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, 2024

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 15, 2024
COMMON STOCK	81,748,036

HEXCEL CORPORATION AND SUBSIDIARIES

INDEX

			Page
PART I.	FINANCIAL INFORMATION		3
ITEM 1.	Condensed Consolidated Financial Statements (Unaudited)		3
	•	Condensed Consolidated Balance Sheets — June 30 2024, and December 31, 2023	3
	•	Condensed Consolidated Statements of Operations — The quarters and six months ended June 30, 2024 and 2023	4
	•	Condensed Consolidated Statements of Comprehensive Income (Loss) — The quarters and six months ended June 30, 2024 and 2023	4
	•	Condensed Consolidated Statements of Cash Flows — The six months ended June 30, 2024 and 2023	5
	•	Condensed Consolidated Statements of Stockholders’ Equity — The quarters and six months ended June 30, 2024 and 2023	6
	•	Notes to Condensed Consolidated Financial Statements	7
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		17
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk		22
ITEM 4.	Controls and Procedures		23
PART II.	OTHER INFORMATION		23
ITEM 1.	Legal Proceedings		23
ITEM 1A.	Risk Factors		23
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds		23
ITEM 5.	Other Information		24
ITEM 6.	Exhibits		25
	SIGNATURE		26

2

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)	2024			2023
Assets
Current assets:
Cash and cash equivalents	$	75.4		$	227.0
Accounts receivable, net		283.1			234.7
Inventories, net		351.5			334.4
Contract assets		34.5			25.1
Prepaid expenses and other current assets		63.1			43.0
Total current assets		807.6			864.2
Property, plant and equipment		3,211.8			3,195.5
Less accumulated depreciation		(1,563.1	)		(1,516.8	)
Net property, plant and equipment		1,648.7			1,678.7
Goodwill and other intangible assets, net		246.8			251.3
Investments in affiliated companies		5.0			5.0
Other assets		119.5			119.3
Total assets	$	2,827.6		$	2,918.5
Liabilities and Stockholders' Equity
Current liabilities:
Short-term borrowings	$	0.1		$	0.1
Accounts payable		124.8			159.1
Accrued compensation and benefits		80.2			75.7
Financial instruments		3.2			6.0
Accrued liabilities		85.4			75.0
Total current liabilities		293.7			315.9
Long-term debt		794.9			699.4
Retirement obligations		31.1			42.6
Deferred income taxes		106.5			110.6
Other non-current liabilities		30.2			33.5
Total liabilities		1,256.4			1,202.0
Stockholders' equity:
Common stock, $0.01 par value, 200.0 shares authorized, 111.4 shares and 110.8 shares issued at June 30, 2024 and December 31, 2023, respectively		1.1			1.1
Additional paid-in capital		959.6			936.8
Retained earnings		2,230.2			2,168.7
Accumulated other comprehensive loss		(91.3	)		(74.1	)
		3,099.6			3,032.5
Less – Treasury stock, at cost, 29.7 shares at June 30, 2024 and 26.7 shares at December 31, 2023		(1,528.4	)		(1,316.0	)
Total stockholders' equity		1,571.2			1,716.5
Total liabilities and stockholders' equity	$	2,827.6		$	2,918.5

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

3

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)	2024		2023		2024		2023
Net sales	$	500.4	$	454.3	$	972.7	$	912.0
Cost of sales		373.8		343.5		727.9		673.5
Gross margin		126.6		110.8		244.8		238.5
Selling, general and administrative expenses		39.9		35.7		88.9		86.5
Research and technology expenses		14.7		13.3		29.8		27.2
Other operating expense		0.2		0.5		1.4		0.7
Operating income		71.8		61.3		124.7		124.1
Interest expense, net		8.1		9.2		14.6		18.6
Income before income taxes, and equity in earnings from affiliated companies		63.7		52.1		110.1		105.5
Income tax expense		13.7		11.5		23.6		23.2
Income before equity in earnings from affiliated companies		50.0		40.6		86.5		82.3
Equity in earnings from affiliated companies		-		1.9		-		2.9
Net income	$	50.0	$	42.5	$	86.5	$	85.2
Basic net income per common share	$	0.61	$	0.50	$	1.04	$	1.01
Diluted net income per common share	$	0.60	$	0.50	$	1.03	$	1.00
Weighted-average common shares:
Basic		82.5		84.7		83.2		84.6
Diluted		83.2		85.6		84.0		85.5

Hexcel Corporation and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income
	(Unaudited)						(Unaudited)
	Quarter Ended June 30,						Six Months Ended June 30,
(In millions)	2024			2023			2024			2023
Net income	$	50.0		$	42.5		$	86.5		$	85.2
Currency translation adjustments		(2.9	)		6.1			(13.3	)		18.1
Net unrealized pension and other benefit actuarial losses and prior service credits (net of tax)		-			(1.0	)		(0.1	)		(1.0	)
Net unrealized gains (losses) on financial instruments (net of tax)		0.6			1.8			(3.8	)		12.1
Total other comprehensive (loss) income		(2.3	)		6.9			(17.2	)		29.2
Comprehensive income	$	47.7		$	49.4		$	69.3		$	114.4

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

4

Hexcel Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

	(Unaudited)
	Six Months Ended June 30,
(In millions)	2024			2023
Cash flows from operating activities
Net income	$	86.5		$	85.2
Reconciliation to net cash provided by operating activities:
Depreciation and amortization		62.0			61.7
Amortization related to financing		0.2			0.4
Deferred income taxes		(3.0	)		(6.7	)
Equity in earnings from affiliated companies		-			(2.9	)
Stock-based compensation		16.4			15.7
Restructuring expenses, net of payments		0.2			(3.6	)
Impairment of assets		-			1.7
Changes in assets and liabilities:
Increase in accounts receivable		(50.4	)		(33.9	)
Increase in inventories		(21.8	)		(36.8	)
Increase in prepaid expenses and other current assets		(28.2	)		(7.3	)
Decrease in accounts payable/accrued liabilities		(17.9	)		(35.9	)
Other – net		(6.8	)		(7.5	)
Net cash provided by operating activities		37.2			30.1
Cash flows from investing activities
Capital expenditures		(51.6	)		(74.8	)
Proceeds from sale of investments		-			2.5
Net cash used for investing activities		(51.6	)		(72.3	)
Cash flows from financing activities
Borrowing from senior unsecured credit facility - 2028		95.0			98.0
Repayment of senior unsecured credit facility - 2028		-			(18.0	)
Borrowing from senior unsecured credit facility - 2024		-			65.0
Repayment of senior unsecured credit facility - 2024		-			(90.0	)
Issuance costs related to senior unsecured credit facilities		-			(2.5	)
Repurchases of common stock		(201.8	)		-
Proceeds (repayment) of finance lease obligation and other debt, net		0.1			(0.1	)
Dividends paid		(25.0	)		(21.1	)
Activity under stock plans		(4.3	)		2.7
Net cash (used for) provided by financing activities		(136.0	)		34.0
Effect of exchange rate changes on cash and cash equivalents		(1.2	)		0.4
Net decrease in cash and cash equivalents		(151.6	)		(7.8	)
Cash and cash equivalents at beginning of period		227.0			112.0
Cash and cash equivalents at end of period	$	75.4		$	104.2
Supplemental data:
Accrual basis additions to plant, property and equipment	$	41.1		$	70.5

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

5

Hexcel Corporation and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)

For the Quarters and Six Months ended June 30, 2024, and June 30, 2023

								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
								Accumulated
			Additional					Other						Total
			Paid-In		Retained			Comprehensive			Treasury			Stockholders’
(In millions)	Par		Capital		Earnings			Loss			Stock			Equity
Balance, December 31, 2023	$	1.1	$	936.8	$	2,168.7		$	(74.1	)	$	(1,316.0	)	$	1,716.5
Net income	—		—			36.5		—			—				36.5
Dividends on common stock ($0.15 per share)	—		—			(12.6	)	—			—				(12.6	)
Repurchases of common stock	—		—		—			—				(100.7	)		(100.7	)
Change in other comprehensive (loss) income– net of tax	—		—		—				(14.9	)	—				(14.9	)
Stock-based activity	—		17.8		—			—				(10.5	)		7.3
Balance, March 31, 2024	$	1.1	$	954.6	$	2,192.6		$	(89.0	)	$	(1,427.2	)	$	1,632.1
Net income	—		—			50.0		—			—				50.0
Dividends on common stock ($0.15 per share)	—		—			(12.4	)	—			—				(12.4	)
Repurchases of common stock	—		—		—			—				(101.1	)		(101.1	)
Change in other comprehensive (loss) income– net of tax	—		—		—				(2.3	)	—				(2.3	)
Stock-based activity	—			5.0	—			—				(0.1	)		4.9
Balance, June 30, 2024	$	1.1	$	959.6	$	2,230.2		$	(91.3	)	$	(1,528.4	)	$	1,571.2

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

6

HEXCEL CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1 — Significant Accounting Policies

In these notes, the terms “Hexcel,” “the Company,” “we,” “us,” or “our” mean Hexcel Corporation and subsidiary companies. The accompanying condensed consolidated financial statements are those of Hexcel Corporation. Refer to Note 1 to the consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2023 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, 2023 was derived from the audited 2023 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 2023 Annual Report on Form 10-K.

