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 June 30, 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 July 21, 2023
COMMON STOCK	84,465,701

HEXCEL CORPORATION AND SUBSIDIARIES

INDEX

			Page
PART I.	FINANCIAL INFORMATION		4
ITEM 1.	Condensed Consolidated Financial Statements (Unaudited)		4
	•	Condensed Consolidated Balance Sheets — June 30 2023, and December 31, 2022	4
	•	Condensed Consolidated Statements of Operations — The quarters and six months ended June 30, 2023 and 2022	5
	•	Condensed Consolidated Statements of Comprehensive Income (Loss) — The quarters and six months ended June 30, 2023 and 2022	5
	•	Condensed Consolidated Statements of Cash Flows — The six months ended June 30, 2023 and 2022	6
	•	Condensed Consolidated Statements of Stockholders’ Equity — The quarters and six months ended June 30, 2023 and 2022	7
	•	Notes to Condensed Consolidated Financial Statements	8
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		19
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk		25
ITEM 4.	Controls and Procedures		25
PART II.	OTHER INFORMATION		25
ITEM 1.	Legal Proceedings		25
ITEM 1A.	Risk Factors		25
ITEM 6.	Exhibits		26
	SIGNATURE		27

2

3

PART I. FINANCIAL INFORMATION

ITEM 1. Condensed Consolidated Financial Statements

Hexcel Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

	(Unaudited)
	June 30,			December 31,
(In millions)	2023			2022
Assets
Current assets:
Cash and cash equivalents	$	104.2		$	112.0
Accounts receivable, net		257.3			222.7
Inventories, net		360.9			319.3
Contract assets		27.2			32.0
Prepaid expenses and other current assets		51.0			38.9
Assets held for sale		9.5			9.5
Total current assets		810.1			734.4
Property, plant and equipment		3,163.0			3,087.9
Less accumulated depreciation		(1,482.8	)		(1,430.1	)
Net property, plant and equipment		1,680.2			1,657.8
Goodwill and other intangible assets, net		254.2			256.0
Investments in affiliated companies		50.1			47.6
Other assets		127.3			141.5
Total assets	$	2,921.9		$	2,837.3
Liabilities and Stockholders' Equity
Current liabilities:
Short-term borrowings	$	0.1		$	0.2
Accounts payable		117.5			155.5
Accrued compensation and benefits		61.6			69.6
Financial instruments		13.7			22.0
Accrued liabilities		83.2			82.5
Total current liabilities		276.1			329.8
Long-term debt		779.0			723.3
Retirement obligations		44.8			42.7
Deferred income taxes		117.5			126.4
Other non-current liabilities		38.4			60.9
Total liabilities		1,255.8			1,283.1
Stockholders' equity:
Common stock, $0.01 par value, 200.0 shares authorized, 110.6 shares and 110.4 shares issued at June 30, 2023 and December 31, 2022, respectively		1.1			1.1
Additional paid-in capital		925.9			905.0
Retained earnings		2,169.2			2,104.9
Accumulated other comprehensive loss		(145.2	)		(174.4	)
		2,951.0			2,836.6
Less – Treasury stock, at cost, 26.2 shares at June 30, 2023 and 26.2 shares at December 31, 2022		(1,284.9	)		(1,282.4	)
Total stockholders' equity		1,666.1			1,554.2
Total liabilities and stockholders' equity	$	2,921.9		$	2,837.3

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

4

Hexcel Corporation and Subsidiaries
Condensed Consolidated Statements of Operations
	(Unaudited)					(Unaudited)
	Quarter Ended June 30,					Six Months Ended June 30,
(In millions, except per share data)	2023		2022			2023		2022
Net sales	$	454.3	$	393.0		$	912.0	$	783.6
Cost of sales		343.5		303.5			673.5		607.4
Gross margin		110.8		89.5			238.5		176.2
Selling, general and administrative expenses		35.7		33.5			86.5		78.2
Research and technology expenses		13.3		11.3			27.2		22.2
Other operating expense (income)		0.5		(19.1	)		0.7		(18.1	)
Operating income		61.3		63.8			124.1		93.9
Interest expense, net		9.2		8.9			18.6		18.0
Other income		-		(0.3	)		-		(0.3	)
Income before income taxes, and equity in earnings from affiliated companies		52.1		55.2			105.5		76.2
Income tax expense		11.5		12.7			23.2		17.4
Income before equity in earnings from affiliated companies		40.6		42.5			82.3		58.8
Equity in earnings from affiliated companies		1.9		2.2			2.9		3.7
Net income	$	42.5	$	44.7		$	85.2	$	62.5
Basic net income per common share	$	0.50	$	0.53		$	1.01	$	0.74
Diluted net income per common share	$	0.50	$	0.53		$	1.00	$	0.74
Weighted-average common shares:
Basic		84.7		84.4			84.6		84.3
Diluted		85.6		85.0			85.5		84.9

Hexcel Corporation and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income (Loss)
	(Unaudited)						(Unaudited)
	Quarter Ended June 30,						Six Months Ended June 30,
(In millions)	2023			2022			2023			2022
Net income	$	42.5		$	44.7		$	85.2		$	62.5
Currency translation adjustments		6.1			(34.8	)		18.1			(50.5	)
Net unrealized pension and other benefit actuarial (losses) gains and prior service credits (net of tax)		(1.0	)		4.5			(1.0	)		7.7
Net unrealized gains (losses) on financial instruments (net of tax)		1.8			(16.9	)		12.1			(22.0	)
Total other comprehensive income (loss)		6.9			(47.2	)		29.2			(64.8	)
Comprehensive income (loss)	$	49.4		$	(2.5	)	$	114.4		$	(2.3	)

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

5

Hexcel Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

	(Unaudited)
	Six Months Ended June 30,
(In millions)	2023			2022
Cash flows from operating activities
Net income	$	85.2		$	62.5
Reconciliation to net cash provided by operating activities:
Depreciation and amortization		61.7			63.9
Amortization related to financing		0.4			0.4
Deferred income taxes		(6.7	)		(4.1	)
Equity in earnings from affiliated companies		(2.9	)		(3.7	)
Stock-based compensation		15.7			12.8
Restructuring expenses, net of payments		(3.6	)		(6.0	)
Impairment of assets		1.7			-
Gain on sale of asset		-			(19.4	)
Gain on sale of investment		-			(0.3	)
Changes in assets and liabilities:
Increase in accounts receivable		(33.9	)		(74.5	)
Increase in inventories		(36.8	)		(38.9	)
Increase in prepaid expenses and other current assets		(7.3	)		(10.1	)
(Decrease) increase in accounts payable/accrued liabilities		(35.9	)		28.4
Other – net		(7.5	)		7.3
Net cash provided by operating activities		30.1			18.3
Cash flows from investing activities
Capital expenditures		(74.8	)		(37.9	)
Proceeds from sale of asset		-			21.2
Proceeds from sale of investments		2.5			0.5
Net cash used for investing activities		(72.3	)		(16.2	)
Cash flows from financing activities
Borrowing from senior unsecured credit facility - 2028		98.0			-
Repayment of senior unsecured credit facility - 2028		(18.0	)		-
Borrowing from senior unsecured credit facility - 2024		65.0			35.0
Repayment of senior unsecured credit facility - 2024		(90.0	)		(46.0	)
Issuance costs related to senior unsecured credit facilities		(2.5	)		-
Repayment of finance lease obligation and other debt, net		(0.1	)		(0.2	)
Dividends paid		(21.1	)		(16.8	)
Activity under stock plans		2.7			1.4
Net cash provided by (used for) financing activities		34.0			(26.6	)
Effect of exchange rate changes on cash and cash equivalents		0.4			(4.0	)
Net decrease in cash and cash equivalents		(7.8	)		(28.5	)
Cash and cash equivalents at beginning of period		112.0			127.7
Cash and cash equivalents at end of period	$	104.2		$	99.2
Supplemental data:
Accrual basis additions to plant, property and equipment	$	70.5		$	28.3

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

6

Hexcel Corporation and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)

For the Quarter and Six Months ended June 30, 2023, and June 30, 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 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
Net income	—		—			44.7		—			—				44.7
Dividends on common stock ($0.10 per share)	—		—			(8.5	)	—			—				(8.5	)
Change in other comprehensive loss – net of tax	—		—		—				(47.2	)	—				(47.2	)
Stock-based activity	—			4.2	—			—			—				4.2
Balance, June 30, 2022	$	1.1	$	894.1	$	2,058.0		$	(191.3	)	$	(1,281.6	)	$	1,480.3
								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– 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
Net income	—		—			42.5		—			—				42.5
Dividends on common stock ($0.125 per share)	—		—			(10.5	)	—			—				(10.5	)
Change in other comprehensive income– net of tax	—		—		—				6.9		—				6.9
Stock-based activity	—			5.1	—			—				(0.1	)		5.0
Balance, June 30, 2023	$	1.1	$	925.9	$	2,169.2		$	(145.2	)	$	(1,284.9	)	$	1,666.1

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

7

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. The plant assets to be sold were recorded in “Assets held for sale” in the Consolidated Balance Sheets at both June 30, 2023 and December 31, 2022.

On July 10, 2023, we finalized the sale of the Windsor facility for approximately $11 million. The sale will be recorded in the third quarter of 2023 and will be reflected in the Company's financial statements for the quarter ended September 30, 2023.

Note 2 — Net Income Per Common Share

	Quarter Ended June 30,				Six Months Ended June 30,
(In millions, except per share data)	2023		2022		2023		2022
Basic net income per common share:
Net income	$	42.5	$	44.7	$	85.2	$	62.5
Weighted average common shares outstanding		84.7		84.4		84.6		84.3
Basic net income per common share	$	0.50	$	0.53	$	1.01	$	0.74
Diluted net income per common share:
Net income	$	42.5	$	44.7		85.2		62.5
Weighted average common shares outstanding — Basic		84.7		84.4		84.6		84.3
Plus incremental shares from assumed conversions:
Restricted stock units		0.5		0.4		0.5		0.4
Stock options		0.4		0.2		0.4		0.2
Weighted average common shares outstanding — Dilutive		85.6		85.0		85.5		84.9
Diluted net income per common share	$	0.50	$	0.53	$	1.00	$	0.74

Total common stock equivalents of 0.2 million and 0.6 million were excluded from the computation of diluted net income per share for the quarters ended June 30, 2023 and 2022, respectively, because to do so would have been anti-dilutive. Total common

8

stock equivalents of 0.3 million and 0.7 million were excluded from the computation of diluted net income per share for the six months ended June 30, 2023 and 2022, respectively, because to do so would have been anti-dilutive.

Note 3 — Inventories

(In millions)	June 30, 2023		December 31, 2022
Raw materials	$	166.4	$	153.3
Work in progress	$	53.1		42.8
Finished goods	$	141.4		123.2
Total Inventory	$	360.9	$	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 quarters and six months ended June 30, 2023 and 2022 were as follows:

	Quarter Ended June 30,				Six Months Ended June 30,
(In millions)	2023		2022		2023		2022
U.S. Nonqualified Defined Benefit Retirement Plans
Service cost	$	0.3	$	0.3	$	0.6	$	0.6
Interest cost		0.1		0.1		0.2		0.2
Net amortization		0.2		0.2		0.4		0.4
Net periodic benefit cost	$	0.6	$	0.6	$	1.2	$	1.2

(In millions)	June 30, 2023		December 31, 2022
Amounts recognized on the balance sheet for U.S. nonqualified defined benefit retirement plans:
Accrued liabilities	$	1.3	$	1.4
Other non-current liabilities		19.2		18.5
Total accrued benefit	$	20.5	$	19.9

	Quarter Ended June 30,						Six Months Ended June 30,
(In millions)	2023			2022			2023			2022
European Defined Benefit Retirement Plans
Service cost	$	0.1		$	0.2		$	0.3		$	0.4
Interest cost		1.3			0.5			2.5			1.1
Expected return on plan assets		(1.2	)		(0.5	)		(2.4	)		(1.1	)
Net amortization and deferral		0.6			0.6			1.2			1.2
Net periodic benefit cost	$	0.8		$	0.8		$	1.6		$	1.6

(In millions)	June 30, 2023		December 31, 2022
Amounts recognized on the balance sheet for European defined benefit retirement plans:
Other assets	$	6.3	$	5.6
Accrued liabilities		1.3		0.1
Other non-current liabilities		13.0		12.1
Total accrued benefit	$	14.4	$	12.2

9

All costs related to our pensions are included as a component of operating income in our Condensed Consolidated Statements of Operations. For the quarters ended June 30, 2023 and 2022, amounts unrelated to service costs were a charge of $1.0 million and $0.9 million, respectively. For the six months ended June 30, 2023 and 2022, amounts unrelated to service costs were a charge of $2.0 million and $1.9 million, respectively.

