Hexcel(US:HXL)2025-01-22 21:30Financial Performance - Q4 2024 net sales were $474 million, a 3.6% increase from $458 million in Q4 2023[4] - FY 2024 sales reached $1,903 million, up 6.4% from $1,789 million in FY 2023[13] - Adjusted diluted EPS for FY 2024 was $2.03, a 12.2% increase from $1.81 in FY 2023[4] - Net income for the year 2024 was $132.1 million, compared to $105.7 million in 2023, indicating a 25% year-over-year growth[30] - The company reported a GAAP net income of $132.1 million for 2024, up from $105.7 million in 2023, with an EPS of $1.59 compared to $1.24[36] Cash Flow and Dividends - Free cash flow for FY 2024 was $203 million, compared to $148.9 million in FY 2023[19] - Free cash flow for the year ended December 31, 2024, was $202.9 million, an increase from $148.9 million in 2023[36] - The Board of Directors declared a quarterly dividend of $0.17 per share, a 13% increase[4] - The company repurchased $252.2 million of common stock in 2024, compared to $30.1 million in 2023, indicating a significant increase in shareholder return initiatives[30] Sales by Segment - Commercial aerospace sales for FY 2024 were $1,194.2 million, an 11.8% increase from FY 2023[14] - Space & Defense sales for FY 2024 were $569.5 million, a 4.5% increase from FY 2023[15] - Total industrial sales for FY 2024 decreased 20.9% to $139.3 million compared to FY 2023[16] - Commercial Aerospace segment sales for 2024 were $1,194.2 million, up 11.8% from $1,068.2 million in 2023, representing 62.8% of total net sales[31] - Space & Defense segment sales increased by 4.5% to $569.5 million in 2024 from $544.8 million in 2023, accounting for 29.9% of total net sales[34] - Industrial segment sales decreased by 20.9% to $139.3 million in 2024 from $176.0 million in 2023, representing 7.3% of total net sales[34] Margins and Operating Income - Gross margin for FY 2024 was 24.7%, up from 24.2% in FY 2023[17] - Gross margin improved to 25.0% in Q4 2024, up from 22.5% in Q4 2023, reflecting better cost management[28] - The operating income for the fourth quarter of 2024 was $8.9 million, down from $47.6 million in the fourth quarter of 2023, resulting in an operating margin of 1.9%[34] - Non-GAAP operating income for the year ended December 31, 2024, was $236.1 million, compared to $216.7 million in 2023[36] Assets and Liabilities - Total assets decreased to $2,725.6 million in 2024 from $2,918.5 million in 2023, primarily due to a reduction in cash and cash equivalents[29] - Cash and cash equivalents at the end of 2024 were $125.4 million, down from $227.0 million at the end of 2023[30] - Total liabilities remained relatively stable at $1,197.7 million in 2024, compared to $1,202.0 million in 2023[29] - Total long-term debt as of December 31, 2024 was $700.6 million, compared to $699.4 million in 2023[40] - Total debt, net of cash, was $575.3 million as of December 31, 2024, a decrease from $472.5 million in 2023[40] Future Outlook - 2025 sales guidance projects growth of approximately 10% year-over-year in commercial aerospace[5] - The company anticipates continued challenges from macroeconomic factors and geopolitical issues impacting future performance[26] - Hexcel plans to continue focusing on its Commercial Aerospace and Space & Defense markets for future growth and expansion strategies[31] Research and Development - Research and technology expenses increased to $57.1 million in 2024, up from $52.7 million in 2023, reflecting ongoing investment in innovation[28] Special Items and Adjustments - The year ended December 31, 2024 included a discrete tax benefit related to adjustments to the provision based on the finalization of prior year tax returns[38] - Adjusted operating income and adjusted net income are considered meaningful non-GAAP measures for understanding underlying operating results[39] - Special items in the financial results represent significant charges or credits that are important for understanding overall operating results[39]