Investments in Affiliated Companies

Results for the quarters and six months ended June 30, 2023 included our 50% equity ownership investment in the joint venture in Malaysia which was accounted for using the equity method of accounting. We sold our interest in the joint venture in December 2023.

Note 2 — Net Income Per Common Share

	Quarter Ended June 30,				Six Months Ended June 30,
(In millions, except per share data)	2024		2023		2024		2023
Basic net income per common share:
Net income	$	50.0	$	42.5	$	86.5	$	85.2
Weighted average common shares outstanding		82.5		84.7		83.2		84.6
Basic net income per common share	$	0.61	$	0.50	$	1.04	$	1.01
Diluted net income per common share:
Net income	$	50.0	$	42.5		86.5		85.2
Weighted average common shares outstanding — Basic		82.5		84.7		83.2		84.6
Plus incremental shares from assumed conversions:
Restricted stock units		0.4		0.5		0.4		0.5
Stock options		0.3		0.4		0.4		0.4
Weighted average common shares outstanding — Dilutive		83.2		85.6		84.0		85.5
Diluted net income per common share	$	0.60	$	0.50	$	1.03	$	1.00

Total common stock equivalents of 0.5 million and 0.2 million were excluded from the computation of diluted net income per share for the quarters ended June 30, 2024 and 2023, respectively, because to do so would have been anti-dilutive. Total common stock equivalents of 0.4 million and 0.3 million were excluded from the computation of diluted net income per share for the six months ended June 30, 2024 and 2023, respectively, because to do so would have been anti-dilutive.

7

Note 3 — Inventories

(In millions)	June 30, 2024		December 31, 2023
Raw materials	$	153.4	$	131.4
Work in progress	$	52.4		46.0
Finished goods	$	145.7		157.0
Total Inventory	$	351.5	$	334.4

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, 2024 and 2023 were as follows:

	Quarter Ended June 30,					Six Months Ended June 30,
(In millions)	2024			2023		2024			2023
U.S. Nonqualified Defined Benefit Retirement Plans
Service cost	$	-		$	0.3	$	-		$	0.6
Interest cost		0.2			0.1		0.4			0.2
Net amortization		(0.1	)		0.2		(0.2	)		0.4
Net periodic benefit cost	$	0.1		$	0.6	$	0.2		$	1.2

(In millions)	June 30, 2024		December 31, 2023
Amounts recognized on the balance sheet for U.S. nonqualified defined benefit retirement plans:
Accrued liabilities	$	13.8	$	1.3
Other non-current liabilities		4.4		16.8
Total accrued benefit	$	18.2	$	18.1

	Quarter Ended June 30,					Six Months Ended June 30,
(In millions)	2024		2023			2024			2023
European Defined Benefit Retirement Plans
Service cost	$	0.1	$	0.1		$	0.3		$	0.3
Interest cost		0.2		1.3			0.3			2.5
Expected return on plan assets		-		(1.2	)		(0.1	)		(2.4	)
Net amortization and deferral		-		0.6			0.1			1.2
Net periodic benefit cost	$	0.3	$	0.8		$	0.6		$	1.6

(In millions)	June 30, 2024		December 31, 2023
Amounts recognized on the balance sheet for European defined benefit retirement plans:
Accrued liabilities		1.4		0.8
Other non-current liabilities		12.6		12.3
Total accrued benefit	$	14.0	$	13.1

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, 2024 and 2023, amounts unrelated to service costs were a charge of $0.3 million and $1.0 million, respectively. For the six months ended June 30, 2024 and 2023, amounts unrelated to service costs were a charge of $0.6 million and $2.0 million, respectively.

8

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 2024 to cover unfunded benefits. We expect to contribute a total of $0.7 million in 2024 to cover unfunded benefits.

Contributions to our European defined benefit retirement plans during the six months ended June 30, 2024 were not material. We plan to contribute approximately $1.1 million during 2024 to our European plans. .

Postretirement Health Care and Life Insurance Benefit Plans

We recorded $0.5 million of net amortization gain deferral for the six months ended June 30, 2023 and an immaterial amount for the six months ended June 30, 2024. Net periodic benefit costs of our postretirement health care and life insurance benefit plans for the six months ended June 30, 2024 and 2023 were immaterial.

(In millions)	June 30, 2024		December 31, 2023
Amounts recognized on the balance sheet:
Accrued liabilities	$	0.2	$	0.2
Other non-current liabilities		0.9		0.9
Total accrued benefit	$	1.1	$	1.1

Amounts contributed in connection with our postretirement plans were immaterial for both the six months ended June 30, 2024 and 2023. We periodically fund our postretirement plans to pay covered expenses as they are incurred. We expect to contribute approximately $0.2 million in 2024 to cover unfunded benefits.

Note 5 –– Debt

(In millions)	June 30, 2024			December 31, 2023
Current portion of finance lease	$	0.1		$	0.1
Current portion of debt		0.1			0.1
Senior unsecured credit facility		95.0			-
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		(0.5	)		(0.7	)
Senior notes --- deferred financing costs		(1.2	)		(1.6	)
Non-current portion of finance lease and other debt		1.6			1.7
Long-term debt		794.9			699.4
Total debt	$	795.0		$	699.5

On April 25, 2023, the Company entered into a new credit agreement (the “Credit Agreement”) to refinance its senior unsecured credit facility agreement (the “Facility”). Under the terms of the Credit Agreement the borrowing capacity remained 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 are amortized over the life of the Facility.

Borrowings under the Facility bear interest 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 was 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.

As of June 30, 2024, total borrowings under the Facility were $95 million which approximated fair value. Outstanding letters of credit reduce the amount available for borrowing under the Facility. As of June 30, 2024, there were no issued letters of credit under the Facility, resulting in undrawn availability under the Facility of $655 million. The weighted average interest rate for the Facility was 6.7% for the six months ended June 30, 2024. The Company was in compliance with all debt covenants as of June 30, 2024.

9

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 by 0.25% each time a credit rating applicable to the notes is downgraded. The maximum rate is 5.95%. The effective interest rate for the three months ended June 30, 2024 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 $384.9 million at June 30, 2024.

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. The maximum rate is 6.7%. The effective interest rate for the three months ended June 30, 2024 was 4.9%. Based on quoted prices, the fair value of the Senior Unsecured Notes due in 2025 was $297.1 million at June 30, 2024.

Note 6 — Derivative Financial Instruments

Interest Rate Swap and Interest Lock Agreements

At June 30, 2024 and December 31, 2023, we had no outstanding interest rate swap agreements.

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 2026. The aggregate notional amount of these contracts was $373.4 million and $393.3 million at June 30, 2024 and December 31, 2023, 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, losses of $1.9 million and $9.1 million were recorded in other comprehensive (loss) income for the quarter and six months ended June 30, 2024, respectively, and gains of $4.3 million and $8.3 million were recorded for the quarter and six months ended June 30, 2023, respectively. We recognized losses of $1.3 million and $2.0 million in gross margin during the quarters and six months ended June 30, 2024, respectively, and losses of $2.6 million and $6.3 million for the quarter and six months ended June 30, 2023, 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, 2024, we recognized net foreign exchange gains of $0.4 million and $2.0 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 $0.1 million and gains of $0.3 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 (loss) income for the quarters and six months ended June 30, 2024 and June 30, 2023 was as follows:

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	Quarter Ended June 30,						Six Months Ended June 30,
(In millions)	2024			2023			2024			2023
Unrealized gains (losses) at beginning of period, net of tax	$	0.5		$	(4.8	)	$	5.3		$	(10.5	)
Losses reclassified to net sales		0.8			2.0			1.3			4.7
Increase (decrease) in fair value		(1.3	)		3.2			(6.6	)		6.2
Unrealized gains (losses) at end of period, net of tax	$	-		$	0.4		$	-		$	0.4

Unrealized gains of $0.4 million recorded in accumulated other comprehensive loss, less taxes of $0.1 million, as of June 30, 2024, are expected to be reclassified into earnings over the next twelve months as the hedged sales are recorded.