Contributions

We generally fund our U.S. non-qualified defined benefit retirement plans when benefit payments are incurred. We contributed approximately $0.4 million in the first six months of 2023 to cover unfunded benefits. We expect to contribute a total of $1.5 million in 2023 to cover unfunded benefits.

Contributions to our European defined benefit retirement plans during the six months ended June 30, 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 $0.5 million of net amortization gain deferral for both the six months ended June 30, 2023 and 2022. Net periodic benefit costs of our postretirement health care and life insurance benefit plans for the six months ended June 30, 2023 and 2022 were immaterial.

(In millions)	June 30, 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 six months ended June 30, 2023 and 2022. We periodically fund our postretirement plans to pay covered expenses as they are incurred. We expect to contribute less than $0.2 million in 2023 to cover unfunded benefits.

Note 5 –– Debt

(In millions)	June 30, 2023			December 31, 2022
Current portion of finance lease	$	0.1		$	0.2
Current portion of debt		0.1			0.2
Senior unsecured credit facility		80.0			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		(0.8	)		(0.9	)
Senior notes --- deferred financing costs		(1.9	)		(2.2	)
Non-current portion of finance lease and other debt		1.7			1.4
Long-term debt		779.0			723.3
Total debt	$	779.1		$	723.5

On April 25, 2023, the Company entered into a new credit agreement (the “Credit Agreement”) to refinance its senior unsecured revolving credit facility (the “Facility”). Under the terms of the Credit Agreement the borrowing capacity will remain at $750 million. The Facility matures in April 2028. In connection with the refinancing, the Company incurred approximately $2.5 million in financing costs which were deferred and will be amortized over the life of the Facility.

Borrowings under the Facility will bear interest, at the Company’s option, for Secured Overnight Financing Rate ("SOFR") borrowings at (i) an Adjusted Term SOFR rate (subject to a 0.00% floor), where such “Adjusted Term SOFR” rate is equal to the Term SOFR rate for the applicable interest period plus 0.10%, plus the Applicable Margin or (ii) for base rate borrowings, the greatest of (a) the prime rate, (b) the federal funds rate plus 0.50% and (c) the Adjusted Term SOFR rate (subject to a 0.00% floor) for a one-month interest period plus 1.00%, in each case plus the Applicable Margin. The “Applicable Margin” initially is 1.125% for SOFR rate borrowings and 0.125% for base rate borrowings, and after September 30, 2023, can fluctuate, determined by reference to the more favorable to the Company of its (i) public debt rating and (ii) consolidated leverage ratio, as specified in the Credit Agreement.

10

Up to $50 million of the Facility may be used for letters of credit. The Credit Agreement enables the Company, from time to time, to add term loans or to increase the revolving credit commitment in an aggregate amount not to exceed $500 million.

The Credit Agreement contains customary covenants that place restrictions on, among other things, the incurrence of debt by any subsidiaries of the Company, granting of liens and sale of all or substantially all of the assets of the Company and its subsidiaries taken as a whole. The Credit Agreement also contains financial covenants that require the Company to maintain a minimum interest coverage ratio and a maximum consolidated net leverage ratio. As of June 30, 2023, the Company was in compliance with all debt covenants.

As of June 30, 2023, total borrowings under the Facility were $80 million, which approximated fair value. Outstanding letters of credit reduce the amount available for borrowing under the Facility. As of June 30, 2023, there were no issued letters of credit under the Facility, resulting in undrawn availability under the Facility of $670 million. The weighted average interest rate for the Facility was 6.0% for the six months ended June 30, 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 six months ended June 30, 2023 was 4.0% 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 $377.8 million at June 30, 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 six months ended June 30, 2023 was 4.9%. Based on quoted prices, the fair value of the senior unsecured notes due in 2025 was $293.3 million at June 30, 2023.

Note 6 — Derivative Financial Instruments

Interest Rate Swap and Interest Lock Agreements

At June 30, 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 rates 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.

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 December 2025. The aggregate notional amount of these contracts was $433.9 million and $503.3 million at June 30, 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 $4.3 million and $8.3 million were recorded in other comprehensive income (loss) for the quarter and six months ended June 30, 2023, respectively, and losses of $21.6 million and $28.4 million were recorded for the quarter and six months ended June 30, 2022, respectively. We

11

recognized losses of $2.6 million and $6.3 million in gross margin during the quarter and six months ended June 30, 2023, respectively, and losses of $3.6 million and $4.3 million for the quarter and six months ended June 30, 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 quarter and six months ended June 30, 2023, we recognized net foreign exchange losses of $0.1 million and gains of $0.3 million, respectively, in the Condensed Consolidated Statements of Operations. During the quarter and six months ended June 30, 2023, we recognized net foreign exchange losses of $0.8 million and $1.0 million, respectively. The net foreign exchange impact recognized from these hedges offset the translation exposure of these transactions.

The change in fair value of our foreign currency forward exchange contracts under hedge designations recorded net of tax within accumulated other comprehensive income (loss) for the quarters and six months ended June 30, 2023 and June 30, 2022 was as follows:

	Quarter Ended June 30,						Six Months Ended June 30,
(In millions)	2023			2022			2023			2022
Unrealized losses at beginning of period, net of tax	$	(4.8	)	$	(8.0	)	$	(10.5	)	$	(3.5	)
Losses reclassified to net sales		2.0			2.8			4.7			3.1
Increase (decrease) in fair value		3.2			(16.5	)		6.2			(21.3	)
Unrealized gains (losses) at end of period, net of tax	$	0.4		$	(21.7	)	$	0.4		$	(21.7	)

Unrealized gains of $3.3 million recorded in accumulated other comprehensive loss, less taxes of $0.9 million, as of June 30, 2023, are expected to be reclassified into earnings over the next twelve months as the hedged sales are recorded.

Commodity Swap Agreements

On occasion we enter into commodity swap agreements to hedge against price fluctuations of raw materials, including propylene (the principal component of acrylonitrile). As of June 30, 2023, we had commodity swap agreements with a notional value of $18.4 million. The swaps mature monthly through June 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 values of outstanding derivative financial instruments as of June 30, 2023 and December 31, 2022 were as follows:

	Prepaid and Other Current Assets				Other Assets				Current Liabilities				Non-Current Liabilities
(In millions)	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Derivative Products
Foreign currency forward exchange contracts	$	3.7	$	1.9	$	4.8	$	3.4	$	7.0	$	14.1	$	0.9	$	5.3
Undesignated hedges		-		-		-		-		0.8		0.7		-		-
Commodity swaps		0.1		0.5		-		-		5.9		7.2		0.8		1.4
Cross currency and interest rate swap		5.6		6.2		8.0		10.1		-		-		-		-
Total Derivative Products	$	9.4	$	8.6	$	12.8	$	13.5	$	13.7	$	22.0	$	1.7	$	6.7

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.

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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). For further information on the fair value of our derivative financial instruments see Note 6, Derivative Financial Instruments. 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.

•Foreign exchange derivative assets and liabilities — valued using quoted forward foreign exchange prices at the reporting date.

•Commodity swap agreements — valued using quoted forward commodity prices at the reporting date.

Counterparties to the above contracts are highly rated financial institutions, none of which experienced any significant downgrades in the quarter ended June 30, 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 quarters and six months ended June 30, 2023 and 2022:

	Quarter Ended June 30,				Six Months Ended June 30,
(In millions)	2023		2022		2023		2022
Consolidated Net Sales	$	454.3	$	393.0	$	912.0	$	783.6
Commercial Aerospace		264.3		227.6		548.8		446.5
Space & Defense		137.5		111.9		263.7		230.1
Industrial		52.5		53.5		99.5		107.0

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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 six months ended June 30, 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
Net revenue billed	$	0.4		$	(1.8	)		(1.4	)
Balance at June 30, 2023	$	7.0		$	20.2		$	27.2

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

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.

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Financial information for our operating segments for the quarters and six months ended June 30, 2023 and 2022 were as follows:

	(Unaudited)
	Composite		Engineered		Corporate &
(In millions)	Materials		Products		Other (a)			Total
Quarter Ended June 30, 2023
Net sales to external customers	$	378.5	$	75.8	$	—		$	454.3
Intersegment sales		18.5		0.5		(19.0	)		—
Total sales	$	397.0	$	76.3	$	(19.0	)	$	454.3
Other operating expense		0.3		0.2		—			0.5
Operating income (loss)		64.2		6.8		(9.7	)		61.3
Depreciation and amortization		27.5		3.5		—			31.0
Stock-based compensation		1.1		0.3		1.4			2.8
Accrual basis additions to capital expenditures		12.9		40.8		—			53.7
Quarter Ended June 30, 2022
Net sales to external customers	$	318.1	$	74.9	$	—		$	393.0
Intersegment sales		18.5		1.0		(19.5	)		—
Total sales	$	336.6	$	75.9	$	(19.5	)	$	393.0
Other operating expense (income)		0.3		—		(19.4	)		(19.1	)
Operating income		47.2		9.1		7.5			63.8
Depreciation and amortization		28.1		3.5		0.1			31.7
Stock-based compensation		0.9		0.3		1.2			2.4
Accrual basis additions to capital expenditures		14.5		2.7		—			17.2
Six Months Ended June 30, 2023
Net sales to external customers	$	756.7	$	155.3	$	—		$	912.0
Intersegment sales		37.8		1.5		(39.3	)		—
Total sales	$	794.5	$	156.8	$	(39.3	)	$	912.0
Other operating expense		0.5		0.2		—			0.7
Operating income (loss)		137.4		18.8		(32.1	)		124.1
Depreciation and amortization		54.7		7.0		—			61.7
Stock-based compensation		4.2		1.1		10.4			15.7
Accrual basis additions to capital expenditures		26.0		44.5		—			70.5
Six Months Ended June 30, 2022
Net sales to external customers	$	631.9	$	151.7	$	—		$	783.6
Intersegment sales		35.0		1.3		(36.3	)		—
Total sales	$	666.9	$	153.0	$	(36.3	)	$	783.6
Other operating expense (income)		1.2		0.1		(19.4	)		(18.1	)
Operating income (loss)		89.8		19.7		(15.6	)		93.9
Depreciation and amortization		56.7		7.1		0.1			63.9
Stock-based compensation		3.5		1.0		8.3			12.8
Accrual basis additions to capital expenditures		24.6		3.7		—			28.3

(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	)		(1.3	)		(1.8	)
Currency translation adjustments		1.2			(1.2	)		—
Balance at June 30, 2023	$	87.6		$	166.6		$	254.2

At June 30, 2023, the balance of goodwill and intangible assets was $188.3 million and $65.9 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 June 30, 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		(1.8	)		7.8			18.1			24.1
Amounts reclassified from accumulated other comprehensive loss		0.8			4.3		—				5.1
Other comprehensive (loss) income		(1.0	)		12.1			18.1			29.2
Balance at June 30, 2023	$	(50.1	)	$	(3.3	)	$	(91.8	)	$	(145.2	)

(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 quarters and six months ended June 30, 2023 and 2022 were as follows:

	Quarter Ended June 30, 2023						Quarter Ended June 30, 2022						Six Months Ended June 30, 2023						Six Months Ended June 30, 2022
(In millions)	Pre-tax (gain) loss			Net of tax (gain) loss			Pre-tax (gain) loss			Net of tax (gain) loss			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		$	0.6		$	0.5		$	1.0		$	0.8		$	1.1		$	0.8
Derivative Products
Foreign currency forward exchange contracts		2.6			1.9			3.6			2.7			6.3			4.6			4.3			3.1
Commodity swaps		1.8			1.4			(0.3	)		(0.2	)		2.7			2.1			(1.1	)		(0.8	)
Interest rate swaps		(1.1	)		(0.8	)		2.5			1.9			(3.2	)		(2.4	)		(5.0	)		(3.9	)
Total Derivative Products	$	3.3		$	2.5		$	5.8		$	4.4		$	5.8		$	4.3		$	(1.8	)	$	(1.6	)

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.

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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. 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.

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. A public comment period which allowed interested parties to provide additional evidence and make arguments in support or opposition to the Consent Decree has concluded. Hexcel is unable to estimate when or if the District Court will approve the Consent Decree.

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 June 30, 2023 and December 31, 2022, our aggregate environmental related accruals were $0.6 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 six months ended June 30, 2023, and accrued warranty cost, included in “accrued liabilities” in the Condensed Consolidated Balance Sheets at June 30, 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
Warranty expense		2.2
Deductions and other		(0.9	)
Balance as of June 30, 2023	$	4.8

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Note 12 — Restructuring

We recognized restructuring charges of $0.5 million and $0.7 million for the quarter and six months ended June 30, 2023, respectively, primarily related to severance. Anticipated future cash payments as of June 30, 2023 were $1.5 million.

			Activity for the Quarter Ended June 30, 2023
	March 31,		Restructuring				Cash						June 30,
(In Millions)	2023		Charge		FX Impact		Paid			Non-Cash			2023
Employee termination	$	3.3	$	0.2	$	—	$	(2.0	)	$	—		$	1.5
Impairment and other		—		0.3		—		—			(0.3	)		—
Total	$	3.3	$	0.5	$	—	$	(2.0	)	$	(0.3	)	$	1.5
			Activity for the Six Months Ended June 30, 2023
	December 31,		Restructuring				Cash						June 30,
(In Millions)	2022		Charge		FX Impact		Paid			Non-Cash			2023
Employee termination	$	5.4	$	0.4	$	—	$	(4.3	)	$	—		$	1.5
Impairment and other		—		0.3		—		—			(0.3	)		—
Total	$	5.4	$	0.7	$	—	$	(4.3	)	$	(0.3	)	$	1.5

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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 and our business began to see signs of recovery from the economic impacts of the COVID-19 pandemic in the second half of 2021, which has continued through 2023, with further growth in air travel and an increase in aircraft build rates. Despite this recovery, global logistics, supply chains, inflationary pressures and the effects of geopolitical issues still remain a challenge. These challenges have had and may continue to have further negative impacts on our operations, supply chain, transportation networks and customers, all of which have and may continue to compress our financial results.

We also continue to monitor developments in ongoing geopolitical issues including the Russia/Ukraine conflict. Although we are not experiencing direct material adverse effects upon our business, the global implications of the Russia/Ukraine conflict which include increased inflation, elevated energy costs, constrained raw material availability and transportation, and thus increasing costs are impacting the global economy and the aerospace industry in particular.

Financial Overview

Results of Operations

	Quarter Ended June 30,									Six Months Ended June 30,
(In millions, except per share data)	2023			2022			% Change			2023			2022			% Change
Net sales	$	454.3		$	393.0			15.6	%	$	912.0		$	783.6			16.4	%
Net sales change in constant currency								14.7	%								16.4	%
Operating income	$	61.3		$	63.8			(3.9	)%	$	124.1		$	93.9			32.2	%
As a percentage of net sales		13.5	%		16.2	%					13.6	%		12.0	%
Net income	$	42.5		$	44.7			(4.9	)%	$	85.2		$	62.5			36.3	%
Diluted net income per common share	$	0.50		$	0.53			(5.7	)%	$	1.00		$	0.74			35.1	%

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Net Sales

The following table summarizes net sales to third-party customers by segment and end market for the quarters and six months ended June 30, 2023 and 2022:

	Quarter Ended June 30,							Six Months Ended June 30,
(In millions)	2023		2022		% Change			2023		2022		% Change
Consolidated Net Sales	$	454.3	$	393.0		15.6	%	$	912.0	$	783.6		16.4	%
Commercial Aerospace		264.3		227.6		16.1	%		548.8		446.5		22.9	%
Space & Defense		137.5		111.9		22.9	%		263.7		230.1		14.6	%
Industrial		52.5		53.5		(1.9	)%		99.5		107.0		(7.0	)%
Composite Materials	$	378.5	$	318.1		19.0	%	$	756.7	$	631.9		19.7	%
Commercial Aerospace		228.9		192.0		19.2	%		472.1		376.8		25.3	%
Space & Defense		97.9		73.9		32.5	%		186.7		150.5		24.1	%
Industrial		51.7		52.2		(1.0	)%		97.9		104.6		(6.4	)%
Engineered Products	$	75.8	$	74.9		1.2	%	$	155.3	$	151.7		2.4	%
Commercial Aerospace		35.4		35.6		(0.5	)%		76.7		69.7		10.1	%
Space & Defense		39.6		38.0		4.2	%		77.0		79.6		(3.3	)%
Industrial		0.8		1.3		(40.0	)%		1.6		2.4		(34.2	)%

Sales by Segment

Composite Materials: Net sales of $378.5 million in the second quarter of 2023 increased by $60.4 million or 19.0% from the prior year quarter. Commercial Aerospace sales increased $36.9 million or 19.2% in the second quarter of 2023 as compared to the prior year quarter primarily due to growth in the A350 and Boeing 787 programs as well as business jet growth. Space & Defense sales increased $24.0 million or 32.5% led by growth in military aircraft. Net sales of $756.7 million for the first six months of 2023 increased 19.7% compared to the same period last year driven by strong sales in the Commercial Aerospace and Space & Defense markets.

Engineered Products: For the second quarter of 2023, net sales of $75.8 million increased $0.9 million or 1.2% as compared to the prior year quarter. The increase was driven by higher Space & Defense sales. Net sales of $155.3 million for the first six months of 2023 increased 2.4% compared to the same period last year.

Sales by Market

For the second quarter of 2023, Commercial Aerospace sales of $264.3 million increased 16.1% (15.4% in constant currency) compared to the second quarter of 2022. Growth was driven by the Airbus A350 and Boeing 787 programs. Other Commercial Aerospace increased 13.3% for the second quarter of 2023 compared to the second quarter of 2022 reflecting continued growth in business jets. Sales of $548.8 million increased 22.9% (22.5% in constant currency) for the first six months of 2023 compared to the first six months of 2022. The A350 and A320neo programs as well as the Boeing 787 program drove the growth. Other Commercial Aerospace increased 18.4% for the first six months of 2023 compared to the same period in 2022 on expanding business jet demand.

Space & Defense sales of $137.5 million increased 22.9% (22.1% in constant currency) for the second quarter of 2023 as compared to the second quarter of 2022. Growth was broad-based including fighter aircraft, particularly the F-35 and Rafale, the Black Hawk, civilian helicopters and space programs. Sales of $263.7 million increased 14.6% (14.7% in constant currency) for the first six months of 2023 as compared to the first six months of 2022. Areas of growth included military aircraft, in particular the Rafale and A400M, and both civil and military rotorcraft led by the Black Hawk.

Total Industrial sales of $52.5 million in the second quarter of 2023 decreased 1.9% (3.3% in constant currency) compared to the second quarter of 2022 as lower wind energy and recreation sales were only partially offset by growth in automotive and other industrial sales. Total Industrial sales of $99.5 million in the first six months of 2023 decreased 7.0% (6.1% in constant currency) compared to the first six months of 2022 due to lower wind energy sales partially offset by higher automotive and other industrial sales.

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Gross Margin

	Quarter Ended June 30,									Six Months Ended June 30,
(In millions)	2023			2022			% Change			2023			2022			% Change
Gross margin	$	110.8		$	89.5			23.8	%	$	238.5		$	176.2			35.4	%
Percentage of sales		24.4	%		22.8	%					26.2	%		22.5	%

Gross margin for the second quarter of 2023 was 24.4% compared to 22.8% in the second quarter of 2022 and 26.2% and 22.5% for the first six months of 2023 and 2022, respectively. The improvements in the gross margin for both the second quarter and first six months of 2023 compared to the same periods last year was primarily due to higher sales and favorable product mix.

Operating Expenses

	Quarter Ended June 30,									Six Months Ended June 30,
(In millions)	2023			2022			% Change			2023			2022			% Change
SG&A expense	$	35.7		$	33.5			6.6	%	$	86.5		$	78.2			10.6	%
Percentage of sales		7.9	%		8.5	%					9.5	%		10.0	%
R&T expense	$	13.3		$	11.3			17.7	%	$	27.2		$	22.2			22.5	%
Percentage of sales		2.9	%		2.9	%					3.0	%		2.8	%

Selling, general and administrative expenses were higher for the second quarter of 2023, although lower as a percentage of sales, as compared to the same period in 2022. The increase in selling, general and administrative expenses for the second quarter of 2023 was primarily driven by higher employee-related expenses. Research and technology expenses for the second quarter of 2023 increased $2.0 million over the same period last year due primarily to higher materials and supplies expense. Selling, general and administrative expenses were higher for the first six months of 2023 compared to the same period in 2022 due to higher employee-related expenses. Research and technology expenses for the first six months of 2023 were higher compared to the prior year period due to higher employee-related and materials and supplies expenses resulting from an increase the number of development projects.

Operating Income

	Quarter Ended June 30,									Six Months Ended June 30,
(In millions)	2023			2022			% Change			2023			2022			% Change
Consolidated operating income	$	61.3		$	63.8			(3.9	)%	$	124.1		$	93.9			32.2	%
Operating margin		13.5	%		16.2	%					13.6	%		12.0	%
Composite Materials		64.2			47.2			36.0	%		137.4			89.8			53.0	%
Operating margin		16.2	%		14.0	%					17.3	%		13.5	%
Engineered Products		6.8			9.1			(25.3	)%		18.8			19.7			(4.6	)%
Operating margin		8.9	%		12.0	%					12.0	%		12.9	%
Corporate & Other		(9.7	)		7.5		N/M				(32.1	)		(15.6	)		(105.8	)%

Operating income for the second quarters of 2023 and 2022 was $61.3 million and $63.8 million, respectively. Operating income for the first six months of 2023 was $124.1 million compared to $93.9 million for the same period last year. Both the second quarter and six months of 2022 included the gain on the sale of the Dublin, California facility of $19.4 million. Overall, operating income for both the second quarter and six months of 2023 benefitted from higher sales and stronger gross margins, as compared to the prior year periods.

Interest Expense, Net

	Quarter Ended June 30,							Six Months Ended June 30,
(In millions)	2023		2022		% Change			2023		2022		% Change
Interest expense, net	$	9.2	$	8.9		3.4	%	$	18.6	$	18.0		3.3	%

Interest expense for both the quarter and six months ended June 30, 2023 was higher compared to the prior year periods due to higher interest rates, partially offset by lower average debt levels.

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Provision for Income Taxes

	Quarter Ended June 30,						Six Months Ended June 30,
(In millions)	2023			2022			2023			2022
Income tax expense	$	11.5		$	12.7		$	23.2		$	17.4
Effective tax rate		22.1	%		22.9	%		22.0	%		22.8	%

Tax expense for the quarter and six months ended June 30, 2023 was $11.5 million and $23.2 million, respectively, as compared to $12.7 million and $17.4 million for the comparative periods in 2022.

Financial Condition

Liquidity: Cash on hand at June 30, 2023 was $104.2 million as compared to $112.0 million at December 31, 2022. As of June 30, 2023, total debt was $779.1 million as compared to $723.5 million at December 31, 2022.

On April 25, 2023, we entered into a new credit agreement (the “Credit Agreement”) to refinance our unsecured revolving credit facility (the “Facility”). Under the terms of the Credit Agreement the borrowing capacity will remain at $750 million. The Facility matures in April 2028. For further discussion, see Note 5, Debt, to the accompanying condensed consolidated financial statements.

As of June 30, 2023, total borrowings under the Facility were $80 million, which approximated fair value. The Credit Agreement permits us to issue letters of credit up to an aggregate amount of $50 million. As of June 30, 2023, there were no issued letters of credit under the Facility, resulting in undrawn availability under the Facility of $670 million. The weighted average interest rate for the Facility was 6.0% for the six months ended June 30, 2023.

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 June 30, 2023, long-term liquidity requirements consist primarily of obligations under our long-term debt obligations. We do not have any significant required debt repayments until August 2025 when our 4.7% Senior Unsecured Notes are due. The remaining authorization under the share repurchase program at June 30, 2022 was $217 million.

On July 24, 2023, our Board of Directors declared a quarterly dividend of $0.125 per share payable to stockholders of record as of August 4, 2023, with a payment date of August 11, 2023.

Operating Activities: Net cash provided by operating activities for the first six months of 2023 was $30.1 million compared to $18.3 million for the same period last year. Working capital was a cash use of $113.9 million for the first six months of 2023 as compared to a use of $95.1 million in the same period in 2022. The difference was primarily driven by lower payables in the current year partially offset by an increase in accounts receivables.

Investing Activities: Net cash used for investing activities was $72.3 million and $16.2 million in the first six months of 2023 and 2022, respectively. Capital expenditures for the first six months of 2023 were $74.8 million and included $38.0 million for the acquisition of the land and building at our Amesbury, Massachusetts facility to support future growth. Capital expenditures for the first six months of 2022 were $37.9 million. The first six months of 2022 included net proceeds of $21.2 million from the sale of the Dublin, California facility.

Financing Activities: Net cash provided by financing activities was $34.0 million for first six months of 2023 compared to a net cash use of $26.6 million in the same period in 2022. Borrowings under the credit facilities during the first six months of 2023 was $163.0 million compared to $35.0 million in the prior year period. Repayments were $108.0 million during the first six months of 2023 compared to $46.0 million in the prior year period. Quarterly dividend payments to shareholders were $21.1 million during the first six months of 2023 compared to $16.8 million in the prior year period.

Financial Obligations and Commitments: The next significant scheduled debt maturity will not occur until 2025 when our 4.7% Senior Unsecured Notes are due. Certain sales and administrative offices, data processing equipment and manufacturing facilities are leased under operating leases.

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

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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 diluted 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 June 30,							Six Months Ended June 30,
(In millions)	2023			2022				2023		2022
GAAP operating income		$	61.3		$	63.8		$	124.1	$	93.9
Other operating expense (income) (a)			0.5			(19.1	)		0.7		(18.1	)
Adjusted operating income (non-GAAP)		$	61.8		$	44.7		$	124.8	$	75.8

	Quarter Ended June 30,										Six Months Ended June 30,
	2023				2022						2023				2022
(In millions, except per diluted share data)	Net Income		Diluted Net Income Per Share		Net income			Diluted Net Income Per Share			Net Income		Diluted Net Income Per Share		Net income			Diluted Net Income Per Share
GAAP net income	$	42.5	$	0.50	$	44.7		$	0.53		$	85.2	$	1.00	$	62.5		$	0.74
Other operating expense (income), net of tax (a)		0.3		-		(16.3	)		(0.20	)		0.5		-		(15.5	)		(0.19	)
Other income		-				(0.3	)					-		-		(0.3	)
Adjusted net income (non-GAAP)	$	42.8	$	0.50	$	28.1		$	0.33		$	85.7	$	1.00	$	46.7		$	0.55

(a)The quarter and six months ended June 30, 2023 included restructuring costs and the quarter and six months ended June 30, 2022 included the net gain of $19.4 million from the sale of the Dublin, California facility partially offset by restructuring costs primarily related to severance.

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	Six Months Ended June 30,
(In millions)	2023			2022
Net cash provided by operating activities	$	30.1		$	18.3
Less: Capital expenditures		(74.8	)		(37.9	)
Free cash flow (non-GAAP)	$	(44.7	)	$	(19.6	)

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, capacity, including the 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.

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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 June 30, 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 quarter ended June 30, 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 15 through 16 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*	Hexcel Corporation Nonqualified Deferred Compensation Plan, effective as of January 1, 2005, Amended and Restated as of January 1, 2023 (incorporated herein by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2023).
10.2**	Credit Agreement, dated April 25, 2023, by and among Hexcel Corporation, as borrower, the lenders party thereto, Citizens Bank N.A. as agent for the lenders and the other institutions party thereto (incorporated herein by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated April 28, 2023).
31.1	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 June 30 31, 2023, formatted in Inline XBRL: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statements of Comprehensive Income (Loss), (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

** Schedules and exhibits have been omitted pursuant to Regulation S-K, Item 601(a)(5). The Company will provide a copy of any omitted schedule or exhibit to the Securities and Exchange Commission or its staff upon request.

26

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

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EX-31.1

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.

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

EX-31.2

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.

July 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 June 30, 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.

July 24, 2023	/s/ Nick L. Stanage
(Date)	Nick L. Stanage
	Chairman of the Board of Directors,
	Chief Executive Officer and President
July 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	6 Months Ended
	Jun. 30, 2023	Jul. 20, 2023
Cover [Abstract]
Entity Registrant Name	Hexcel Corporation
Entity Central Index Key	0000717605
Document Type	10-Q
Document Period End Date	Jun. 30, 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		84,465,701
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
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

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Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 104.2	$ 112.0
Accounts receivable, net	257.3	222.7
Inventories, net	360.9	319.3
Contract assets	27.2	32.0
Prepaid and other Current Assets	51.0	38.9
Assets held for sale	9.5	9.5
Total current assets	810.1	734.4
Property, plant and equipment	3,163.0	3,087.9
Less accumulated depreciation	(1,482.8)	(1,430.1)
Net property, plant and equipment	1,680.2	1,657.8
Goodwill and other intangible assets, net	254.2	256.0
Investments in affiliated companies	50.1	47.6
Other assets	127.3	141.5
Total assets	2,921.9	2,837.3
Current liabilities:
Short-term borrowings	0.1	0.2
Accounts payable	117.5	155.5
Accrued compensation and benefits	61.6	69.6
Financial instruments	13.7	22.0
Accrued liabilities	83.2	82.5
Total current liabilities	276.1	329.8
Long-term debt	779.0	723.3
Retirement obligations	44.8	42.7
Deferred income taxes	117.5	126.4
Other non-current liabilities	38.4	60.9
Total liabilities	1,255.8	1,283.1
Stockholders' equity:
Common stock, $0.01 par value, 200.0 shares authorized, 110.3 shares and 110.1 shares issued at June 30, 2022 and December 31, 2021, respectively	1.1	1.1
Additional paid-in capital	925.9	905.0
Retained earnings	2,169.2	2,104.9
Accumulated other comprehensive loss	(145.2)	(174.4)
Total stockholders' equity including treasury stock value	2,951.0	2,836.6
Less - Treasury stock, at cost, 26.2 shares at June 30, 2022 and 26.1 shares at December 31, 2021	(1,284.9)	(1,282.4)
Total stockholders' equity	1,666.1	1,554.2
Total liabilities and stockholders' equity	$ 2,921.9	$ 2,837.3

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Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000.0	200,000,000.0
Common stock, shares issued	110,600,000	110,400,000
Treasury stock, shares	26,200,000	26,200,000

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Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Net sales	$ 454.3	$ 393.0	$ 912.0	$ 783.6
Cost of sales	343.5	303.5	673.5	607.4
Gross margin	110.8	89.5	238.5	176.2
Selling, general and administrative expenses	35.7	33.5	86.5	78.2
Research and technology expenses	13.3	11.3	27.2	22.2
Other operating expense (income)	0.5	(19.1)	0.7	(18.1)
Operating income	61.3	63.8	124.1	93.9
Interest expense, net	9.2	8.9	18.6	18.0
Other income	0.0	(0.3)	0.0	(0.3)
Income before income taxes, and equity in earnings from affiliated companies	52.1	55.2	105.5	76.2
Income tax expense	11.5	12.7	23.2	17.4
Income before equity in earnings from affiliated companies	40.6	42.5	82.3	58.8
Equity in earnings from affiliated companies	1.9	2.2	2.9	3.7
Net income	$ 42.5	$ 44.7	$ 85.2	$ 62.5
Basic net income per common share	$ 0.50	$ 0.53	$ 1.01	$ 0.74
Diluted net income (loss) per common share	$ 0.50	$ 0.53	$ 1.00	$ 0.74
Weighted-average common shares:
Basic	84.7	84.4	84.6	84.3
Diluted	85.6	85.0	85.5	84.9

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Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 42.5	$ 44.7	$ 85.2	$ 62.5
Currency translation adjustments	6.1	(34.8)	18.1	(50.5)
Net unrealized pension and other benefit actuarial (losses) gains and prior service credits (net of tax)	(1.0)	4.5	(1.0)	7.7
Net unrealized gains (losses) on financial instruments (net of tax)	1.8	(16.9)	12.1	(22.0)
Total other comprehensive income (loss)	6.9	(47.2)	29.2	(64.8)
Comprehensive income (loss)	$ 49.4	$ (2.5)	$ 114.4	$ (2.3)

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities
Net income	$ 85.2	$ 62.5
Reconciliation to net cash used by operating activities:
Depreciation and amortization	61.7	63.9
Amortization related to financing	0.4	0.4
Deferred income taxes	(6.7)	(4.1)
Equity in earnings from affiliated companies	(2.9)	(3.7)
Stock-based compensation	15.7	12.8
Restructuring expenses, net of payments	(3.6)	(6.0)
Impairment of assets	1.7
Gain on sale of asset	0.0	(19.4)
Gain on Sale of Investments		(0.3)
Changes in assets and liabilities:
Increase in accounts receivable	(33.9)	(74.5)
Increase in inventories	(36.8)	(38.9)
Increase in prepaid expenses and other current assets	(7.3)	(10.1)
Increase in accounts payable/accrued liabilities	(35.9)	28.4
Other – net	(7.5)	7.3
Net cash provided by operating activities	30.1	18.3
Cash flows from investing activities
Capital expenditures	(74.8)	(37.9)
Proceeds from sale of asset	0.0	21.2
Proceeds from sale of investments	2.5	0.5
Net cash used for investing activities	(72.3)	(16.2)
Cash flows from financing activities
Issuance costs related to senior unsecured credit facilities	(2.5)	0.0
Repayment of finance lease obligation and other debt, net	(0.1)	(0.2)
Dividends paid	(21.1)	(16.8)
Activity under stock plans	2.7	1.4
Net cash provided by (used for) financing activities	34.0	(26.6)
Effect of exchange rate changes on cash and cash equivalents	0.4	(4.0)
Net decrease in cash and cash equivalents	(7.8)	(28.5)
Cash and cash equivalents at beginning of period	112.0	127.7
Cash and cash equivalents at end of period	104.2	99.2
Supplemental data:
Accrual basis additions to plant, property, and equipment	70.5	28.3
Senior Unsecured Credit Facility Two Thousand Twenty Eight [Member]
Cash flows from financing activities
Proceeds from Long-Term Lines of Credit	98.0	0.0
Repayment of senior unsecured credit facility	(18.0)	0.0
Senior Unsecured Credit Facility Two Thousand Twenty Four [Member]
Cash flows from financing activities
Proceeds from Long-Term Lines of Credit	65.0	35.0
Repayment of senior unsecured credit facility	$ (90.0)	$ (46.0)

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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	17.8			17.8
Dividends paid on common stock	(8.5)			(8.5)
Change in other comprehensive (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, 2021	1,485.5	1.1	878.6	2,012.5	(126.5)	(1,280.2)
Increase (Decrease) in Stockholders' Equity
Net income	62.5
Change in other comprehensive (loss)- net of tax	(64.8)
Ending Balance at Jun. 30, 2022	1,480.3	1.1	894.1	2,058.0	(191.3)	(1,281.6)
Beginning Balance at Mar. 31, 2022	1,487.1	1.1	889.9	2,021.8	(144.1)	(1,281.6)
Increase (Decrease) in Stockholders' Equity
Net income	44.7			44.7
Dividends paid on common stock	(8.5)			(8.5)
Change in other comprehensive (loss)- net of tax	(47.2)				(47.2)
Stock based compensation	4.2		4.2
Ending Balance at Jun. 30, 2022	1,480.3	1.1	894.1	2,058.0	(191.3)	(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	42.7			42.7
Dividends paid on common stock	(10.4)			(10.4)
Change in other comprehensive (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)
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	85.2
Change in other comprehensive (loss)- net of tax	29.2				29.2
Ending Balance at Jun. 30, 2023	1,666.1	1.1	925.9	2,169.2	(145.2)	(1,284.9)
Beginning Balance at Mar. 31, 2023	1,622.2	1.1	920.8	2,137.2	(152.1)	(1,284.8)
Increase (Decrease) in Stockholders' Equity
Net income	42.5			42.5
Dividends paid on common stock	(10.5)			(10.5)
Change in other comprehensive (loss)- net of tax	6.9				6.9
Stock based compensation	5.0		5.1			(0.1)
Ending Balance at Jun. 30, 2023	$ 1,666.1	$ 1.1	$ 925.9	$ 2,169.2	$ (145.2)	$ (1,284.9)

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Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]
Dividends paid on common stock price per share	$ 0.125	$ 0.125	$ 0.10	$ 0.10

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Significant Accounting Policies

6 Months Ended

Jun. 30, 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. The plant assets to be sold were recorded in “Assets held for sale” in the Consolidated Balance Sheets at both June 30, 2023 and December 31, 2022.

On July 10, 2023, we finalized the sale of the Windsor facility for approximately $11 million. The sale will be recorded in the third quarter of 2023 and will be reflected in the Company's financial statements for the quarter ended September 30, 2023.

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Net Income (Loss) Per Common Share

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Net Income (Loss) Per Common Share

Note 2 — Net Income Per Common Share

	Quarter Ended June 30,				Six Months Ended June 30,
(In millions, except per share data)	2023		2022		2023		2022
Basic net income per common share:
Net income	$	42.5	$	44.7	$	85.2	$	62.5
Weighted average common shares outstanding		84.7		84.4		84.6		84.3
Basic net income per common share	$	0.50	$	0.53	$	1.01	$	0.74
Diluted net income per common share:
Net income	$	42.5	$	44.7		85.2		62.5
Weighted average common shares outstanding — Basic		84.7		84.4		84.6		84.3
Plus incremental shares from assumed conversions:
Restricted stock units		0.5		0.4		0.5		0.4
Stock options		0.4		0.2		0.4		0.2
Weighted average common shares outstanding — Dilutive		85.6		85.0		85.5		84.9
Diluted net income per common share	$	0.50	$	0.53	$	1.00	$	0.74

Total common stock equivalents of 0.2 million and 0.6 million were excluded from the computation of diluted net income per share for the quarters ended June 30, 2023 and 2022, respectively, because to do so would have been anti-dilutive. Total common

stock equivalents of 0.3 million and 0.7 million were excluded from the computation of diluted net income per share for the six months ended June 30, 2023 and 2022, respectively, because to do so would have been anti-dilutive.

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Inventories

6 Months Ended

Jun. 30, 2023

Inventory Disclosure [Abstract]

Inventories

Note 3 — Inventories

(In millions)	June 30, 2023		December 31, 2022
Raw materials	$	166.4	$	153.3
Work in progress	$	53.1		42.8
Finished goods	$	141.4		123.2
Total Inventory	$	360.9	$	319.3

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Retirement and Other Postretirement Benefit Plans

6 Months Ended

Jun. 30, 2023

Retirement Benefits [Abstract]

Retirement and Other Postretirement Benefit Plans

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 quarters and six months ended June 30, 2023 and 2022 were as follows:

	Quarter Ended June 30,				Six Months Ended June 30,
(In millions)	2023		2022		2023		2022
U.S. Nonqualified Defined Benefit Retirement Plans
Service cost	$	0.3	$	0.3	$	0.6	$	0.6
Interest cost		0.1		0.1		0.2		0.2
Net amortization		0.2		0.2		0.4		0.4
Net periodic benefit cost	$	0.6	$	0.6	$	1.2	$	1.2

(In millions)	June 30, 2023		December 31, 2022
Amounts recognized on the balance sheet for U.S. nonqualified defined benefit retirement plans:
Accrued liabilities	$	1.3	$	1.4
Other non-current liabilities		19.2		18.5
Total accrued benefit	$	20.5	$	19.9

	Quarter Ended June 30,						Six Months Ended June 30,
(In millions)	2023			2022			2023			2022
European Defined Benefit Retirement Plans
Service cost	$	0.1		$	0.2		$	0.3		$	0.4
Interest cost		1.3			0.5			2.5			1.1
Expected return on plan assets		(1.2	)		(0.5	)		(2.4	)		(1.1	)
Net amortization and deferral		0.6			0.6			1.2			1.2
Net periodic benefit cost	$	0.8		$	0.8		$	1.6		$	1.6

(In millions)	June 30, 2023		December 31, 2022
Amounts recognized on the balance sheet for European defined benefit retirement plans:
Other assets	$	6.3	$	5.6
Accrued liabilities		1.3		0.1
Other non-current liabilities		13.0		12.1
Total accrued benefit	$	14.4	$	12.2

All costs related to our pensions are included as a component of operating income in our Condensed Consolidated Statements of Operations. For the quarters ended June 30, 2023 and 2022, amounts unrelated to service costs were a charge of $1.0 million and $0.9 million, respectively. For the six months ended June 30, 2023 and 2022, amounts unrelated to service costs were a charge of $2.0 million and $1.9 million, respectively.

Contributions

We generally fund our U.S. non-qualified defined benefit retirement plans when benefit payments are incurred. We contributed approximately $0.4 million in the first six months of 2023 to cover unfunded benefits. We expect to contribute a total of $1.5 million in 2023 to cover unfunded benefits.

Contributions to our European defined benefit retirement plans during the six months ended June 30, 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 $0.5 million of net amortization gain deferral for both the six months ended June 30, 2023 and 2022. Net periodic benefit costs of our postretirement health care and life insurance benefit plans for the six months ended June 30, 2023 and 2022 were immaterial.

(In millions)	June 30, 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 six months ended June 30, 2023 and 2022. We periodically fund our postretirement plans to pay covered expenses as they are incurred. We expect to contribute less than $0.2 million in 2023 to cover unfunded benefits.

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Debt

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Debt

Note 5 –– Debt

(In millions)	June 30, 2023			December 31, 2022
Current portion of finance lease	$	0.1		$	0.2
Current portion of debt		0.1			0.2
Senior unsecured credit facility		80.0			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		(0.8	)		(0.9	)
Senior notes --- deferred financing costs		(1.9	)		(2.2	)
Non-current portion of finance lease and other debt		1.7			1.4
Long-term debt		779.0			723.3
Total debt	$	779.1		$	723.5

On April 25, 2023, the Company entered into a new credit agreement (the “Credit Agreement”) to refinance its senior unsecured revolving credit facility (the “Facility”). Under the terms of the Credit Agreement the borrowing capacity will remain at $750 million. The Facility matures in April 2028. In connection with the refinancing, the Company incurred approximately $2.5 million in financing costs which were deferred and will be amortized over the life of the Facility.

Borrowings under the Facility will bear interest, at the Company’s option, for Secured Overnight Financing Rate ("SOFR") borrowings at (i) an Adjusted Term SOFR rate (subject to a 0.00% floor), where such “Adjusted Term SOFR” rate is equal to the Term SOFR rate for the applicable interest period plus 0.10%, plus the Applicable Margin or (ii) for base rate borrowings, the greatest of (a) the prime rate, (b) the federal funds rate plus 0.50% and (c) the Adjusted Term SOFR rate (subject to a 0.00% floor) for a one-month interest period plus 1.00%, in each case plus the Applicable Margin. The “Applicable Margin” initially is 1.125% for SOFR rate borrowings and 0.125% for base rate borrowings, and after September 30, 2023, can fluctuate, determined by reference to the more favorable to the Company of its (i) public debt rating and (ii) consolidated leverage ratio, as specified in the Credit Agreement.

Up to $50 million of the Facility may be used for letters of credit. The Credit Agreement enables the Company, from time to time, to add term loans or to increase the revolving credit commitment in an aggregate amount not to exceed $500 million.

The Credit Agreement contains customary covenants that place restrictions on, among other things, the incurrence of debt by any subsidiaries of the Company, granting of liens and sale of all or substantially all of the assets of the Company and its subsidiaries taken as a whole. The Credit Agreement also contains financial covenants that require the Company to maintain a minimum interest coverage ratio and a maximum consolidated net leverage ratio. As of June 30, 2023, the Company was in compliance with all debt covenants.

As of June 30, 2023, total borrowings under the Facility were $80 million, which approximated fair value. Outstanding letters of credit reduce the amount available for borrowing under the Facility. As of June 30, 2023, there were no issued letters of credit under the Facility, resulting in undrawn availability under the Facility of $670 million. The weighted average interest rate for the Facility was 6.0% for the six months ended June 30, 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 six months ended June 30, 2023 was 4.0% 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 $377.8 million at June 30, 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 six months ended June 30, 2023 was 4.9%. Based on quoted prices, the fair value of the senior unsecured notes due in 2025 was $293.3 million at June 30, 2023.

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Derivative Financial Instruments

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Note 6 — Derivative Financial Instruments

Interest Rate Swap and Interest Lock Agreements

At June 30, 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 rates 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.

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 December 2025. The aggregate notional amount of these contracts was $433.9 million and $503.3 million at June 30, 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 $4.3 million and $8.3 million were recorded in other comprehensive income (loss) for the quarter and six months ended June 30, 2023, respectively, and losses of $21.6 million and $28.4 million were recorded for the quarter and six months ended June 30, 2022, respectively. We

recognized losses of $2.6 million and $6.3 million in gross margin during the quarter and six months ended June 30, 2023, respectively, and losses of $3.6 million and $4.3 million for the quarter and six months ended June 30, 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 quarter and six months ended June 30, 2023, we recognized net foreign exchange losses of $0.1 million and gains of $0.3 million, respectively, in the Condensed Consolidated Statements of Operations. During the quarter and six months ended June 30, 2023, we recognized net foreign exchange losses of $0.8 million and $1.0 million, respectively. The net foreign exchange impact recognized from these hedges offset the translation exposure of these transactions.

The change in fair value of our foreign currency forward exchange contracts under hedge designations recorded net of tax within accumulated other comprehensive income (loss) for the quarters and six months ended June 30, 2023 and June 30, 2022 was as follows:

	Quarter Ended June 30,						Six Months Ended June 30,
(In millions)	2023			2022			2023			2022
Unrealized losses at beginning of period, net of tax	$	(4.8	)	$	(8.0	)	$	(10.5	)	$	(3.5	)
Losses reclassified to net sales		2.0			2.8			4.7			3.1
Increase (decrease) in fair value		3.2			(16.5	)		6.2			(21.3	)
Unrealized gains (losses) at end of period, net of tax	$	0.4		$	(21.7	)	$	0.4		$	(21.7	)

Unrealized gains of $3.3 million recorded in accumulated other comprehensive loss, less taxes of $0.9 million, as of June 30, 2023, are expected to be reclassified into earnings over the next twelve months as the hedged sales are recorded.

Commodity Swap Agreements

On occasion we enter into commodity swap agreements to hedge against price fluctuations of raw materials, including propylene (the principal component of acrylonitrile). As of June 30, 2023, we had commodity swap agreements with a notional value of $18.4 million. The swaps mature monthly through June 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 values of outstanding derivative financial instruments as of June 30, 2023 and December 31, 2022 were as follows:

	Prepaid and Other Current Assets				Other Assets				Current Liabilities				Non-Current Liabilities
(In millions)	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Derivative Products
Foreign currency forward exchange contracts	$	3.7	$	1.9	$	4.8	$	3.4	$	7.0	$	14.1	$	0.9	$	5.3
Undesignated hedges		-		-		-		-		0.8		0.7		-		-
Commodity swaps		0.1		0.5		-		-		5.9		7.2		0.8		1.4
Cross currency and interest rate swap		5.6		6.2		8.0		10.1		-		-		-		-
Total Derivative Products	$	9.4	$	8.6	$	12.8	$	13.5	$	13.7	$	22.0	$	1.7	$	6.7

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Fair Value Measurements

6 Months Ended

Jun. 30, 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). For further information on the fair value of our derivative financial instruments see Note 6, Derivative Financial Instruments. 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.

•Foreign exchange derivative assets and liabilities — valued using quoted forward foreign exchange prices at the reporting date.

•Commodity swap agreements — valued using quoted forward commodity prices at the reporting date.

Counterparties to the above contracts are highly rated financial institutions, none of which experienced any significant downgrades in the quarter ended June 30, 2023 that would reduce the receivable amount owed, if any, to the Company.

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Revenue

6 Months Ended

Jun. 30, 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 quarters and six months ended June 30, 2023 and 2022:

	Quarter Ended June 30,				Six Months Ended June 30,
(In millions)	2023		2022		2023		2022
Consolidated Net Sales	$	454.3	$	393.0	$	912.0	$	783.6
Commercial Aerospace		264.3		227.6		548.8		446.5
Space & Defense		137.5		111.9		263.7		230.1
Industrial		52.5		53.5		99.5		107.0

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 six months ended June 30, 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
Net revenue billed	$	0.4		$	(1.8	)		(1.4	)
Balance at June 30, 2023	$	7.0		$	20.2		$	27.2

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

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Segment Information

6 Months Ended

Jun. 30, 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 quarters and six months ended June 30, 2023 and 2022 were as follows:

	(Unaudited)
	Composite		Engineered		Corporate &
(In millions)	Materials		Products		Other (a)			Total
Quarter Ended June 30, 2023
Net sales to external customers	$	378.5	$	75.8	$	—		$	454.3
Intersegment sales		18.5		0.5		(19.0	)		—
Total sales	$	397.0	$	76.3	$	(19.0	)	$	454.3
Other operating expense		0.3		0.2		—			0.5
Operating income (loss)		64.2		6.8		(9.7	)		61.3
Depreciation and amortization		27.5		3.5		—			31.0
Stock-based compensation		1.1		0.3		1.4			2.8
Accrual basis additions to capital expenditures		12.9		40.8		—			53.7
Quarter Ended June 30, 2022
Net sales to external customers	$	318.1	$	74.9	$	—		$	393.0
Intersegment sales		18.5		1.0		(19.5	)		—
Total sales	$	336.6	$	75.9	$	(19.5	)	$	393.0
Other operating expense (income)		0.3		—		(19.4	)		(19.1	)
Operating income		47.2		9.1		7.5			63.8
Depreciation and amortization		28.1		3.5		0.1			31.7
Stock-based compensation		0.9		0.3		1.2			2.4
Accrual basis additions to capital expenditures		14.5		2.7		—			17.2
Six Months Ended June 30, 2023
Net sales to external customers	$	756.7	$	155.3	$	—		$	912.0
Intersegment sales		37.8		1.5		(39.3	)		—
Total sales	$	794.5	$	156.8	$	(39.3	)	$	912.0
Other operating expense		0.5		0.2		—			0.7
Operating income (loss)		137.4		18.8		(32.1	)		124.1
Depreciation and amortization		54.7		7.0		—			61.7
Stock-based compensation		4.2		1.1		10.4			15.7
Accrual basis additions to capital expenditures		26.0		44.5		—			70.5
Six Months Ended June 30, 2022
Net sales to external customers	$	631.9	$	151.7	$	—		$	783.6
Intersegment sales		35.0		1.3		(36.3	)		—
Total sales	$	666.9	$	153.0	$	(36.3	)	$	783.6
Other operating expense (income)		1.2		0.1		(19.4	)		(18.1	)
Operating income (loss)		89.8		19.7		(15.6	)		93.9
Depreciation and amortization		56.7		7.1		0.1			63.9
Stock-based compensation		3.5		1.0		8.3			12.8
Accrual basis additions to capital expenditures		24.6		3.7		—			28.3

(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	)		(1.3	)		(1.8	)
Currency translation adjustments		1.2			(1.2	)		—
Balance at June 30, 2023	$	87.6		$	166.6		$	254.2

At June 30, 2023, the balance of goodwill and intangible assets was $188.3 million and $65.9 million, respectively.

