10-Q

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2023

or

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission File Number 1-8472

Hexcel Corporation

(Exact name of registrant as specified in its charter)

Delaware	94-1109521
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

Two Stamford Plaza

281 Tresser Boulevard

Stamford, Connecticut 06901-3238

(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code: (203) 969-0666

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01	HXL	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer 	Accelerated filer 
Non-accelerated filer 	Smaller reporting company ☐
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding at April 20, 2023
COMMON STOCK	84,372,361

HEXCEL CORPORATION AND SUBSIDIARIES

INDEX

			Page
PART I.	FINANCIAL INFORMATION		3
ITEM 1.	Condensed Consolidated Financial Statements (Unaudited)		3
	•	Condensed Consolidated Balance Sheets — March 31, 2023 and December 31, 2022	3
	•	Condensed Consolidated Statements of Operations — The quarters ended March 31, 2023 and 2022	4
	•	Condensed Consolidated Statements of Comprehensive Income — The quarters ended March 31, 2023 and 2022	4
	•	Condensed Consolidated Statements of Cash Flows — The quarters ended March 31, 2023 and 2022	5
	•	Condensed Consolidated Statements of Stockholders’ Equity — The quarters ended March 31, 2023 and 2022	6
	•	Notes to Condensed Consolidated Financial Statements	7
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		17
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk		23
ITEM 4.	Controls and Procedures		23
PART II.	OTHER INFORMATION		23
ITEM 1.	Legal Proceedings		23
ITEM 1A.	Risk Factors		23
ITEM 6.	Exhibits		24
	SIGNATURE		25

2

PART I. FINANCIAL INFORMATION

ITEM 1. Condensed Consolidated Financial Statements

Hexcel Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

	(Unaudited)
	March 31,			December 31,
(In millions)	2023			2022
Assets
Current assets:
Cash and cash equivalents	$	105.7		$	112.0
Accounts receivable, net		265.3			222.7
Inventories, net		354.6			319.3
Contract assets		28.6			32.0
Prepaid expenses and other current assets		44.2			38.9
Assets held for sale		9.5			9.5
Total current assets		807.9			734.4
Property, plant and equipment		3,116.1			3,087.9
Less accumulated depreciation		(1,465.4	)		(1,430.1	)
Net property, plant and equipment		1,650.7			1,657.8
Goodwill and other intangible assets, net		255.2			256.0
Investments in affiliated companies		52.7			47.6
Other assets		140.8			141.5
Total assets	$	2,907.3		$	2,837.3
Liabilities and Stockholders' Equity
Current liabilities:
Short-term borrowings	$	0.2		$	0.2
Accounts payable		122.0			155.5
Accrued compensation and benefits		61.0			69.6
Financial instruments		15.0			22.0
Accrued liabilities		91.9			82.5
Total current liabilities		290.1			329.8
Long-term debt		768.5			723.3
Retirement obligations		44.3			42.7
Deferred income taxes		123.9			126.4
Other non-current liabilities		58.3			60.9
Total liabilities		1,285.1			1,283.1
Stockholders' equity:
Common stock, $0.01 par value, 200.0 shares authorized, 110.6 shares and 110.4 shares issued at March 31, 2023 and December 31, 2022, respectively		1.1			1.1
Additional paid-in capital		920.8			905.0
Retained earnings		2,137.2			2,104.9
Accumulated other comprehensive loss		(152.1	)		(174.4	)
		2,907.0			2,836.6
Less – Treasury stock, at cost, 26.2 shares at March 31, 2023 and 26.2 shares at December 31, 2022		(1,284.8	)		(1,282.4	)
Total stockholders' equity		1,622.2			1,554.2
Total liabilities and stockholders' equity	$	2,907.3		$	2,837.3

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

Hexcel Corporation and Subsidiaries
Condensed Consolidated Statements of Operations
	(Unaudited)
	Quarter Ended March 31,
(In millions, except per share data)	2023		2022
Net sales	$	457.7	$	390.6
Cost of sales		330.0		303.9
Gross margin		127.7		86.7
Selling, general and administrative expenses		50.8		44.7
Research and technology expenses		13.9		10.9
Other operating expense		0.2		1.0
Operating income		62.8		30.1
Interest expense, net		9.4		9.1
Income before income taxes, and equity in earnings from affiliated companies		53.4		21.0
Income tax expense		11.7		4.7
Income before equity in earnings from affiliated companies		41.7		16.3
Equity in earnings from affiliated companies		1.0		1.5
Net income	$	42.7	$	17.8
Basic net income per common share	$	0.50	$	0.21
Diluted net income per common share	$	0.50	$	0.21
Weighted-average common shares:
Basic		84.6		84.3
Diluted		85.5		84.9

Hexcel Corporation and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income
	(Unaudited)
	Quarter Ended March 31,
(In millions)	2023		2022
Net income	$	42.7	$	17.8
Currency translation adjustments		12.0		(15.7	)
Net unrealized pension and other benefit actuarial gains and prior service credits (net of tax)		-		3.2
Net unrealized gain (loss) on financial instruments (net of tax)		10.3		(5.1	)
Total other comprehensive income (loss)		22.3		(17.6	)
Comprehensive income	$	65.0	$	0.2

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

Hexcel Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

	(Unaudited)
	Three Months Ended March 31,
(In millions)	2023			2022
Cash flows from operating activities
Net income	$	42.7		$	17.8
Reconciliation to net cash used for operating activities:
Depreciation and amortization		30.7			32.2
Amortization related to financing		0.1			0.3
Deferred income taxes		(2.1	)		(1.8	)
Equity in earnings from affiliated companies		(1.0	)		(1.5	)
Stock-based compensation		12.9			10.4
Restructuring expenses, net of payments		(2.1	)		(5.0	)
Impairment of assets		1.7			-
Changes in assets and liabilities:
Increase in accounts receivable		(40.5	)		(54.7	)
Increase in inventories		(32.6	)		(24.4	)
Decrease (increase) in prepaid expenses and other current assets		0.1			(8.6	)
(Decrease) increase in accounts payable/accrued liabilities		(31.0	)		13.4
Other – net		(2.3	)		2.9
Net cash used for operating activities		(23.4	)		(19.0	)
Cash flows from investing activities
Capital expenditures		(18.1	)		(20.9	)
Net cash used for investing activities		(18.1	)		(20.9	)
Cash flows from financing activities
Borrowing from senior unsecured credit facility - 2024		65.0			35.0
Repayment of senior unsecured credit facility - 2024		(20.0	)		-
Repayment of finance lease obligation and other debt, net		(0.1	)		(0.3	)
Dividends paid		(10.5	)		(8.5	)
Activity under stock plans		0.4			(0.3	)
Net cash provided by financing activities		34.8			25.9
Effect of exchange rate changes on cash and cash equivalents		0.4			(0.9	)
Net decrease in cash and cash equivalents		(6.3	)		(14.9	)
Cash and cash equivalents at beginning of period		112.0			127.7
Cash and cash equivalents at end of period	$	105.7		$	112.8
Supplemental data:
Accrual basis additions to plant, property and equipment	$	16.8		$	11.1

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

Hexcel Corporation and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)

For the Quarters ended March 31, 2023, and March 31, 2022

								Accumulated
			Additional					Other						Total
			Paid-In		Retained			Comprehensive			Treasury			Stockholders’
(In millions)	Par		Capital		Earnings			Loss			Stock			Equity
Balance, December 31, 2021	$	1.1	$	878.6	$	2,012.5		$	(126.5	)	$	(1,280.2	)	$	1,485.5
Net income	—		—			17.8		—			—				17.8
Dividends on common stock ($0.10 per share)	—		—			(8.5	)	—			—				(8.5	)
Change in other comprehensive income (loss)– net of tax	—		—		—				(17.6	)	—				(17.6	)
Stock-based activity	—			11.3	—			—				(1.4	)		9.9
Balance, March 31, 2022	$	1.1	$	889.9	$	2,021.8		$	(144.1	)	$	(1,281.6	)	$	1,487.1
								Accumulated
			Additional					Other						Total
			Paid-In		Retained			Comprehensive			Treasury			Stockholders’
(In millions)	Par		Capital		Earnings			Loss			Stock			Equity
Balance, December 31, 2022	$	1.1	$	905.0	$	2,104.9		$	(174.4	)	$	(1,282.4	)	$	1,554.2
Net income	—		—			42.7		—			—				42.7
Dividends on common stock ($0.125 per share)	—		—			(10.4	)	—			—				(10.4	)
Change in other comprehensive income (loss)– net of tax	—		—		—				22.3		—				22.3
Stock-based activity	—			15.8	—			—				(2.4	)		13.4
Balance, March 31, 2023	$	1.1	$	920.8	$	2,137.2		$	(152.1	)	$	(1,284.8	)	$	1,622.2

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

HEXCEL CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1 — Significant Accounting Policies

In these notes, the terms “Hexcel,” “the Company,” “we,” “us,” or “our” mean Hexcel Corporation and subsidiary companies. The accompanying condensed consolidated financial statements are those of Hexcel Corporation. Refer to Note 1 to the consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2022 for a discussion of our significant accounting policies.

Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared from the unaudited accounting records of Hexcel pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”) and in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Certain information and footnote disclosures normally included in financial statements have been omitted pursuant to rules and regulations of the SEC. In the opinion of management, the condensed consolidated financial statements include all normal recurring adjustments as well as any non-recurring adjustments necessary to present fairly the statement of financial position, results of operations, cash flows and statement of stockholders’ equity for the interim periods presented. The Condensed Consolidated Balance Sheet as of December 31, 2022 was derived from the audited 2022 consolidated balance sheet. Interim results are not necessarily indicative of results expected for any other interim period or for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2022 Annual Report on Form 10-K.

Investments in Affiliated Companies

We have a 50% equity investment in Aerospace Composites Malaysia Sdn. Bhd. This investment is accounted for using the equity method of accounting.

Assets Held for Sale

In November 2020, we closed our wind energy prepreg production facility in Windsor, Colorado and in 2022 we further reduced the carrying value of the Windsor facility by approximately $3 million. The plant assets to be sold have been recorded in “Assets held for sale” in the Consolidated Balance Sheets at both March 31, 2023 and December 31, 2022. The sale of these assets is expected to occur during 2023.

Note 2 — Net Income Per Common Share

	Quarter Ended March 31,
(In millions, except per share data)	2023		2022
Basic net income per common share:
Net income	$	42.7	$	17.8
Weighted average common shares outstanding		84.6		84.3
Basic net income per common share	$	0.50	$	0.21
Diluted net income per common share:
Net income	$	42.7	$	17.8
Weighted average common shares outstanding — Basic		84.6		84.3
Plus incremental shares from assumed conversions:
Restricted stock units		0.5		0.4
Stock options		0.4		0.2
Weighted average common shares outstanding — Dilutive		85.5		84.9
Diluted net income per common share	$	0.50	$	0.21

Total common stock equivalents of 0.5 million and 0.7 million were excluded from the computation of diluted net income per share for the three months ended March 31, 2023 and 2022, respectively, because to do so would have been anti-dilutive.

7

Note 3 — Inventories

(In millions)	March 31, 2023		December 31, 2022
Raw materials	$	164.7	$	153.3
Work in progress		50.8		42.8
Finished goods		139.1		123.2
Total Inventory	$	354.6	$	319.3

Note 4 — Retirement and Other Postretirement Benefit Plans

We maintain qualified and nonqualified defined benefit retirement plans covering certain current and former U.S. and European employees, retirement savings plans covering eligible U.S. and U.K. employees and certain postretirement health care and life insurance benefit plans covering eligible U.S. retirees. We also participate in a union sponsored multi-employer pension plan covering certain U.S. employees with union affiliations.

Defined Benefit Retirement Plans

Net Periodic Benefit Costs

Net periodic benefit costs of our defined benefit retirement plans for the three months ended March 31, 2023 and 2022 were as follows:

	Quarter Ended March 31,
(In millions)	2023		2022
U.S. Nonqualified Defined Benefit Retirement Plans
Service cost	$	0.3	$	0.3
Interest cost		0.1		0.1
Net amortization		0.2		0.2
Net periodic benefit cost	$	0.6	$	0.6

(In millions)	March 31, 2023		December 31, 2022
Amounts recognized on the balance sheet for U.S. nonqualified defined benefit retirement plans:
Accrued liabilities	$	1.2	$	1.4
Other non-current liabilities		18.9		18.5
Total accrued benefit	$	20.1	$	19.9

	Quarter Ended March 31,
(In millions)	2023			2022
European Defined Benefit Retirement Plans
Service cost	$	0.2		$	0.2
Interest cost		1.2			0.6
Expected return on plan assets		(1.2	)		(0.6	)
Net amortization and deferral		0.6			0.6
Net periodic benefit cost	$	0.8		$	0.8

(In millions)	March 31, 2023		December 31, 2022
Amounts recognized on the balance sheet for European defined benefit retirement plans:
Other assets	$	6.1	$	5.6
Accrued liabilities		1.2		0.1
Other non-current liabilities		13.4		12.1
Total accrued benefit	$	14.6	$	12.2

8

All costs related to our pensions are included as a component of operating income in our Condensed Consolidated Statements of Operations. For both the three months ended March 31, 2023 and 2022, amounts unrelated to service costs were a charge of $0.9 million.

Contributions

We generally fund our U.S. non-qualified defined benefit retirement plans when benefit payments are incurred. We contributed approximately $0.2 million in the first three months of 2023 to cover unfunded benefits. We expect to contribute a total of $1.5 million in 2023 to cover unfunded benefits. We contributed $0.2 million to our U.S. non-qualified defined benefit retirement plans during the quarter ended March 31, 2022.

Contributions to our European defined benefit retirement plans during the three months ended March 31, 2023 and 2022 were not material. We plan to contribute approximately $0.7 million during 2023 to our European plans.

Postretirement Health Care and Life Insurance Benefit Plans

We recorded $0.3 million of net amortization gain deferral for both the three months ended March 31, 2023 and 2022. Net periodic benefit costs of our postretirement health care and life insurance benefit plans for the three months ended March 31, 2023 and 2022 were immaterial.

(In millions)	March 31, 2023		December 31, 2022
Amounts recognized on the balance sheet:
Accrued liabilities	$	0.2	$	0.2
Other non-current liabilities		1.0		1.0
Total accrued benefit	$	1.2	$	1.2

Amounts contributed in connection with our postretirement plans were immaterial for both the three months ended March 31, 2023 and 2022. We periodically fund our postretirement plans to pay covered expenses as they are incurred. We expect to contribute approximately $0.2 million in 2023 to cover unfunded benefits.

Note 5 –– Debt

(In millions)	March 31, 2023			December 31, 2022
Current portion of finance lease	$	0.2		$	0.2
Current portion of debt		0.2			0.2
Senior unsecured credit facility		70.0			25.0
4.7% senior notes --- due 2025		300.0			300.0
3.95% senior notes --- due 2027		400.0			400.0
Senior notes --- original issue discount		(0.9	)		(0.9	)
Senior notes --- deferred financing costs		(2.0	)		(2.2	)
Non-current portion of finance lease and other debt		1.4			1.4
Long-term debt		768.5			723.3
Total debt	$	768.7		$	723.5

In June 2019, the Company refinanced its senior unsecured credit facility (the “Facility”), increasing borrowing capacity from $700 million to $1 billion. The Facility matures in June 2024. The interest rate ranges from LIBOR + 0.875% to a maximum of LIBOR + 1.50%, depending upon the better of the Company’s leverage ratio or the credit rating. The Facility agreement contains financial and other covenants, including, but not limited to, customary restrictions on the incurrence of debt by our subsidiaries and the granting of liens, as well as the maintenance of an interest coverage ratio and a leverage ratio.

In September 2020, we amended the Facility to allow for relief from certain terms, including adjusting the maximum leverage ratio covenant for a defined period. On January 28, 2021, we further amended the Facility agreement (the “Second Amendment”) to provide that, from January 28, 2021 through and including March 31, 2022, we would not be subject to a maximum leverage ratio covenant but instead be required to maintain Liquidity (as defined in the Facility agreement) of at least $250 million. Additionally, during such period, the Company was subject to limitations on share repurchases, cash dividends, and its ability to incur secured debt, in each case subject to certain exceptions; the applicable margin and commitment fees would be increased; the incremental facility would not be available; and if the Company’s public debt rating was downgraded to (i) BB or lower by Standard & Poor’s and (ii) Ba2

9

or lower by Moody’s, we would be required to grant liens on certain of our assets, which liens would be released upon the Company’s public debt rating being upgraded to BB+ or higher by Standard & Poor’s or Ba1 or higher by Moody’s. As of April 1, 2022, the original terms and conditions to the Facility agreement were reinstated except that the borrowing capacity remained at $750 million. Share repurchases restrictions that had been in effect per the Second Amendment expired on March 31, 2022. As of March 31, 2023, we were in compliance with all debt covenants.

As of March 31, 2023, total borrowings under the Facility were $70 million, which approximates fair value. The Facility agreement permits us to issue letters of credit up to an aggregate amount of $50 million. Outstanding letters of credit reduce the amount available for borrowing under the Facility. As of March 31, 2023, there were no issued letters of credit under the Facility, resulting in undrawn availability under the Facility of $680 million. The weighted average interest rate for the Facility was 6.1% for the three months ended March 31, 2023.

In 2017, the Company issued $400 million in aggregate principal amount of 3.95% Senior Unsecured Notes due in 2027. The interest rate on these senior notes may be increased 0.25% each time a credit rating applicable to the notes is downgraded. Conversely, such increases would be reversed should the credit rating be subsequently upgraded. The maximum rate is 5.95%. The effective interest rate for the three months ended March 31, 2023 was 4.11% inclusive of an approximately 0.25% benefit of treasury locks. Based on quoted prices the fair value of the senior unsecured notes due in 2027 was $381.3 million at March 31, 2023.

In 2015, the Company issued $300 million in aggregate principal amount of 4.7% Senior Unsecured Notes due in 2025. The interest rate on these senior notes may be increased by 0.25% each time a credit rating applicable to the notes is downgraded. Conversely, such increases would be reversed should the credit rating be subsequently upgraded. The maximum rate is 6.7%. The effective interest rate for the three months ended March 31, 2023 was 5.06%. Based on quoted prices, the fair value of the senior unsecured notes due in 2025 was $294.5 million at March 31, 2023.

Note 6 — Derivative Financial Instruments

Interest Rate Swap and Interest Lock Agreements

At March 31, 2023 and December 31, 2022, we had no interest rate swap agreements outstanding.

The Company had treasury lock agreements, designated as cash flow hedges, to protect against unfavorable movements in the benchmark treasury rate related to the issuance of our senior unsecured notes. As part of the issuance of our senior notes, we net settled these derivatives for $10 million in cash and the deferred gains recorded in other comprehensive income (loss) will be released to interest expense over the life of the senior notes. The effect of these settled treasury locks reduces the effective interest rate on the senior notes by approximately 0.25%.

Cross Currency and Interest Rate Swap Agreements

In November 2020, we entered into a cross currency and interest rate swap, which is designated as a cash flow hedge of a €270 million, 5-year amortizing, intercompany loan between one of our European subsidiaries and the U.S. parent company. Changes in the spot exchange are recorded to the general ledger and offset the fair value re-measurement of the hedged item. The net difference in the interest rates coupons is recorded as a credit to interest expense. The derivative swaps €270 million bearing interest at a fixed rate of 0.30% for $319.9 million at a fixed rate interest of 1.115%. The interest coupons settle semi-annually. The principal will amortize each year on November 15, as follows: for years 1 through 4, beginning November 15, 2021, €50 million versus $59.2 million, and a final settlement on November 15, 2025 of €70 million versus $82.9 million. The carrying value of the derivative at March 31, 2023 was a current asset of $5.9 million and a long-term asset of $9.9 million. The carrying value of the derivative at December 31, 2022 was a current asset of $6.2 million and a long-term asset of $10.1 million.

Foreign Currency Forward Exchange Contracts

A number of our European subsidiaries are exposed to the impact of exchange rate volatility between the U.S. dollar and the subsidiaries’ functional currencies, being either the Euro or the British pound sterling. We have entered into contracts to exchange U.S. dollars for Euros and British pound sterling through November 2025. The aggregate notional amount of these contracts was $487.4 million and $503.3 million at March 31, 2023 and December 31, 2022, respectively. The purpose of these contracts is to hedge a portion of the forecasted transactions of our European subsidiaries under long-term sales contracts with certain customers. These contracts are expected to provide us with a more balanced matching of future cash receipts and expenditures by currency, thereby reducing our exposure to fluctuations in currency exchange rates. The effective portion of the hedges, gains of $4.0 million were recorded in other comprehensive (loss) income for the three months ended March 31, 2023, and losses of $6.8 million were recorded for the three months ended March 31, 2022, respectively. We classified $6.6 million of the carrying amount of these contracts as

10

assets ($2.8 million of which was recorded in prepaid expenses and other current assets) and $13.0 million as liabilities ($2.7 million of which is recorded in non-current liabilities) on the Condensed Consolidated Balance Sheets at March 31, 2023, and $5.3 million of the carrying amount of these contracts was classified in assets ($1.9 million of which was recorded in prepaid expenses and other current assets) and $19.4 million as liabilities ($5.3 million of which is in other non-current liabilities) at December 31, 2022. We recognized losses of $3.7 million and losses of $0.7 million in net sales during the three months ended March 31, 2023 and 2022, respectively.

In addition, we enter into foreign exchange forward contracts which are not designated as hedges. These are used to provide an offset to transactional gains or losses arising from the remeasurement of non-functional monetary assets and liabilities such as accounts receivable. The change in the fair value of the derivatives is recorded in the statement of operations. There are no credit contingency features in these derivatives. During the quarters ended March 31, 2023 and 2022, we recognized net foreign exchange gains of $0.4 million and losses of $0.2 million, respectively, in the Condensed Consolidated Statements of Operations. The net foreign exchange impact recognized from these hedges offset the translation exposure of these transactions. The carrying amount of the contracts for derivatives not designated as hedging instruments was $1.7 million classified in current liabilities at March 31, 2023, and $0.7 million classified in current liabilities on our Condensed Consolidated Balance Sheet at December 31, 2022.