Commodity Swap Agreements

We use commodity swap agreements to hedge against price fluctuations of raw materials, including propylene (the principal component of acrylonitrile). As of June 30, 2024, we had commodity swap agreements with a notional value of $18.3 million. The swaps mature monthly through June 2026. 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, 2024 and December 31, 2023 were as follows:

	Prepaid and Other Current Assets				Other Assets				Current Liabilities				Non-Current Liabilities
(In millions)	June 30, 2024		December 31, 2023		June 30, 2024		December 31, 2023		June 30, 2024		December 31, 2023		June 30, 2024		December 31, 2023
Derivative Products
Foreign currency forward exchange contracts	$	3.5	$	4.8	$	0.8	$	5.5	$	2.9	$	3.2	$	1.2	$	-
Undesignated hedges		-		-		-		-		0.1		1.4		-		-
Commodity swaps		1.3		0.5		0.2		0.2		0.2		1.5		0.2		0.2
Cross currency and interest rate swap		6.1		4.3		6.1		3.7		-		-		-		-
Total Derivative Products	$	10.9	$	9.6	$	7.1	$	9.4	$	3.2	$	6.1	$	1.4	$	0.2

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. 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.

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•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, 2024 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, 2024 and 2023:

	Quarter Ended June 30,				Six Months Ended June 30,
(In millions)	2024		2023		2024		2023
Consolidated Net Sales	$	500.4	$	454.3	$	972.7	$	912.0
Commercial Aerospace		320.7		264.3		620.0		548.8
Space & Defense		138.9		137.5		278.0		263.7
Industrial		40.8		52.5		74.7		99.5

Revenue recognized over time gives rise to contract assets, which represent revenue recognized but unbilled. Contract assets are included in our Condensed Consolidated Balance Sheets as a component of current assets. The activity related to contract assets for the six months ended June 30, 2024 was as follows:

(In millions)	Composite Material		Engineered Products		Total
Balance at December 31, 2023	$	8.3	$	16.8	$	25.1
Net revenue billed		1.6		4.4		6.0
Balance at March 31, 2024		9.9		21.2		31.1
Net revenue billed	$	0.4	$	3.0		3.4
Balance at June 30, 2024	$	10.3	$	24.2	$	34.5

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, 2024 and 2023 were as follows:

	(Unaudited)
	Composite		Engineered		Corporate &
(In millions)	Materials		Products		Other (a)			Total
Quarter Ended June 30, 2024
Net sales to external customers	$	408.6	$	91.8	$	—		$	500.4
Intersegment sales		23.9		0.6		(24.5	)		—
Total sales	$	432.5	$	92.4	$	(24.5	)	$	500.4
Other operating expense		-		0.2		—			0.2
Operating income (loss)		74.3		13.0		(15.5	)		71.8
Depreciation and amortization		27.3		3.7		—			31.0
Stock-based compensation		1.1		0.3		1.9			3.3
Accrual basis additions to capital expenditures		18.6		3.9		—			22.5
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
Six Months Ended June 30, 2024
Net sales to external customers	$	788.1	$	184.6	$	—		$	972.7
Intersegment sales		47.2		0.9		(48.1	)		—
Total sales	$	835.3	$	185.5	$	(48.1	)	$	972.7
Other operating expense		0.8		0.6		—			1.4
Operating income (loss)		138.0		25.9		(39.2	)		124.7
Depreciation and amortization		54.5		7.5		—			62.0
Stock-based compensation		4.2		1.1		11.1			16.4
Accrual basis additions to capital expenditures		35.3		5.8		—			41.1
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

(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, 2023	$	87.2		$	164.1		$	251.3
Amortization expense		(0.4	)		(1.3	)		(1.7	)
Currency translation adjustments		(1.6	)		(1.2	)		(2.8	)
Balance at June 30, 2024	$	85.2		$	161.6		$	246.8

At June 30, 2024, the balance of goodwill and intangible assets was $187.6 million and $59.2 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, 2024 and December 31, 2023 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, 2023	$	1.0		$	5.7		$	(80.8	)	$	(74.1	)
Other comprehensive (loss) income before reclassifications		0.1			(1.2	)		(13.3	)		(14.4	)
Amounts reclassified from accumulated other comprehensive loss		(0.2	)		(2.6	)		-			(2.8	)
Other comprehensive (loss) income		(0.1	)		(3.8	)		(13.3	)		(17.2	)
Balance at June 30, 2024	$	0.9		$	1.9		$	(94.1	)	$	(91.3	)

(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, 2024 and 2023 were as follows:

	Quarter Ended June 30, 2024						Quarter Ended June 30, 2023						Six Months Ended June 30, 2024						Six Months Ended June 30, 2023
(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	$	(0.1	)	$	(0.1	)	$	0.5		$	0.4		$	(0.2	)	$	(0.2	)	$	1.0		$	0.8
Derivative Products
Foreign currency forward exchange contracts		1.3			0.9			2.6			1.9			2.0			1.3			6.3			4.6
Commodity swaps		0.3			0.2			1.8			1.4			-			(0.1	)		2.7			2.1
Interest rate swaps		(1.5	)		(1.1	)		(1.1	)		(0.8	)		(5.1	)		(3.8	)		(3.2	)		(2.4	)
Total Derivative Products	$	0.1		$	-		$	3.3		$	2.5		$	(3.1	)	$	(2.6	)	$	5.8		$	4.3

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 judgment 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 January 5, 2024, the U.S. District Court stayed the foregoing claim initiated by OCC until the completion of the Passaic-related Consent Decree process.

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. 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, 2024 and December 31, 2023, our aggregate environmental related accruals were $0.5 million and $0.7 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.

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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, 2024, and accrued warranty cost, included in “accrued liabilities” in the Condensed Consolidated Balance Sheets at June 30, 2024 and December 31, 2023, were as follows:

	Product
(In millions)	Warranties
Balance as of December 31, 2023	$	2.8
Warranty expense		0.8
Deductions and other		(0.3	)
Balance as of March 31, 2024	$	3.3
Warranty expense		1.4
Deductions and other		(1.2	)
Balance as of June 30, 2024	$	3.5

Note 12 — Restructuring

We recognized restructuring charges of $0.2 million and $1.4 million for the quarter and six months ended June 30, 2024, respectively, primarily related to severance. Anticipated future cash payments as of June 30, 2024 were $1.4 million.

			Activity for the Quarter Ended June 30, 2024
	March 31,		Restructuring				Cash					June 30,
(In Millions)	2024		Charge		FX Impact		Paid			Non-Cash		2024
Employee termination	$	1.9	$	0.2	$	0.1	$	(0.8	)	$	—	$	1.4
Impairment and other		—		—		—		—			—		—
Total	$	1.9	$	0.2	$	0.1	$	(0.8	)	$	—	$	1.4
			Activity for the Six Months Ended June 30, 2024
	December 31,		Restructuring				Cash					June 30,
(In Millions)	2023		Charge		FX Impact		Paid			Non-Cash		2024
Employee termination	$	1.2	$	1.4	$	—	$	(1.2	)	$	—	$	1.4
Impairment and other		—		—		—		—			—		—
Total	$	1.2	$	1.4	$	—	$	(1.2	)	$	—	$	1.4

Note 13 — Capital Stock

Under the share repurchase plan adopted by the Board of Directors of the Company (the "Board") in May 2018 (the “2018 Repurchase Plan"), the Board authorized $500 million for the repurchase of the Company's common stock which was fully utilized as of June 30, 2024. The repurchase of the Company’s common stock under the 2018 Repurchase Plan was all made in open market transactions. On February 19, 2024, the Board approved a $300 million share repurchase plan (the “2024 Share Repurchase Plan”) which is in addition to the amount that remained available for repurchases under the 2018 Repurchase Plan. The repurchase of the Company’s common stock under the 2024 Share Repurchase Plan are anticipated to be made in open market transactions, block transactions, privately negotiated purchase transactions or other purchase techniques at the discretion of management based upon consideration of market, business, legal, accounting, and other factors.

During the three months ended June 30, 2024, the Company repurchased 1,459,736 shares of common stock in open market transactions under the share repurchase plans at an average price of $68.51 per share and at a cost of $101.1 million, including commissions and excise tax, leaving approximately $285.3 million available for additional repurchases under the 2024 Share Repurchase Plan. During the six months ended June 30, 2024, the Company repurchased a total of 2,857,491 shares at a total cost of $201.8 million.. The acquisition of these shares was accounted for under the treasury method.

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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.

We serve international markets through manufacturing facilities, sales offices and representatives located in the Americas, Europe, Asia Pacific, India, and Africa.

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 has recovered strongly following the severe negative economic impacts on this industry resulting from the COVID-19 pandemic that began in 2020. Our business is continuing to recover driven by growth in air travel and an increase in aircraft build rates. The post-recovery period continues to have many challenges across the markets Hexcel operates in, related to global logistics, supply chains, inflationary pressures, and effects from geopolitical issues and conflicts. 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.

Financial Overview

Results of Operations

	Quarter Ended June 30,									Six Months Ended June 30,
(In millions, except per share data)	2024			2023			% Change			2024			2023			% Change
Net sales	$	500.4		$	454.3			10.1	%	$	972.7		$	912.0			6.7	%
Net sales change in constant currency								10.5	%								6.7	%
Operating income	$	71.8		$	61.3			17.1	%	$	124.7		$	124.1			0.5	%
As a percentage of net sales		14.3	%		13.5	%					12.8	%		13.6	%
Net income	$	50.0		$	42.5			17.6	%	$	86.5		$	85.2			1.5	%
Diluted net income per common share	$	0.60		$	0.50			20.0	%	$	1.03		$	1.00			3.0	%

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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, 2024 and 2023:

	Quarter Ended June 30,							Six Months Ended June 30,
(In millions)	2024		2023		% Change			2024		2023		% Change
Consolidated Net Sales	$	500.4	$	454.3		10.1	%	$	972.7	$	912.0		6.7	%
Commercial Aerospace		320.7		264.3		21.3	%		620.0		548.8		13.0	%
Space & Defense		138.9		137.5		1.0	%		278.0		263.7		5.4	%
Industrial		40.8		52.5		(22.3	)%		74.7		99.5		(24.9	)%
Composite Materials	$	408.6	$	378.5		8.0	%	$	788.1	$	756.7		4.1	%
Commercial Aerospace		272.6		228.9		19.1	%		524.1		472.1		11.0	%
Space & Defense		96.0		97.9		(1.9	)%		190.7		186.7		2.1	%
Industrial		40.0		51.7		(22.6	)%		73.3		97.9		(25.1	)%
Engineered Products	$	91.8	$	75.8		21.1	%	$	184.6	$	155.3		18.9	%
Commercial Aerospace		48.1		35.4		35.8	%		95.9		76.7		25.0	%
Space & Defense		42.9		39.6		8.4	%		87.3		77.0		13.4	%
Industrial		0.8		0.8		2.6	%		1.4		1.6		(11.4	)%

Sales by Segment

Composite Materials: Net sales of $408.6 million in the second quarter of 2024 increased by $30.1 million or 8.0% from the prior year quarter. Commercial Aerospace sales increased $43.7 million or 19.1% in the second quarter of 2024 as compared to the prior year quarter. Space & Defense net sales in the second quarter of 2024 decreased $1.9 million or 1.9% and Industrial sales decreased 22.7% or $11.7 million as compared to the second quarter of 2023. Net sales for the segment in the first half of 2024 of $788.1 million increased 4.1% compared to the same period last year driven by strong sales in Commercial Aerospace.

Engineered Products: For the second quarter of 2024, net sales of $91.8 million increased $16.0 million or 21.1% as compared to the prior year quarter. The increase was driven by higher Commercial Aerospace Sales which increased $12.7 million or 35.8% in the second quarter of 2024 as compared to the prior year quarter. Net sales of $184.6 million for the first six months of 2024 increased 18.9% compared to the same period last year driven by strength in Commercial Aerospace and Space & Defense.

Sales by Market

For the second quarter of 2024, Commercial Aerospace sales of $320.7 million increased 21.3% (21.6% in constant currency) as compared to the second quarter of 2023. Both widebody and narrowbody sales increased by double digit percentages. Other Commercial Aerospace increased 15.4% for the second quarter of 2024 compared to the second quarter of 2023 reflecting growth in business and regional jets. Sales of $620.0 million increased 13.0% (13.1% in constant currency) for the first six months of 2024 compared to the first six months of 2023 led by growth in widebodies. Other Commercial Aerospace increased 4.1% for the first six months of 2024 compared to the same period in 2023 reflecting growth in regional jets and turbo-props.

Space & Defense sales of $138.9 million increased 1.0% (1.4% in constant currency) in the second quarter of 2024 as compared to the second quarter of 2023. Military helicopters globally were strong including the CH-53K and Apache, partially offset by declining V-22 sales as the program winds down. Sales of $278.0 million increased 5.4% (5.5% in constant currency) for the first six months of 2024 as compared to the first six months of 2023. Growth was led by the F-35 and a number of domestic and international military helicopter programs, partially offset by significantly lower V-22 sales.

Total Industrial sales of $40.8 million in the second quarter of 2024 decreased 22.3% (21.8% in constant currency) compared to the second quarter of 2023 as growth in Automotive was more than offset by declines in the other sub-markets. Total Industrial sales of $74.7 million in the first six months of 2024 decreased 24.9% (25.0% in constant currency) compared to the first six months of 2023 due to declines in all sub-markets.

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Gross Margin

	Quarter Ended June 30,									Six Months Ended June 30,
(In millions)	2024			2023			% Change			2024			2023			% Change
Gross margin	$	126.6		$	110.8			14.3	%	$	244.8		$	238.5			2.6	%
Percentage of sales		25.3	%		24.4	%					25.2	%		26.2	%

Gross margin for the second quarter of 2024 was 25.3% compared to 24.4% in the second quarter of 2023 and 25.2% and 26.2% for the first six months of 2024 and 2023, respectively. The second quarter 2024 improvement in gross margin as compared to the prior year quarter was primarily due to favorable cost leverage from higher sales. Gross margin for the first half of 2024 was 25.2% compared to 26.2% in the prior year period. The higher margin in the first half of 2023 benefited from favorable margin absorption and sales mix in the initial three months of the year.

Operating Expenses

	Quarter Ended June 30,									Six Months Ended June 30,
(In millions)	2024			2023			% Change			2024			2023			% Change
SG&A expense	$	39.9		$	35.7			11.8	%	$	88.9		$	86.5			2.8	%
Percentage of sales		8.0	%		7.9	%					9.1	%		9.5	%
R&T expense	$	14.7		$	13.3			10.5	%	$	29.8		$	27.2			9.6	%
Percentage of sales		2.9	%		2.9	%					3.1	%		3.0	%

Selling, general and administrative expenses were higher for the second quarter of 2024 as well as for the first six months of 2024. As a percentage of net sales, the second quarter of 2024 was relatively flat and the first six months of 2024 was lower than the comparable periods for the prior year. The increase in selling, general and administrative expenses for both the second quarter and first six months of 2024 was primarily driven by higher employee-related expenses. Research and technology expenses for the second quarter and first six months of 2024 increased $1.4 million and $2.6 million, respectively, compared to the same periods of 2023. The increases in both periods were due primarily to higher employee-related costs as well as expenses related to development projects.

Operating Income

	Quarter Ended June 30,									Six Months Ended June 30,
(In millions)	2024			2023			% Change			2024			2023			% Change
Consolidated operating income	$	71.8		$	61.3			17.1	%	$	124.7		$	124.1			0.5	%
Operating margin		14.3	%		13.5	%					12.8	%		13.6	%
Composite Materials		74.3			64.2			15.7	%		138.0			137.4			0.4	%
Operating margin		17.2	%		16.2	%					16.5	%		17.3	%
Engineered Products		13.0			6.8			91.2	%		25.9			18.8			37.8	%
Operating margin		14.1	%		8.9	%					14.0	%		12.0	%
Corporate & Other		(15.5	)		(9.7	)	N/M				(39.2	)		(32.1	)		(22.1	)%

Operating income for the second quarters of 2024 and 2023 was $71.8 million and $61.3 million, respectively. Operating income for the first six months of 2024 was $124.7 million compared to $124.1 million for the same period last year. Overall, operating income for both the second quarter and six months of 2024 benefited from higher sales as compared to the prior year periods.

Interest Expense, Net

	Quarter Ended June 30,							Six Months Ended June 30,
(In millions)	2024		2023		% Change			2024		2023		% Change
Interest expense, net	$	8.1	$	9.2		(12.0	)%	$	14.6	$	18.6		(21.5	)%

Interest expense for both the quarter and six months ended June 30, 2024 was lower compared to the prior year periods due to lower average debt levels.

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Provision for Income Taxes

	Quarter Ended June 30,						Six Months Ended June 30,
(In millions)	2024			2023			2024			2023
Income tax expense	$	13.7		$	11.5		$	23.6		$	23.2
Effective tax rate		21.5	%		22.1	%		21.4	%		22.0	%

Tax expense for the quarter and six months ended June 30, 2024 was $13.7 million and $23.6 million, respectively, as compared to $11.5 million and $23.2 million for the comparative periods in 2023 due to higher income before income tax.

Financial Condition

Liquidity: Cash on hand at June 30, 2024 was $75.4 million as compared to $227.0 million at December 31, 2023. As of June 30, 2024, total debt was $795.0 million as compared to $699.5 million at December 31, 2023.

Under the senior unsecured credit facility (the "Facility"), total borrowings at June 30, 2024 were $95.0 million, which approximated fair value. The Facility agreement permits us to issue letters of credit up to an aggregate amount of $50.0 million. As of June 30, 2024, there were no issued letters of credit under the Facility, resulting in undrawn availability under the Facility of $655.0 million. The weighted average interest rate for the Facility was 6.7% for the six months ended June 30, 2024. For further information regarding our Facility, see Note 5, Debt, to the accompanying condensed consolidated financial statements of this Form 10-Q.

We expect to meet our short-term liquidity requirements (including capital expenditures) through net cash from operating activities, cash on hand and the Facility. As of June 30, 2024, 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, 2024 was $285.3 million. On July 17, 2024, our Board of Directors declared a quarterly dividend of $0.15 per share payable to stockholders of record as of August 2, 2024, with a payment date of August 9 2024.

Operating Activities: Net cash provided by operating activities for the first six months of 2024 was $37.2 million compared to $30.1 million for the same period last year. Working capital was a cash use of $118.3 million for the first six months of 2024 as compared to a use of $113.9 million in the same period in 2023.

Investing Activities: Net cash used for investing activities was $51.6 million and $72.3 million in the first six months of 2024 and 2023, respectively. Capital expenditures for the first six months of 2024 were $51.6 million as compared to $74.8 million for the same period last year, which also included $38.0 million for the acquisition of the land and building at our Amesbury, Massachusetts facility.

Financing Activities: Net cash used for financing activities was $136.0 million for first six months of 2024 compared to net cash provided of $34.0 million in the same period in 2023. Borrowings under the credit facilities during the first six months of 2024 were $95.0 million compared to $163.0 million in the prior year period. Repayments during the first six months of 2023 were $108.0 million. Quarterly dividend payments to shareholders were $25.0 million during the first six months of 2024 compared to $21.1 million in the prior year period. During the six months ended June 30, 2024, repurchases of common stock totaled $201.8 million.

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 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.

20

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, 2023.

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)	2024			2023			2024		2023
GAAP operating income		$	71.8		$	61.3	$	124.7	$	124.1
Other operating expense (income) (a)			0.2			0.5		1.4		0.7
Adjusted operating income (non-GAAP)		$	72.0		$	61.8	$	126.1	$	124.8

	Quarter Ended June 30,								Six Months Ended June 30,
	2024				2023				2024				2023
(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	$	50.0	$	0.60	$	42.5	$	0.50	$	86.5	$	1.03	$	85.2	$	1.00
Other operating expense (income), net of tax (a)		0.2		-		0.3		-		1.1		0.01		0.5		-
Adjusted net income (non-GAAP)	$	50.2	$	0.60	$	42.8	$	0.50	$	87.6	$	1.04	$	85.7	$	1.00

(a)The quarters and six months ended June 30, 2024 and 2023 included restructuring costs primarily related to severance.

	Six Months Ended June 30,
(In millions)	2024			2023
Net cash provided by operating activities	$	37.2		$	30.1
Less: Capital expenditures		(51.6	)		(74.8	)
Free cash flow (non-GAAP)	$	(14.4	)	$	(44.7	)

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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 and the revenues we may generate from an aircraft model or program; (b) expectations with regard to the impact of regulatory activity related to the Boeing 737 MAX or Boeing 787 on our revenues; (c) expectations with regard to raw material cost and availability; (d) expectations of composite content on new commercial aircraft programs and our share of those requirements; (e) expectations regarding revenues from space and defense applications, including whether certain programs might be curtailed or discontinued; (f) expectations regarding sales for industrial applications; (g) expectations regarding cash generation, working capital trends, and inventory levels; (h) expectations as to the level of capital expenditures, capacity, including the timing of completion of capacity expansions, and qualification of new products; (i) expectations regarding our ability to improve or maintain margins; (j) expectations regarding our ability to attract, motivate, and retain the workforce necessary to execute our business strategy; (k) projections regarding our tax rate; (l) expectations with regard to the continued impact of macroeconomic factors or geopolitical issues or conflicts; (m) expectations regarding our strategic initiatives, including our sustainability goals; (n) expectations with regard to the effectiveness of cybersecurity measures; (o) expectations regarding the outcome of legal matters or the impact of changes in laws or regulations; and (p) our expectations of financial results for 2024 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 macroeconomic factors or geopolitical issues or conflicts; reductions in sales to any significant customers, particularly Airbus or Boeing, including related to regulatory activity or public scrutiny impacting the Boeing 737 MAX or the Boeing 787; 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; the availability and cost of raw materials, including the impact of supply disruptions and inflation; our ability to successfully implement or realize our strategic initiatives, including our sustainability goals and any restructuring or alignment activities in which we may engage; changes in sales mix; changes in current pricing due to cost levels; changes in aerospace delivery rates; changes in government defense procurement budgets; timely new product development or introduction; 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 the effect of change in global trade policies, such as sanctions; 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; and the unexpected outcome of legal matters or impact of changes in laws or regulations.

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. 2023. 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, 2023.

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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, 2024, 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, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. Legal Proceedings

The information required by Item 1 is contained within Note 11 on pages 14 through 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, 2023, 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.

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds

Under the share repurchase plan adopted by the Board of Directors of the Company (the "Board") in May 2018 (the “2018 Repurchase Plan"), the Board authorized $500 million for the repurchase of the Company's common stock which was fully utilized as of June 30, 2024. The repurchase of the Company’s common stock under the 2018 Repurchase Plan was all made in open market transactions. On February 19, 2024, the Board approved a $300 million share repurchase plan (the “2024 Share Repurchase Plan”) which is in addition to the amount that remained available for repurchases under the 2018 Repurchase Plan. The repurchase of the Company’s common stock under the 2024 Share Repurchase Plan are anticipated to be made in open market transactions, block transactions, privately negotiated purchase transactions or other purchase techniques at the discretion of management based upon consideration of market, business, legal, accounting, and other factors.

During the three months ended June 30, 2024, we repurchased 1,459,736 shares of common stock in open market transactions under the share repurchase plans at an average price of $68.51 per share and at a cost of $101.1 million, including commissions and excise tax, leaving approximately $285.3 million available for additional repurchases under the 2024 Share Repurchase Plan. The acquisition of these shares was accounted for under the treasury method.

23

The following is a summary of share repurchase activity during the fiscal quarter ended June 30, 2024:

Period	(a) Total Number of Shares Purchased		(b) Average Price Paid per Share		(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		(d) Approximate Dollar Value (Millions) of Shares that May Yet Be Purchased Under the Plans or Programs
April 1 — April 30, 2024		124,945	$	64.03		124,945	$	378.2
May 1 — May 31, 2024		1,334,791	$	68.92		1,334,791	$	285.3
Total		1,459,736	$	68.51		1,459,736	$	285.3

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

ITEM 5. Other Information

Effective July 16, 2024, the Compensation Committee of the Board of Directors of the Company approved a retention award for each of Patrick Winterlich, Executive Vice President, Chief Financial Officer and Philippe Chevrier, President, Americas & Global Fibers pursuant to the Hexcel Corporation 2013 Incentive Stock Plan, as amended. The award was granted to Mr. Winterlich in the form of 15,000 time-based restricted stock units (“RSUs”) and to Mr. Chevrier in the form of 10,000 time-based RSUs. Each RSU represents, once vested, one share of common stock of the Company. Each award has a grant date of July 22, 2024 and will vest as to 33-1/3% of the RSUs on the second, third and fourth anniversaries of the grant date. The RSUs will be granted to each executive pursuant to the terms and conditions of a Restricted Stock Unit Agreement (“RSU Agreement”) which requires as a condition to vesting that such executive remain employed by the Company or a subsidiary of the Company through the applicable vesting date, except in the case of an involuntary termination without Cause (as defined in the RSU Agreement) or due to Disability (as defined in the RSU Agreement), in which case the RSUs would continue to vest. Notwithstanding the foregoing, the vesting of the RSUs will be accelerated if the executive’s employment is terminated (i) due to death or (ii) by the Company without Cause or by the executive for Good Reason (as defined in the RSU Agreement) within two years following a Change in Control (as defined in the RSU Agreement). The RSU Agreement includes a clawback provision in the event the executive violates certain obligations to the Company, including confidentiality, non-competition and non-solicitation obligations.