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Accumulated Other Comprehensive Loss

6 Months Ended

Jun. 30, 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 June 30, 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		(1.8	)		7.8			18.1			24.1
Amounts reclassified from accumulated other comprehensive loss		0.8			4.3		—				5.1
Other comprehensive (loss) income		(1.0	)		12.1			18.1			29.2
Balance at June 30, 2023	$	(50.1	)	$	(3.3	)	$	(91.8	)	$	(145.2	)

(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 quarters and six months ended June 30, 2023 and 2022 were as follows:

	Quarter Ended June 30, 2023						Quarter Ended June 30, 2022						Six Months Ended June 30, 2023						Six Months Ended June 30, 2022
(In millions)	Pre-tax (gain) loss			Net of tax (gain) loss			Pre-tax (gain) loss			Net of tax (gain) loss			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		$	0.6		$	0.5		$	1.0		$	0.8		$	1.1		$	0.8
Derivative Products
Foreign currency forward exchange contracts		2.6			1.9			3.6			2.7			6.3			4.6			4.3			3.1
Commodity swaps		1.8			1.4			(0.3	)		(0.2	)		2.7			2.1			(1.1	)		(0.8	)
Interest rate swaps		(1.1	)		(0.8	)		2.5			1.9			(3.2	)		(2.4	)		(5.0	)		(3.9	)
Total Derivative Products	$	3.3		$	2.5		$	5.8		$	4.4		$	5.8		$	4.3		$	(1.8	)	$	(1.6	)

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Commitments and Contingencies

6 Months Ended

Jun. 30, 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. 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.

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. A public comment period which allowed interested parties to provide additional evidence and make arguments in support or opposition to the Consent Decree has concluded. Hexcel is unable to estimate when or if the District Court will approve the Consent Decree.

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 June 30, 2023 and December 31, 2022, our aggregate environmental related accruals were $0.6 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 six months ended June 30, 2023, and accrued warranty cost, included in “accrued liabilities” in the Condensed Consolidated Balance Sheets at June 30, 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
Warranty expense		2.2
Deductions and other		(0.9	)
Balance as of June 30, 2023	$	4.8

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Restructuring

6 Months Ended

Jun. 30, 2023

Restructuring and Related Activities [Abstract]

Restructuring

Note 12 — Restructuring

We recognized restructuring charges of $0.5 million and $0.7 million for the quarter and six months ended June 30, 2023, respectively, primarily related to severance. Anticipated future cash payments as of June 30, 2023 were $1.5 million.

			Activity for the Quarter Ended June 30, 2023
	March 31,		Restructuring				Cash						June 30,
(In Millions)	2023		Charge		FX Impact		Paid			Non-Cash			2023
Employee termination	$	3.3	$	0.2	$	—	$	(2.0	)	$	—		$	1.5
Impairment and other		—		0.3		—		—			(0.3	)		—
Total	$	3.3	$	0.5	$	—	$	(2.0	)	$	(0.3	)	$	1.5
			Activity for the Six Months Ended June 30, 2023
	December 31,		Restructuring				Cash						June 30,
(In Millions)	2022		Charge		FX Impact		Paid			Non-Cash			2023
Employee termination	$	5.4	$	0.4	$	—	$	(4.3	)	$	—		$	1.5
Impairment and other		—		0.3		—		—			(0.3	)		—
Total	$	5.4	$	0.7	$	—	$	(4.3	)	$	(0.3	)	$	1.5

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Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 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. The plant assets to be sold were recorded in “Assets held for sale” in the Consolidated Balance Sheets at both June 30, 2023 and December 31, 2022.

On July 10, 2023, we finalized the sale of the Windsor facility for approximately $11 million. The sale will be recorded in the third quarter of 2023 and will be reflected in the Company's financial statements for the quarter ended September 30, 2023.

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Net Income (Loss) Per Common Share (Tables)

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Summary of Earnings Per Share Basic and Diluted

	Quarter Ended June 30,				Six Months Ended June 30,
(In millions, except per share data)	2023		2022		2023		2022
Basic net income per common share:
Net income	$	42.5	$	44.7	$	85.2	$	62.5
Weighted average common shares outstanding		84.7		84.4		84.6		84.3
Basic net income per common share	$	0.50	$	0.53	$	1.01	$	0.74
Diluted net income per common share:
Net income	$	42.5	$	44.7		85.2		62.5
Weighted average common shares outstanding — Basic		84.7		84.4		84.6		84.3
Plus incremental shares from assumed conversions:
Restricted stock units		0.5		0.4		0.5		0.4
Stock options		0.4		0.2		0.4		0.2
Weighted average common shares outstanding — Dilutive		85.6		85.0		85.5		84.9
Diluted net income per common share	$	0.50	$	0.53	$	1.00	$	0.74

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Inventories (Tables)

6 Months Ended

Jun. 30, 2023

Inventory Disclosure [Abstract]

Schedule of Inventories

(In millions)	June 30, 2023		December 31, 2022
Raw materials	$	166.4	$	153.3
Work in progress	$	53.1		42.8
Finished goods	$	141.4		123.2
Total Inventory	$	360.9	$	319.3

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Retirement and Other Postretirement Benefit Plans (Tables)

6 Months Ended

Jun. 30, 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 quarters and six months ended June 30, 2023 and 2022 were as follows:

	Quarter Ended June 30,				Six Months Ended June 30,
(In millions)	2023		2022		2023		2022
U.S. Nonqualified Defined Benefit Retirement Plans
Service cost	$	0.3	$	0.3	$	0.6	$	0.6
Interest cost		0.1		0.1		0.2		0.2
Net amortization		0.2		0.2		0.4		0.4
Net periodic benefit cost	$	0.6	$	0.6	$	1.2	$	1.2

Schedule of Amounts Recognized on Balance Sheet

(In millions)	June 30, 2023		December 31, 2022
Amounts recognized on the balance sheet for U.S. nonqualified defined benefit retirement plans:
Accrued liabilities	$	1.3	$	1.4
Other non-current liabilities		19.2		18.5
Total accrued benefit	$	20.5	$	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 June 30,						Six Months Ended June 30,
(In millions)	2023			2022			2023			2022
European Defined Benefit Retirement Plans
Service cost	$	0.1		$	0.2		$	0.3		$	0.4
Interest cost		1.3			0.5			2.5			1.1
Expected return on plan assets		(1.2	)		(0.5	)		(2.4	)		(1.1	)
Net amortization and deferral		0.6			0.6			1.2			1.2
Net periodic benefit cost	$	0.8		$	0.8		$	1.6		$	1.6

Schedule of Amounts Recognized on Balance Sheet

(In millions)	June 30, 2023		December 31, 2022
Amounts recognized on the balance sheet for European defined benefit retirement plans:
Other assets	$	6.3	$	5.6
Accrued liabilities		1.3		0.1
Other non-current liabilities		13.0		12.1
Total accrued benefit	$	14.4	$	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 six months ended June 30, 2023 and 2022 were immaterial.

(In millions)	June 30, 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)

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Schedule of Debt and Capital Lease Obligations

(In millions)	June 30, 2023			December 31, 2022
Current portion of finance lease	$	0.1		$	0.2
Current portion of debt		0.1			0.2
Senior unsecured credit facility		80.0			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		(0.8	)		(0.9	)
Senior notes --- deferred financing costs		(1.9	)		(2.2	)
Non-current portion of finance lease and other debt		1.7			1.4
Long-term debt		779.0			723.3
Total debt	$	779.1		$	723.5

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Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 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 income (loss) for the quarters and six months ended June 30, 2023 and June 30, 2022 was as follows:

	Quarter Ended June 30,						Six Months Ended June 30,
(In millions)	2023			2022			2023			2022
Unrealized losses at beginning of period, net of tax	$	(4.8	)	$	(8.0	)	$	(10.5	)	$	(3.5	)
Losses reclassified to net sales		2.0			2.8			4.7			3.1
Increase (decrease) in fair value		3.2			(16.5	)		6.2			(21.3	)
Unrealized gains (losses) at end of period, net of tax	$	0.4		$	(21.7	)	$	0.4		$	(21.7	)

Schedule of Fair Values of Outstanding Financial Instruments

The fair values of outstanding derivative financial instruments as of June 30, 2023 and December 31, 2022 were as follows:

	Prepaid and Other Current Assets				Other Assets				Current Liabilities				Non-Current Liabilities
(In millions)	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Derivative Products
Foreign currency forward exchange contracts	$	3.7	$	1.9	$	4.8	$	3.4	$	7.0	$	14.1	$	0.9	$	5.3
Undesignated hedges		-		-		-		-		0.8		0.7		-		-
Commodity swaps		0.1		0.5		-		-		5.9		7.2		0.8		1.4
Cross currency and interest rate swap		5.6		6.2		8.0		10.1		-		-		-		-
Total Derivative Products	$	9.4	$	8.6	$	12.8	$	13.5	$	13.7	$	22.0	$	1.7	$	6.7

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Revenue (Tables)

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Revenue By Market

The following table details our revenue by market for the quarters and six months ended June 30, 2023 and 2022:

	Quarter Ended June 30,				Six Months Ended June 30,
(In millions)	2023		2022		2023		2022
Consolidated Net Sales	$	454.3	$	393.0	$	912.0	$	783.6
Commercial Aerospace		264.3		227.6		548.8		446.5
Space & Defense		137.5		111.9		263.7		230.1
Industrial		52.5		53.5		99.5		107.0

Schedule of Activity Related to Contract Assets

The activity related to contract assets for the six months ended June 30, 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
Net revenue billed	$	0.4		$	(1.8	)		(1.4	)
Balance at June 30, 2023	$	7.0		$	20.2		$	27.2

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Schedule of Operating Segment Reporting Information

Financial information for our operating segments for the quarters and six months ended June 30, 2023 and 2022 were as follows:

	(Unaudited)
	Composite		Engineered		Corporate &
(In millions)	Materials		Products		Other (a)			Total
Quarter Ended June 30, 2023
Net sales to external customers	$	378.5	$	75.8	$	—		$	454.3
Intersegment sales		18.5		0.5		(19.0	)		—
Total sales	$	397.0	$	76.3	$	(19.0	)	$	454.3
Other operating expense		0.3		0.2		—			0.5
Operating income (loss)		64.2		6.8		(9.7	)		61.3
Depreciation and amortization		27.5		3.5		—			31.0
Stock-based compensation		1.1		0.3		1.4			2.8
Accrual basis additions to capital expenditures		12.9		40.8		—			53.7
Quarter Ended June 30, 2022
Net sales to external customers	$	318.1	$	74.9	$	—		$	393.0
Intersegment sales		18.5		1.0		(19.5	)		—
Total sales	$	336.6	$	75.9	$	(19.5	)	$	393.0
Other operating expense (income)		0.3		—		(19.4	)		(19.1	)
Operating income		47.2		9.1		7.5			63.8
Depreciation and amortization		28.1		3.5		0.1			31.7
Stock-based compensation		0.9		0.3		1.2			2.4
Accrual basis additions to capital expenditures		14.5		2.7		—			17.2
Six Months Ended June 30, 2023
Net sales to external customers	$	756.7	$	155.3	$	—		$	912.0
Intersegment sales		37.8		1.5		(39.3	)		—
Total sales	$	794.5	$	156.8	$	(39.3	)	$	912.0
Other operating expense		0.5		0.2		—			0.7
Operating income (loss)		137.4		18.8		(32.1	)		124.1
Depreciation and amortization		54.7		7.0		—			61.7
Stock-based compensation		4.2		1.1		10.4			15.7
Accrual basis additions to capital expenditures		26.0		44.5		—			70.5
Six Months Ended June 30, 2022
Net sales to external customers	$	631.9	$	151.7	$	—		$	783.6
Intersegment sales		35.0		1.3		(36.3	)		—
Total sales	$	666.9	$	153.0	$	(36.3	)	$	783.6
Other operating expense (income)		1.2		0.1		(19.4	)		(18.1	)
Operating income (loss)		89.8		19.7		(15.6	)		93.9
Depreciation and amortization		56.7		7.1		0.1			63.9
Stock-based compensation		3.5		1.0		8.3			12.8
Accrual basis additions to capital expenditures		24.6		3.7		—			28.3