The change in fair value of our foreign currency forward exchange contracts under hedge designations recorded net of tax within accumulated other comprehensive loss for the quarters ended March 31, 2023 and March 31, 2022 was as follows:

	Quarter Ended March 31,
(In millions)	2023			2022
Unrealized losses at beginning of period, net of tax	$	(10.5	)	$	(3.5	)
Losses reclassified to net sales		2.7			0.3
Increase (decrease) in fair value		3.0			(4.8	)
Unrealized losses at end of period, net of tax	$	(4.8	)	$	(8.0	)

Unrealized losses of $7.5 million recorded in accumulated other comprehensive loss, less taxes of $1.8 million, as of March 31, 2023, are expected to be reclassified into earnings over the next twelve months as the hedged sales are recorded.

Commodity Swap Agreements

We use commodity swap agreements to hedge against price fluctuations of raw materials, including propylene (the principal component of acrylonitrile). As of March 31, 2023, we had commodity swap agreements with a notional value of $20.4 million. The swaps mature monthly through March 2025. The swaps are accounted for as a cash flow hedge of our forward raw material purchases. To ensure the swaps are highly effective, all of the critical terms of the swap matched the terms of the hedged items. The fair value of the commodity swap agreements was an asset of $1.0 million ($0.4 million of which was recorded in prepaid expenses and other current assets) and a liability of $3.7 million ($0.6 million of which was recorded in other non-current liabilities) at March 31, 2023, and an asset of $0.5 million (which was recorded in prepaid expenses and other current assets) and a liability of $8.6 million (of which $1.4 million was recorded in long term liabilities) at December 31, 2022

Note 7 — Fair Value Measurements

The authoritative guidance for fair value measurements establishes a hierarchy for observable and unobservable inputs used to measure fair value, into three broad levels, which are described below:

•Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

•Level 2: Observable prices that are based on inputs not quoted on active markets but corroborated by market data.

•Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.

In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider our own and counterparty credit risk in our assessment of fair value.

We have no assets or liabilities that utilize Level 1 inputs. However, we have derivative instruments classified as liabilities and assets which utilize Level 2 inputs, and one liability that utilizes Level 3 inputs.

For derivative assets and liabilities that utilize Level 2 inputs, we prepare estimates of future cash flows of our derivatives, which are discounted to a net present value. The estimated cash flows and the discount factors used in the valuation model are based on observable inputs, and incorporate non-performance risk (the credit standing of the counterparty when the derivative is in a net asset

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position, and the credit standing of Hexcel when the derivative is in a net liability position). The fair value of these assets and liabilities was $23.5 million and $18.4 million, respectively, at March 31, 2023 and approximately $22.1 million and $28.6 million, respectively, at December 31, 2022. In addition, the fair value of these derivative contracts, which are subject to a master netting arrangement under certain circumstances, is presented on a gross basis in the Condensed Consolidated Balance Sheets.

Below is a summary of valuation techniques for all Level 2 financial assets and liabilities:

•Cross Currency and Interest Rate Swap Agreements — valued using the USD Secured Overnight Financing Rate curves and quoted forward foreign exchange prices at the reporting date. The fair value of the assets was $15.8 million, at March 31, 2023 and the fair value of the assets was $16.3 million, at December 31, 2022.

•Foreign exchange derivative assets and liabilities — valued using quoted forward foreign exchange prices at the reporting date. Fair value of assets and liabilities at March 31, 2023 was $6.6 million and $14.7 million, respectively. The fair value of assets and liabilities at December 31, 2022 was $5.3 million and $20.1 million, respectively.

•Commodity swap agreements — valued using quoted forward commodity prices at the reporting date. Fair value of the assets and liabilities at March 31, 2023 was $1.0 million and $3.7 million, respectively. The fair value of the assets and liabilities at December 31, 2022 was $0.5 million and $8.6 million, respectively.

Counterparties to the above contracts are highly rated financial institutions, none of which experienced any significant downgrades in the three months ended March 31, 2023 that would reduce the receivable amount owed, if any, to the Company.

Note 8 — Revenue

Our revenue is primarily derived from the sale of inventory under long-term contracts with our customers. We have determined that individual purchase orders (“PO”), the terms and conditions of which are taken with a master agreement, create the ASC 606 contracts, which are generally short-term in nature. For those sales that are not tied to a long-term agreement, we generate a PO that is subject to our standard terms and conditions. In instances where our customers acquire our goods related to government contracts, the contracts are typically subject to terms similar, or equal to, the Federal Acquisition Regulation Part 52.249-2. This regulation contains a termination for convenience clause (“T for C”), which requires that the customer pay for the cost of both the finished and unfinished goods at the time of cancellation plus a reasonable profit.

We recognize revenue over time for those agreements that have T for C, and where the products being produced have no alternative use. As our production cycle is typically nine months or less, it is expected that goods related to the revenue recognized over time will be shipped and billed within the next twelve months. Less than half of our agreements contain provisions which would require revenue to be recognized over time. All other revenue is recognized at a point in time.

We disaggregate our revenue based on market for analytical purposes. The following table details our revenue by market for the three months ended March 31, 2023 and 2022:

	Quarter Ended March 31,
(In millions)	2023		2022
Consolidated Net Sales	$	457.7	$	390.6
Commercial Aerospace		284.5		218.9
Space & Defense		126.2		118.2
Industrial		47.0		53.5

Revenue recognized over time gives rise to contract assets, which represent revenue recognized but unbilled. Contract assets are included in our Condensed Consolidated Balance Sheets as a component of current assets. The activity related to contract assets for the three months ended March 31, 2023 was as follows:

(In millions)	Composite Material			Engineered Products			Total
Balance at December 31, 2022	$	9.1		$	22.9		$	32.0
Net revenue billed		(2.5	)		(0.9	)		(3.4	)
Balance at March 31, 2023	$	6.6		$	22.0		$	28.6

Accounts receivable, net, includes amounts billed to customers where the right to payment is unconditional.

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Note 9 — Segment Information

The financial results for our operating segments are prepared using a management approach, which is consistent with the basis and manner in which we internally segregate financial information for the purpose of assisting in making internal operating decisions. We evaluate the performance of our operating segments based on operating income, and generally account for intersegment sales based on arm’s length prices. Corporate and certain other expenses are not allocated to the operating segments, except to the extent that the expense can be directly attributable to the business segment.

Financial information for our operating segments for the three months ended March 31, 2023 and 2022 were as follows:

	(Unaudited)
	Composite		Engineered		Corporate &
(In millions)	Materials		Products		Other (a)			Total
Quarter Ended March 31, 2023
Net sales to external customers	$	378.2	$	79.5	$	—		$	457.7
Intersegment sales		19.3		1.0		(20.3	)		—
Total sales	$	397.5	$	80.5	$	(20.3	)	$	457.7
Other operating expense		0.2		-		—			0.2
Operating income (loss)		73.2		12.0		(22.4	)		62.8
Depreciation and amortization		27.2		3.5		—			30.7
Stock-based compensation		3.1		0.8		9.0			12.9
Accrual basis additions to capital expenditures		13.1		3.7		-			16.8
Quarter Ended March 31, 2022
Net sales to external customers	$	313.8	$	76.8	$	—		$	390.6
Intersegment sales		16.5		0.3		(16.8	)		—
Total sales	$	330.3	$	77.1	$	(16.8	)	$	390.6
Other operating expense		0.9		0.1		-			1.0
Operating income (loss)		42.6		10.6		(23.1	)		30.1
Depreciation and amortization		28.6		3.6		—			32.2
Stock-based compensation		2.6		0.7		7.1			10.4
Accrual basis additions to capital expenditures		10.1		1.0		—			11.1

(a)We do not allocate corporate expenses to the operating segments.

Goodwill and Intangible Assets	Composite			Engineered
(In millions)	Materials			Products			Total
Balance at December 31, 2022	$	86.9		$	169.1		$	256.0
Amortization expense		(0.5	)		(1.2	)		(1.7	)
Currency translation adjustments		0.9			—			0.9
Balance at March 31, 2023	$	87.3		$	167.9		$	255.2

At March 31, 2023, the balance of goodwill and intangible assets was $187.7 million and $67.5 million, respectively.

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Note 10 — Accumulated Other Comprehensive Loss

Comprehensive loss represents net loss and other gains and losses affecting stockholders’ equity that are not reflected in the Condensed Consolidated Statements of Operations. The components of accumulated other comprehensive loss as of March 31, 2023 and December 31, 2022 were as follows:

(In millions)	Unrecognized Net Defined Benefit and Postretirement Plan Costs			Change in Fair Value of Derivatives Products (1)			Foreign Currency Translation			Total
Balance at December 31, 2022	$	(49.1	)	$	(15.4	)	$	(109.9	)	$	(174.4	)
Other comprehensive (loss) income before reclassifications		(0.4	)		8.5			12.0			20.1
Amounts reclassified from accumulated other comprehensive loss		0.4			1.8		—				2.2
Other comprehensive income (loss)		-			10.3			12.0			22.3
Balance at March 31, 2023	$	(49.1	)	$	(5.1	)	$	(97.9	)	$	(152.1	)

(1)Includes forward foreign exchange contracts, interest rate derivatives and commodity swaps.

The amount of net (gains) losses reclassified to earnings from the unrecognized net defined benefit and postretirement plan costs and derivative products components of accumulated other comprehensive loss for the three months ended March 31, 2023 and 2022 were as follows:

	Quarter Ended March 31, 2023						Quarter Ended March 31, 2022
(In millions)	Pre-tax (gain) loss			Net of tax (gain) loss			Pre-tax (gain) loss			Net of tax (gain) loss
Defined Benefit and Postretirement Plan Costs	$	0.5		$	0.4		$	0.5		$	0.3
Derivative Products
Foreign currency forward exchange contracts		3.7			2.7			0.7			0.4
Commodity swaps		0.9			0.7			(0.8	)		(0.6	)
Interest rate swaps		(2.1	)		(1.6	)		(7.5	)		(5.8	)
Total Derivative Products	$	2.5		$	1.8		$	(7.6	)	$	(6.0	)

Note 11 — Commitments and Contingencies

We are involved in litigation, investigations and claims arising out of the normal conduct of our business, including those relating to commercial transactions, environmental, employment and health and safety matters. While it is impossible to predict the ultimate resolution of litigation, investigations and claims asserted against us, we believe, based upon our examination of currently available information, our experience to date, and advice from legal counsel, that, after taking into account our existing insurance coverage and amounts already provided for, the currently pending legal proceedings against us will not have a material adverse impact on our consolidated results of operations, financial position or cash flows.

Environmental Matters

We have been named as a potentially responsible party (“PRP”) with respect to the below and other hazardous waste disposal sites that we do not own or possess, which are included on, or proposed to be included on, the Superfund National Priority List of the U.S. Environmental Protection Agency (“EPA”) or on equivalent lists of various state governments. Because the Federal Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA” or “Superfund”) allows for joint and several liability in certain circumstances, we could be responsible for all remediation costs at such sites, even if we are one of many PRPs. We believe, based on the amount and nature of the hazardous waste at issue, and the number of other financially viable PRPs at each site, that our liability in connection with such environmental matters will not be material.

Lower Passaic River Study Area

Hexcel, together with approximately 48 other PRPs that comprise the Lower Passaic Cooperating Parties Group (the “CPG”), are subject to a May 2007 Administrative Order on Consent (“AOC”) with the EPA requiring the CPG to perform a Remedial

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Investigation/Feasibility Study of environmental conditions of a 17-mile stretch of the Passaic River in New Jersey (the “Lower Passaic River”). We were included in the CPG based on our operations at our former manufacturing site in Lodi, New Jersey.

In March 2016, the EPA issued a Record of Decision (“ROD”) setting forth the EPA’s selected remedy for the lower eight miles of the Lower Passaic River at an expected cost ranging from $0.97 billion to $2.07 billion. In August 2017, the EPA appointed an independent third-party allocation expert to make recommendations on the relative liability of approximately 120 identified non-government PRPs for the lower eight miles of the Lower Passaic River. In December 2020, the allocator issued its non-binding report on PRP liability (including Hexcel’s) to the EPA. In October 2021, the EPA released a ROD selecting an interim remedy for the upper nine miles of the Lower Passaic River at an expected additional cost ranging from $308.7 million to $661.5 million.

In October 2016, pursuant to a settlement agreement with the EPA, Occidental Chemical Corporation (“OCC”), one of the PRPs, commenced performance of the remedial design required by the ROD for the lower eight miles of the Lower Passaic River, reserving its right of cost contribution from all other PRPs. In June 2018, OCC filed suit against approximately 120 parties, including Hexcel, in the U.S. District Court of the District of New Jersey seeking cost recovery and contribution under CERCLA related to the Lower Passaic River. In July 2019, the court granted in part and denied in part the defendants’ motion to dismiss. In August 2020, the court granted defendants’ motion for summary judgement for certain claims. Discovery for the remaining claims has been stayed indefinitely based on agreement of the parties. On February 24, 2021, Hexcel and certain other defendants filed a third-party complaint against the Passaic Valley Sewerage Commission and certain New Jersey municipalities seeking recovery of Passaic-related cleanup costs incurred by defendants, as well as contribution for any cleanup costs incurred by OCC for which the court deems the defendants liable.

On December 16, 2022, the EPA lodged a Consent Decree with the U.S. District Court for the District of New Jersey requesting court approval of a $150 million settlement of the EPA’s CERCLA claims against Hexcel and 83 other PRPs for costs related to alleged contamination of the upper and lower portions of the Lower Passaic River. The 84 PRPs have collectively placed $150 million in escrow, pending District Court approval of the Consent Decree. The Consent Decree is subject to a public comment period and interested parties may have opportunities to provide additional evidence or make arguments in support or opposition to the Consent Decree. Hexcel is unable to estimate when or if the District Court will approve the Consent Decree.

In March 2023, the EPA issued a Unilateral Administrative Order (“UAO”) to OCC ordering OCC to commence remedial design work for the interim remedy for the cleanup of the upper nine miles of the Lower Passaic River. On March 24, 2023, OCC filed suit against Hexcel and approximately 38 other parties claiming cost recovery under CERCLA for future costs related to its compliance with the UAO.

Summary of Environmental Reserves

Our estimate of liability as a PRP and our remaining costs associated with our responsibility to remediate the Lower Passaic River and other sites are accrued in the Consolidated Balance Sheets. As of March 31, 2023 and December 31, 2022, our aggregate environmental related accruals were $0.5 million and $0.8 million, respectively. These amounts were included in non-current liabilities.

These accruals can change significantly from period to period due to such factors as additional information on the nature or extent of contamination, the methods of remediation required, changes in the apportionment of costs among responsible parties and other actions by governmental agencies or private parties, or the impact, if any, of being named in a new matter.

Product Warranty

We provide standard assurance-type warranties for our products, which cannot be purchased separately and do not meet the criteria to be considered a performance obligation. Warranty expense for the three months ended March 31, 2023, and accrued warranty cost, included in “accrued liabilities” in the Condensed Consolidated Balance Sheets at March 31, 2023 and December 31, 2022, were as follows:

	Product
(In millions)	Warranties
Balance as of December 31, 2022	$	3.1
Warranty expense		1.6
Deductions and other		(1.2	)
Balance as of March 31, 2023	$	3.5

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Note 12 — Restructuring

We recognized restructuring charges of $0.2 million for the quarter ended March 31, 2023 primarily related to severance. Anticipated future cash payments as of March 31, 2023 were $3.3 million.

			Activity for the Quarter Ended March 31, 2023
	December 31,		Restructuring				Cash					March 31,
(In Millions)	2022		Charge		FX Impact		Paid			Non-Cash		2023
Employee termination	$	5.4	$	0.2	$	—	$	(2.3	)	$	—	$	3.3
Total	$	5.4	$	0.2	$	—	$	(2.3	)	$	—	$	3.3

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ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Business Overview

We develop, manufacture, and market lightweight, high-performance structural materials, including carbon fiber, specialty reinforcements, prepregs and other fiber-reinforced matrix materials, honeycomb, resins, engineered core and composite structures, for use in Commercial Aerospace, Space & Defense, and Industrial markets. We propel the future of flight, energy generation, transportation, and recreation through excellence in providing innovative high-performance material solutions that are lighter, stronger and tougher, helping to create a better world for us all.

We serve international markets through manufacturing facilities, sales offices and representatives located in the Americas, Europe, Asia Pacific, India, and Africa. We also have a presence in Malaysia where we are a partner in a joint venture which manufactures composite structures for Commercial Aerospace applications.

We are a manufacturer of products within a single industry: Advanced Composites. We have two reportable segments: Composite Materials and Engineered Products. The Composite Materials segment is comprised of our carbon fiber, specialty reinforcements, resin systems, prepregs and other fiber-reinforced matrix materials, and honeycomb core product lines and pultruded profiles. The Engineered Products segment is comprised of lightweight high strength composite structures, radio frequency/electromagnetic interference (“RF/EMI”) and microwave absorbing materials, engineered core and specialty machined honeycomb products with added functionality and thermoplastic additive manufacturing.

The Commercial Aerospace market is now recovering strongly following the severe negative economic impacts on this industry resulting from the COVID-19 pandemic that began in 2020, and our business is continuing to recover robustly driven by growth in air travel and an increase in aircraft build rates. The recovery has created many challenges across industrial markets, including those that Hexcel operates in, related to global logistics, supply chains, labor constraints, and inflationary pressures. Geopolitical issues also remain a challenge, notably the Russian/Ukraine conflict, which has little direct material impact on our business, but is indirectly creating further challenges for energy supply, global logistics and certain raw material availability, all of which have and may continue to compress our financial results.

Financial Overview

Results of Operations

	Quarter Ended March 31,
(In millions, except per share data)	2023			2022			% Change
Net sales	$	457.7		$	390.6			17.2	%
Net sales change in constant currency								18.0	%
Operating income	$	62.8		$	30.1			108.6	%
As a percentage of net sales		13.7	%		7.7	%
Net income	$	42.7		$	17.8			139.9	%
Diluted net income per common share	$	0.50		$	0.21			138.1	%

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Net Sales

The following table summarizes net sales to third-party customers by segment and end market for the quarters ended March 31, 2023 and 2022:

	Quarter Ended March 31,
(In millions)	2023		2022		% Change
Consolidated Net Sales	$	457.7	$	390.6		17.2	%
Commercial Aerospace		284.5		218.9		30.0	%
Space & Defense		126.2		118.2		6.8	%
Industrial		47.0		53.5		(12.1	)%
Composite Materials	$	378.2	$	313.8		20.5	%
Commercial Aerospace		243.2		184.8		31.6	%
Space & Defense		88.8		76.6		15.9	%
Industrial		46.2		52.4		(11.8	)%
Engineered Products	$	79.5	$	76.8		3.5	%
Commercial Aerospace		41.3		34.1		21.1	%
Space & Defense		37.4		41.6		(10.1	)%
Industrial		0.8		1.1		(27.3	)%

Sales by Segment

Composite Materials: Net sales of $378.2 million in the first quarter of 2023 increased by $64.4 million or 20.5% from the prior year quarter. Commercial Aerospace sales increased $58.4 million or 31.6% in the first quarter of 2023 as compared to the prior year quarter primarily due to growth in the Airbus A350 and A320neo programs as well as expanding business jet demand.

Engineered Products: For the first quarter of 2023, net sales of $79.5 million increased $2.7 million or 3.5% as compared to the prior year quarter. The increase was driven by higher Commercial Aerospace sales which were up $7.2 million or 21.1% in the first quarter of 2023 as compared to the same period in 2022, partially offset by lower Space & Defense sales.

Sales by Market

Commercial Aerospace sales of $284.5 million increased $65.6 million or 30.0% (30.0% in constant currency) for the first quarter of 2023 compared to the first quarter of 2022 from growth in the Airbus A350 and A320neo programs. Other Commercial Aerospace increased 23.5% for the first quarter of 2023 compared to the first quarter of 2022 on expanding business jet demand.

Space & Defense sales of $126.2 million increased 6.8% (7.6% in constant currency) for the first quarter of 2023 compared to the first quarter of 2022 with growth across a number of platforms globally, including fixed-wing aircraft and both military and civilian rotorcraft.

Total Industrial sales in the first quarter of 2023 of $47.0 million decreased 12.1% (9.1% in constant currency) compared to the first quarter of 2022, due to lower wind energy sales that were partially offset by sales growth in recreation, automotive and other industrial markets.

Gross Margin

	Quarter Ended March 31,
(In millions)	2023			2022			% Change
Gross margin	$	127.7		$	86.7			47.3	%
Percentage of sales		27.9	%		22.2	%

Gross margin for the first quarter of 2023 and 2022 was 27.9% and 22.2%, respectively. The improvement in the first quarter of 2023 compared to the same period last year was primarily due to favorable absorption and product mix.

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Operating Expenses

	Quarter Ended March 31,
(In millions)	2023			2022			% Change
SG&A expense	$	50.8		$	44.7			13.6	%
Percentage of sales		11.1	%		11.4	%
R&T expense	$	13.9		$	10.9			27.5	%
Percentage of sales		3.0	%		2.8	%

Selling, general and administrative expenses were higher for the three months ended March 31, 2023 compared to the same period in 2022, although the current quarter expenses were lower as a percentage of sales. The increase in selling, general and administrative expenses for the current quarter was primarily driven by higher employee-related expenses. Research and technology expenses were higher than the prior year period primarily due to higher employee-related and materials and supplies expenses in the current year period.

Operating Income

	Quarter Ended March 31,
(In millions)	2023			2022			% Change
Consolidated operating income	$	62.8		$	30.1			108.6	%
Operating margin		13.7	%		7.7	%
Composite Materials		73.2			42.6			71.8	%
Operating margin		18.4	%		12.9	%
Engineered Products		12.0			10.6			13.2	%
Operating margin		14.9	%		13.7	%
Corporate & Other		(22.4	)		(23.1	)	N/M

Operating income for the first quarter of 2023 and 2022 was $62.8 million and $30.1 million, respectively. The increase in operating income for the first quarter of 2023 over the same period last year was primarily driven by higher sales in all markets and strong gross margins.

Interest Expense, Net

	Quarter Ended March 31,
(In millions)	2023		2022		% Change
Interest expense, net	$	9.4	$	9.1		3.3	%

Interest expense for the first quarter ended March 31, 2023 was higher compared to the first quarter of 2022 due to higher interest rates.

