maintained its guidance of sales in a range of $1.73 billion to $1.83 billion for 2023, and adjusted EPS of $1.70 to $1.90.

Hexcel's ( HXL ) stock has risen 24% in the past 12 months, contrasting with a 3.8% decline for the Standard & Poor's 400 midcap stock index.

Seeking Alpha contributor Dhierin Bechai has a Hold rating on Hexcel ( HXL ) based on its recent valuation .

For further details see: