Hexcel Corporation, a leading advanced composites company, is expecting its total sales to grow at a compounded annual growth rate (CAGR) of 6-9 per cent over the next three years. The company announced its financial outlook through 2021, as well as longer term targets, during the company’s Investor Day held in Salt Lake City, Utah, recently.

In market categories, the company expects growth of 4-7 per cent CAGR in Commercial Aerospace, 11-13 per cent CAGR in Space and Defense and more than10 per cent CAGR in Industrial. The company expects the adjusted diluted earnings per share to grow at a double-digit CAGR, said Hexcel in a press release.

“We expect strong sales growth over the next three years and beyond, with adjusted diluted earnings per share to grow at a double-digit rate, supported by operational excellence. We expect continued expansion of free cash flow generation, providing a total of $1.8 billion between 2019 and 2023 which will be available for continued investment in organic growth, for strategic acquisitions, and to return to shareholders,” said chairman, CEO and president Nick Stanage of Hexcel Corporation.

“In the Commercial Aerospace market, we expect to benefit from production increases for the Airbus A320neo, Boeing 737 MAX and 777X, further supported by secular penetration and strong growth in Engines and Nacelles along with other commercial and regional programmes. We are benefitting from increased activity in the space and defense market, supported by continued strength in the F-35 and military rotorcraft programmes, including the CH-53K as well as from our acquisition of ARC Technologies. Our Industrial market remains strong, underpinned by wind energy sales along with the continued adoption of composites in the automotive and marine industries, added Stanage.

“Our team is talented and experienced, our R&T group is innovating material science solutions of tomorrow, and our advanced composite manufacturing footprint is unparalleled for the needs of our customers – supporting our leadership position and creating excellent value for our shareholders.” (PC)