Provision for Income Taxes

	Quarter Ended March 31,
(In millions)	2023			2022
Income tax expense	$	11.7		$	4.7
Effective tax rate		21.9	%		22.5	%

The tax expense for the three months ended March 31, 2023 was $11.7 million compared to a tax expense of $4.7 million for the quarter ended March 31, 2022.

Financial Condition

Liquidity: Cash on hand at March 31, 2023 was $105.7 million as compared to $112.0 million at December 31, 2022. As of March 31, 2023, total debt was $768.7 million as compared to $723.5 million at December 31, 2022.

Under the senior unsecured credit facility (the "Facility"), total borrowings at March 31, 2023 were $70 million, which approximated fair value. The Facility agreement permits us to issue letters of credit up to an aggregate amount of $50 million. As of March 31, 2023, there were no issued letters of credit under the Facility, resulting in undrawn availability under the Facility of $680 million. The weighted average interest rate for the Facility was 6.1% for the three months ended March 31, 2023. The remaining

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authorization under the share repurchase program at March 31, 2023 was $217 million. For further information regarding our Facility, see Note 5, Debt, to the accompanying condensed consolidated financial statements of this Form 10-Q.

We expect to meet our short-term liquidity requirements (including capital expenditures) through net cash from operating activities, cash on hand and the Facility. As of March 31, 2023, long-term liquidity requirements consisted primarily of obligations under our long-term debt obligations. We do not have any significant required debt repayments until June 2024 when the Facility expires.

On April 24, 2023, our Board of Directors declared a quarterly dividend of $0.125 per share payable to stockholders of record as of May 5, 2023, with a payment date of May 12, 2023.

Operating Activities: Net cash used for operating activities for the first three months of 2023 was $23.4 million compared to $19.0 million for the same period last year. Working capital was a cash use of $104.0 million for the first three months of 2023, which supported sales growth, compared to a use of $74.3 million in the same period in 2022. The increase in the current year was primarily driven by higher payments of payables and higher inventory.

Investing Activities: Net cash used for investing activities was $18.1 million and $20.9 million in the first three months of 2023 and 2022, respectively, reflecting a slight decline in capital expenditures.

Financing Activities: Net cash provided by financing activities was $34.8 million for first three months of 2023 compared to $25.9 million in the same period in 2022. Borrowings under the Facility during the first quarter of 2023 were $65.0 million and repayments were $20.0 million compared to $35.0 million in borrowings and no repayments for the same period in the prior year. Quarterly dividend payments to shareholders were $10.5 million during the first quarter of 2023 compared to $8.5 million in the first quarter of 2022.

Financial Obligations and Commitments: The next significant scheduled debt maturity will not occur until 2024, when the Facility matures. Certain sales and administrative offices, data processing equipment and manufacturing facilities are leased under operating leases.

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Critical Accounting Estimates

Our Condensed Consolidated Financial Statements are prepared in accordance with U.S. GAAP. In connection with the preparation of our financial statements, we are required to make assumptions and estimates about future events, and apply judgments that affect reported amounts of assets, liabilities, revenues, expenses and related disclosures. We base our assumptions, estimates and judgments on historical experience, current trends and other factors management believes to be relevant at the time our Condensed Consolidated Financial Statements are prepared. On a regular basis, management reviews accounting policies, assumptions, estimates and judgments to ensure our financial statements are presented fairly and in accordance with U.S. GAAP. However, because future events and their effects cannot be determined with certainty, actual results may differ from our assumptions and estimates, and such differences could be material.

We describe our significant accounting policies and critical accounting estimates in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022.

Commitments and Contingencies

We are involved in litigation, investigations and claims arising out of the normal conduct of our business, including those relating to commercial transactions, environmental, employment and health and safety matters. We estimate and accrue our liabilities resulting from such matters based upon a variety of factors, including the stage of the proceeding; potential settlement value; assessments by internal and external counsel; and assessments by environmental engineers and consultants of potential environmental liabilities and remediation costs. We believe we have adequately accrued for these potential liabilities; however, facts and circumstances may change, such as new developments, or a change in approach, including a change in settlement strategy or in an environmental remediation plan, or in our existing insurance coverage, that could cause the actual liability to exceed the estimates, or may require adjustments to the recorded liability balances in the future. For further discussion, see Note 11, Commitments and Contingencies, to the accompanying Condensed Consolidated Financial Statements of this Form 10-Q.

Non-GAAP Financial Measures

The Company uses non-GAAP financial measures, including sales and expenses measured in constant dollars (prior year sales and expenses measured at current year exchange rates); operating income, net income and earnings per share adjusted for items included in operating expense and non-operating expenses; and free cash flow. Management believes these non-GAAP measures are meaningful to investors because they provide a view of Hexcel with respect to ongoing operating results and comparisons to prior periods. These adjustments can represent significant charges or credits that we believe are important to an understanding of Hexcel’s overall operating results in the periods presented. Such non-GAAP measures are not determined in accordance with generally accepted accounting principles and should not be viewed in isolation or as an alternative to or substitutes for GAAP measures of performance. Our calculation of these measures may not be comparable to similarly titled measures used by other companies, and the measures exclude financial information that some may consider important in evaluating our performance. Reconciliations to adjusted operating income, adjusted net income, adjusted diluted net income per share and free cash flow are provided below.

		Operating Income
	Quarter Ended March 31,
(In millions)	2023			2022
GAAP operating income		$	62.8		$	30.1
Other operating expense (a)			0.2			1.0
Adjusted operating income (non-GAAP)		$	63.0		$	31.1

	Quarter Ended March 31,
	2023					2022
(In millions, except per diluted share data)	Net Income		Diluted Net Income Per Share			Net Income		Diluted Net Income Per Share
GAAP net income	$	42.7		$	0.50	$	17.8	$	0.21
Other operating expense, net of tax (a)		0.2			-		0.8		0.01
Adjusted net income (non-GAAP)	$	42.9		$	0.50	$	18.6	$	0.22

(a)The quarters ended March 31, 2023 and 2022 included restructuring costs primarily related to severance.

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	Quarter Ended March 31,
(In millions)	2023			2022
Net cash used for operating activities	$	(23.4	)	$	(19.0	)
Less: Capital expenditures		(18.1	)		(20.9	)
Free cash flow (non-GAAP)	$	(41.5	)	$	(39.9	)

Forward-Looking Statements

This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable. These statements also relate to future prospects, developments and business strategies. These forward-looking statements are identified by their use of terms and phrases such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “seek,” “target,” “would,” “will” and similar terms and phrases, including references to assumptions. Such statements are based on current expectations, are inherently uncertain and are subject to changing assumptions.

Such forward-looking statements include, but are not limited to: (a) the estimates and expectations based on aircraft production rates provided by Airbus, Boeing and others; (b) the revenues we may generate from an aircraft model or program; (c) the impact of the push-out in deliveries of the Airbus and Boeing backlog and the impact of delays in the startup or ramp-up of new aircraft programs or the final Hexcel composite material content once the design and material selection have been completed; (d) expectations with regard to the impact of regulatory activity related to, or the build rate of, the Boeing 737 MAX or Boeing 787 and the related impact on our revenues; (e) expectations with regard to raw material cost and availability; (f) expectations of composite content on new commercial aircraft programs and our share of those requirements; (g) expectations regarding revenues from space and defense applications, including whether certain programs might be curtailed or discontinued; (h) expectations regarding sales for wind energy, recreation, automotive and other industrial applications; (i) expectations regarding working capital trends and expenditures and inventory levels; (j) expectations as to the level of capital expenditures and timing of completion of capacity expansions and qualification of new products; (k) expectations regarding our ability to improve or maintain margins; (l) expectations regarding our ability to attract, motivate, and retain the workforce necessary to execute our business strategy; (m) projections regarding our tax rate; (n) expectations with regard to the continued impact of macroeconomic factors and the conflict between Russia and Ukraine; (o) expectations regarding our strategic initiatives and other goals, including, but not limited to, our sustainability goals; (p) expectations regarding the sale of certain of our assets; (q) expectations with regard to cybersecurity measures taken to protect confidential and proprietary information; (r) expectations regarding the outcome of legal matters or the impact of changes in laws or regulations or government policies; and (s) the anticipated impact of the above factors and various market risks on our expectations of financial results for 2023 and beyond.

Such forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond our control, that may cause actual results to be materially different. Such factors include, but are not limited to, the following: the extent of the impact of the conflict between Russia and Ukraine and the ongoing market recovery following the COVID-19 pandemic, including continued disruption in global financial markets and supply chains, and labor shortages; reductions in sales to any significant customers, particularly Airbus or Boeing, including related to regulatory activity impacting the Boeing 737 MAX or the Boeing 787 or other geopolitical events or conditions, including the Russia/Ukraine conflict; our ability to effectively adjust production and inventory levels to align with customer demand; our ability to effectively motivate, retain and hire the necessary workforce; availability and cost of raw materials, including the impact of supply shortages and inflation; supply chain disruptions, which have been exacerbated by the conflict between Russia and Ukraine; our ability to successfully implement or realize our business strategies, plans, goals and objectives of management, including our sustainability goals and any restructuring or alignment activities in which we may engage; changes in sales mix; changes in current pricing and cost levels, including cost inflation, as well as increasing energy prices resulting from the conflict between Russia and Ukraine; changes in aerospace delivery rates; changes in government defense procurement budgets; changes in military aerospace program technology; timely new product development or introduction; industry capacity; increased competition; our ability to install, staff and qualify necessary capacity or complete capacity expansions to meet customer demand; cybersecurity-related risks, including the potential impact of breaches or intrusions; currency exchange rate fluctuations; changes in political, social and economic conditions, including, but not limited to, the effect of change in global trade policies, such as sanctions imposed as a result of the conflict between Russia and Ukraine; work stoppages or other labor disruptions; our ability to successfully complete any strategic acquisitions, investments or dispositions; compliance with environmental, health, safety and other related laws and regulations, including those related to climate change; the effects of natural disasters or other severe weather events, which may be worsened by the impact of climate change, and other severe catastrophic events, including any public health crisis; the potential impact of environmental, social and governance matters; and the unexpected outcome of legal matters or impact of changes in laws or regulations.

22

Although we believe that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect our actual results of operations and could cause actual results to differ materially from those expressed in the forward-looking statements. As a result, the foregoing factors should not be construed as exhaustive and should be read together with other cautionary statements included in this and other reports we file with the SEC. For additional information regarding certain factors that may cause our actual results to differ from those expected or anticipated, see the information under the caption “Risk Factors,” which is located in Item 1A of Part I of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022. We do not undertake any obligation to update our forward-looking statements or risk factors to reflect future events or circumstances, except as otherwise required by law.

ITEM 3. Quantitative and Qualitative Disclosures about Market Risk

There have been no material changes in our market risk from the information provided in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

ITEM 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our Chief Executive Officer and Chief Financial Officer have evaluated our disclosure controls and procedures as of March 31, 2023, and with the participation of the Company's management have concluded that these disclosure controls and procedures were effective to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. These disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports we file or submit is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

Our Chief Executive Officer and Chief Financial Officer have concluded that there have not been any changes in our internal control over financial reporting during the three months ended March 31, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. Legal Proceedings

The information required by Item 1 is contained within Note 11 on pages 14 through 15 of this Form 10-Q and is incorporated herein by reference.

ITEM 1A. Risk Factors

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022, which could materially affect our business, financial condition or future results. There have been no material changes in the Company's risk factors from the aforementioned Form 10-K.

ITEMS 2, 3, 4 and 5 are not applicable, and therefore have been omitted.

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ITEM 6. Exhibits

EXHIBIT INDEX

Exhibit No.	Description
10.1* 31.1	Hexcel Corporation Nonqualified Deferred Compensation Plan, effective as of January 1, 2005, Amended and Restated as of January 1, 2023. Certification of Chief Executive Officer, Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer, Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32	Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)
101	The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, formatted in Inline XBRL: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statements of Comprehensive Income, (iv) Condensed Consolidated Statements of Cash Flows, (v) Condensed Consolidated Statements of Stockholders’ Equity, and (vi) Notes to Condensed Consolidated Financial Statements.
104	Cover Page Interactive Data File: the cover page XBRL tags are embedded within the Inline XBRL document and are contained within Exhibit 101.

* Indicates management contract or compensatory plan or arrangement

24

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Hexcel Corporation
April 24, 2023	/s/ Amy S. Evans
(Date)	Amy S. Evans
	Senior Vice President,
	Chief Accounting Officer

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EX-10

Exhibit 10.1

HEXCEL CORPORATION

Nonqualified Deferred Compensation Plan

Effective as of January 1, 2005

Amended and Restated as of January 1, 2023

Table of Contents

Page

ARTICLE I.	DEFINITIONS	1
ARTICLE II.	ELIGIBILITY AND BENEFITS	6
2.1	PURPOSES	6
2.2	ELIGIBILITY	6
2.3	APPLICATION TO PARTICIPATE	6
2.4	AMOUNT OF ACCRUAL BASED ON DEFERRAL	8
2.5	NONQUALIFIED MATCHING CONTRIBUTIONS	8
2.6	NONQUALIFIED PROFIT-SHARING CONTRIBUTIONS	8
2.7	DEFERRALS FROM NORMAL PAYROLL	9
2.8	VESTING	9
2.9	FORMS AND TIMES OF BENEFIT PAYMENTS	9
2.10	PLAN TERMINATION	13
2.11	DESIGNATION OF BENEFICIARY	13
2.12	UNFORESEEABLE EMERGENCY PAYMENTS	13
ARTICLE III.	ADJUSTMENTS TO ACCOUNT BALANCES	14
3.1	CREDITS RELATED TO DEFERRAL AND COMPANY CONTRIBUTION ACCOUNTS	14
3.2	DEBITS RELATED TO PAYMENTS	14
3.3	ESTABLISHMENT OF TRUST AND ADJUSTMENTS TO ACCOUNTS REFLECTING INVESTMENT RETURNS	14
ARTICLE IV.	PLAN ADMINISTRATION AND CLAIMS FOR BENEFITS	16
4.1	GENERAL	16
4.2	PRESENTATION OF CLAIM	16
4.3	NOTIFICATION OF DECISION	16
4.4	REVIEW OF DENIED CLAIM	17
4.5	DECISION OF REVIEW	17
4.6	LEGAL ACTION	17
ARTICLE V	MISCELLANEOUS	18
5.1	AMENDMENT AND PLAN TERMINATION	18
5.2	NOT AN EMPLOYMENT AGREEMENT	18
5.3	ASSIGNMENT OF BENEFITS	18
5.4	ADMINISTRATION	18
5.5	GOVERNING LAW	18
5.6	NUMBER AND GENDER	18
5.7	ACTIONS OF AFFILIATED EMPLOYERS	18

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ARTICLE I.
DEFINITIONS

Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Qualified Plan. In addition, the following capitalized terms used herein shall have the meanings ascribed to them in this Article I.

1.1“Accounts” means accounts established and maintained for one or more years under the Plan for each Participant, including the Deferral Account and, in the event Company Contributions are made, the Company Account.

1.2“Act” means the Employee Retirement Income Security Act of 1974, as amended.

1.3“Accrued Benefit” means the amount of the credit balance of the Participant's Accounts, determined pursuant to Article III as of the close of business on the day with respect to which the Accrued Benefit is determined.

1.4“Affected Corporation” means the Employer for which the Participant is providing services, or (if applicable) any corporation that is a majority shareholder of such Employer, or any corporation (including the Company) in a chain of corporations in which each corporation is a majority shareholder of another corporation in the chain ending with such Employer.

1.5“Affiliate” of any Person shall mean any other Person that directly or indirectly, through one or more intermediaries, Controls, is Controlled by, or is under common Control with, such first Person. The term “Control” shall have the meaning specified in Rule 12b-2 under the Securities Exchange Act of 1934, as amended.

1.6“Affiliated Employer” means any corporation or trade or business which is required to be treated, as a Participant's employer, either as a member of a controlled group of corporations or a group of businesses under common control (within the meaning of Sections 414(b) and (c) of the Code, respectively) of which the Company (or, for the purpose of determining whether there has been a Separation from Service for purposes of Section 1.36, the Participant’s Employer) is a member, provided that, for the purpose of determining whether there has been a Separation from Service for purposes of Section 1.36, in applying Sections 1563(a)(1), (2) and (3) of the Code for purposes of determining a controlled group of corporations, or in applying Treasury Regulations section 1.414(c)-2 for purposes of determining trades or businesses under common control, the phrase “at least 50%” shall replace the phrase “at least 80%” each time it appears in those sections.

1.7“Amended and Restated Effective Date” means January 1, 2023.

1.8“Annual Installment Amount” means with respect to a Participant for an Installment Year the annual amount or the sum of the quarterly or semiannual amounts payable under Section 2.9(e) to the Participant in the Installment Year.

1.9“Base Compensation” shall mean the portion of Compensation as defined in Section 1.18 that is not Performance Compensation as defined in Section 1.30.

1.10“Beneficial Owner” (and variants thereof) shall have the meaning given in Rule 13d‑3 promulgated under the Securities Exchange Act of 1934, as amended, and, only to the extent such meaning is more restrictive than the meaning given in Rule 13d-3, the meaning determined in accordance with Section 318(a) of the Code.

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1.11“Board” means the Board of Directors of the Company.

1.12“Change in Control” means, with respect to a Participant:

(1) any Person is or becomes the Beneficial Owner, directly or indirectly, of more than 50% of either (A) the combined fair market value of the then outstanding stock of the Affected Corporation (the “Total Fair Market Value”) or (B) the combined voting power of the then outstanding securities entitled to vote generally in the election of directors of the Affected Corporation (the “Total Voting Power”); excluding, however, the following: (I) any acquisition by the Company or any of its Affiliates, (II) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any of its Affiliates, (III) any Person who becomes such a Beneficial Owner in connection with a transaction described in the exclusion within paragraph (4) below and (IV) any acquisition of additional stock or securities by a Person who owns more than 50% of the Total Fair Market Value or Total Voting Power immediately prior to such acquisition; or

(2) any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Affected Corporation that, together with any securities acquired directly or indirectly by such Person within the immediately preceding twelve-consecutive month period, represent 40% or more of the Total Voting Power of the Affected Corporation; excluding, however, any acquisition described in subclauses (I) through (IV) of subsection (1) above; or

(3) a change in the composition of the Board of Directors of the Company (the “Board”) such that the individuals who, as of the Amended and Restated Effective Date, constitute the Board (such individuals shall be hereinafter referred to as the “Incumbent Directors”) cease for any reason to constitute at least a majority of the Board; provided, however, for purposes of this definition, that any individual who becomes a director subsequent to such effective date, whose election, or nomination for election by the Company’s stockholders, was made or approved by a vote of at least a majority of the Incumbent Directors (or directors whose election or nomination for election was previously so approved) shall be considered an Incumbent Director; but, provided, further, that any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a person or legal entity other than the Board shall not be considered an Incumbent Director; provided finally, however, that, as of any time, any member of the Board who has been a director for at least twelve consecutive months immediately prior to such time shall be considered an Incumbent Director for purposes of this definition, other than for the purpose of the first proviso of this definition; or

(4) there is consummated a merger or consolidation of the Affected Corporation or any direct or indirect subsidiary of the Affected Corporation or a sale or other disposition of all or substantially all of the assets of the Affected Corporation (“Corporate Transaction”); excluding, however, such a Corporate Transaction (A) pursuant to which all or substantially all of the individuals and entities who are the Beneficial Owners, respectively, of the outstanding common stock of the Affected Corporation and Total Voting Power immediately prior to such Corporate Transaction will Beneficially Own, directly or indirectly, more than 50%, respectively, of the outstanding common stock and the combined voting power of the then outstanding common stock and the combined voting power of the then outstanding securities entitled to vote generally in the election of directors of the company resulting from such Corporate Transaction (including, without limitation, a company which as a result of such transaction owns the Affected Corporation or all or substantially all of the Affected Corporation’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership immediately prior to such

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Corporate Transaction of the outstanding common stock and Total Voting Power, as the case may be, and (B) immediately following which the individuals who comprise the board of directors of the Affected Corporation immediately prior thereto constitute at least a majority of the board of directors of the company resulting from such Corporate Transaction (including, without limitation, a company which as a result of such transaction owns the Affected Corporation or all or substantially all of the Affected Corporation’s assets either directly or through one or more subsidiaries);

provided, however, that notwithstanding anything to the contrary in subsections (1) through (4) above, an event which does not constitute a change in the ownership of the Affected Corporation, a change in the effective control of the Affected Corporation, or a change in the ownership of a substantial portion of the assets of the Affected Corporation, each as defined in Treasury Regulations section 1.409A-3(i)(5) (or any successor provision), shall not be considered a Change in Control for purposes of this Plan.

1.13“Code” means the Internal Revenue Code of 1986, as amended.

1.14“Committee” means a committee of the Board established to administer the Plan or, in the absence of the establishment of such a committee, the “retirement committee” appointed under the Qualified Plan.

1.15“Company” means Hexcel Corporation, a Delaware corporation.

1.16“Company Account” means an account established and maintained under the Plan for a Participant, which account shall be credited with Company Contributions, if any, that are provided pursuant to Sections 2.5 or 2.6 of the Plan, adjusted to reflect an investment return factor as provided in Article III.

1.17“Company Contributions” means amounts, if any, credited to a Participant's Company Account by the Participant's Employer, which may consist of (i) Nonqualified Matching Contributions, (ii) Nonqualified Basic and Special Additional Profit Sharing Contributions, and (iii) Nonqualified Discretionary Profit Sharing Contributions.

1.18“Compensation” means Compensation as defined in the Qualified Plan for purposes of calculating contributions (before application of the Pay Cap) that is received by the Participant during the Plan Year, plus any amounts deferred by a Participant under Section 2.3 of the Plan. Effective for deferral elections made on and after June 1, 2023 and for any Company Contributions, bonuses and other compensation received in a Plan Year for services performed during a prior Plan Year shall be considered “Compensation” for the Plan Year in which such amounts are received, but only to the extent such amounts constitute Performance Compensation and provided the applicable election timing requirements under Section 2.3(f) of the Plan are satisfied. Any other compensation received in a Plan Year for services performed during a prior Plan year shall be considered “Compensation” for the Plan Year in which such services are performed rather than the Plan Year in which the amounts are received. Notwithstanding the preceding sentence, Compensation payable after the last day of a Plan Year solely for services performed during the final payroll period (as described in Section 3401(b) of the Code) containing the last day of the Plan Year, where such amount is payable pursuant to the timing arrangement under which the Employer normally compensates employees for services performed during a payroll period, shall be treated as Compensation for services performed during the Plan Year in which the amount is received rather than the Plan Year in which the services were performed.