(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	)		(1.3	)		(1.8	)
Currency translation adjustments		1.2			(1.2	)		—
Balance at June 30, 2023	$	87.6		$	166.6		$	254.2

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Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Schedule of Components of Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss as of June 30, 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		(1.8	)		7.8			18.1			24.1
Amounts reclassified from accumulated other comprehensive loss		0.8			4.3		—				5.1
Other comprehensive (loss) income		(1.0	)		12.1			18.1			29.2
Balance at June 30, 2023	$	(50.1	)	$	(3.3	)	$	(91.8	)	$	(145.2	)

(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 quarters and six months ended June 30, 2023 and 2022 were as follows:

	Quarter Ended June 30, 2023						Quarter Ended June 30, 2022						Six Months Ended June 30, 2023						Six Months Ended June 30, 2022
(In millions)	Pre-tax (gain) loss			Net of tax (gain) loss			Pre-tax (gain) loss			Net of tax (gain) loss			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		$	0.6		$	0.5		$	1.0		$	0.8		$	1.1		$	0.8
Derivative Products
Foreign currency forward exchange contracts		2.6			1.9			3.6			2.7			6.3			4.6			4.3			3.1
Commodity swaps		1.8			1.4			(0.3	)		(0.2	)		2.7			2.1			(1.1	)		(0.8	)
Interest rate swaps		(1.1	)		(0.8	)		2.5			1.9			(3.2	)		(2.4	)		(5.0	)		(3.9	)
Total Derivative Products	$	3.3		$	2.5		$	5.8		$	4.4		$	5.8		$	4.3		$	(1.8	)	$	(1.6	)

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2023

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 six months ended June 30, 2023, and accrued warranty cost, included in “accrued liabilities” in the Condensed Consolidated Balance Sheets at June 30, 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
Warranty expense		2.2
Deductions and other		(0.9	)
Balance as of June 30, 2023	$	4.8

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Restructuring (Tables)

6 Months Ended

Jun. 30, 2023

Restructuring and Related Activities [Abstract]

Schedule of Restructuring

			Activity for the Quarter Ended June 30, 2023
	March 31,		Restructuring				Cash						June 30,
(In Millions)	2023		Charge		FX Impact		Paid			Non-Cash			2023
Employee termination	$	3.3	$	0.2	$	—	$	(2.0	)	$	—		$	1.5
Impairment and other		—		0.3		—		—			(0.3	)		—
Total	$	3.3	$	0.5	$	—	$	(2.0	)	$	(0.3	)	$	1.5
			Activity for the Six Months Ended June 30, 2023
	December 31,		Restructuring				Cash						June 30,
(In Millions)	2022		Charge		FX Impact		Paid			Non-Cash			2023
Employee termination	$	5.4	$	0.4	$	—	$	(4.3	)	$	—		$	1.5
Impairment and other		—		0.3		—		—			(0.3	)		—
Total	$	5.4	$	0.7	$	—	$	(4.3	)	$	(0.3	)	$	1.5

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Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions	Jul. 10, 2023	Jun. 30, 2023	Dec. 31, 2022
Significant Accounting Policies [Line Items]
Assets held for sale		$ 9.5	$ 9.5
Carrying value asset held for sale	$ 11.0
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, shares in Millions, $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Basic net income (loss) per common share:
Net income	$ 42.5	$ 42.7	$ 44.7	$ 17.8	$ 85.2	$ 62.5
Weighted average common shares outstanding - Basic (in shares)	84.7		84.4		84.6	84.3
Basic net income per common share	$ 0.50		$ 0.53		$ 1.01	$ 0.74
Diluted net income per common share:
Net income	$ 42.5		$ 44.7		$ 85.2	$ 62.5
Weighted average common shares outstanding - Basic (in shares)	84.7		84.4		84.6	84.3
Plus incremental shares from assumed conversions:
Weighted average common shares outstanding - Dilutive (in shares)	85.6		85.0		85.5	84.9
Diluted net income per common share	$ 0.50		$ 0.53		$ 1.00	$ 0.74
Restricted Stock Units
Plus incremental shares from assumed conversions:
Incremental shares from assumed conversions	0.5		0.4		0.5	0.4
Stock Options
Plus incremental shares from assumed conversions:
Incremental shares from assumed conversions	0.4		0.2		0.4	0.2

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Net Income (Loss) Per Common Share - Additional Information (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share [Abstract]
Anti-dilutive securities excluded from computation of earnings per share amount (in shares)	200	600	300	700

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Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 166.4	$ 153.3
Work in progress	53.1	42.8
Finished goods	141.4	123.2
Total Inventory	$ 360.9	$ 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		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
U.S.
Net periodic benefit costs of defined benefit retirement plans
Service cost	$ 0.3	$ 0.3	$ 0.6	$ 0.6
Interest cost	0.1	0.1	0.2	0.2
Net amortization and deferral	0.2	0.2	0.4	0.4
Net periodic benefit cost	$ 0.6	$ 0.6	$ 1.2	$ 1.2
Defined Benefit Plan, Tax Status [Extensible List]	Non qualified	Non qualified	Non qualified	Non qualified	Non qualified
European
Net periodic benefit costs of defined benefit retirement plans
Service cost	$ 0.1	$ 0.2	$ 0.3	$ 0.4
Interest cost	1.3	0.5	2.5	1.1
Expected return on plan assets	(1.2)	(0.5)	(2.4)	(1.1)
Net amortization and deferral	0.6	0.6	1.2	1.2
Net periodic benefit cost	$ 0.8	$ 0.8	$ 1.6	$ 1.6

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Retirement and Other Postretirement Benefit Plans - Schedule of Amounts Recognized on Balance Sheet (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Amounts recognized on the balance sheet:
Other non-current liabilities	$ 44.8		$ 44.8		$ 42.7
Defined Benefit Retirement Plans | U.S.
Amounts recognized on the balance sheet:
Accrued liabilities	1.3		1.3		1.4
Other non-current liabilities	19.2		19.2		18.5
Total accrued benefit	$ 20.5		$ 20.5		$ 19.9
Defined Benefit Plan, Tax Status [Extensible List]	Non qualified	Non qualified	Non qualified	Non qualified	Non qualified
Defined Benefit Retirement Plans | European
Amounts recognized on the balance sheet:
Other assets	$ 6.3		$ 6.3		$ 5.6
Accrued liabilities	1.3		1.3		0.1
Other non-current liabilities	13.0		13.0		12.1
Total accrued benefit	14.4		14.4		12.2
Postretirement Health Care and Life Insurance Benefit Plans
Amounts recognized on the balance sheet:
Accrued liabilities	0.2		0.2		0.2
Other non-current liabilities	1.0		1.0		1.0
Total accrued benefit	$ 1.2		$ 1.2		$ 1.2

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Retirement and Other Postretirement Benefit Plans - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 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	$ 1.0	$ 0.9	2.0	$ 1.9
Defined Benefit Retirement Plans | U.S.
Amounts recognized on the balance sheet:
Employer contribution to defined benefit retirement plans			$ 0.4
Defined Benefit Plan, Tax Status [Extensible List]	Non qualified	Non qualified	Non qualified	Non qualified	Non qualified
Net amortization gain deferral	$ (0.2)	$ (0.2)	$ (0.4)	$ (0.4)
Defined Benefit Retirement Plans | European
Amounts recognized on the balance sheet:
Expected employer contribution in full current year	0.7		0.7
Net amortization gain deferral	(0.6)	$ (0.6)	(1.2)	(1.2)
Postretirement Health Care and Life Insurance Benefit Plans
Amounts recognized on the balance sheet:
Net amortization gain deferral			0.5	$ 0.5
Postretirement Health Care and Life Insurance Benefit Plans | Maximum
Amounts recognized on the balance sheet:
Expected employer contribution in full current year	$ 0.2		$ 0.2

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Debt - Schedule of Debt and Capital Lease Obligations (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Current portion of finance lease	$ 0.1	$ 0.2
Current portion of debt	0.1	0.2
Long-term debt	779.0	723.3
Non-current portion of finance lease and other debt	1.7	1.4
Total debt	779.1	723.5
Senior unsecured credit facility
Debt Instrument [Line Items]
Long-term debt	80.0	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	(0.8)	(0.9)
Senior notes --- deferred financing costs	(1.9)	(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)	6 Months Ended
	Jun. 30, 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 ($) $ in Millions		6 Months Ended	12 Months Ended
	Apr. 25, 2023	Jun. 30, 2023	Dec. 31, 2017	Dec. 31, 2015	Dec. 31, 2022
Debt Instrument [Line Items]
Debt Instrument, Unused Borrowing Capacity, Description		Borrowings under the Facility will bear interest, at the Company’s option, for Secured Overnight Financing Rate ("SOFR") borrowings at (i) an Adjusted Term SOFR rate (subject to a 0.00% floor), where such “Adjusted Term SOFR” rate is equal to the Term SOFR rate for the applicable interest period plus 0.10%, plus the Applicable Margin or (ii) for base rate borrowings, the greatest of (a) the prime rate, (b) the federal funds rate plus 0.50% and (c) the Adjusted Term SOFR rate (subject to a 0.00% floor) for a one-month interest period plus 1.00%, in each case plus the Applicable Margin. The “Applicable Margin” initially is 1.125% for SOFR rate borrowings and 0.125% for base rate borrowings, and after September 30, 2023, can fluctuate, determined by reference to the more favorable to the Company of its (i) public debt rating and (ii) consolidated leverage ratio, as specified in the Credit Agreement. Up to $50 million of the Facility may be used for letters of credit. The Credit Agreement enables the Company, from time to time, to add term loans or to increase the revolving credit commitment in an aggregate amount not to exceed $500 million
Applicable Interest Period Plus		0.10%
federal fund rate plus		0.50%
Borrowings		$ 779.0			$ 723.3
SOFR rate borrowings		0.125%
SOFR
Debt Instrument [Line Items]
one-month interest period plus		1.00%
Maximum
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 2.5	$ 500.0
Senior unsecured credit facility- revolving loan due 2021
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 750.0
Senior unsecured credit facility- revolving loan due 2024
Debt Instrument [Line Items]
Letters of credit issued under credit facility		0.0
Senior unsecured credit facility- revolving loan due 2024 | Facility Agreement Member
Debt Instrument [Line Items]
Borrowings		80.0
Undrawn availability under credit facility		$ 670.0
Weighted average interest rate		6.00%
Senior Unsecured Revolving Credit Facility Matures In April Two Thousand Twenty Eight [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 50.0
Debt instrument expiration period	2028-04
3.95% senior unsecured notes due 2027
Debt Instrument [Line Items]
Face value			$ 400.0
Debt instrument, interest rate			3.95%
Debt instrument, maturity year			2027
Increase in senior notes interest rate			0.25%
Effective interest rate		4.00%
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		$ 377.8
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				$ 300.0
Debt instrument, interest rate				4.70%
Debt instrument, maturity year				2025
Increase in senior notes interest rate				0.25%
Fair value of senior unsecured notes		$ 293.3
4.7% senior unsecured notes due 2025 | Maximum
Debt Instrument [Line Items]
Debt instrument, interest rate				6.70%
4.9% senior unsecured notes due 2025
Debt Instrument [Line Items]
Effective interest rate		4.90%

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Derivative Financial Instruments - Additional Information (Details) CHE in Millions, $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Nov. 30, 2020 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) Item	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)	Nov. 30, 2020 CHE	Dec. 31, 2017
Derivative [Line Items]
Foreign currency unrealized gains expected to be reclassified into earnings over next twelve months		$ 3.3		$ 3.3
Foreign currency unrealized gains expected to be reclassified into earnings over next twelve months, taxes		(0.9)		(0.9)
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%
Cross currency and interest rate swap
Derivative [Line Items]
Carrying value / fair value of derivative liabilities		0.0		$ 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						CHE 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, 2024	$ 59.2						CHE 50
Derivative swaps, principal amortize at Nov. 15, 2025	$ 82.9						CHE 70
Foreign Currency Forward Exchange Contracts
Derivative [Line Items]
Foreign exchange net gains (losses) on derivative contracts not designated as hedges		0.8		$ 1.0
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		4.3	$ 21.6	$ 8.3	$ 28.4
Foreign Currency Forward Exchange Contracts | Designated as Hedging Instrument
Derivative [Line Items]
Notional amount		433.9		433.9		$ 503.3
Foreign Currency Forward Exchange Contracts | Designated as Hedging Instrument | Cash Flow Hedging
Derivative [Line Items]
Net gain (loss) recognized in gross margin		2.6	$ 3.6	6.3	$ 4.3
Foreign Currency Forward Exchange Contracts | Not Designated as Hedging Instrument
Derivative [Line Items]
Foreign exchange net gains (losses) on derivative contracts not designated as hedges		0.1		0.3
Commodity Swap Agreements
Derivative [Line Items]
Notional amount		$ 18.4		$ 18.4

