Jack Ayers's questions to Hexcel Corp (HXL) leadership • Q4 2024
Question
Jack Ayers asked for a high-level perspective on Hexcel's normalized earnings power, comparing the potential future state to the pre-COVID peak EPS of around $3.50, considering any structural business changes.
Answer
Chairman, CEO & President Tom Gentile stated that returning to peak earnings is primarily dependent on regaining operating leverage as aircraft build rates and revenues recover to 2018-2019 levels. Executive Patrick Winterlich added that the core business is structurally unchanged and the divestiture of the lower-margin glass fiber wind business will be a marginal long-term benefit.