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1.19“Deferral Account” means the account established and maintained under the Plan for each Participant, which account shall be credited with a Participant's Deferrals, adjusted to reflect an investment return factor as provided in Article III.

1.20“Deferral Starting Amount” means, with respect to a Participant for a Plan Year, that portion of a Participant's Compensation for that Plan Year which, when multiplied by the Participant's Qualified Pre-Tax Deferral Percentage for that Plan Year, would equal the Deferral Limit (as defined in Section 1.37(c) below) applicable to the Participant in that Plan Year.

1.21“Deferrals,” also referred to as “Restoration Deferrals,” means amounts of a Participant's Compensation deferred pursuant to the Participant's election under the Plan.

1.22“Eligible Employee” means an employee of an Employer who is a “management or highly compensated employee” of the Employer, within the meaning of the quoted phrase in Sections 201(2), 301(a)(3), and 401(a)(1) of the Act, and whose coverage under the Plan would not cause the Plan to fail to be maintained by the Employers “primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees,” within the meaning of the quoted phrase in any one or more of Sections 201(2), 301(a)(3), and 401(a)(1) of the Act.

1.23“Employer” means (a) with respect to an employee (for example, when used in such phrases as “an Employer” or “the Employer”), the Company if the Company is the employer of the employee, or the Participating Employer if that Participating Employer is the employer of the Employee; and (b) in the plural, all of the corporations, trades, or businesses that employ one or more Participants.

1.24“Excess Compensation” means Compensation in excess of the Pay Cap.

1.25“Installment Years” means the lesser of ten consecutive twelve-month periods or the number of consecutive twelve-month periods elected by a Participant pursuant to Section 2.3 over which payments will be made with respect to an Accrued Benefit of such Participant who has elected to receive installment payments in lieu of a lump sum. The first Installment Year shall commence on the Installment Commencement Date (as defined in Section 2.9(e) below) and each succeeding Installment Year shall commence on each succeeding anniversary thereof.

1.26“Nonqualified Matching Contributions” means credits made pursuant to Section 2.5.

1.27“Nonqualified Profit-Sharing Contributions” means credits made pursuant to Section 2.6.

1.28“Participant” means any Eligible Employee of an Employer who (a) is a “Participant” as defined in the Qualified Plan and (b) meets the eligibility requirements of Section 2.2 of the Plan, and (c) accrues a benefit under the Plan.

1.29“Participating Employer” means any Affiliated Employer that has adopted this Plan with the consent of the Committee.

1.30“Performance Compensation” means Compensation the amount of which, or the entitlement to which, is contingent on the satisfaction of preestablished organizational or individual performance criteria relating to a performance period of at least twelve consecutive months, determined in accordance with Treasury Regulations section 1.409A-1(e) (or any successor provision).

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1.31“Person” shall have the meaning given in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended, as modified and used in Sections 13(d) and 14(d) of such act and, only to the extent such meaning is more restrictive than the meaning given in Section 3(a)(9) of such act (as modified as above), the meaning determined in accordance with Treasury Regulations sections 1.409A-3(i)(5)(v)(B), (vi)(D) or (vii)(C) (or any successor provisions), as applicable.

1.32“Plan” means this Hexcel Corporation Nonqualified Deferred Compensation Plan, as amended and restated effective January 1, 2023, and as may be further amended from time to time.

1.33“Plan Year” means (a) with respect to the calendar year in which this Plan is adopted, the period beginning with the date of the adoption of the Plan and ending with the end of such calendar year and (b) with respect to any subsequent periods, the Plan Year as defined in the Qualified Plan.

1.34“Qualified Plan” means the Hexcel Corporation 401(k) Retirement Savings Plan, as amended from time to time.

1.35“Qualified Plan Pre-Tax Deferral Percentage,” also referred to as the “Target Deferral Percentage,” means, with respect to a Participant for a Plan Year, the percentage expected to be used as the rate of pretax deferral under the Qualified Plan as of the first day of such Plan Year (regardless of the rate that is actually used for such Plan Year), determined by the percentage specified by the Participant in his or her application to participate in this Plan for such Plan Year and made prior to such Plan Year. The Qualified Plan Pre-Tax Deferral Percentage for a Participant for any Plan Year shall be calculated to achieve the maximum pretax deferral possible to the Qualified Plan for such year based on the Participant’s Compensation at the start of such year and the Statutory Limits in effect for such year.

1.36“Separation from Service” means termination of employment, other than on account of death, with the Employer and all Affiliated Employers within the meaning of Treasury Regulations section 1.409A-1(h) (or any successor provision), applying the default provisions thereof.

1.37“Statutory Limits” means the following:

(a)the maximum recognizable compensation under Section 401(a)(17) of the Code (the “Pay Cap”);

(b)the maximum annual additions under Section 415(c) of the Code;

(c)the maximum amount excludable from the income of an individual under Section 402(g)(1) of the Code (the “Deferral Limit”), including, if applicable, the “Catch Up Contributions” permitted under Section 402(g)(1)(C);

(d)the limits on contributions for highly compensated employees under Section 401(k)(3) of the Code and 401(m)(2) of the Code.

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ARTICLE II.
ELIGIBILITY AND BENEFITS

2.1PURPOSES

The purposes of the Plan are (a) to permit Participants whose benefit accruals under the Qualified Plan would be limited in the ordinary course by the Statutory Limits to defer the receipt of compensation under an arrangement that will credit hypothetical investment results to such deferrals at rates determined by the rate of investment returns based on the Participant's selection from among investment funds available under the Qualified Plan (other than gains or losses attributable to the Hexcel Stock Fund); and (b) to provide a vehicle under which Participating Employers may supplement Deferrals made by Participants with matching or other forms of Company Contributions. The Plan is intended to be an unfunded and nonqualified deferred compensation arrangement providing deferred compensation to “a select group of management or other highly compensated employees of the Employers,” within the meaning of that phrase as used in Sections 201(2), 301(a)(3), and 401(a)(1) of the Act, and to defer until actual receipt the point at which each Participant's Accrued Benefit is includable in gross income under the Code, and the Plan will be construed and operated only in conformity with the foregoing statement of intention.

2.2ELIGIBILITY

Each Participant shall be eligible to accrue a benefit under the Plan for a Plan Year only if:

(a)his or her Compensation has exceeded the Pay Cap for any prior Plan Year or his or her Compensation, on an annualized basis, would exceed the Pay Cap in the current Plan Year (as of the date on which the Participant’s prospective eligibility for participation is determined, regardless of whether his or her Compensation actually exceeds the Pay Cap for the Plan Year); and

(b)he or she satisfies the position classification and/or salary grade classification established by the Company for its employees to be eligible under the Plan (or a position classification and/or salary grade classification which, in the sole discretion of the Committee, is determined to be the equivalent, with respect to his or her Employer, of the position classification and/or salary grade classification established by the Company for its employees to be eligible under the Plan).

2.3APPLICATION TO PARTICIPATE

a. General. To be eligible to make Deferrals under the Plan during any Plan Year, an Eligible Employee who has been designated and approved as a Participant under Section 2.2(b) must file a written application with the Committee no later than the last business day before the beginning of such Plan Year, or such earlier time as may be designated by the Committee in its discretion. Any electronic enrollment process will be considered to constitute a “written application” for purposes of this Section 2.3, if under applicable law the process is sufficient to result in a valid and binding waiver of any claim to payment of Compensation thereby deferred. The Committee shall make reasonable efforts to notify Eligible Employees of their prospective eligibility to participate in the Plan at least 60 days prior to the beginning of each Plan Year. The application shall become irrevocable at close of business on the last business day before the beginning of such Plan Year, or such earlier time as may be designated by the Committee in its discretion.

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b. Initial Eligibility. The Committee, in its sole discretion, may permit the filing of an application later than the date specified in Section 2.3(a) above, in the case of a person who will become a Participant for the first time during such Plan Year, provided, however, that no application to participate shall be accepted after the 30th day following the date on which such person first meets all the eligibility requirements to participate in the Plan (including, for this purpose, all other plans of the Employer and all Affiliated Employers which would be required to be aggregated with the Plan under Treasury Regulations section 1.409A-1(c)(2) (or any successor provision)) for such Plan Year (other than the filing of the application itself), and provided further that no such application shall result in the deferral of any Compensation for services performed prior to the date on which the application is submitted. The application shall become irrevocable at close of business on the day in which it is submitted. Notwithstanding anything in this Plan to the contrary, if a Participant first becomes eligible after January 10th of a Plan Year, such Participant shall not be permitted to defer any Performance Compensation earned in that Plan Year.

c. Acceptance of Terms. The application for participation in the Plan shall signify (and shall be deemed to be) the Eligible Employee's acceptance of the terms of the Plan.

d. Restoration Deferrals. The application for participation in the Plan shall signify (and shall be deemed to be) the Eligible Employee's election to defer under this Plan the portion of his or her Compensation, determined by multiplying the Participant's Target Deferral Percentage for such Plan Year by the portion of such Compensation that is in excess of his or her Deferral Starting Amount for such Plan Year. The reduction in the Participant's salary or other compensation authorized by the election made pursuant to this paragraph of Section 2.3 will be made as nearly as practicably possible on the same schedule as continued Pre-Tax Contributions would have been made if the Statutory Limits did not apply and the Participant's Target Deferral Percentage were unchanged throughout the Plan Year.

e. Supplemental Deferrals. If so provided by the Committee, the Participating Employer, and the Participant, the application for participation in the Plan may include an election by the Eligible Employees to defer under this Plan an additional portion of his or her Base Compensation in excess of the amount to be deferred pursuant to Section 2.3(d).

f. Performance Compensation Deferrals. If so provided by the Committee, the Participating Employer, and the Participant, the application for participation in the Plan may include an election by the Eligible Employees to defer under this Plan an additional portion of his or her Performance Compensation in excess of the amount to be deferred pursuant to Section 2.3(d). Any election to defer the receipt of Performance Compensation under this Plan shall be made on or before the date which is six months prior to the last day of the performance period over which the services for which the Performance Compensation is paid are provided (or such earlier date as may be provided by the Committee in its discretion) and shall become irrevocable as of such date; provided, however, that (i) the Participant has performed services continuously for the Employer or an Affiliated Employer from the later of (a) the beginning of such performance period and (b) the date on which the performance criteria with respect to the Performance Compensation were established, through the date on which the election is made, and (ii) the portion of the Performance Compensation with respect to which the election is made is not both calculable and substantially certain to be paid at the time of the election.

g. Agreement to Salary Reduction. The application for participation in the Plan shall signify (and shall be deemed to be) the Eligible Employee's agreement that the Deferrals he or she elects shall reduce the amount of salary and other compensation he or she will receive for the Plan Year in the manner and on the schedule prescribed under this Plan.

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h. Cancellation of Deferrals for Unforeseeable Emergency. In the event a Participant applies for and receives an Unforeseeable Emergency distribution in accordance with Section 2.12 below, the Participant’s deferral elections for the remainder of the Plan Year shall be cancelled.

2.4AMOUNT OF ACCRUAL BASED ON DEFERRAL

Each Participant shall accrue a benefit for a Plan Year in the form of a credit to his or her Deferral Account equal to the amount of his or her Compensation for the Plan Year deferred pursuant to the Participant's elections under Section 2.3.

If the amount credited to the account of a Participant under the Qualified Plan for a Plan Year is reduced after the close of such Plan Year as a corrective action deemed necessary by the Administrator of the Qualified Plan to satisfy a Statutory Limit, no corresponding credit shall be made under this Plan.

2.5NONQUALIFIED MATCHING CONTRIBUTIONS

Each Participant may be eligible to accrue a benefit under the Plan in the form of a Nonqualified Matching Contribution for a Plan Year only in accordance with this Section 2.5.

(a)The provisions of this Section 2.5 shall apply to a Participant for a Plan Year if and only if the Participating Employer has acted (or is deemed pursuant to Section 5.7 to have acted) in writing to cause this Section 2.5 to apply to Participants employed by the Participating Employer for such Plan Year. An action or deemed action of a Participating Employer to cause this Section 2.5 to apply for a Plan Year will be construed to cause this Section 2.5 to apply for each subsequent Plan Year unless the writing constituting the action otherwise provides, or until the Participating Employer has acted (or is deemed pursuant to Section 5.7 to have acted) in writing to cause this Section 2.5 not to apply for a Plan Year.

(b)The Company Account of a Participant to whom this Section 2.5 applies for a Plan Year shall be credited for that Plan Year, in accordance with procedures adopted or approved by the Committee, with amounts equal to 50% of his or her Restoration Deferrals on the first 6% of his or her Compensation for services performed during the Plan Year that is in excess of his or her Deferral Starting Amount.

2.6NONQUALIFIED PROFIT-SHARING CONTRIBUTIONS

Each Participant may be eligible to accrue a benefit under the Plan in the form of a Nonqualified Basic Profit-Sharing Contribution and/or a Nonqualified Discretionary Profit-Sharing Contribution, for a Plan Year only in accordance with this Section 2.6.

(a)The provisions of this Section 2.6 shall apply to a Participant for a Plan Year if and only if the Participating Employer has acted (or is deemed pursuant to Section 5.7 to have acted) in writing to cause this Section 2.6 to apply to Participants employed by the Participating Employer for such Plan Year, and has specified in such writing whether this Section 2.6 applies with respect to (i) the Nonqualified Basic Profit-Sharing Contribution and/or (ii) to Nonqualified Discretionary Profit-Sharing Contribution. An action or deemed action of a Participating Employer to cause this Section 2.6 to apply for a Plan Year will be construed to cause this Section 2.6 to apply in the same manner for each subsequent Plan Year unless the writing constituting the action otherwise provides, or

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until the Participating Employer has acted (or is deemed pursuant to Section 5.7 to have acted) in writing to cause this Section 2.6 not to apply for a Plan Year.

(b)The Company Account of a Participant to whom this Section 2.6 applies for a Plan Year shall be credited for that Plan Year, to the extent provided by the action or deemed action of the Participating Employer and in accordance with procedures adopted or approved by the Committee, with an amount determined as follows:

(i) A Nonqualified Basic Profit-Sharing Contribution in an amount equal to the Participant's Excess Compensation multiplied by the sum of the percentages used under the Qualified Plan to determine the Participant's Basic Profit-Sharing Contribution and (if applicable) his or her Special Additional Profit-Sharing Contribution;

(ii) A Nonqualified Discretionary Profit-Sharing Contribution in an amount equal to the Participant's Excess Compensation multiplied by the percentage (if any) used under the Qualified Plan to determine the Participant's Discretionary Profit-Sharing Contribution.

2.7DEFERRALS FROM NORMAL PAYROLL

The Company shall establish and maintain procedures necessary and appropriate to cause amounts to be withheld from each Participant's normal payroll payments in respect of Deferrals, and shall effect such withholding in a manner, and at such times, consistent with the purposes of the Plan.

2.8VESTING

The right of a Participant under Section 2.9 to payment of his or her Accrued Benefit shall not be subject to forfeiture. Nothing in this Plan shall be construed to prohibit any amendment or action of the Committee that prospectively affects or could affect the crediting of investment returns on Accounts.

2.9FORMS AND TIMES OF BENEFIT PAYMENTS

(a)General. A Participant (or, in the case of a Participant’s death, the Participant’s Beneficiary or Beneficiaries) shall be entitled to payment of the Participant’s Accrued Benefit under the Plan upon the earliest to occur of (i) the Participant’s Separation from Service, (ii) death or (iii) a Change in Control. Payment of a Participant's Accrued Benefit will begin at a time determined under this Section 2.9, and will be made in such form as determined under this Section 2.9.

(b)Separation from Service. Unless the Participant has elected installments pursuant to subsection (e) below, and subject to subsection (l) below, in the case of a distribution because of Separation from Service, the Participant's Accrued Benefit will be paid to him or her in a single lump sum as soon as administratively practicable (but, in any event, no later than 90 days after) the date of his or her Separation from Service. Anything to the contrary in this Section 2.9(b) notwithstanding, the Accrued Benefit of a Participant will be paid to the Participant's Beneficiaries (in such shares as the Participant had specified in his or her election form) in a set of single lump sums to each Beneficiary as soon as administratively practicable (but in any event no later than 90 days) after the death of the Participant if the Participant dies after his or her Separation from Service and if, but for

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his or her death, the payment date of his or her Accrued Benefit would be determined pursuant to the first sentence of this Section 2.9(b).

(c)Death. Unless the Participant has elected installments pursuant to subsection (e) below, in the case of distribution because of the Participant’s death, the Participant’s Accrued Benefit will be paid to the Participant's Beneficiaries (in such shares as the Participant had specified in his or her election form) in a set of single lump sums to each Beneficiary on or as soon as administratively practicable (but in any event no later than 90 days) after the death of the Participant.

(d)Change in Control. In the case of distribution because of a Change in Control, the Participant’s Accrued Benefit will be paid to him or her in a single lump sum as soon as administratively practicable (but, in any event, no later than 90 days) after the date of the Change in Control.

(e)Installments. If the Participant so elected in the application submitted to the Committee pursuant to Section 2.3 with respect to his or her Deferrals for a Plan Year, the Participant's Accrued Benefit for such Plan Year will be paid to him or her, beginning (subject to subsection (l) below) on the first day of the first calendar quarter following the Participant’s Separation from Service or death, as the case may be (the “Installment Commencement Date”), in quarterly, semi-annual, or annual payments (as chosen by the Participant in such application) over the number of Installment Years selected by the Participant in such application (or, if the Participant elected installment payments but failed to specify a number of Installment Years, over ten years), in an amount for each such Installment Year equal to the Annual Installment Amount for that Installment Year determined under this Section 2.9(e) The Annual Installment Amount payable to a Participant for an Installment Year is equal to the portion of the Participant's Accrued Benefit that is payable in installments as of the end of the last business day prior to the start of the Installment Year (determined after taking account of payments made in any earlier Installment Year) divided by the greater of one or the number of Installment Years with respect to which payments have not yet been made. If the Participant had elected to receive installments quarterly, one fourth of his or her Annual Installment Amount for an Installment Year will be paid on the beginning of each calendar quarter during the Installment Year. If the Participant had elected to receive installments semiannually, one half of his or her Annual Installment Amount for an Installment Year will be paid on the first day of the first month of the Installment Year, and one half of his or her Annual Installment Amount for an Installment Year will be paid on the first day of the seventh month of the Installment Year. If the Participant had elected to receive installments annually (or if the Participant elected installment payments but failed to specify quarterly or semiannual installments), his or her Annual Installment Amount for an Installment Plan Year will be paid on the first day of the first month of the Installment Year.

(f)Death after Installments Commence. The unpaid portion of the Accrued Benefit of a Participant who dies after he or she has begun to receive an installment distribution of such Accrued Benefit on account of his or her Separation from Service shall be paid to the Participant's Beneficiaries (in such shares as the Participant had specified in the most recent of his or her election form or subsequent beneficiary designation forms) in the same manner and at the same time or times as the unpaid Accrued Benefit would have been payable to the Participant had he or she survived to receive payment of his or her entire Accrued Benefit.

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(g)Change in Control after Installments Commence. The unpaid portion of the Accrued Benefit of a Participant in the event that a Change in Control occurs after he or she has begun to receive an installment distribution of such Accrued Benefit on account of his or her Separation from Service shall be paid to the Participant in the form of a single lump sum on or as soon as administratively practicable (but in any event no later than 90 days) after the date of the Change in Control.

(h)No Loans. No loans shall be permitted from the Plan, and no in service distributions shall be permitted from the Plan except as specified in Section 2.12 (relating to a distribution in the event of an Unforeseeable Emergency) or in the event of a Change in Control as provided in subsection (d) above.

(i)Multiple Distribution Elections Permitted. The Committee may provide in its discretion (1) that an election to receive installments in lieu of a lump sum (a “distribution election”) may be made on or before the date of a deferral election applicable to a Plan Year and that such distribution election shall be applicable with respect to benefits accrued as the result of any Deferral or Company Contribution made during such Plan Year; and/or (2) that a distribution election may be made on or before the date of a deferral election applicable to Performance Compensation to be paid in a Plan Year and that such distribution election shall be applicable with respect to benefits accrued as the result of any Deferral from such Performance Compensation made during such Plan Year; and/or (3) that different distribution elections may be made with respect to benefits accrued from Deferrals and Company Contributions for different Plan Years. In any of these events, additional sub-accounts will be established as necessary to permit such recordkeeping as may be required by the application of different distribution elections to different portions of a Participant's Accrued Benefit. In the absence of any contrary provision by the Committee pursuant to this Section 2.9(i), the distribution election first made by a Participant shall govern the distribution of his or her entire Accrued Benefit under this Plan. In all events, a distribution election applicable to a benefit accrued as the result of a Deferral from Compensation (exclusive of Performance Compensation) shall be applicable to a benefit accrued in the same year as such Deferral on account of a Company Contribution.

(j)Subsequent Distribution Elections.

(i)Separation from Service. Provided the election is made at least twelve months before the Participant becomes eligible for a distribution under this Section 2.9, a Participant may elect at any time to receive a distribution on account of his or her Separation from Service in the form of installments in lieu of a lump sum, or in a lump sum in lieu of installments, or to change the number of installments previously elected; provided that, in the event such election is made, the distribution on account of his Separation from Service shall be delayed until the date which is five years after the date of the Separation from Service (or five years after the scheduled distribution date if, in the Committee’s discretion, more than one election pursuant to this subsection is made).

(ii)Death. Provided the election is made at least twelve months before the Participant becomes eligible for a distribution under this Section 2.9, a Participant may elect at any time for a distribution on account of his or her death to be made in the form of installments in lieu of a lump sum, or in a lump sum in lieu of installments, or to change the number of installments previously elected.

