For fiscal 2018, Hexcel, a leading advanced composites company, is expecting the sales to be around $2.10 to $2.20 billion with commercial aerospace leading the company’s sales growth. In addition, the company expects 2018 diluted earnings per share to be in the range of $2.80 to $2.94, and free cash flow to be in excess of $230 million.

Capital expenditures for 2018 are expected to be in the range of $170 to $190 million. Depreciation expense is likely to increase by $14 million to reflect recent capacity expansion to support future growth.

"We expect to deliver a strong year in 2018 with record sales, earnings, and free cash flow. We expect high-single digit sales growth in commercial aerospace, stable sales in space and defense, and double-digit sales growth in Industrial. We remain focused on innovation and driving efficiencies through operational excellence – both of which help us meet customer expectations and support their growth strategies. Capital expenditures will be reduced by about $100 million compared to 2017, which will lead to free cash flow acceleration. We remain well positioned to drive long-term value for our shareholders," said chairman, CEO and president Nick Stanage.

The company is also revising its sales growth expectations through 2020 to a CAGR of 7 to 10 per cent from its previously issued expectation of 6 to 9 per cent. Double-digit EPS growth is expected over the period, which will reflect benefits from the company’s ongoing focus on operational excellence and from expected leverage on sales growth.

Capital expenditures will step down significantly from recent peak years and will be aligned to meet forecasted customer growth requirements and to ensure that the company is positioned to win new opportunities through 2020 and beyond. The company is reaffirming its target to generate $1 billion in free cash flow over the five-year period from 2016 to 2020. In addition, the company is targeting a return to shareholders of more than 50 per cent of adjusted net income each year through 2020.