US-based advanced composites manufacturer Hexcel Corporation has reported sales of $972.7 million for the first six months of fiscal 2024 (H1 FY24). This marks a 6.7 per cent increase compared to $912 million in the same period of FY23. Despite the rise in sales, the gross margin was 25.2 per cent, slightly down from 26.2 per cent in the prior year period.

Adjusted operating income for H1 FY24 stood at $126.1 million, representing 13 per cent of sales, a modest increase from $124.8 million or 13.7 per cent of sales in the same period last year. The percentage of sales spent on selling, general, and administrative expenses decreased to 9.1 per cent, compared to 9.5 per cent for the first six months of FY23, the company said in a press release.

Commercial aerospace, which accounted for 64 per cent of Hexcel’s sales, was a major growth driver. Sales in this segment reached $620.0 million in H1 FY24, up 13.0 per cent (13.1 per cent in constant currency) compared to the first six months of FY23. Additionally, other commercial aerospace sales saw a 4.1 per cent increase in the same period. The space and defence segment, making up 28 per cent of total sales, also performed well with sales of $278 million, an increase of 5.4 per cent (5.5 per cent in constant currency) over the previous year.

In contrast, the industrial sector, which contributed 8 per cent to Hexcel’s total sales, experienced a decline. Total industrial sales in the first half of FY24 were $74.7 million, a decrease of 24.9 per cent (25.0 per cent in constant currency) compared to the first half of FY23.

For the second quarter of FY24 (Q2 FY24), Hexcel reported sales of $500.4 million, up from $454.3 million in the same quarter of FY23. The gross margin for Q2 FY24 was 25.3 per cent, an improvement from 24.4 per cent in Q2 FY23. Adjusted operating income for the quarter was $72.0 million, or 14.4 per cent of sales, compared to $61.8 million, or 13.6 per cent of sales, in the second quarter of the previous year.

Commercial aerospace sales for the second quarter of FY24 reached $320.7 million, a significant increase of 21.3 per cent (21.6 per cent in constant currency) compared to the same period in FY23. Other commercial aerospace sales grew by 15.4 per cent for the quarter. The space and defence segment recorded sales of $138.9 million in Q2 FY24, a slight increase of 1.0 per cent (1.4 per cent in constant currency) compared to the second quarter of FY23. The industrial sector, however, continued to face difficulties with total industrial sales of $40.8 million in Q2 FY24, a decrease of 22.3 per cent (21.8 per cent in constant currency) compared to the same period in FY23.

“We are well-positioned and ready to support our customers’ rate increases and remain excited about the medium-term outlook and opportunity. We remain strongly positioned for growth with available plant capacity, and we continue employee training and operational optimisation for the production ramp ahead,” said CEO and president Tom Gentile.