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(iii)Change in Control. Provided the election is made at least twelve months before the Participant becomes eligible for a distribution under this Section 2.9, a Participant may elect at any time to receive a distribution that would otherwise be made on account of a Change in Control at the later of (i) his Separation from Service or (ii) the date which is five years after the date of the Change in Control. In the event such election is made, the distribution that would otherwise have been made on account of a Change in Control shall be made in the form that applies with respect to a distribution on account of the Participant’s Separation from Service. Any payments that would have been made pursuant to the preceding sentence on account of the Participant’s Separation from Service during the first five years following a Change in Control shall be held back and paid in a single lump sum on the date which is five years after the date of the Change in Control.

(iv)The Participant’s Beneficiaries shall be entitled to payment upon the Participant’s death in accordance with this Section 2.9 without regard to the five-year delay requirement stated in subsections (i) through (iii) above.

(k)Six-Month Delay for Certain Distributions. Notwithstanding any provision of the Plan to the contrary, if the Participant is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code as of the date of his Separation from Service, then any amount payable under this Plan on account of his Separation from Service that would otherwise have been paid to the Participant during the first six months following the date of his Separation from Service shall be paid instead in a single lump sum on the earlier of (a) the date which is six months following the date of his Separation from Service and (b) the date of his death, and not before.

2.10PLAN TERMINATION

No additional benefits will accrue under the Plan in the event of the termination of the Qualified Plan or the Plan. The Committee may, in its discretion, authorize payment of Accrued Benefits upon termination of the Plan to the extent permitted under Treasury Regulations section 1.409A-(j)(4)(ix) (or any successor provision).

2.11DESIGNATION OF BENEFICIARY

A Participant may select one or more Beneficiaries by filing with the Committee a written designation of such Beneficiaries on such forms as may be prescribed by the Committee and may, from time to time, amend or revoke such designation. If no Beneficiary survives the Participant, the Qualified Plan Beneficiary shall be the Beneficiary, or if no Qualified Plan Beneficiary survives, the executor or administrator of the Participant's estate shall be deemed to be the Beneficiary. Notwithstanding the foregoing, a married Participant's initial designation and/or any subsequent change in Beneficiary designation to someone other than or in addition to his or her Eligible Spouse shall not be effective unless the Eligible Spouse consents in writing to such designation. The Committee shall have the authority to establish from time to time additional rules and procedures with respect to the designation of Beneficiaries hereunder.

2.12UNFORESEEABLE EMERGENCY PAYMENTS

Upon application to the Committee, providing such information and provided in such form and manner as the Committee shall require, a Participant may receive a distribution of such portion of the Participant’s Accrued Benefit in the event of an “Unforeseeable Emergency” (as such term is defined below) as is provided in this Section 2.12, at such

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time or times as the Committee may determine in the exercise of its sole and absolute discretion. The term “Unforeseeable Emergency” means a severe financial hardship of the Participant resulting from an illness or accident of the Participant, the Participant's spouse, the Participant's dependent (as defined in Section 152 of the Code, without regard to sections 152(b)(1), (b)(2) or (d)(1)(B) thereof), or the Participant’s Beneficiary; loss of the Participant's property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by insurance, for example, not as a result of a natural disaster); or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant. By way of illustration and not by way of limitation, an “Unforeseeable Emergency” may include, among other things, the imminent foreclosure of or eviction from the Participant's primary residence; the need to pay for medical expenses, including non-refundable deductibles, as well as for the costs of prescription drug medication; and the need to pay for the funeral expenses of a spouse, beneficiary or dependent (as defined in Section 152 of the Code, without regard to sections 152(b)(1), (b)(2) and (d)(1)(B) thereof). Whether a Participant is faced with an Unforeseeable Emergency is to be determined by the Committee based on the relevant facts and circumstances of each case, but, in any case, a distribution on account of Unforeseeable Emergency may not be made to the extent that such emergency is or may be relieved through reimbursement or compensation from insurance or otherwise, by liquidation of the Participant's assets, to the extent the liquidation of such assets would not cause severe financial hardship, or by cessation of deferrals under this Plan.

ARTICLE III.
ADJUSTMENTS TO ACCOUNT BALANCES

3.1CREDITS RELATED TO DEFERRAL AND COMPANY CONTRIBUTION ACCOUNTS

A credit equal to the dollar amount of a Deferral shall be made to the Account of the Participant making the Deferral as soon as administratively practicable after the date of the reduction of the Participant's salary to which such Deferral corresponds.

A credit equal to the dollar amount of a Nonqualified Matching Contribution shall be made to the Account of the Participant with respect to whom the Nonqualified Matching Contribution is made, as of the date a corresponding Matching Contribution would have been allocated to the Company Matching Account of the Participant had the Nonqualified Matching Contribution been a Matching Contribution of a like kind (i.e.,, Matching Fixed Contribution, Matching Discretionary Contribution, or Rule of 45 Matching Contribution) under the Qualified Plan.

A credit equal to the dollar amount of a Nonqualified Profit-Sharing Contribution shall be made to the Account of the Participant with respect to whom the Nonqualified Profit-Sharing Contribution is made, as of the date a corresponding Profit-Sharing Contribution would have been allocated to the Profit-Sharing Account of the Participant had the Nonqualified Profit-Sharing Contribution been a Profit-Sharing Contribution of a like kind (i.e.,, Employer Basic Contribution, the Discretionary Profit-Sharing Contribution, or the Special Additional Employer Contribution) under the Qualified Plan.

3.2DEBITS RELATED TO PAYMENTS

The Accounts of a Participant shall be debited in the amount of each payment made pursuant to Section 2.9 to such Participant or to any Beneficiary of such Participant, as of the close of business on the day as of which such payment is made.

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3.3ESTABLISHMENT OF TRUST AND ADJUSTMENTS TO ACCOUNTS REFLECTING INVESTMENT RETURNS

The Company shall establish a trust and make contributions to such trust, in such amounts and at such times as the Company, in its discretion, deems appropriate in order to provide itself with a source of funds to assist it in the meeting of its liabilities under the Plan. Such trust will be intended to constitute a grantor trust, of which the Company is the grantor, within the meaning of Section 671 of the Code. The income tax imposed on the Company with respect to any income earned by the trust shall be paid by the Company and shall not be a charge against the Participants' Accounts. The trustee of such trust shall make payments to Participants and their beneficiaries in such manner and at such time as specified in the Plan and the agreement governing such trust. The trust assets shall be subject to the claims of the Company's general creditors in the event of the Company's insolvency or bankruptcy, pursuant to the terms of such trust agreement. The Company intends that such trust shall constitute an unfunded arrangement and shall not affect the status of the Plan as an unfunded plan maintained for the purpose of providing deferred compensation for a select group of management or highly compensated employees of the Company.

The Committee shall administer the Participants' Accounts and any of the Company's funds invested in the trust in connection therewith. Payment of benefits from the trust shall, to that extent, discharge the Company's obligations under the Plan.

Each Participant shall elect that amounts credited to his or her Accounts be adjusted for gains or losses (realized or unrealized) and for dividend and other income, as such gains, losses, dividends, and income are reported to the trustee, as if invested in one or more investment funds which shall be designated for such purpose from time to time, in accordance with such rules and procedures as may be prescribed by the Committee or the trustee. Anything to the contrary in this Plan notwithstanding, the Company shall be under no obligation to direct the trustee of the trust to follow investment elections of any Participant.

Notwithstanding the existence of any such trust or other vehicle, it is expressly understood that neither the Participant nor his or her Beneficiaries shall have any present or future interest in the assets of the trust, which, together with the dividend and interest income thereon and any capital gains realized with respect thereto, shall constitute assets of the Company. It is further understood that the Plan does not create any fund or trust for the benefit of the Participants or their Beneficiaries, that the Company's obligation hereunder is limited to the contractual obligation to make payments to the Participant or to his or her Beneficiaries as provided herein, and that with respect to such payments the rights of the Participant or his or her Beneficiaries shall be no greater than those of an unsecured creditor of the Company.

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ARTICLE IV.
PLAN ADMINISTRATION AND CLAIMS FOR BENEFITS

4.1GENERAL

The interpretation and construction of any provision of the Plan and the adoption of rules and regulations for administration of the Plan shall be made by the Committee. Decisions of the Committee shall be final and binding on all parties who have an interest in the Plan, including (without limitation) all decisions relating to an individual’s eligibility for participation in the Plan, his or her entitlement to benefits hereunder and the amount of any such benefit entitlement. Prior to paying a benefit under the Plan, the Committee may require the Participant, former Participant or Beneficiary to provide such information or material as the Committee, in its sole discretion, shall deem necessary to make any determination it may be required to make under the Plan. The Committee may withhold payment of a benefit under the Plan until it receives all such information and material and is reasonably satisfied of its correctness and genuineness. Any claim for benefits under the Plan shall be governed by the procedures set forth below.

4.2PRESENTATION OF CLAIM

Any Participant or Beneficiary of a deceased Participant (such Participant or Beneficiary being referred to below as a “Claimant”) may deliver to the Committee a written claim for a determination with respect to the amounts distributable to such Claimant from the Plan. If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within 60 days after such notice was received by the Claimant. All other claims must be made within 180 days of the date on which the event that caused the claim to arise occurred. The claim must state with particularity the determination desired by the Claimant.

4.3NOTIFICATION OF DECISION

The Committee shall consider a Claimant’s claim within a reasonable time, and shall notify the Claimant in writing:

(i) that the Claimant’s requested determination has been made, and that the claim has been allowed in full; or

(ii) that the Committee has reached a conclusion contrary, in whole or in part, to the Claimant’s requested determination, and such notice must set forth in a manner calculated to be understood by the Claimant:

(a) the specific reason(s) for the denial of the claim, or any part of it;

(b) specific reference(s) to pertinent provisions of the Plan upon which such denial was based;

(c) a description of any additional material or information necessary for the Claimant to perfect the claim, and an explanation of why such material or information is necessary; and

(d) an explanation of the claim review procedure set forth in Section 4.4 below.

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4.4REVIEW OF DENIED CLAIM

Within 60 days after receiving a notice from the Committee that a claim has been denied, in whole or in part, a Claimant (or the Claimant’s duly authorized representative) may file with the Committee a written request for a review of the denial of the claim. Thereafter, but not later than 30 days after the review procedure began, the Claimant (or the Claimant’s duly authorized representative):

(i) may review pertinent documents;

(ii) may submit written comments or other documents; and/or

(iii) may request a hearing, which the Committee, in its sole discretion, may grant.

4.5DECISION ON REVIEW

The Committee shall render its decision on review promptly, and not later than 60 days after the filing of a written request for review of the denial, unless a hearing is held or other special circumstances require additional time, in which case the Committee’s decision must be rendered within 120 days after such date. Such decision must be written in a manner calculated to be understood by the Claimant, and it must contain:

(i) specific reasons for the decision;

(ii) specific reference(s) to the pertinent Plan provisions upon which the decision was based; and

(iii) such other matters as the Committee deems relevant.

4.6LEGAL ACTION

A Claimant’s compliance with the foregoing provisions of this Article IV is a mandatory prerequisite to a Claimant’s right to commence any legal action with respect to any claim for benefits under this Plan.

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ARTICLE V.
MISCELLANEOUS

5.1AMENDMENT AND PLAN TERMINATION

The Company may, in its sole discretion, terminate, suspend, or amend the Plan at any time or from time to time, in whole or in part; provided, however, that no amendment, suspension, or termination of the Plan shall, without the consent of a Participant, affect the amounts credited to the Participant's Accounts prior to such termination, suspension, or amendment of the Plan.

5.2NOT AN EMPLOYMENT AGREEMENT

Nothing contained herein will confer on any Participant the right to become or to be retained as an employee of the Company or an Affiliated Employer.

5.3ASSIGNMENT OF BENEFITS

A Participant, retired Participant, surviving spouse, or beneficiary may not, either voluntarily or involuntarily, assign, anticipate, alienate, commute, pledge, or encumber any benefits to which he or she is or may become entitled under the Plan, nor may the same be subject to attachment or garnishment by any creditor's claim or to legal process.

5.4ADMINISTRATION

The Committee shall have full discretionary authority to determine eligibility and to construe and interpret the terms of the Plan, including the power to remedy possible ambiguities, inconsistencies, or omissions.

5.5GOVERNING LAW

The Plan shall be governed by the laws of the State of Delaware, except to the extent superseded by federal law.

5.6NUMBER AND GENDER

The singular, where appearing in the Plan, will be deemed to include the plural, unless the context clearly indicates the contrary, and the masculine, where appearing in the Plan, will be deemed to include the feminine.

5.7ACTIONS OF AFFILIATED EMPLOYERS

If the Company acts in writing to cause Section 2.5 or Section 2.6 to apply with respect to Participants employed by the Company, or to suspend or modify the application of Section 2.5 or Section 2.6 to such Participants, each Affiliated Employer will be deemed to have taken the identical action with respect to Participants employed by it unless, within 10 days of such action by the Company, the Affiliated Employer has delivered a written notice to the contrary to the Committee.

If the Company acts to terminate, suspend, or amend the Plan, each Affiliated Employer will be deemed to have taken the identical action with respect to Participants employed by it unless, within 10 days of such action by the Company, the Affiliated Employer has delivered a written notice to the contrary to the Committee.

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EX-31

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Nick L. Stanage, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Hexcel Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

April 24, 2023	/s/ Nick L. Stanage
(Date)	Nick L. Stanage
	Chairman of the Board of Directors,
	Chief Executive Officer and President

EX-31

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, Patrick Winterlich, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Hexcel Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

April 24, 2023	/s/ Patrick Winterlich
(Date)	Patrick Winterlich
	Executive Vice President and
	Chief Financial Officer

EX-32

Exhibit 32

CERTIFICATIONS OF

CHIEF EXECUTIVE OFFICER

AND CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT

TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Hexcel Corporation (the “Company”) on Form 10-Q for the period ending March 31, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Nick L. Stanage, Chairman of the Board of Directors, Chief Executive Officer and President of the Company, and Patrick Winterlich, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

April 24, 2023	/s/ Nick L. Stanage
(Date)	Nick L. Stanage
	Chairman of the Board of Directors,
	Chief Executive Officer and President
April 24, 2023	/s/ Patrick Winterlich
(Date)	Patrick Winterlich
	Executive Vice President and
	Chief Financial Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Hexcel Corporation and will be retained by Hexcel Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

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Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2023	Apr. 20, 2023
Cover [Abstract]
Entity Registrant Name	Hexcel Corporation
Entity Central Index Key	0000717605
Document Type	10-Q
Document Period End Date	Mar. 31, 2023
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		84,372,361
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Entity Shell Company	false
Entity Current Reporting Status	Yes
Entity File Number	1-8472
Entity Tax Identification Number	94-1109521
Entity Address, Address Line One	Two Stamford Plaza
Entity Address, Address Line Two	281 Tresser Boulevard
Entity Address, City or Town	Stamford
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06901-3238
City Area Code	(203)
Local Phone Number	969-0666
Entity Interactive Data Current	Yes
Entity Incorporation, State or Country Code	DE
Document Quarterly Report	true
Document Transition Report	false
Title of 12(b) Security	Common Stock, par value $0.01
Trading Symbol	HXL
Security Exchange Name	NYSE

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 105.7	$ 112.0
Accounts receivable, net	265.3	222.7
Inventories, net	354.6	319.3
Contract assets	28.6	32.0
Prepaid expenses and other current assets	44.2	38.9
Assets held for sale	9.5	9.5
Total current assets	807.9	734.4
Property, plant and equipment	3,116.1	3,087.9
Less accumulated depreciation	(1,465.4)	(1,430.1)
Net property, plant and equipment	1,650.7	1,657.8
Goodwill and other intangible assets, net	255.2	256.0
Investments in affiliated companies	52.7	47.6
Other assets	140.8	141.5
Total assets	2,907.3	2,837.3
Current liabilities:
Short-term borrowings	0.2	0.2
Accounts payable	122.0	155.5
Accrued compensation and benefits	61.0	69.6
Financial instruments	15.0	22.0
Accrued liabilities	91.9	82.5
Total current liabilities	290.1	329.8
Long-term debt	768.5	723.3
Retirement obligations	44.3	42.7
Deferred income taxes	123.9	126.4
Other non-current liabilities	58.3	60.9
Total liabilities	1,285.1	1,283.1
Stockholders' equity:
Common stock, $0.01 par value, 200.0 shares authorized, 110.6 shares and 110.4 shares issued at March 31, 2023 and December 31, 2022, respectively	1.1	1.1
Additional paid-in capital	920.8	905.0
Retained earnings	2,137.2	2,104.9
Accumulated other comprehensive loss	(152.1)	(174.4)
Total stockholders' equity including treasury stock value	2,907.0	2,836.6
Less -Treasury stock, at cost, 26.2 shares at March 31, 2023 and 26.2 shares at December 31, 2022	(1,284.8)	(1,282.4)
Total stockholders' equity	1,622.2	1,554.2
Total liabilities and stockholders' equity	$ 2,907.3	$ 2,837.3

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Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	200.0	200.0
Common stock, shares issued	110.6	110.4
Treasury stock, shares	26.2	26.2

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Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Net sales	$ 457.7	$ 390.6
Cost of sales	330.0	303.9
Gross margin	127.7	86.7
Selling, general and administrative expenses	50.8	44.7
Research and technology expenses	13.9	10.9
Other operating expense	0.2	1.0
Operating income (loss)	62.8	30.1
Interest expense, net	9.4	9.1
Income (loss) before income taxes, and equity in earnings from affiliated companies	53.4	21.0
Income tax expense (benefit)	11.7	4.7
Income (loss) before equity in earnings from affiliated companies	41.7	16.3
Equity in earnings (losses) from affiliated companies	1.0	1.5
Net income (loss)	$ 42.7	$ 17.8
Basic net income (loss) per common share	$ 0.50	$ 0.21
Diluted net income (loss) per common share	$ 0.50	$ 0.21
Weighted-average common shares:
Basic	84.6	84.3
Weighted average common shares outstanding - Dilutive (in shares)	85.5	84.9

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Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 42.7	$ 17.8
Currency translation adjustments	12.0	(15.7)
Net unrealized pension and other benefit actuarial gains (losses) and prior service credits (net of tax)	0.0	3.2
Net unrealized gain (loss) on financial instruments (net of tax)	10.3	(5.1)
Total other comprehensive income (loss)	22.3	(17.6)
Comprehensive income (loss)	$ 65.0	$ 0.2

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities
Net income (loss)	$ 42.7	$ 17.8
Reconciliation to net cash used for operating activities:
Depreciation and amortization	30.7	32.2
Amortization related to financing	0.1	0.3
Deferred income taxes	(2.1)	(1.8)
Equity in earnings from affiliated companies	(1.0)	(1.5)
Stock-based compensation	12.9	10.4
Restructuring expenses, net of payments	(2.1)	(5.0)
Impairment of assets	1.7	0.0
Changes in assets and liabilities:
Increase in accounts receivable	(40.5)	(54.7)
Increase in inventories	(32.6)	(24.4)
Increase in prepaid expenses and other current assets	0.1	(8.6)
(Decrease) increase in accounts payable/accrued liabilities	(31.0)	13.4
Other – net	(2.3)	2.9
Net cash used for operating activities	(23.4)	(19.0)
Cash flows from investing activities
Capital expenditures	(18.1)	(20.9)
Net cash used for investing activities	(18.1)	(20.9)
Cash flows from financing activities
Borrowing from senior unsecured credit facility	65.0	35.0
Repayment of senior unsecured credit facility	(20.0)	0.0
Repayment of finance lease obligation and other debt, net	(0.1)	(0.3)
Dividends paid	(10.5)	(8.5)
Activity under stock plans	0.4	(0.3)
Net cash provided by (used for) financing activities	34.8	25.9
Effect of exchange rate changes on cash and cash equivalents	0.4	(0.9)
Net decrease in cash and cash equivalents	(6.3)	(14.9)
Cash and cash equivalents at beginning of period	112.0	127.7
Cash and cash equivalents at end of period	105.7	112.8
Supplemental data:
Accrual basis additions to plant, property, and equipment	$ 16.8	$ 11.1

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Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions	Total	Par	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Treasury Stock
Beginning Balance at Dec. 31, 2021	$ 1,485.5	$ 1.1	$ 878.6	$ 2,012.5	$ (126.5)	$ (1,280.2)
Increase (Decrease) in Stockholders' Equity
Net income (loss)	17.8			17.8
Dividends paid on common stock	(8.5)			(8.5)
Change in other comprehensive income (loss)– net of tax	(17.6)				(17.6)
Stock based compensation	9.9		11.3			(1.4)
Ending Balance at Mar. 31, 2022	1,487.1	1.1	889.9	2,021.8	(144.1)	(1,281.6)
Beginning Balance at Dec. 31, 2022	1,554.2	1.1	905.0	2,104.9	(174.4)	(1,282.4)
Increase (Decrease) in Stockholders' Equity
Net income (loss)	42.7			42.7
Dividends paid on common stock	(10.4)			(10.4)
Change in other comprehensive income (loss)– net of tax	22.3				22.3
Stock based compensation	13.4		15.8			(2.4)
Ending Balance at Mar. 31, 2023	$ 1,622.2	$ 1.1	$ 920.8	$ 2,137.2	$ (152.1)	$ (1,284.8)

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Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]
Dividends paid on common stock price per share	$ 0.125	$ 0.10

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Significant Accounting Policies

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Significant Accounting Policies

Note 1 — Significant Accounting Policies

In these notes, the terms “Hexcel,” “the Company,” “we,” “us,” or “our” mean Hexcel Corporation and subsidiary companies. The accompanying condensed consolidated financial statements are those of Hexcel Corporation. Refer to Note 1 to the consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2022 for a discussion of our significant accounting policies.

Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared from the unaudited accounting records of Hexcel pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”) and in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Certain information and footnote disclosures normally included in financial statements have been omitted pursuant to rules and regulations of the SEC. In the opinion of management, the condensed consolidated financial statements include all normal recurring adjustments as well as any non-recurring adjustments necessary to present fairly the statement of financial position, results of operations, cash flows and statement of stockholders’ equity for the interim periods presented. The Condensed Consolidated Balance Sheet as of December 31, 2022 was derived from the audited 2022 consolidated balance sheet. Interim results are not necessarily indicative of results expected for any other interim period or for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2022 Annual Report on Form 10-K.