The foregoing description of the RSU Agreement is a summary of its material terms, does not purport to be complete, and is qualified in its entirety by the full text of the RSU Agreement filed as Exhibit 10.4 to this Quarterly Report on Form 10-Q and incorporated by reference herein.

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ITEM 6. Exhibits

EXHIBIT INDEX

Exhibit No.	Description
10.1*	Transition Letter Agreement, dated April 9, 2024, between Hexcel Corporation and Nick L. Stanage (incorporated herein by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024).
10.2*	Offer of Employment Letter Agreement, dated April 9, 2024, between Hexcel Corporation and Thomas C. Gentile III (incorporated herein by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024).
10.3*	Officer Severance Agreement, dated April 9, 2024, between Hexcel Corporation and Thomas C. Gentile III (incorporated herein by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024).
10.4*	Form of Restricted Stock Unit Agreement – Executive Retention Award.
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, 2024, 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

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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 18, 2024	/s/ Amy S. Evans
(Date)	Amy S. Evans
	Senior Vice President,
	Chief Accounting Officer

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EX-10.4

Exhibit 10.4

Executive Retention Form

FY 2024

RESTRICTED STOCK UNIT AGREEMENT

under the

Hexcel Corporation 2013 Incentive Stock Plan

This Restricted Stock Unit Agreement (the “Agreement”), is entered into as of the Grant Date, by and between Hexcel Corporation, a Delaware corporation (the “Company”), and the Grantee.

The Company maintains the Hexcel Corporation 2013 Incentive Stock Plan (the “Plan”). The Compensation Committee (the “Committee”) of the Board of Directors of the Company (the “Board”) has determined that the Grantee shall be granted Restricted Stock Units (“RSUs”) upon the terms and subject to the conditions hereinafter contained. Capitalized terms used but not defined herein shall have the meanings assigned to them in the Plan.

1. Notice of Grant; Acceptance of Agreement. Pursuant to the Plan and subject to the terms and conditions set forth herein and therein, the Company hereby grants to the Grantee the number of RSUs indicated on the Notice of Grant attached hereto as Annex A, which Notice of Grant is incorporated by reference herein. Grantee will be deemed to accept the terms and conditions of this Agreement by clicking the “Accept” button on the Award Acceptance screen with regard to the RSUs. By accepting the Agreement, the Grantee agrees to be bound by the terms of the Plan and this Agreement and further agrees that all the decisions and determinations of the Committee shall be final and binding.

2. Incorporation of Plan. The Plan is incorporated by reference and made a part of this Agreement, and this Agreement shall be subject to the terms of the Plan, as the Plan may be amended from time to time. The RSUs granted herein constitute an Award within the meaning of the Plan and in the event of any conflict between the terms of the Plan and this Agreement, the terms of the Plan shall govern.

3. Terms of Restricted Stock Units. The grant of RSUs provided in Section 1 hereof shall be subject to the following terms, conditions and restrictions:

(a) Each RSU (collectively “Restricted Units”) shall convert into one share of the Company’s common stock, $.01 par value per share (the “Common Stock”). The Grantee shall not possess any incidents of ownership (including, without limitation, dividend and voting rights) in shares of the Common Stock in respect of the RSUs until such RSUs have vested and converted into shares of Common Stock (hereinafter “RSU Shares”).

(b) Should any dividends be declared and paid with respect to the shares of Common Stock during the period between (a) the Grant Date and (b) the Vesting Date (i.e., shares of Common Stock issuable under the Restricted Units are not issued and outstanding for purposes of entitlement to the dividend), the Company shall credit to a dividend equivalent bookkeeping account (the “Dividend Equivalent Account”) the value of the dividends that would have been paid if the outstanding Restricted Units at the time of the declaration of the dividend were outstanding shares of Common Stock. At the same time that the corresponding Restricted Units are converted to shares of Common Stock and distributed to the Grantee as set forth in

1

Section 4, the Company shall pay to the Grantee a lump sum cash payment equal to the value of the dividends credited to the Grantee’s Dividend Equivalent Account that correspond to such Restricted Units; provided, however, that any dividends that were credited to the Grantee’s Dividend Equivalent Account that are attributable to Restricted Units that have been forfeited as provided in this Agreement shall be forfeited and not payable to the Grantee. No interest shall accrue on any dividend equivalents credited to the Grantee’s Dividend Equivalent Account.

(c) The Restricted Units may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of, except by will or the laws of descent and distribution. Any attempt to transfer Restricted Units in contravention of this Section is void ab initio. Restricted Units shall not be subject to execution, attachment or other process.

(d) Forfeiture of Restricted Units and RSU Shares on Certain Conditions. Grantee hereby acknowledges that the Hexcel Group has given or will give Grantee access to certain confidential, proprietary or trade secret information, which the Hexcel Group considers extremely valuable and which provides the Hexcel Group with a competitive advantage in the markets in which the Hexcel Group develops or sells its products. The Grantee further acknowledges that the use of such information by Grantee other than in furtherance of Grantee’s job responsibilities with the Hexcel Group would be extremely detrimental to the Hexcel Group and would cause immediate and irreparable harm to the Hexcel Group. In exchange for access to such confidential, proprietary or trade secret information, Grantee hereby agrees as follows:

(i) Notwithstanding anything to the contrary contained in this Agreement, should the Grantee breach the “Protective Condition” (as defined in Section 3(d)(ii)), then (A) any Restricted Units, to the extent not previously converted into RSU Shares and distributed to the Grantee, shall immediately be forfeited upon such breach, (B) the Grantee shall immediately deliver to the Company the number of RSU Shares previously distributed to the Grantee during the 180-day period prior to the termination of the Grantee’s employment with any member of the Hexcel Group and (C) if any RSU Shares were sold during the 180-day period immediately prior to such termination of employment in an arms’ length transaction or disposed of in any other manner, the Grantee shall immediately deliver to the Company all proceeds of such arms’ length sales and if disposed of otherwise than in arms’ length sale, the Fair Market Value of such RSU Shares determined at the time of disposition. The RSU Shares and proceeds to be delivered under clauses (B) and (C) may be reduced to reflect the Grantee’s liability for taxes payable on such RSU Shares and/or proceeds.

(ii) “Protective Condition” shall mean that (A) the Grantee complies with all terms and provisions of any obligation of confidentiality contained in a written agreement with any member of the Hexcel Group signed by the Grantee, or otherwise imposed on Grantee by applicable law, and (B) during the time Grantee is employed by any member of the Hexcel Group and for a period of one year following the termination of the Grantee’s employment with any member of the Hexcel Group, the Grantee does not (1) engage, in any capacity, directly or indirectly, including but not limited to as employee, agent, consultant, manager, executive, owner or stockholder (except as a passive investor holding less than a 5% equity interest in any enterprise), in any business enterprise then engaged in competition with the business conducted by the Hexcel Group anywhere in the world; provided, however, that the Grantee may be employed by a competitor of the Hexcel Group within such one year period so long as the duties and responsibilities of Grantee’s position with such competitor do not involve the same or substantially similar duties and responsibilities as those performed by the Grantee for any member of the Hexcel Group in a business segment of the new employer which competes

2

with the business segment(s) with which the Grantee worked or had supervisory authority over while employed by any member of the Hexcel Group during the twelve (12) months immediately preceding the date on which the Grantee’s employment terminates, (2) employ or attempt to employ, solicit or attempt to solicit, or negotiate or arrange the employment or engagement with Grantee or any other Person, of any Person who was at the date of termination of the Grantee’s employment, or within twelve (12) months prior to that date had been, a member of the senior management of any member of the Hexcel Group with whom the Grantee worked closely or was an employee with whom the Grantee worked closely or had supervisory authority over during the twelve (12) months immediately preceding the date on which the Grantee’s employment terminates or (3) disparage any member of the Hexcel Group, any of its respective current or former directors, officers or employees or any of its respective products (notwithstanding the foregoing, to the extent Grantee is a California based employee, then foregoing clauses (1) and (2) shall not apply).

(iii) In the event Section 3(d)(i) or Section 3(d)(ii) is unenforceable in the jurisdiction in which the Grantee is employed on the date hereof, such section nevertheless shall be enforceable to the full extent permitted by the laws of any jurisdiction in which the Company shall have the ability to seek remedies against the Grantee arising from any activity prohibited by this Section 3(d).

