Financial Data and Key Metrics - Composite Materials segment represented 83% of total sales with an operating margin of 16.2%, up from 14% in the prior year period [2] - Commercial Aerospace sales increased 15.4% to 264.3 million, driven by growth in Airbus A350 and Boeing 787 programs [188] - Space & Defense sales increased 22.1% to 137.5 million, marking the highest quarterly sales ever for this segment [79] - Industrial sales decreased 3.3% to 52.5millionduetolowerwindenergysales,partiallyoffsetbygrowthinautomotiveandotherindustrialmarkets[61]−Adjustedoperatingincomewas61.8 million, or 13.6% of sales, compared to 44.7million,or11.444.7 million, including 37.8millionfortheAmesburypropertyacquisition[11][82]BusinessLinePerformance−CompositeMaterialssegmentsawstrongdemandforHexcelfiber−richproducts,contributingtohighermargins[2][96]−EngineeredProductssegmentgeneratedan8.91.765 billion to 1.835billionandEPSto1.80 to 1.94[83]−HexcelsolditsformerwindenergyfacilityinColoradofor11 million, which will be accounted for in Q3 2023 [11] - The company renewed its 750 million revolving credit facility, with a focus on maintaining a target leverage range of 1.5 to 2 times [64] Q&A Session Summary Question: Impact of 737 MAX and A220 rate changes - The company noted strong product mix in Q1, particularly with Hexcel carbon fiber-rich products, driving strong margins [7][96] Question: Free cash flow outlook and facility acquisition - The Amesbury property acquisition was the primary driver of the change in cash flow outlook, with no significant other moving pieces [121] Question: Hexcel's opportunity on Airbus's Wing of Tomorrow project - Hexcel is actively involved in the Wing of Tomorrow project, leveraging its diverse portfolio to optimize wing design [22][125] Question: Wind energy business outlook - The wind energy business has stabilized and is expected to remain solid, driven by legacy products in Europe [23] Question: Capital allocation and share buybacks - The company plans to resume share buybacks in the coming periods, prioritizing organic growth and disciplined M&A [40] Question: Airbus A220-500 potential and CapEx requirements - Hexcel sees significant potential in the A220-500, with opportunities for IM fiber and minimal additional CapEx requirements [27][120] Question: Supply chain alignment with Boeing and Airbus - The company is closely aligned with Boeing and Airbus on production rates and supply chain dynamics [93][151] Question: Margin progression and incremental leverage - Management expects margins to improve as volumes increase, targeting mid-teens margins on 1.8 billion to $1.9 billion in revenue [150][98] Question: Technology and material advancements for future programs - Hexcel is working on multiple material types and technologies to support future aerospace programs, including the Wing of Tomorrow [22][125][176] Question: Defense revenue growth and platform outlook - Space & Defense revenue is expected to grow, with strong performance from programs like F-35 and Rafale [79][130]