Investments in Affiliated Companies

We have a 50% equity investment in Aerospace Composites Malaysia Sdn. Bhd. This investment is accounted for using the equity method of accounting.

Assets Held for Sale

In November 2020, we closed our wind energy prepreg production facility in Windsor, Colorado and in 2022 we further reduced the carrying value of the Windsor facility by approximately $3 million. The plant assets to be sold have been recorded in “Assets held for sale” in the Consolidated Balance Sheets at both March 31, 2023 and December 31, 2022. The sale of these assets is expected to occur during 2023.

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Net Income (Loss) Per Common Share

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Net Income (Loss) Per Common Share

Note 2 — Net Income Per Common Share

	Quarter Ended March 31,
(In millions, except per share data)	2023		2022
Basic net income per common share:
Net income	$	42.7	$	17.8
Weighted average common shares outstanding		84.6		84.3
Basic net income per common share	$	0.50	$	0.21
Diluted net income per common share:
Net income	$	42.7	$	17.8
Weighted average common shares outstanding — Basic		84.6		84.3
Plus incremental shares from assumed conversions:
Restricted stock units		0.5		0.4
Stock options		0.4		0.2
Weighted average common shares outstanding — Dilutive		85.5		84.9
Diluted net income per common share	$	0.50	$	0.21

Total common stock equivalents of 0.5 million and 0.7 million were excluded from the computation of diluted net income per share for the three months ended March 31, 2023 and 2022, respectively, because to do so would have been anti-dilutive.

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Inventories

3 Months Ended

Mar. 31, 2023

Inventory Disclosure [Abstract]

Inventories

Note 3 — Inventories

(In millions)	March 31, 2023		December 31, 2022
Raw materials	$	164.7	$	153.3
Work in progress		50.8		42.8
Finished goods		139.1		123.2
Total Inventory	$	354.6	$	319.3

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Retirement and Other Postretirement Benefit Plans

3 Months Ended

Mar. 31, 2023

Retirement Benefits [Abstract]

Retirement and Other Postretirement Benefit Plans

Note 4 — Retirement and Other Postretirement Benefit Plans

We maintain qualified and nonqualified defined benefit retirement plans covering certain current and former U.S. and European employees, retirement savings plans covering eligible U.S. and U.K. employees and certain postretirement health care and life insurance benefit plans covering eligible U.S. retirees. We also participate in a union sponsored multi-employer pension plan covering certain U.S. employees with union affiliations.

Defined Benefit Retirement Plans

Net Periodic Benefit Costs

Net periodic benefit costs of our defined benefit retirement plans for the three months ended March 31, 2023 and 2022 were as follows:

	Quarter Ended March 31,
(In millions)	2023		2022
U.S. Nonqualified Defined Benefit Retirement Plans
Service cost	$	0.3	$	0.3
Interest cost		0.1		0.1
Net amortization		0.2		0.2
Net periodic benefit cost	$	0.6	$	0.6

(In millions)	March 31, 2023		December 31, 2022
Amounts recognized on the balance sheet for U.S. nonqualified defined benefit retirement plans:
Accrued liabilities	$	1.2	$	1.4
Other non-current liabilities		18.9		18.5
Total accrued benefit	$	20.1	$	19.9

	Quarter Ended March 31,
(In millions)	2023			2022
European Defined Benefit Retirement Plans
Service cost	$	0.2		$	0.2
Interest cost		1.2			0.6
Expected return on plan assets		(1.2	)		(0.6	)
Net amortization and deferral		0.6			0.6
Net periodic benefit cost	$	0.8		$	0.8

(In millions)	March 31, 2023		December 31, 2022
Amounts recognized on the balance sheet for European defined benefit retirement plans:
Other assets	$	6.1	$	5.6
Accrued liabilities		1.2		0.1
Other non-current liabilities		13.4		12.1
Total accrued benefit	$	14.6	$	12.2

All costs related to our pensions are included as a component of operating income in our Condensed Consolidated Statements of Operations. For both the three months ended March 31, 2023 and 2022, amounts unrelated to service costs were a charge of $0.9 million.

Contributions

We generally fund our U.S. non-qualified defined benefit retirement plans when benefit payments are incurred. We contributed approximately $0.2 million in the first three months of 2023 to cover unfunded benefits. We expect to contribute a total of $1.5 million in 2023 to cover unfunded benefits. We contributed $0.2 million to our U.S. non-qualified defined benefit retirement plans during the quarter ended March 31, 2022.

Contributions to our European defined benefit retirement plans during the three months ended March 31, 2023 and 2022 were not material. We plan to contribute approximately $0.7 million during 2023 to our European plans.

Postretirement Health Care and Life Insurance Benefit Plans

We recorded $0.3 million of net amortization gain deferral for both the three months ended March 31, 2023 and 2022. Net periodic benefit costs of our postretirement health care and life insurance benefit plans for the three months ended March 31, 2023 and 2022 were immaterial.

(In millions)	March 31, 2023		December 31, 2022
Amounts recognized on the balance sheet:
Accrued liabilities	$	0.2	$	0.2
Other non-current liabilities		1.0		1.0
Total accrued benefit	$	1.2	$	1.2

Amounts contributed in connection with our postretirement plans were immaterial for both the three months ended March 31, 2023 and 2022. We periodically fund our postretirement plans to pay covered expenses as they are incurred. We expect to contribute approximately $0.2 million in 2023 to cover unfunded benefits.

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Debt

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Debt

Note 5 –– Debt

(In millions)	March 31, 2023			December 31, 2022
Current portion of finance lease	$	0.2		$	0.2
Current portion of debt		0.2			0.2
Senior unsecured credit facility		70.0			25.0
4.7% senior notes --- due 2025		300.0			300.0
3.95% senior notes --- due 2027		400.0			400.0
Senior notes --- original issue discount		(0.9	)		(0.9	)
Senior notes --- deferred financing costs		(2.0	)		(2.2	)
Non-current portion of finance lease and other debt		1.4			1.4
Long-term debt		768.5			723.3
Total debt	$	768.7		$	723.5

In June 2019, the Company refinanced its senior unsecured credit facility (the “Facility”), increasing borrowing capacity from $700 million to $1 billion. The Facility matures in June 2024. The interest rate ranges from LIBOR + 0.875% to a maximum of LIBOR + 1.50%, depending upon the better of the Company’s leverage ratio or the credit rating. The Facility agreement contains financial and other covenants, including, but not limited to, customary restrictions on the incurrence of debt by our subsidiaries and the granting of liens, as well as the maintenance of an interest coverage ratio and a leverage ratio.

In September 2020, we amended the Facility to allow for relief from certain terms, including adjusting the maximum leverage ratio covenant for a defined period. On January 28, 2021, we further amended the Facility agreement (the “Second Amendment”) to provide that, from January 28, 2021 through and including March 31, 2022, we would not be subject to a maximum leverage ratio covenant but instead be required to maintain Liquidity (as defined in the Facility agreement) of at least $250 million. Additionally, during such period, the Company was subject to limitations on share repurchases, cash dividends, and its ability to incur secured debt, in each case subject to certain exceptions; the applicable margin and commitment fees would be increased; the incremental facility would not be available; and if the Company’s public debt rating was downgraded to (i) BB or lower by Standard & Poor’s and (ii) Ba2

or lower by Moody’s, we would be required to grant liens on certain of our assets, which liens would be released upon the Company’s public debt rating being upgraded to BB+ or higher by Standard & Poor’s or Ba1 or higher by Moody’s. As of April 1, 2022, the original terms and conditions to the Facility agreement were reinstated except that the borrowing capacity remained at $750 million. Share repurchases restrictions that had been in effect per the Second Amendment expired on March 31, 2022. As of March 31, 2023, we were in compliance with all debt covenants.

As of March 31, 2023, total borrowings under the Facility were $70 million, which approximates fair value. The Facility agreement permits us to issue letters of credit up to an aggregate amount of $50 million. Outstanding letters of credit reduce the amount available for borrowing under the Facility. As of March 31, 2023, there were no issued letters of credit under the Facility, resulting in undrawn availability under the Facility of $680 million. The weighted average interest rate for the Facility was 6.1% for the three months ended March 31, 2023.

In 2017, the Company issued $400 million in aggregate principal amount of 3.95% Senior Unsecured Notes due in 2027. The interest rate on these senior notes may be increased 0.25% each time a credit rating applicable to the notes is downgraded. Conversely, such increases would be reversed should the credit rating be subsequently upgraded. The maximum rate is 5.95%. The effective interest rate for the three months ended March 31, 2023 was 4.11% inclusive of an approximately 0.25% benefit of treasury locks. Based on quoted prices the fair value of the senior unsecured notes due in 2027 was $381.3 million at March 31, 2023.

In 2015, the Company issued $300 million in aggregate principal amount of 4.7% Senior Unsecured Notes due in 2025. The interest rate on these senior notes may be increased by 0.25% each time a credit rating applicable to the notes is downgraded. Conversely, such increases would be reversed should the credit rating be subsequently upgraded. The maximum rate is 6.7%. The effective interest rate for the three months ended March 31, 2023 was 5.06%. Based on quoted prices, the fair value of the senior unsecured notes due in 2025 was $294.5 million at March 31, 2023.

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Derivative Financial Instruments

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Note 6 — Derivative Financial Instruments

Interest Rate Swap and Interest Lock Agreements

At March 31, 2023 and December 31, 2022, we had no interest rate swap agreements outstanding.

The Company had treasury lock agreements, designated as cash flow hedges, to protect against unfavorable movements in the benchmark treasury rate related to the issuance of our senior unsecured notes. As part of the issuance of our senior notes, we net settled these derivatives for $10 million in cash and the deferred gains recorded in other comprehensive income (loss) will be released to interest expense over the life of the senior notes. The effect of these settled treasury locks reduces the effective interest rate on the senior notes by approximately 0.25%.

Cross Currency and Interest Rate Swap Agreements

In November 2020, we entered into a cross currency and interest rate swap, which is designated as a cash flow hedge of a €270 million, 5-year amortizing, intercompany loan between one of our European subsidiaries and the U.S. parent company. Changes in the spot exchange are recorded to the general ledger and offset the fair value re-measurement of the hedged item. The net difference in the interest rates coupons is recorded as a credit to interest expense. The derivative swaps €270 million bearing interest at a fixed rate of 0.30% for $319.9 million at a fixed rate interest of 1.115%. The interest coupons settle semi-annually. The principal will amortize each year on November 15, as follows: for years 1 through 4, beginning November 15, 2021, €50 million versus $59.2 million, and a final settlement on November 15, 2025 of €70 million versus $82.9 million. The carrying value of the derivative at March 31, 2023 was a current asset of $5.9 million and a long-term asset of $9.9 million. The carrying value of the derivative at December 31, 2022 was a current asset of $6.2 million and a long-term asset of $10.1 million.

Foreign Currency Forward Exchange Contracts

A number of our European subsidiaries are exposed to the impact of exchange rate volatility between the U.S. dollar and the subsidiaries’ functional currencies, being either the Euro or the British pound sterling. We have entered into contracts to exchange U.S. dollars for Euros and British pound sterling through November 2025. The aggregate notional amount of these contracts was $487.4 million and $503.3 million at March 31, 2023 and December 31, 2022, respectively. The purpose of these contracts is to hedge a portion of the forecasted transactions of our European subsidiaries under long-term sales contracts with certain customers. These contracts are expected to provide us with a more balanced matching of future cash receipts and expenditures by currency, thereby reducing our exposure to fluctuations in currency exchange rates. The effective portion of the hedges, gains of $4.0 million were recorded in other comprehensive (loss) income for the three months ended March 31, 2023, and losses of $6.8 million were recorded for the three months ended March 31, 2022, respectively. We classified $6.6 million of the carrying amount of these contracts as

assets ($2.8 million of which was recorded in prepaid expenses and other current assets) and $13.0 million as liabilities ($2.7 million of which is recorded in non-current liabilities) on the Condensed Consolidated Balance Sheets at March 31, 2023, and $5.3 million of the carrying amount of these contracts was classified in assets ($1.9 million of which was recorded in prepaid expenses and other current assets) and $19.4 million as liabilities ($5.3 million of which is in other non-current liabilities) at December 31, 2022. We recognized losses of $3.7 million and losses of $0.7 million in net sales during the three months ended March 31, 2023 and 2022, respectively.

In addition, we enter into foreign exchange forward contracts which are not designated as hedges. These are used to provide an offset to transactional gains or losses arising from the remeasurement of non-functional monetary assets and liabilities such as accounts receivable. The change in the fair value of the derivatives is recorded in the statement of operations. There are no credit contingency features in these derivatives. During the quarters ended March 31, 2023 and 2022, we recognized net foreign exchange gains of $0.4 million and losses of $0.2 million, respectively, in the Condensed Consolidated Statements of Operations. The net foreign exchange impact recognized from these hedges offset the translation exposure of these transactions. The carrying amount of the contracts for derivatives not designated as hedging instruments was $1.7 million classified in current liabilities at March 31, 2023, and $0.7 million classified in current liabilities on our Condensed Consolidated Balance Sheet at December 31, 2022.

The change in fair value of our foreign currency forward exchange contracts under hedge designations recorded net of tax within accumulated other comprehensive loss for the quarters ended March 31, 2023 and March 31, 2022 was as follows:

	Quarter Ended March 31,
(In millions)	2023			2022
Unrealized losses at beginning of period, net of tax	$	(10.5	)	$	(3.5	)
Losses reclassified to net sales		2.7			0.3
Increase (decrease) in fair value		3.0			(4.8	)
Unrealized losses at end of period, net of tax	$	(4.8	)	$	(8.0	)

Unrealized losses of $7.5 million recorded in accumulated other comprehensive loss, less taxes of $1.8 million, as of March 31, 2023, are expected to be reclassified into earnings over the next twelve months as the hedged sales are recorded.

Commodity Swap Agreements

We use commodity swap agreements to hedge against price fluctuations of raw materials, including propylene (the principal component of acrylonitrile). As of March 31, 2023, we had commodity swap agreements with a notional value of $20.4 million. The swaps mature monthly through March 2025. The swaps are accounted for as a cash flow hedge of our forward raw material purchases. To ensure the swaps are highly effective, all of the critical terms of the swap matched the terms of the hedged items. The fair value of the commodity swap agreements was an asset of $1.0 million ($0.4 million of which was recorded in prepaid expenses and other current assets) and a liability of $3.7 million ($0.6 million of which was recorded in other non-current liabilities) at March 31, 2023, and an asset of $0.5 million (which was recorded in prepaid expenses and other current assets) and a liability of $8.6 million (of which $1.4 million was recorded in long term liabilities) at December 31, 2022

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Fair Value Measurements

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 7 — Fair Value Measurements

The authoritative guidance for fair value measurements establishes a hierarchy for observable and unobservable inputs used to measure fair value, into three broad levels, which are described below:

•Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

•Level 2: Observable prices that are based on inputs not quoted on active markets but corroborated by market data.

•Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.

In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider our own and counterparty credit risk in our assessment of fair value.

We have no assets or liabilities that utilize Level 1 inputs. However, we have derivative instruments classified as liabilities and assets which utilize Level 2 inputs, and one liability that utilizes Level 3 inputs.

For derivative assets and liabilities that utilize Level 2 inputs, we prepare estimates of future cash flows of our derivatives, which are discounted to a net present value. The estimated cash flows and the discount factors used in the valuation model are based on observable inputs, and incorporate non-performance risk (the credit standing of the counterparty when the derivative is in a net asset

position, and the credit standing of Hexcel when the derivative is in a net liability position). The fair value of these assets and liabilities was $23.5 million and $18.4 million, respectively, at March 31, 2023 and approximately $22.1 million and $28.6 million, respectively, at December 31, 2022. In addition, the fair value of these derivative contracts, which are subject to a master netting arrangement under certain circumstances, is presented on a gross basis in the Condensed Consolidated Balance Sheets.

Below is a summary of valuation techniques for all Level 2 financial assets and liabilities:

•Cross Currency and Interest Rate Swap Agreements — valued using the USD Secured Overnight Financing Rate curves and quoted forward foreign exchange prices at the reporting date. The fair value of the assets was $15.8 million, at March 31, 2023 and the fair value of the assets was $16.3 million, at December 31, 2022.

•Foreign exchange derivative assets and liabilities — valued using quoted forward foreign exchange prices at the reporting date. Fair value of assets and liabilities at March 31, 2023 was $6.6 million and $14.7 million, respectively. The fair value of assets and liabilities at December 31, 2022 was $5.3 million and $20.1 million, respectively.

•Commodity swap agreements — valued using quoted forward commodity prices at the reporting date. Fair value of the assets and liabilities at March 31, 2023 was $1.0 million and $3.7 million, respectively. The fair value of the assets and liabilities at December 31, 2022 was $0.5 million and $8.6 million, respectively.

Counterparties to the above contracts are highly rated financial institutions, none of which experienced any significant downgrades in the three months ended March 31, 2023 that would reduce the receivable amount owed, if any, to the Company.

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Revenue

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue

Note 8 — Revenue

Our revenue is primarily derived from the sale of inventory under long-term contracts with our customers. We have determined that individual purchase orders (“PO”), the terms and conditions of which are taken with a master agreement, create the ASC 606 contracts, which are generally short-term in nature. For those sales that are not tied to a long-term agreement, we generate a PO that is subject to our standard terms and conditions. In instances where our customers acquire our goods related to government contracts, the contracts are typically subject to terms similar, or equal to, the Federal Acquisition Regulation Part 52.249-2. This regulation contains a termination for convenience clause (“T for C”), which requires that the customer pay for the cost of both the finished and unfinished goods at the time of cancellation plus a reasonable profit.

We recognize revenue over time for those agreements that have T for C, and where the products being produced have no alternative use. As our production cycle is typically nine months or less, it is expected that goods related to the revenue recognized over time will be shipped and billed within the next twelve months. Less than half of our agreements contain provisions which would require revenue to be recognized over time. All other revenue is recognized at a point in time.

We disaggregate our revenue based on market for analytical purposes. The following table details our revenue by market for the three months ended March 31, 2023 and 2022:

	Quarter Ended March 31,
(In millions)	2023		2022
Consolidated Net Sales	$	457.7	$	390.6
Commercial Aerospace		284.5		218.9
Space & Defense		126.2		118.2
Industrial		47.0		53.5

Revenue recognized over time gives rise to contract assets, which represent revenue recognized but unbilled. Contract assets are included in our Condensed Consolidated Balance Sheets as a component of current assets. The activity related to contract assets for the three months ended March 31, 2023 was as follows:

(In millions)	Composite Material			Engineered Products			Total
Balance at December 31, 2022	$	9.1		$	22.9		$	32.0
Net revenue billed		(2.5	)		(0.9	)		(3.4	)
Balance at March 31, 2023	$	6.6		$	22.0		$	28.6

Accounts receivable, net, includes amounts billed to customers where the right to payment is unconditional.

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Segment Information

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Information

Note 9 — Segment Information

The financial results for our operating segments are prepared using a management approach, which is consistent with the basis and manner in which we internally segregate financial information for the purpose of assisting in making internal operating decisions. We evaluate the performance of our operating segments based on operating income, and generally account for intersegment sales based on arm’s length prices. Corporate and certain other expenses are not allocated to the operating segments, except to the extent that the expense can be directly attributable to the business segment.

Financial information for our operating segments for the three months ended March 31, 2023 and 2022 were as follows:

	(Unaudited)
	Composite		Engineered		Corporate &
(In millions)	Materials		Products		Other (a)			Total
Quarter Ended March 31, 2023
Net sales to external customers	$	378.2	$	79.5	$	—		$	457.7
Intersegment sales		19.3		1.0		(20.3	)		—
Total sales	$	397.5	$	80.5	$	(20.3	)	$	457.7
Other operating expense		0.2		-		—			0.2
Operating income (loss)		73.2		12.0		(22.4	)		62.8
Depreciation and amortization		27.2		3.5		—			30.7
Stock-based compensation		3.1		0.8		9.0			12.9
Accrual basis additions to capital expenditures		13.1		3.7		-			16.8
Quarter Ended March 31, 2022
Net sales to external customers	$	313.8	$	76.8	$	—		$	390.6
Intersegment sales		16.5		0.3		(16.8	)		—
Total sales	$	330.3	$	77.1	$	(16.8	)	$	390.6
Other operating expense		0.9		0.1		-			1.0
Operating income (loss)		42.6		10.6		(23.1	)		30.1
Depreciation and amortization		28.6		3.6		—			32.2
Stock-based compensation		2.6		0.7		7.1			10.4
Accrual basis additions to capital expenditures		10.1		1.0		—			11.1

(a)We do not allocate corporate expenses to the operating segments.

Goodwill and Intangible Assets	Composite			Engineered
(In millions)	Materials			Products			Total
Balance at December 31, 2022	$	86.9		$	169.1		$	256.0
Amortization expense		(0.5	)		(1.2	)		(1.7	)
Currency translation adjustments		0.9			—			0.9
Balance at March 31, 2023	$	87.3		$	167.9		$	255.2

At March 31, 2023, the balance of goodwill and intangible assets was $187.7 million and $67.5 million, respectively.

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Accumulated Other Comprehensive Loss

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Accumulated Other Comprehensive Loss

Note 10 — Accumulated Other Comprehensive Loss

Comprehensive loss represents net loss and other gains and losses affecting stockholders’ equity that are not reflected in the Condensed Consolidated Statements of Operations. The components of accumulated other comprehensive loss as of March 31, 2023 and December 31, 2022 were as follows:

(In millions)	Unrecognized Net Defined Benefit and Postretirement Plan Costs			Change in Fair Value of Derivatives Products (1)			Foreign Currency Translation			Total
Balance at December 31, 2022	$	(49.1	)	$	(15.4	)	$	(109.9	)	$	(174.4	)
Other comprehensive (loss) income before reclassifications		(0.4	)		8.5			12.0			20.1
Amounts reclassified from accumulated other comprehensive loss		0.4			1.8		—				2.2
Other comprehensive income (loss)		-			10.3			12.0			22.3
Balance at March 31, 2023	$	(49.1	)	$	(5.1	)	$	(97.9	)	$	(152.1	)

(1)Includes forward foreign exchange contracts, interest rate derivatives and commodity swaps.