(iv) Notwithstanding any other provision in the Plan or this Agreement to the contrary, whenever the Company may be entitled or required by law, Company policy, including, without limitation, any applicable clawback, recoupment or other policies of the Company relating to the RSU Shares, or the requirements of an exchange on which the Company’s shares are listed for trading, to cause an Award to be forfeited or to recoup compensation received by the Grantee pursuant to the Plan, including recovery of shares distributed or the proceeds of shares sold or transferred, the Grantee shall accept such forfeiture and comply with any Company request or demand for recoupment of compensation received.

4. Vesting and Conversion of Restricted Units. Subject to Section 5, the Restricted Units shall vest and be converted into an equivalent number of RSU Shares that will be immediately distributed to the Grantee at the rate of 33-1/3% of the Restricted Units on each of the second, third and fourth anniversaries of the Grant Date (each such date a “Vesting Date”). RSU Shares will be distributed to the Grantee within 30 days following the applicable Vesting Date. The vesting of the Restricted Units is cumulative, but shall not exceed 100% of the RSU Shares subject to the Restricted Units. If the foregoing schedule would produce fractional RSU Shares on a Vesting Date, the number of RSU Shares for which the Restricted Units becomes vested on such Vesting Date shall be rounded down to the nearest whole RSU Share, with the portion that did not become vested as provided above, because of the rounding down, shall become vested on the fourth anniversary of the Grant Date so that the entire portion of the Restricted Units is vested on the fourth anniversary of the Grant Date, provided that the Grantee has not had a termination of employment prior to such date, except as provided in Section 5 below.

5. Termination of Employment; Change in Control.

(a) For purposes of the grant hereunder, any transfer of employment by the Grantee within the Hexcel Group or any other change in employment that does not constitute a “separation from service” within the meaning of Section 1.409A-1(h) of the Treasury Regulations (or any successor provision), shall not be considered a termination of employment by the applicable member of the Hexcel Group. Any change in employment that does constitute a

3

“separation from service” within the meaning of Section 1.409A-1(h) of the Treasury Regulations (or any successor provision) shall be considered a termination of employment.

(b) Subject to Section 5(c), if the Grantee’s employment with a member of the Hexcel Group terminates due to death, all Restricted Units shall immediately vest, be converted into RSU Shares and be distributed to the Grantee’s personal representative within 30 days of the date of such termination. If, prior to a Change in Control, the Grantee’s employment with a member of the Hexcel Group is terminated without Cause or due to the Grantee’s Disability, all Restricted Units shall continue to vest (and be converted into an equivalent number of RSU Shares that will be distributed to the Grantee) in accordance with Section 4 above. If, following Grantee’s involuntary termination without Cause or due to the Grantee’s Disability, (i) the Grantee dies prior to the earlier of (A) the fourth anniversary of the Grant Date or (B) a Change in Control, then all Restricted Units that have not previously vested shall immediately vest in full, be converted into RSU Shares and be distributed to the Grantee’s personal representative within 30 days of the date of such death or (ii) a Change in Control occurs prior to the fourth anniversary of the Grant Date, then on the closing of the Change in Control all Restricted Units that have not previously vested shall immediately vest in full, be converted into RSU Shares and be distributed to the Grantee within 30 days of the closing of the Change in Control.

(c) Notwithstanding any other provision contained herein or in the Plan, in the event (i) the Grantee’s employment with a member of the Hexcel Group is terminated without Cause or due to the Grantee’s Disability or (ii) the Grantee resigns from the Hexcel Group for Good Reason, in either case within the two-year period commencing on a Change in Control, then all Restricted Units that have not previously vested shall immediately vest in full and shall be converted into RSU Shares and be distributed to the Grantee within 30 days of the Grantee’s employment termination date, subject to Section 9(e) below. Notwithstanding anything herein to the contrary, the provisions of the Plan applicable to an event described in Article X(d) of the Plan, which would include a Change in Control, shall apply to the Restricted Units and, in such event, the Committee may take such actions as it deemed appropriate pursuant to the Plan, consistent with the requirements of the Applicable Regulations (as defined below).

(d) Upon a termination of the Grantee’s employment with a member of the Hexcel Group for any reason other than as set forth in Section 5(b) or Section 5(c) above, all Restricted Units which have not vested prior to or in connection with such termination shall thereupon automatically be forfeited, terminated and cancelled as of the applicable termination date without payment of any consideration by the Company, and the Grantee shall have no further rights hereunder.

6. Issuance of Shares. Any RSU Shares to be issued to the Grantee under this Agreement may be issued in either certificated form, or in uncertificated form (via the Direct Registration System or otherwise).

7. Taxes. Upon the conversion into RSU Shares of some or all of the Restricted Units, absent a notification by the Grantee to the Company which is received by the Company at least three business days prior to the date of such conversion to the effect that the Grantee will pay to the Company or its Subsidiary by check or wire transfer any taxes (“Withholding Taxes”) the Company reasonably determines it or its Subsidiary is required to withhold under applicable tax laws with respect to the Restricted Units which are the subject of such conversion, the Company will reduce the number of RSU Shares to be distributed to the Grantee in connection with such conversion by a number of RSU Shares the Fair Market Value on the date of such conversion of which is equal to the total amount of Withholding Taxes; provided, however, that,

4

even in the absence of such notification from the Grantee, the Committee shall retain the discretion at all times to require the Grantee to pay to the Company or its Subsidiary by check or wire transfer the Withholding Taxes. In the event the Grantee elects to pay to the Company or its Subsidiary the Withholding Taxes with respect to the conversion of some or all of the Restricted Units by check or wire transfer, the Company's obligation to deliver RSU Shares shall be subject to the payment in available funds by the Grantee of all Withholding Taxes with respect to the Restricted Units which are the subject of such conversion. The Company or its Subsidiary shall, to the extent permitted by law, have the right to deduct from any payment of any kind otherwise due to the Grantee any federal, state, local or other taxes required to be withheld with respect to such payment.

8. No Guarantee of Employment. Nothing set forth herein or in the Plan shall confer upon the Grantee any right of continued employment for any period by the Hexcel Group, or shall interfere in any way with the right of the Hexcel Group to terminate such employment.

9. Section 409A.

(a) It is intended that this Agreement comply in all respects with the requirements of Section 409A of the Code and applicable Treasury Regulations and other generally applicable guidance issued thereunder (collectively, the “Applicable Regulations”), and this Agreement shall be interpreted for all purposes in accordance with this intent.

(b) Notwithstanding any term or provision of this Agreement (including any term or provision of the Plan incorporated in this Agreement by reference), the parties hereto agree that, from time to time, the Company may, without prior notice to or consent of the Grantee, amend this Agreement to the extent determined by the Company, in the exercise of its discretion in good faith, to be necessary or advisable to prevent the inclusion in the Grantee’s gross income pursuant to the Applicable Regulations of any compensation intended to be deferred hereunder. The Company shall notify the Grantee as soon as reasonably practicable of any such amendment affecting the Grantee.

(c) In the event that the RSU Shares issuable or amounts payable under this Agreement are subject to any taxes, penalties or interest under the Applicable Regulations, the Grantee shall be solely liable for the payment of any such taxes, penalties or interest. Although the Company intends to administer the Plan and this Agreement to prevent adverse taxation under the Applicable Regulations, the Company does not represent nor warrant that the Plan or this Agreement complies with any provision of federal, state, local or other tax law.

(d) Except as otherwise specifically provided herein, the time for distribution of the RSU Shares as provided in Sections 4, 5(b) and 5(c) shall not be accelerated or delayed for any reason, unless to the extent necessary to comply with or permitted under the Applicable Regulations.

(e) Notwithstanding any term or provision of this Agreement to the contrary, if the Grantee is a specified employee (as defined in Section 409A(a)(2)(B)(i) of the Code) as of the date of his or her termination of employment, then any RSU Shares issuable or amounts payable to the Grantee under this Agreement on account of his or her termination of employment shall be issued or paid to the Grantee upon the later of (i) the date such RSU Shares or amounts would otherwise be issuable or payable to the Grantee under this Agreement without regard to this Section 9(e) and (ii) the date which is six months following the date of the Grantee’s termination of employment. The preceding sentence shall not apply in the

5

event Grantee’s termination of employment is due to his or her death. If the Grantee should terminate employment for a reason other than his or her death but subsequently die during the six-month period described in subclause (ii) of the first sentence above, such six-month period shall be deemed to end on the date of the Grantee’s death.

