John McNulty's questions to Hexcel Corp (HXL) leadership • Q4 2024
Question
John McNulty asked for a breakdown of the 2024 SG&A increase between headcount and wage inflation, the outlook for SG&A growth in 2025, and the expected scale of the ramp in R&T spending.
Answer
Executive Patrick Winterlich attributed the SG&A increase to a combination of ERP implementation costs, one-time CEO succession charges, and general labor inflation. Chairman, CEO & President Tom Gentile added that R&T spending is expected to be approximately 3% of revenue going forward to fund innovation for next-generation aircraft.