The amount of net (gains) losses reclassified to earnings from the unrecognized net defined benefit and postretirement plan costs and derivative products components of accumulated other comprehensive loss for the three months ended March 31, 2023 and 2022 were as follows:

	Quarter Ended March 31, 2023						Quarter Ended March 31, 2022
(In millions)	Pre-tax (gain) loss			Net of tax (gain) loss			Pre-tax (gain) loss			Net of tax (gain) loss
Defined Benefit and Postretirement Plan Costs	$	0.5		$	0.4		$	0.5		$	0.3
Derivative Products
Foreign currency forward exchange contracts		3.7			2.7			0.7			0.4
Commodity swaps		0.9			0.7			(0.8	)		(0.6	)
Interest rate swaps		(2.1	)		(1.6	)		(7.5	)		(5.8	)
Total Derivative Products	$	2.5		$	1.8		$	(7.6	)	$	(6.0	)

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 11 — Commitments and Contingencies

We are involved in litigation, investigations and claims arising out of the normal conduct of our business, including those relating to commercial transactions, environmental, employment and health and safety matters. While it is impossible to predict the ultimate resolution of litigation, investigations and claims asserted against us, we believe, based upon our examination of currently available information, our experience to date, and advice from legal counsel, that, after taking into account our existing insurance coverage and amounts already provided for, the currently pending legal proceedings against us will not have a material adverse impact on our consolidated results of operations, financial position or cash flows.

Environmental Matters

We have been named as a potentially responsible party (“PRP”) with respect to the below and other hazardous waste disposal sites that we do not own or possess, which are included on, or proposed to be included on, the Superfund National Priority List of the U.S. Environmental Protection Agency (“EPA”) or on equivalent lists of various state governments. Because the Federal Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA” or “Superfund”) allows for joint and several liability in certain circumstances, we could be responsible for all remediation costs at such sites, even if we are one of many PRPs. We believe, based on the amount and nature of the hazardous waste at issue, and the number of other financially viable PRPs at each site, that our liability in connection with such environmental matters will not be material.

Lower Passaic River Study Area

Hexcel, together with approximately 48 other PRPs that comprise the Lower Passaic Cooperating Parties Group (the “CPG”), are subject to a May 2007 Administrative Order on Consent (“AOC”) with the EPA requiring the CPG to perform a Remedial

Investigation/Feasibility Study of environmental conditions of a 17-mile stretch of the Passaic River in New Jersey (the “Lower Passaic River”). We were included in the CPG based on our operations at our former manufacturing site in Lodi, New Jersey.

In March 2016, the EPA issued a Record of Decision (“ROD”) setting forth the EPA’s selected remedy for the lower eight miles of the Lower Passaic River at an expected cost ranging from $0.97 billion to $2.07 billion. In August 2017, the EPA appointed an independent third-party allocation expert to make recommendations on the relative liability of approximately 120 identified non-government PRPs for the lower eight miles of the Lower Passaic River. In December 2020, the allocator issued its non-binding report on PRP liability (including Hexcel’s) to the EPA. In October 2021, the EPA released a ROD selecting an interim remedy for the upper nine miles of the Lower Passaic River at an expected additional cost ranging from $308.7 million to $661.5 million.

In October 2016, pursuant to a settlement agreement with the EPA, Occidental Chemical Corporation (“OCC”), one of the PRPs, commenced performance of the remedial design required by the ROD for the lower eight miles of the Lower Passaic River, reserving its right of cost contribution from all other PRPs. In June 2018, OCC filed suit against approximately 120 parties, including Hexcel, in the U.S. District Court of the District of New Jersey seeking cost recovery and contribution under CERCLA related to the Lower Passaic River. In July 2019, the court granted in part and denied in part the defendants’ motion to dismiss. In August 2020, the court granted defendants’ motion for summary judgement for certain claims. Discovery for the remaining claims has been stayed indefinitely based on agreement of the parties. On February 24, 2021, Hexcel and certain other defendants filed a third-party complaint against the Passaic Valley Sewerage Commission and certain New Jersey municipalities seeking recovery of Passaic-related cleanup costs incurred by defendants, as well as contribution for any cleanup costs incurred by OCC for which the court deems the defendants liable.

On December 16, 2022, the EPA lodged a Consent Decree with the U.S. District Court for the District of New Jersey requesting court approval of a $150 million settlement of the EPA’s CERCLA claims against Hexcel and 83 other PRPs for costs related to alleged contamination of the upper and lower portions of the Lower Passaic River. The 84 PRPs have collectively placed $150 million in escrow, pending District Court approval of the Consent Decree. The Consent Decree is subject to a public comment period and interested parties may have opportunities to provide additional evidence or make arguments in support or opposition to the Consent Decree. Hexcel is unable to estimate when or if the District Court will approve the Consent Decree.

In March 2023, the EPA issued a Unilateral Administrative Order (“UAO”) to OCC ordering OCC to commence remedial design work for the interim remedy for the cleanup of the upper nine miles of the Lower Passaic River. On March 24, 2023, OCC filed suit against Hexcel and approximately 38 other parties claiming cost recovery under CERCLA for future costs related to its compliance with the UAO.

Summary of Environmental Reserves

Our estimate of liability as a PRP and our remaining costs associated with our responsibility to remediate the Lower Passaic River and other sites are accrued in the Consolidated Balance Sheets. As of March 31, 2023 and December 31, 2022, our aggregate environmental related accruals were $0.5 million and $0.8 million, respectively. These amounts were included in non-current liabilities.

These accruals can change significantly from period to period due to such factors as additional information on the nature or extent of contamination, the methods of remediation required, changes in the apportionment of costs among responsible parties and other actions by governmental agencies or private parties, or the impact, if any, of being named in a new matter.

Product Warranty

We provide standard assurance-type warranties for our products, which cannot be purchased separately and do not meet the criteria to be considered a performance obligation. Warranty expense for the three months ended March 31, 2023, and accrued warranty cost, included in “accrued liabilities” in the Condensed Consolidated Balance Sheets at March 31, 2023 and December 31, 2022, were as follows:

	Product
(In millions)	Warranties
Balance as of December 31, 2022	$	3.1
Warranty expense		1.6
Deductions and other		(1.2	)
Balance as of March 31, 2023	$	3.5

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Restructuring

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

Restructuring

Note 12 — Restructuring

We recognized restructuring charges of $0.2 million for the quarter ended March 31, 2023 primarily related to severance. Anticipated future cash payments as of March 31, 2023 were $3.3 million.

			Activity for the Quarter Ended March 31, 2023
	December 31,		Restructuring				Cash					March 31,
(In Millions)	2022		Charge		FX Impact		Paid			Non-Cash		2023
Employee termination	$	5.4	$	0.2	$	—	$	(2.3	)	$	—	$	3.3
Total	$	5.4	$	0.2	$	—	$	(2.3	)	$	—	$	3.3

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Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared from the unaudited accounting records of Hexcel pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”) and in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Certain information and footnote disclosures normally included in financial statements have been omitted pursuant to rules and regulations of the SEC. In the opinion of management, the condensed consolidated financial statements include all normal recurring adjustments as well as any non-recurring adjustments necessary to present fairly the statement of financial position, results of operations, cash flows and statement of stockholders’ equity for the interim periods presented. The Condensed Consolidated Balance Sheet as of December 31, 2022 was derived from the audited 2022 consolidated balance sheet. Interim results are not necessarily indicative of results expected for any other interim period or for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2022 Annual Report on Form 10-K.

Investments in Affiliated Companies

Investments in Affiliated Companies

We have a 50% equity investment in Aerospace Composites Malaysia Sdn. Bhd. This investment is accounted for using the equity method of accounting.

Assets Held for Sale

Assets Held for Sale

In November 2020, we closed our wind energy prepreg production facility in Windsor, Colorado and in 2022 we further reduced the carrying value of the Windsor facility by approximately $3 million. The plant assets to be sold have been recorded in “Assets held for sale” in the Consolidated Balance Sheets at both March 31, 2023 and December 31, 2022. The sale of these assets is expected to occur during 2023.

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Net Income (Loss) Per Common Share (Tables)

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Summary of Earnings Per Share Basic and Diluted

	Quarter Ended March 31,
(In millions, except per share data)	2023		2022
Basic net income per common share:
Net income	$	42.7	$	17.8
Weighted average common shares outstanding		84.6		84.3
Basic net income per common share	$	0.50	$	0.21
Diluted net income per common share:
Net income	$	42.7	$	17.8
Weighted average common shares outstanding — Basic		84.6		84.3
Plus incremental shares from assumed conversions:
Restricted stock units		0.5		0.4
Stock options		0.4		0.2
Weighted average common shares outstanding — Dilutive		85.5		84.9
Diluted net income per common share	$	0.50	$	0.21

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Inventories (Tables)

3 Months Ended

Mar. 31, 2023

Inventory Disclosure [Abstract]

Schedule of Inventories

(In millions)	March 31, 2023		December 31, 2022
Raw materials	$	164.7	$	153.3
Work in progress		50.8		42.8
Finished goods		139.1		123.2
Total Inventory	$	354.6	$	319.3

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Retirement and Other Postretirement Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2023

Defined Benefit Retirement Plans

Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]

Schedule of Net Periodic Benefit Costs of Defined Benefit Retirement Plans

Net periodic benefit costs of our defined benefit retirement plans for the three months ended March 31, 2023 and 2022 were as follows:

	Quarter Ended March 31,
(In millions)	2023		2022
U.S. Nonqualified Defined Benefit Retirement Plans
Service cost	$	0.3	$	0.3
Interest cost		0.1		0.1
Net amortization		0.2		0.2
Net periodic benefit cost	$	0.6	$	0.6

Schedule of Amounts Recognized on Balance Sheet

(In millions)	March 31, 2023		December 31, 2022
Amounts recognized on the balance sheet for U.S. nonqualified defined benefit retirement plans:
Accrued liabilities	$	1.2	$	1.4
Other non-current liabilities		18.9		18.5
Total accrued benefit	$	20.1	$	19.9

Defined Benefit Retirement Plans | Non qualified

Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]

Schedule of Net Periodic Benefit Costs of Defined Benefit Retirement Plans

	Quarter Ended March 31,
(In millions)	2023			2022
European Defined Benefit Retirement Plans
Service cost	$	0.2		$	0.2
Interest cost		1.2			0.6
Expected return on plan assets		(1.2	)		(0.6	)
Net amortization and deferral		0.6			0.6
Net periodic benefit cost	$	0.8		$	0.8

Schedule of Amounts Recognized on Balance Sheet

(In millions)	March 31, 2023		December 31, 2022
Amounts recognized on the balance sheet for European defined benefit retirement plans:
Other assets	$	6.1	$	5.6
Accrued liabilities		1.2		0.1
Other non-current liabilities		13.4		12.1
Total accrued benefit	$	14.6	$	12.2

Postretirement Health Care and Life Insurance Benefit Plans

Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]

Schedule of Amounts Recognized on Balance Sheet

Net periodic benefit costs of our postretirement health care and life insurance benefit plans for the three months ended March 31, 2023 and 2022 were immaterial.

(In millions)	March 31, 2023		December 31, 2022
Amounts recognized on the balance sheet:
Accrued liabilities	$	0.2	$	0.2
Other non-current liabilities		1.0		1.0
Total accrued benefit	$	1.2	$	1.2

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Debt (Tables)

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Schedule of Debt and Capital Lease Obligations

(In millions)	March 31, 2023			December 31, 2022
Current portion of finance lease	$	0.2		$	0.2
Current portion of debt		0.2			0.2
Senior unsecured credit facility		70.0			25.0
4.7% senior notes --- due 2025		300.0			300.0
3.95% senior notes --- due 2027		400.0			400.0
Senior notes --- original issue discount		(0.9	)		(0.9	)
Senior notes --- deferred financing costs		(2.0	)		(2.2	)
Non-current portion of finance lease and other debt		1.4			1.4
Long-term debt		768.5			723.3
Total debt	$	768.7		$	723.5

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Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Change in Fair Value of Foreign Currency Forward Exchange Contracts Under Hedge Designations

The change in fair value of our foreign currency forward exchange contracts under hedge designations recorded net of tax within accumulated other comprehensive loss for the quarters ended March 31, 2023 and March 31, 2022 was as follows:

	Quarter Ended March 31,
(In millions)	2023			2022
Unrealized losses at beginning of period, net of tax	$	(10.5	)	$	(3.5	)
Losses reclassified to net sales		2.7			0.3
Increase (decrease) in fair value		3.0			(4.8	)
Unrealized losses at end of period, net of tax	$	(4.8	)	$	(8.0	)

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Revenue (Tables)

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Revenue By Market

The following table details our revenue by market for the three months ended March 31, 2023 and 2022:

	Quarter Ended March 31,
(In millions)	2023		2022
Consolidated Net Sales	$	457.7	$	390.6
Commercial Aerospace		284.5		218.9
Space & Defense		126.2		118.2
Industrial		47.0		53.5

Schedule of Activity Related to Contract Assets

The activity related to contract assets for the three months ended March 31, 2023 was as follows:

(In millions)	Composite Material			Engineered Products			Total
Balance at December 31, 2022	$	9.1		$	22.9		$	32.0
Net revenue billed		(2.5	)		(0.9	)		(3.4	)
Balance at March 31, 2023	$	6.6		$	22.0		$	28.6

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Schedule of Operating Segment Reporting Information

Financial information for our operating segments for the three months ended March 31, 2023 and 2022 were as follows:

	(Unaudited)
	Composite		Engineered		Corporate &
(In millions)	Materials		Products		Other (a)			Total
Quarter Ended March 31, 2023
Net sales to external customers	$	378.2	$	79.5	$	—		$	457.7
Intersegment sales		19.3		1.0		(20.3	)		—
Total sales	$	397.5	$	80.5	$	(20.3	)	$	457.7
Other operating expense		0.2		-		—			0.2
Operating income (loss)		73.2		12.0		(22.4	)		62.8
Depreciation and amortization		27.2		3.5		—			30.7
Stock-based compensation		3.1		0.8		9.0			12.9
Accrual basis additions to capital expenditures		13.1		3.7		-			16.8
Quarter Ended March 31, 2022
Net sales to external customers	$	313.8	$	76.8	$	—		$	390.6
Intersegment sales		16.5		0.3		(16.8	)		—
Total sales	$	330.3	$	77.1	$	(16.8	)	$	390.6
Other operating expense		0.9		0.1		-			1.0
Operating income (loss)		42.6		10.6		(23.1	)		30.1
Depreciation and amortization		28.6		3.6		—			32.2
Stock-based compensation		2.6		0.7		7.1			10.4
Accrual basis additions to capital expenditures		10.1		1.0		—			11.1

(a)We do not allocate corporate expenses to the operating segments.

Schedule of Goodwill and Intangible Assets by Segment

Goodwill and Intangible Assets	Composite			Engineered
(In millions)	Materials			Products			Total
Balance at December 31, 2022	$	86.9		$	169.1		$	256.0
Amortization expense		(0.5	)		(1.2	)		(1.7	)
Currency translation adjustments		0.9			—			0.9
Balance at March 31, 2023	$	87.3		$	167.9		$	255.2

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Accumulated Other Comprehensive Loss (Tables)

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Schedule of Components of Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss as of March 31, 2023 and December 31, 2022 were as follows:

(In millions)	Unrecognized Net Defined Benefit and Postretirement Plan Costs			Change in Fair Value of Derivatives Products (1)			Foreign Currency Translation			Total
Balance at December 31, 2022	$	(49.1	)	$	(15.4	)	$	(109.9	)	$	(174.4	)
Other comprehensive (loss) income before reclassifications		(0.4	)		8.5			12.0			20.1
Amounts reclassified from accumulated other comprehensive loss		0.4			1.8		—				2.2
Other comprehensive income (loss)		-			10.3			12.0			22.3
Balance at March 31, 2023	$	(49.1	)	$	(5.1	)	$	(97.9	)	$	(152.1	)

(1)Includes forward foreign exchange contracts, interest rate derivatives and commodity swaps.

Schedule of unrecognized net defined benefit and postretirement plan costs

The amount of net (gains) losses reclassified to earnings from the unrecognized net defined benefit and postretirement plan costs and derivative products components of accumulated other comprehensive loss for the three months ended March 31, 2023 and 2022 were as follows:

	Quarter Ended March 31, 2023						Quarter Ended March 31, 2022
(In millions)	Pre-tax (gain) loss			Net of tax (gain) loss			Pre-tax (gain) loss			Net of tax (gain) loss
Defined Benefit and Postretirement Plan Costs	$	0.5		$	0.4		$	0.5		$	0.3
Derivative Products
Foreign currency forward exchange contracts		3.7			2.7			0.7			0.4
Commodity swaps		0.9			0.7			(0.8	)		(0.6	)
Interest rate swaps		(2.1	)		(1.6	)		(7.5	)		(5.8	)
Total Derivative Products	$	2.5		$	1.8		$	(7.6	)	$	(6.0	)

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Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Schedule of Product Warranty

We provide standard assurance-type warranties for our products, which cannot be purchased separately and do not meet the criteria to be considered a performance obligation. Warranty expense for the three months ended March 31, 2023, and accrued warranty cost, included in “accrued liabilities” in the Condensed Consolidated Balance Sheets at March 31, 2023 and December 31, 2022, were as follows:

	Product
(In millions)	Warranties
Balance as of December 31, 2022	$	3.1
Warranty expense		1.6
Deductions and other		(1.2	)
Balance as of March 31, 2023	$	3.5

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Restructuring (Tables)

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

Schedule of Restructuring

			Activity for the Quarter Ended March 31, 2023
	December 31,		Restructuring				Cash					March 31,
(In Millions)	2022		Charge		FX Impact		Paid			Non-Cash		2023
Employee termination	$	5.4	$	0.2	$	—	$	(2.3	)	$	—	$	3.3
Total	$	5.4	$	0.2	$	—	$	(2.3	)	$	—	$	3.3

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Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022	Nov. 30, 2020
Significant Accounting Policies [Line Items]
Carrying value asset held for sale			$ 3.0
Assets held for sale	$ 9.5	$ 9.5
Aerospace Composites Malaysia Sdn. Bhd.
Significant Accounting Policies [Line Items]
Interest in affiliated company, accounted for using equity method of accounting (as a percent)	50.00%

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Net Income (Loss) Per Common Share - Summary of Earnings Per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Basic net income per common share:
Net income (loss)	$ 42.7	$ 17.8
Weighted average common shares outstanding - Basic (in shares)	84,600,000	84,300,000
Basic net income (loss) per common share	$ 0.50	$ 0.21
Diluted net income (loss) per common share:
Net income (loss)	$ 42.7	$ 17.8
Weighted average common shares outstanding - Basic (in shares)	84,600,000	84,300,000
Plus incremental shares from assumed conversions:
Weighted average common shares outstanding - Dilutive (in shares)	85,500,000	84,900,000
Diluted net income (loss) per common share	$ 0.50	$ 0.21
Restricted Stock Units
Plus incremental shares from assumed conversions:
Incremental shares from assumed conversions	0.5	0.4
Stock Options
Plus incremental shares from assumed conversions:
Incremental shares from assumed conversions	0.4	0.2

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Net Income (Loss) Per Common Share - Additional Information (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Anti-dilutive securities excluded from computation of earnings per share amount (in shares)	0.5	0.7

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Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 164.7	$ 153.3
Work in progress	50.8	42.8
Finished goods	139.1	123.2
Total Inventory	$ 354.6	$ 319.3

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Retirement and Other Postretirement Benefit Plans - Schedule of Net Periodic Benefit Costs of Defined Benefit Retirement Plans (Details) - Defined Benefit Retirement Plans - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
U.S.
Net periodic benefit costs of defined benefit retirement plans
Service cost	$ 0.3	$ 0.3
Interest cost	0.1	0.1
Net amortization and deferral	0.2	0.2
Net periodic benefit cost	$ 0.6	$ 0.6
Defined Benefit Plan, Tax Status [Extensible List]	Non qualified	Non qualified	Non qualified
European
Net periodic benefit costs of defined benefit retirement plans
Service cost	$ 0.2	$ 0.2
Interest cost	1.2	0.6
Expected return on plan assets	(1.2)	(0.6)
Net amortization and deferral	0.6	0.6
Net periodic benefit cost	$ 0.8	$ 0.8

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Retirement and Other Postretirement Benefit Plans - Schedule of Amounts Recognized on Balance Sheet (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Amounts recognized on the balance sheet:
Other non-current liabilities	$ 44.3		$ 42.7
Defined Benefit Retirement Plans | U.S.
Amounts recognized on the balance sheet:
Accrued liabilities	1.2		1.4
Other non-current liabilities	18.9		18.5
Total accrued benefit	$ 20.1		$ 19.9
Defined Benefit Plan, Tax Status [Extensible List]	Non qualified	Non qualified	Non qualified
Defined Benefit Retirement Plans | European
Amounts recognized on the balance sheet:
Other assets	$ 6.1		$ 5.6
Accrued liabilities	1.2		0.1
Other non-current liabilities	13.4		12.1
Total accrued benefit	14.6		12.2
Postretirement Health Care and Life Insurance Benefit Plans
Amounts recognized on the balance sheet:
Accrued liabilities	0.2		0.2
Other non-current liabilities	1.0		1.0
Total accrued benefit	$ 1.2		$ 1.2

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Retirement and Other Postretirement Benefit Plans - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Amounts recognized on the balance sheet:
Employer contribution to defined benefit retirement plans	$ 1.5
Defined Benefit Retirement Plans
Amounts recognized on the balance sheet:
Amounts unrelated to service costs, benefit	0.9	$ 0.9
Employer contribution to defined benefit retirement plans	$ 0.2
Defined Benefit Retirement Plans | U.S.
Amounts recognized on the balance sheet:
Employer contribution to defined benefit retirement plans		$ 0.2
Defined Benefit Plan, Tax Status [Extensible List]	Non qualified	Non qualified	Non qualified
Net amortization gain deferral	$ (0.2)	$ (0.2)
Defined Benefit Retirement Plans | European
Amounts recognized on the balance sheet:
Expected employer contribution in full current year	0.7
Net amortization gain deferral	(0.6)	(0.6)
Postretirement Health Care and Life Insurance Benefit Plans
Amounts recognized on the balance sheet:
Net amortization gain deferral	0.3	$ 0.3
Postretirement Health Care and Life Insurance Benefit Plans | Maximum
Amounts recognized on the balance sheet:
Expected employer contribution in full current year	$ 0.2