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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		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Derivative [Line Items]
Beginning Balance		$ 1,622.2	$ 1,487.1	$ 1,554.2	$ 1,485.5
Ending Balance		1,666.1	1,480.3	1,666.1	1,480.3
Designated as Hedging Instrument
Derivative [Line Items]
Beginning Balance	[1]			(15.4)
Ending Balance	[1]	(3.3)		(3.3)
Designated as Hedging Instrument | Foreign Currency Forward Exchange Contracts
Derivative [Line Items]
Beginning Balance		4.8	(8.0)	10.5	(3.5)
Losses (gains) reclassified to net sales		(2.0)	2.8	(4.7)	3.1
Decrease in fair value		3.2	(16.5)	(6.2)	(21.3)
Ending Balance		$ 0.4	$ (21.7)	$ 0.4	$ (21.7)

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

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Derivative Financial Instruments - Schedule of Fair Values of Outstanding Financial Instruments Derivative Financial Instruments (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Derivatives, Fair Value [Line Items]
Prepaid and other Current Assets	$ 51.0	$ 38.9
Current Liabilities	276.1	329.8
Derivative Products
Derivatives, Fair Value [Line Items]
Prepaid and other Current Assets	9.4	8.6
Other Assets	12.8	13.5
Current Liabilities	13.7	22.0
Non-Current Liabilities	1.7	6.7
Foreign Currency Forward Exchange Contracts | Derivative Products
Derivatives, Fair Value [Line Items]
Prepaid and other Current Assets	3.7	1.9
Other Assets	4.8	3.4
Current Liabilities	7.0	14.1
Non-Current Liabilities	0.9	5.3
Commodity Swap Agreements | Derivative Products
Derivatives, Fair Value [Line Items]
Prepaid and other Current Assets	0.1	0.5
Other Assets	0.0	0.0
Current Liabilities	5.9	7.2
Non-Current Liabilities	0.8	1.4
Cross currency and interest rate swap | Derivative Products
Derivatives, Fair Value [Line Items]
Prepaid and other Current Assets	5.6	6.2
Other Assets	8.0	10.1
Current Liabilities	0.0	0.0
Non-Current Liabilities	0.0	0.0
Undesignated hedges | Derivative Products
Derivatives, Fair Value [Line Items]
Prepaid and other Current Assets	0.0	0.0
Other Assets	0.0	0.0
Current Liabilities	0.8	0.7
Non-Current Liabilities	$ 0.0	$ 0.0

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Income Taxes - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ (11.5)	$ (12.7)	$ (23.2)	$ (17.4)

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Fair Value Measurements - Additional Information (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($) Liability Item
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
Liabilities	$ 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

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Revenue - Additional Information (Details)	6 Months Ended
	Jun. 30, 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		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation Of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 454.3	$ 393.0	$ 912.0	$ 783.6
Commercial Aerospace
Disaggregation Of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	264.3	227.6	548.8	446.5
Space & Defense
Disaggregation Of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	137.5	111.9	263.7	230.1
Industrial
Disaggregation Of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 52.5	$ 53.5	$ 99.5	$ 107.0

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Revenue - Schedule of Activity Related to Contract Assets (Details) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2023	Mar. 31, 2023
Change in Contract with Customer Asset [Line Items]
Beginning Balance	$ 28.6	$ 32.0
Net revenue billed	(1.4)	(3.4)
Ending Balance	27.2	28.6
Composite Materials
Change in Contract with Customer Asset [Line Items]
Beginning Balance	6.6	9.1
Net revenue billed	0.4	(2.5)
Ending Balance	7.0	6.6
Engineered Products
Change in Contract with Customer Asset [Line Items]
Beginning Balance	22.0	22.9
Net revenue billed	(1.8)	(0.9)
Ending Balance	$ 20.2	$ 22.0

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Segment Information - Schedule of Operating Segment Reporting Information (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Segment Reporting Information [Line Items]
Total sales		$ 454.3	$ 393.0	$ 912.0	$ 783.6
Other operating expense (income)		0.5	(19.1)	0.7	(18.1)
Operating income (loss)		61.3	63.8	124.1	93.9
Depreciation and amortization		31.0	31.7	61.7	63.9
Stock-based compensation		2.8	2.4	15.7	12.8
Accrual basis additions to capital expenditures		53.7	17.2	70.5	28.3
Intersegment Elimination
Segment Reporting Information [Line Items]
Total sales	[1]	(19.0)	(19.5)	(39.3)	(36.3)
Corporate & Other and Intersegment Elimination
Segment Reporting Information [Line Items]
Total sales	[1]	(19.0)	(19.5)	(39.3)	(36.3)
Other operating expense (income)	[1]	0.0	(19.4)	0.0	(19.4)
Operating income (loss)	[1]	(9.7)	7.5	(32.1)	(15.6)
Depreciation and amortization	[1]	0.0	0.1	0.0	0.1
Stock-based compensation	[1]	1.4	1.2	10.4	8.3
Accrual basis additions to capital expenditures	[1]	0.0	0.0	0.0	0.0
Composite Materials
Segment Reporting Information [Line Items]
Total sales		378.5	318.1	756.7	631.9
Composite Materials | Intersegment Elimination
Segment Reporting Information [Line Items]
Total sales		18.5	18.5	37.8	35.0
Composite Materials | Operating Segments
Segment Reporting Information [Line Items]
Total sales		397.0	336.6	794.5	666.9
Other operating expense (income)		(0.3)	0.3	0.5	1.2
Operating income (loss)		64.2	47.2	137.4	89.8
Depreciation and amortization		27.5	28.1	54.7	56.7
Stock-based compensation		1.1	0.9	4.2	3.5
Accrual basis additions to capital expenditures		12.9	14.5	26.0	24.6
Engineered Products
Segment Reporting Information [Line Items]
Total sales		75.8	74.9	155.3	151.7
Engineered Products | Intersegment Elimination
Segment Reporting Information [Line Items]
Total sales		0.5	1.0	1.5	1.3
Engineered Products | Operating Segments
Segment Reporting Information [Line Items]
Total sales		76.3	75.9	156.8	153.0
Other operating expense (income)		(0.2)	0.0	0.2	0.1
Operating income (loss)		6.8	9.1	18.8	19.7
Depreciation and amortization		3.5	3.5	7.0	7.1
Stock-based compensation		0.3	0.3	1.1	1.0
Accrual basis additions to capital expenditures		$ 40.8	$ 2.7	$ 44.5	$ 3.7

[1] We do not allocate corporate expenses to the operating segments.

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Segment Information - Schedule of Goodwill and Intangible Assets by Segment (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($)
Changes in the carrying amount of gross goodwill and other purchased intangibles
Balance at Period Beginning	$ 256.0
Amortization expense	(1.8)
Currency translation adjustments	0.0
Balance at Period Ending	254.2
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	1.2
Balance at Period Ending	87.6
Engineered Products
Changes in the carrying amount of gross goodwill and other purchased intangibles
Balance at Period Beginning	169.1
Amortization expense	(1.3)
Currency translation adjustments	(1.2)
Balance at Period Ending	$ 166.6

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Segment Information - Additional Information (Details) $ in Millions	Jun. 30, 2023 USD ($)
Segment Reporting [Abstract]
Goodwill	$ 188.3
Intangible assets	$ 65.9

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Accumulated Other Comprehensive Loss - Schedule of Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions		3 Months Ended				6 Months Ended
		Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance		$ 1,622.2	$ 1,554.2	$ 1,487.1	$ 1,485.5	$ 1,554.2	$ 1,485.5
Other comprehensive (loss) income		6.9	22.3	(47.2)	(17.6)	29.2	(64.8)
Ending Balance		1,666.1	1,622.2	1,480.3	1,487.1	1,666.1	1,480.3
Unrecognized Net Defined Benefit and Postretirement Plan Costs
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance			(49.1)			(49.1)
Other comprehensive (loss) income before reclassifications						(1.8)
Amounts reclassified from accumulated other comprehensive loss						0.8
Other comprehensive (loss) income						(1.0)
Ending Balance		(50.1)				(50.1)
Change in Fair Value of Derivatives Products
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	[1]		(15.4)			(15.4)
Other comprehensive (loss) income before reclassifications	[1]					7.8
Amounts reclassified from accumulated other comprehensive loss	[1]					4.3
Other comprehensive (loss) income	[1]					12.1
Ending Balance	[1]	(3.3)				(3.3)
Foreign Currency Translation
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance			(109.9)			(109.9)
Other comprehensive (loss) income before reclassifications						18.1
Amounts reclassified from accumulated other comprehensive loss						0.0
Other comprehensive (loss) income						18.1
Ending Balance		(91.8)				(91.8)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance		(152.1)	(174.4)	(144.1)	(126.5)	(174.4)	(126.5)
Other comprehensive (loss) income before reclassifications						24.1
Amounts reclassified from accumulated other comprehensive loss						5.1
Other comprehensive (loss) income		6.9	22.3	(47.2)	(17.6)	29.2
Ending Balance		$ (145.2)	$ (152.1)	$ (191.3)	$ (144.1)	$ (145.2)	$ (191.3)

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

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Accumulated Other Comprehensive Loss - Schedule of unrecognized net defined benefit and postretirement plan costs (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Defined Benefit and Postretirement 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	$ 0.6	$ 1.0	$ 1.1
Reclassification adjustment from AOCI on derivatives, net gains (losses)	0.4	0.5	0.8	0.8
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	3.3	5.8	5.8	(1.8)
Reclassification adjustment from AOCI on derivatives, tax expense (benefit)	2.5	4.4	4.3	(1.6)
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	2.6	3.6	6.3	4.3
Reclassification adjustment from AOCI on derivatives, tax expense (benefit)	1.9	2.7	4.6	3.1
Change in Fair Value of Derivatives Products | Commodity Swaps
Accumulated Other Comprehensive Income Loss [Line Items]
Reclassification adjustment from AOCI on unrecognized net defined benefit and postretirement plan costs, tax	1.8	(0.3)	2.7	(1.1)
Reclassification adjustment from AOCI on derivatives, tax expense (benefit)	1.4	(0.2)	2.1	(0.8)
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	(1.1)	2.5	(3.2)	(5.0)
Reclassification adjustment from AOCI on derivatives, tax expense (benefit)	$ (0.8)	$ 1.9	$ (2.4)	$ (3.9)

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Commitments and Contingencies - Additional Information (Details) $ in Millions			1 Months Ended			3 Months Ended	6 Months Ended
	Dec. 16, 2022 USD ($) Prp	Oct. 18, 2021 USD ($) mi	Aug. 31, 2017 Entity	Oct. 31, 2016 mi	Mar. 31, 2016 USD ($) mi	Mar. 31, 2023 Entity	Jun. 30, 2023 USD ($) 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	Employee-related Liabilities, Current
Accrual for environmental loss contingencies							$ 0.6	$ 0.8
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
Unilateral Administrative Order [Member]
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) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2023	Mar. 31, 2023
Changes in accrued product warranty cost
Balance at the beginning of the period	$ 3.5	$ 3.1
Warranty expense	2.2	1.6
Deductions and other	(0.9)	(1.2)
Balance at the end of the period	$ 4.8	$ 3.5

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Restructuring - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Restructuring Cost and Reserve [Line Items]
Restructuring charge	$ 0.5	$ 0.7
Anticipated future cash payments	$ 1.5	$ 1.5	$ 3.3	$ 5.4

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Restructuring - Schedule of Restructuring (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023
Restructuring Cost and Reserve [Line Items]
Beginning Balance	$ 3.3	$ 5.4
Restructuring Charge	0.5	0.7
FX Impact	0.0	0.0
Cash Paid	(2.0)	(4.3)
Non-Cash	(0.3)	(0.3)
Ending Balance	1.5	1.5
Employee termination
Restructuring Cost and Reserve [Line Items]
Beginning Balance	3.3	5.4
Restructuring Charge	0.2	0.4
FX Impact	0.0	0.0
Cash Paid	(2.0)	(4.3)
Non-Cash	0.0	0.0
Ending Balance	1.5	1.5
Impairment and other
Restructuring Cost and Reserve [Line Items]
Beginning Balance	0.0	0.0
Restructuring Charge	0.3	0.3
FX Impact	0.0	0.0
Cash Paid	0.0	0.0
Non-Cash	(0.3)	(0.3)
Ending Balance	$ 0.0	$ 0.0