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Debt - Schedule of Debt and Capital Lease Obligations (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Current portion of finance lease	$ 0.2	$ 0.2
Current portion of debt	0.2	0.2
Long-term debt	768.5	723.3
Non-current portion of finance lease and other debt	1.4	1.4
Total debt	768.7	723.5
Senior unsecured credit facility
Debt Instrument [Line Items]
Long-term debt	70.0	25.0
4.7% senior notes due 2025
Debt Instrument [Line Items]
Senior notes	300.0	300.0
4.7% senior notes due 2025 and 3.95% senior notes due 2027
Debt Instrument [Line Items]
Senior notes --- original issue discount	(0.9)	(0.9)
Senior notes --- deferred financing costs	(2.0)	(2.2)
3.95% senior notes due 2027
Debt Instrument [Line Items]
Senior notes	$ 400.0	$ 400.0

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Debt - Schedule of Debt and Capital Lease Obligations (Parenthetical) (Details)	3 Months Ended
	Mar. 31, 2023
4.7% senior notes due 2025
Debt Instrument [Line Items]
Debt instrument, interest rate	4.70%
Debt instrument, maturity year	2025
3.95% senior notes due 2027
Debt Instrument [Line Items]
Debt instrument, interest rate	3.95%
Debt instrument, maturity year	2027

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Debt - Additional Information (Details) - USD ($)	1 Months Ended	3 Months Ended	12 Months Ended
	Jun. 30, 2019	Mar. 31, 2023	Dec. 31, 2017	Dec. 31, 2015	Dec. 31, 2022	Jan. 28, 2021
Debt Instrument [Line Items]
Borrowings		$ 768,500,000			$ 723,300,000
Minimum | Facility Agreement Member
Debt Instrument [Line Items]
Minimum liquidity amount required to maintain under credit agreement liquidity covenant						$ 250,000,000
Senior unsecured credit facility- revolving loan due 2021
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 700,000,000
Senior unsecured credit facility- revolving loan due 2024
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 1,000,000,000
Debt instrument expiration period	2024-06
Debt instrument, interest rate terms		The interest rate ranges from LIBOR + 0.875% to a maximum of LIBOR + 1.50%, depending upon the better of the Company’s leverage ratio or the credit rating.
Letters of credit issued under credit facility		$ 0
Senior unsecured credit facility- revolving loan due 2024 | Facility Agreement Member
Debt Instrument [Line Items]
Borrowings		70,000,000
Maximum amount available under credit facility agreement to issue letters of credit		50,000,000
Undrawn availability under credit facility		$ 680,000,000
Weighted average interest rate		6.10%
Senior unsecured credit facility- revolving loan due 2024 | Minimum
Debt Instrument [Line Items]
Credit facility interest rate basis	LIBOR + 0.875%
Spread on variable interest rate basis	0.875%
Senior unsecured credit facility- revolving loan due 2024 | Maximum
Debt Instrument [Line Items]
Credit facility interest rate basis	LIBOR + 1.50%
Spread on variable interest rate basis	1.50%
Amended senior unsecured credit facility- revolving loan due 2024
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 750,000,000
Debt instrument, covenant terms		On January 28, 2021, we further amended the Facility agreement (the “Second Amendment”) to provide that, from January 28, 2021 through and including March 31, 2022, we would not be subject to a maximum leverage ratio covenant but instead be required to maintain Liquidity (as defined in the Facility agreement) of at least $250 million. Additionally, during such period, the Company was subject to limitations on share repurchases, cash dividends, and its ability to incur secured debt, in each case subject to certain exceptions; the applicable margin and commitment fees would be increased; the incremental facility would not be available; and if the Company’s public debt rating was downgraded to (i) BB or lower by Standard & Poor’s and (ii) Ba2 or lower by Moody’s, we would be required to grant liens on certain of our assets, which liens would be released upon the Company’s public debt rating being upgraded to BB+ or higher by Standard & Poor’s or Ba1 or higher by Moody’s. As of April 1, 2022, the original terms and conditions to the Facility agreement were reinstated except that the borrowing capacity remained at $750 million. Share repurchases restrictions that had been in effect per the Second Amendment expired on March 31, 2022.
3.95% senior unsecured notes due 2027
Debt Instrument [Line Items]
Face value			$ 400,000,000
Debt instrument, interest rate			3.95%
Debt instrument, maturity year			2027
Increase in senior notes interest rate			0.25%
Effective interest rate		4.11%
3.95% senior unsecured notes due 2027 | Treasury Lock | Interest Lock Agreement
Debt Instrument [Line Items]
Percentage of effective interest rate benefit		0.25%
3.95% senior unsecured notes due 2027 | Level 2
Debt Instrument [Line Items]
Fair value of senior unsecured notes		$ 381,300,000
3.95% senior unsecured notes due 2027 | Maximum
Debt Instrument [Line Items]
Debt instrument, interest rate			5.95%
4.7% senior unsecured notes due 2025
Debt Instrument [Line Items]
Face value				$ 300,000,000
Debt instrument, interest rate				4.70%
Debt instrument, maturity year				2025
Increase in senior notes interest rate				0.25%
Effective interest rate		5.06%
Fair value of senior unsecured notes		$ 294,500,000
4.7% senior unsecured notes due 2025 | Maximum
Debt Instrument [Line Items]
Debt instrument, interest rate				6.70%

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Derivative Financial Instruments - Additional Information (Details) € in Millions, $ in Millions	1 Months Ended	3 Months Ended
	Nov. 30, 2020 USD ($)	Mar. 31, 2023 USD ($) Item	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)	Nov. 30, 2020 EUR (€)	Dec. 31, 2017
Derivative [Line Items]
Carrying value of derivative current asset		$ 5.9		$ 6.2
Carrying value / fair value of derivative assets included in other non-current assets		9.9		10.1
Foreign currency unrealized gains expected to be reclassified into earnings over next twelve months		7.5
Foreign currency unrealized gains expected to be reclassified into earnings over next twelve months, taxes		$ (1.8)
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration]		Other Assets, Noncurrent
3.95% senior unsecured notes due 2027
Derivative [Line Items]
Debt instrument, interest rate						3.95%
Proceeds from issue of senior notes in settlement of derivatives		$ 10.0
3.95% senior unsecured notes due 2027 | Maximum
Derivative [Line Items]
Debt instrument, interest rate						5.95%
Interest Rate Swap Agreements
Derivative [Line Items]
Carrying value / fair value of derivative liabilities		$ 0.0		0.0
Treasury Lock | Interest Lock Agreement | 3.95% senior unsecured notes due 2027
Derivative [Line Items]
Percentage of reduction in effective interest rate on senior notes		0.25%
Cross Currency And Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedging
Derivative [Line Items]
Floating rate obligation	$ 319.9				€ 270
Derivative amortization period	5 years
Derivative fixed interest rate (as a percent)	0.30%				0.30%
Derivative, additional fixed interest rate	1.115%				1.115%
Derivative swaps, frequency of periodic payment	semi-annually
Derivative swaps, principal amortize at Nov. 15, 2021	$ 59.2				€ 50
Derivative swaps, principal amortize at Nov. 15, 2022	59.2				50
Derivative swaps, principal amortize at Nov. 15, 2023	59.2				50
Derivative swaps, principal amortize at Nov. 15, 2024	59.2				50
Derivative swaps, principal amortize at Nov. 15, 2025	$ 82.9				€ 70
Foreign Currency Forward Exchange Contracts
Derivative [Line Items]
Number of credit contingency features | Item		0
Foreign Currency Forward Exchange Contracts | Cash Flow Hedging
Derivative [Line Items]
Gains (losses) in other comprehensive income, effective portion		$ 4.0	$ 6.8
Foreign Currency Forward Exchange Contracts | Designated as Hedging Instrument
Derivative [Line Items]
Carrying value / fair value of derivative liabilities		13.0		19.4
Carrying value / fair value of derivative liabilities included in other non-current liabilities		2.7		5.3
Notional amount		487.4		503.3
Carrying value / fair value of derivative assets		6.6		5.3
Carrying value / fair value of derivative assets included in prepaid expenses and other current assets		2.8
Foreign Currency Forward Exchange Contracts | Designated as Hedging Instrument | Cash Flow Hedging
Derivative [Line Items]
Carrying value / fair value of derivative assets included in prepaid expenses and other current assets				1.9
Net gain (loss) recognized in gross margin		(3.7)	0.7
Foreign Currency Forward Exchange Contracts | Not Designated as Hedging Instrument
Derivative [Line Items]
Carrying value / fair value of derivative liabilities included in other non-current liabilities		1.7		0.7
Foreign exchange net gains (losses) on derivative contracts not designated as hedges		0.4	$ 0.2
Commodity Swap Agreements
Derivative [Line Items]
Carrying value / fair value of derivative liabilities		3.7		8.6
Carrying value / fair value of derivative liabilities included in other non-current liabilities		0.6		1.4
Notional amount		20.4
Carrying value / fair value of derivative assets		1.0		$ 0.5
Carrying value / fair value of derivative assets included in prepaid expenses and other current assets		$ 0.4

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Derivative Financial Instruments - Schedule of Change in Fair Value of Foreign Currency Forward Exchange Contracts Under Hedge Designations (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Derivative [Line Items]
Beginning Balance		$ 1,554.2	$ 1,485.5
Ending Balance		1,622.2	1,487.1
Designated as Hedging Instrument
Derivative [Line Items]
Beginning Balance	[1]	(15.4)
Ending Balance	[1]	(5.1)
Designated as Hedging Instrument | Foreign Currency Forward Exchange Contracts
Derivative [Line Items]
Beginning Balance		(10.5)	(3.5)
Losses reclassified to net sales		2.7	0.3
Increase (decrease) in fair value		3.0	(4.8)
Ending Balance		$ (4.8)	$ (8.0)

[1] Includes forward foreign exchange contracts, interest rate derivatives and commodity swaps

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Income Taxes - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ (11.7)	$ (4.7)

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Fair Value Measurements - Additional Information (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($) Liability Item	Dec. 31, 2022 USD ($)	Sep. 30, 2021	Dec. 31, 2020
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Number of counterparties, which experienced significant downgrades | Item	0
Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets	$ 0.0
Liabilities	$ 0.0
Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value measurement with unobservable inputs reconciliation, number of liabilities | Liability	1
Level 2 | Fair Value Measured on Recurring Basis
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative assets	$ 23.5	$ 22.1
Derivative liabilities	18.4	28.6
Level 2 | Fair Value Measured on Recurring Basis | Cross Currency And Interest Rate Swap
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative Asset, Measurement Input [Extensible List]			us-gaap:MeasurementInputRiskFreeInterestRateMember	us-gaap:MeasurementInputRiskFreeInterestRateMember
Derivative liabilities	15.8	16.3
Derivative Liability, Measurement Input [Extensible List]				us-gaap:MeasurementInputRiskFreeInterestRateMember
Level 2 | Fair Value Measured on Recurring Basis | Foreign Currency Forward Exchange Contracts
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative assets	6.6	5.3
Derivative Asset, Measurement Input [Extensible List]			us-gaap:MeasurementInputQuotedPriceMember	us-gaap:MeasurementInputQuotedPriceMember
Derivative liabilities	14.7	20.1
Derivative Liability, Measurement Input [Extensible List]			us-gaap:MeasurementInputQuotedPriceMember	us-gaap:MeasurementInputQuotedPriceMember
Level 2 | Fair Value Measured on Recurring Basis | Commodity Swap Agreements
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative assets	1.0	0.5
Derivative Asset, Measurement Input [Extensible List]			us-gaap:MeasurementInputQuotedPriceMember	us-gaap:MeasurementInputQuotedPriceMember
Derivative liabilities	$ 3.7	$ 8.6
Derivative Liability, Measurement Input [Extensible List]				us-gaap:MeasurementInputQuotedPriceMember
Level 2 | Fair Value Measured on Recurring Basis | Commodity Swap Agreements | Maximum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative Liability, Measurement Input [Extensible List]			us-gaap:MeasurementInputQuotedPriceMember

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Revenue - Additional Information (Details)	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Revenue recognition, description of timing	As our production cycle is typically nine months or less, it is expected that goods related to the revenue recognized over time will be shipped and billed within the next twelve months.

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Revenue - Schedule of Revenue by Market (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation Of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 457.7	$ 390.6
Commercial Aerospace
Disaggregation Of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	284.5	218.9
Space & Defense
Disaggregation Of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	126.2	118.2
Industrial
Disaggregation Of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 47.0	$ 53.5

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Revenue - Schedule of Activity Related to Contract Assets (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Change in Contract with Customer Asset [Line Items]
Beginning Balance	$ 32.0
Net revenue billed	(3.4)
Ending Balance	28.6
Composite Materials
Change in Contract with Customer Asset [Line Items]
Beginning Balance	9.1
Net revenue billed	(2.5)
Ending Balance	6.6
Engineered Products
Change in Contract with Customer Asset [Line Items]
Beginning Balance	22.9
Net revenue billed	(0.9)
Ending Balance	$ 22.0

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Segment Information - Schedule of Operating Segment Reporting Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting Information [Line Items]
Total sales	$ 457.7	$ 390.6
Other operating expense	0.2	1.0
Operating income (loss)	62.8	30.1
Depreciation and amortization	30.7	32.2
Stock-based compensation	12.9	10.4
Accrual basis additions to capital expenditures	16.8	11.1
Intersegment Elimination
Segment Reporting Information [Line Items]
Total sales	(20.3)	(16.8)
Corporate & Other and Intersegment Elimination
Segment Reporting Information [Line Items]
Total sales	(20.3)	(16.8)
Other operating expense	0.0	0.0
Operating income (loss)	(22.4)	(23.1)
Depreciation and amortization
Stock-based compensation	9.0	7.1
Accrual basis additions to capital expenditures
Composite Materials
Segment Reporting Information [Line Items]
Total sales	378.2	313.8
Composite Materials | Intersegment Elimination
Segment Reporting Information [Line Items]
Total sales	19.3	16.5
Composite Materials | Operating Segments
Segment Reporting Information [Line Items]
Total sales	397.5	330.3
Other operating expense	0.2	0.9
Operating income (loss)	73.2	42.6
Depreciation and amortization	27.2	28.6
Stock-based compensation	3.1	2.6
Accrual basis additions to capital expenditures	13.1	10.1
Engineered Products
Segment Reporting Information [Line Items]
Total sales	79.5	76.8
Engineered Products | Intersegment Elimination
Segment Reporting Information [Line Items]
Total sales	1.0	0.3
Engineered Products | Operating Segments
Segment Reporting Information [Line Items]
Total sales	80.5	77.1
Other operating expense	0.0	0.1
Operating income (loss)	12.0	(10.6)
Depreciation and amortization	3.5	3.6
Stock-based compensation	0.8	0.7
Accrual basis additions to capital expenditures	$ 3.7	$ 1.0

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Segment Information - Schedule of Goodwill and Intangible Assets by Segment (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Changes in the carrying amount of gross goodwill and other purchased intangibles
Goodwill and other intangible assets, net	$ 255.2	$ 256.0
Balance at Period Beginning	256.0
Amortization expense	(1.7)
Currency translation adjustments	0.9
Intangible Assets, Net (Including Goodwill), Total	255.2	$ 256.0
Balance at Period Ending	255.2
Composite Materials
Changes in the carrying amount of gross goodwill and other purchased intangibles
Balance at Period Beginning	86.9
Amortization expense	(0.5)
Currency translation adjustments	0.9
Balance at Period Ending	87.3
Engineered Products
Changes in the carrying amount of gross goodwill and other purchased intangibles
Balance at Period Beginning	169.1
Amortization expense	(1.2)
Currency translation adjustments	0.0
Balance at Period Ending	$ 167.9

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Segment Information - Additional Information (Details) $ in Millions	Mar. 31, 2023 USD ($)
Segment Reporting [Abstract]
Goodwill	$ 187.7
Intangible assets	$ 67.5

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Accumulated Other Comprehensive Loss - Schedule of Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance		$ 1,554.2	$ 1,485.5
Total other comprehensive income (loss)		22.3	(17.6)
Ending Balance		1,622.2	1,487.1
Unrecognized Net Defined Benefit and Postretirement Plan Costs
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance		(49.1)
Other comprehensive income (loss) before reclassifications		(0.4)
Amounts reclassified from accumulated other comprehensive loss		0.4
Total other comprehensive income (loss)		0.0
Ending Balance		(49.1)
Change in Fair Value of Derivatives Products
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	[1]	(15.4)
Other comprehensive income (loss) before reclassifications	[1]	8.5
Amounts reclassified from accumulated other comprehensive loss	[1]	1.8
Total other comprehensive income (loss)	[1]	10.3
Ending Balance	[1]	(5.1)
Foreign Currency Translation
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance		(109.9)
Other comprehensive income (loss) before reclassifications		12.0
Amounts reclassified from accumulated other comprehensive loss		0.0
Total other comprehensive income (loss)		12.0
Ending Balance		(97.9)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance		(174.4)	(126.5)
Other comprehensive income (loss) before reclassifications		20.1
Amounts reclassified from accumulated other comprehensive loss		2.2
Total other comprehensive income (loss)		22.3	(17.6)
Ending Balance		$ (152.1)	$ (144.1)

[1] Includes forward foreign exchange contracts, interest rate derivatives and commodity swaps

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Accumulated Other Comprehensive Loss - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Unrecognized Net Defined Plan Costs
Accumulated Other Comprehensive Income Loss [Line Items]
Reclassification adjustment from AOCI on unrecognized net defined benefit and postretirement plan costs, net losses	$ 0.5	$ 0.5
Reclassification adjustment from AOCI on derivatives, net gains (losses)	0.4	0.3
Change in Fair Value of Derivatives Products
Accumulated Other Comprehensive Income Loss [Line Items]
Reclassification adjustment from AOCI on unrecognized net defined benefit and postretirement plan costs, tax	2.5	(7.6)
Reclassification adjustment from AOCI on derivatives, tax expense (benefit)	1.8	(6.0)
Change in Fair Value of Derivatives Products | Foreign Currency Forward Exchange Contracts
Accumulated Other Comprehensive Income Loss [Line Items]
Reclassification adjustment from AOCI on unrecognized net defined benefit and postretirement plan costs, tax	3.7	0.7
Reclassification adjustment from AOCI on derivatives, tax expense (benefit)	2.7	0.4
Change in Fair Value of Derivatives Products | Commodity Swap Agreements
Accumulated Other Comprehensive Income Loss [Line Items]
Reclassification adjustment from AOCI on unrecognized net defined benefit and postretirement plan costs, tax	0.9	(0.8)
Reclassification adjustment from AOCI on derivatives, tax expense (benefit)	0.7	(0.6)
Change in Fair Value of Derivatives Products | Interest Rate Derivatives
Accumulated Other Comprehensive Income Loss [Line Items]
Reclassification adjustment from AOCI on unrecognized net defined benefit and postretirement plan costs, tax	(2.1)	(7.5)
Reclassification adjustment from AOCI on derivatives, tax expense (benefit)	$ (1.6)	$ (5.8)

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Commitments and Contingencies - Additional Information (Details) $ in Millions			1 Months Ended			3 Months Ended
	Dec. 16, 2022 USD ($) Prp	Oct. 18, 2021 USD ($) mi	Aug. 31, 2017 Entity	Oct. 31, 2016 mi	Mar. 31, 2016 USD ($) mi	Mar. 31, 2023 USD ($) Entity mi	Dec. 31, 2022 USD ($)
Loss Contingencies [Line Items]
Number of identified non governmental potentially responsible parties | Entity			120
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration]						Employee-related Liabilities, Current
Accrual for environmental loss contingencies						$ 0.5	$ 0.8
Environmental Loss Contingency, Current, Statement of Financial Position [Extensible Enumeration]							Other Liabilities, Noncurrent
District Court Approval of Consent Decree [Member]
Loss Contingencies [Line Items]
Number of entities, in addition to Hexcel, who received a directive from the New Jersey Department of Environmental Protection | Prp	84
New Jersey Requesting Court Approval for Settlement	$ 150.0
Escrow Deposit	$ 150.0
Lower Passaic River
Loss Contingencies [Line Items]
Number of entities, in addition to Hexcel, who received a directive from the New Jersey Department of Environmental Protection	83					48
'Length of river to perform a Remedial Investigation/Feasibility Study (“RI/FS”) of environmental conditions | mi						17
Lower Passaic River | Minimum
Loss Contingencies [Line Items]
Portion of the river for which Record of Decision setting forth the EPA's selected remedy (in miles) | mi				8	8
Expected cost of capping and dredging of the lower eight miles of the river by EPA		$ 308.7			$ 970.0
Lower Passaic River | Maximum
Loss Contingencies [Line Items]
Portion of the river for which Record of Decision setting forth the EPA's selected remedy (in miles) | mi		9
Expected cost of capping and dredging of the lower eight miles of the river by EPA		$ 661.5			$ 2,070.0
UAO
Loss Contingencies [Line Items]
Number of entities, in addition to Hexcel, who received a directive from the New Jersey Department of Environmental Protection | Entity						38

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Commitments and Contingencies - Schedule of Product Warranty (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Changes in accrued product warranty cost
Balance at the beginning of the period	$ 3.1
Warranty expense	1.6
Deductions and other	(1.2)
Balance at the end of the period	$ 3.5

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Restructuring - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Restructuring Cost and Reserve [Line Items]
Restructuring charge	$ 0.2
Anticipated future cash payments	3.3		$ 5.4
Other operating expense	$ 0.2	$ 1.0

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Restructuring - Schedule of Restructuring (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Restructuring Cost and Reserve [Line Items]
Beginning Balance	$ 5.4
Restructuring Charge	0.2
FX Impact	0.0
Cash Paid	(2.3)
Non-Cash	0.0
Ending Balance	3.3
Employee termination
Restructuring Cost and Reserve [Line Items]
Beginning Balance	5.4
Restructuring Charge	0.2
FX Impact	0.0
Cash Paid	(2.3)
Non-Cash	0.0
Ending Balance	$ 3.3