10. Notices. Any notice required or permitted under this Agreement shall be deemed given when delivered personally, or when deposited in a United States Post Office, postage prepaid, addressed, as appropriate, to the Grantee at the last address specified in Grantee’s employment records, or such other address as the Grantee may designate in writing to the Company, Attention: Corporate Secretary, or such other address as the Company may designate in writing to the Grantee.

11. Failure to Enforce Not a Waiver. The failure of either party hereto to enforce at any time any provision of this Agreement shall in no way be construed to be a waiver of such provision or of any other provision hereof.

12. Governing Law/Jurisdiction/Resolution of Disputes. This Agreement shall be governed by and construed according to the laws of the State of Delaware, USA, without regard to the conflicts of laws provisions thereof. Any disputes arising under or in connection with this Agreement shall be resolved by binding arbitration before three arbitrators constituting an Employment Dispute Tribunal, to be held in the state of Connecticut, USA in accordance with the commercial rules and procedures of the American Arbitration Association. Judgment upon the award rendered by the arbitrator shall be final and subject to appeal only to the extent permitted by law. Each party shall bear such party’s own expenses incurred in connection with any arbitration. Anything to the contrary notwithstanding, each party hereto has the right to proceed with a court action for injunctive relief or relief from violations of law not within the jurisdiction of an arbitrator.

13. Miscellaneous. This Agreement cannot be changed or terminated orally. This Agreement and the Plan contain the entire agreement between the parties relating to the subject matter hereof. This Agreement inures to the benefit of, and is binding upon, the Company and its successors-in-interest and its assigns, and the Grantee, the Grantee’s heirs, executors, administrators and legal representatives. The section headings herein are intended for reference only and shall not affect the interpretation hereof.

14. Severability.The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.

15. Definitions. For purposes of this Agreement:

(a) “Cause” shall have the meaning ascribed to such term in the Executive Severance Agreement or Executive Severance Policy, as applicable;

(b) “Change in Control” shall have the meaning ascribed to such term in the Executive Severance Agreement;

(c) “Disability” shall have the meaning ascribed to such term in the Executive Severance Agreement;

6

(d) “Exchange Act” shall mean the U.S. Securities Exchange Act of 1934, as amended;

(e) “Executive Severance Agreement” shall mean the Executive Severance Agreement between the Company and the Grantee, as amended from time to time;

(f) “Good Reason” shall have the meaning ascribed to such term in the Executive Severance Agreement;

(g) “Hexcel Group” shall mean the Company and its Subsidiaries;

(h) “Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) of the Exchange Act and shall include “persons acting as a group” within the meaning of Section 1.409A-3(i)(5)(v)(B) of the Treasury Regulations (or any successor provision); and

(i) “Subsidiary” shall mean any “subsidiary” of the Company within the meaning of Rule 405 under the Securities Act.

7

Annex A

NOTICE OF GRANT

RESTRICTED STOCK UNIT AGREEMENT

HEXCEL CORPORATION 2013 INCENTIVE STOCK PLAN

The following employee of Hexcel Corporation, a Delaware corporation, or a Subsidiary, has been granted Restricted Stock Units in accordance with the terms of this Notice of Grant and the Restricted Stock Unit Agreement to which this Notice of Grant is attached.

The terms below shall have the meanings ascribed to them below when used in the Restricted Stock Unit Agreement.

Grantee

Grant Date

Aggregate Number of RSUs

Granted

IN WITNESS WHEREOF, the parties hereby agree to the terms of this Notice of Grant and the Restricted Stock Unit Agreement to which this Notice of Grant is attached and execute this Notice of Grant and Restricted Stock Unit Agreement as of the Grant Date.

_____________________________ HEXCEL CORPORATION

Grantee

By:____________________

Gail E. Lehman

Executive Vice President, General Counsel and Corporate Secretary

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EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Thomas C. Gentile III, 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.

July18, 2024	/s/ Thomas C. Gentile III
(Date)	Thomas C. Gentile III
	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 18, 2024	/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 ended June 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Thomas C. Gentile III, 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 18, 2024	/s/ Thomas C. Gentile III
(Date)	Thomas C. Gentile III
	Chief Executive Officer and President
July 18, 2024	/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.

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2024	Jul. 15, 2024
Cover [Abstract]
Entity Registrant Name	Hexcel Corporation
Entity Central Index Key	0000717605
Document Type	10-Q
Document Period End Date	Jun. 30, 2024
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		81,748,036,000,000
Document Fiscal Year Focus	2024
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

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 75.4	$ 227.0
Accounts receivable, net	283.1	234.7
Inventories, net	351.5	334.4
Contract assets	34.5	25.1
Prepaid and other Current Assets	63.1	43.0
Total current assets	807.6	864.2
Property, plant and equipment	3,211.8	3,195.5
Less accumulated depreciation	(1,563.1)	(1,516.8)
Net property, plant and equipment	1,648.7	1,678.7
Goodwill and other intangible assets, net	246.8	251.3
Investments in affiliated companies	5.0	5.0
Other assets	119.5	119.3
Total assets	2,827.6	2,918.5
Current liabilities:
Short-term borrowings	0.1	0.1
Accounts payable	124.8	159.1
Accrued compensation and benefits	80.2	75.7
Financial instruments	3.2	6.0
Accrued liabilities	85.4	75.0
Total current liabilities	293.7	315.9
Long-term debt	794.9	699.4
Retirement obligations	31.1	42.6
Deferred income taxes	106.5	110.6
Other non-current liabilities	30.2	33.5
Total liabilities	1,256.4	1,202.0
Stockholders' equity:
Common stock, $0.01 par value, 200.0 shares authorized, 111.4 shares and 110.8 shares issued at June 30, 2024 and December 31, 2023, respectively	1.1	1.1
Additional paid-in capital	959.6	936.8
Retained earnings	2,230.2	2,168.7
Accumulated other comprehensive loss	(91.3)	(74.1)
Total stockholders' equity including treasury stock value	3,099.6	3,032.5
Less - Treasury stock, at cost, 29.7 shares at June 30, 2024 and 26.7 shares at December 31, 2023	(1,528.4)	(1,316.0)
Total stockholders' equity	1,571.2	1,716.5
Total liabilities and stockholders' equity	$ 2,827.6	$ 2,918.5

XML

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	200.0	200.0
Common stock, shares issued	111.4	110.8
Treasury Stock, Common, Shares	29.7	26.7

XML

Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Net sales	$ 500.4	$ 454.3	$ 972.7	$ 912.0
Cost of sales	373.8	343.5	727.9	673.5
Gross margin	126.6	110.8	244.8	238.5
Selling, general and administrative expenses	39.9	35.7	88.9	86.5
Research and technology expenses	14.7	13.3	29.8	27.2
Other operating expense	0.2	0.5	1.4	0.7
Operating income	71.8	61.3	124.7	124.1
Interest expense, net	8.1	9.2	14.6	18.6
Income before income taxes, and equity in earnings from affiliated companies	63.7	52.1	110.1	105.5
Income tax expense	13.7	11.5	23.6	23.2
Income before equity in earnings from affiliated companies	50.0	40.6	86.5	82.3
Equity in earnings from affiliated companies	0.0	1.9	0.0	2.9
Net income	$ 50.0	$ 42.5	$ 86.5	$ 85.2
Basic net income per common share	$ 0.61	$ 0.5	$ 1.04	$ 1.01
Diluted net income per common share	$ 0.6	$ 0.5	$ 1.03	$ 1
Weighted-average common shares:
Basic	82.5	84.7	83.2	84.6
Diluted	83.2	85.6	84.0	85.5

XML

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 50.0	$ 42.5	$ 86.5	$ 85.2
Currency translation adjustments	(2.9)	6.1	(13.3)	18.1
Net unrealized pension and other benefit actuarial losses and prior service credits (net of tax)	0.0	(1.0)	(0.1)	(1.0)
Net unrealized gains (losses) on financial instruments (net of tax)	0.6	1.8	(3.8)	12.1
Total other comprehensive income (loss)	(2.3)	6.9	(17.2)	29.2
Comprehensive income	$ 47.7	$ 49.4	$ 69.3	$ 114.4

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities
Net income	$ 86.5	$ 85.2
Reconciliation to net cash provided by operating activities:
Depreciation and amortization	62.0	61.7
Amortization related to financing	0.2	0.4
Deferred income taxes	(3.0)	(6.7)
Equity in earnings from affiliated companies	0.0	(2.9)
Stock-based compensation	16.4	15.7
Restructuring expenses, net of payments	0.2	(3.6)
Impairment of assets		1.7
Changes in assets and liabilities:
Increase in accounts receivable	(50.4)	(33.9)
Increase in inventories	(21.8)	(36.8)
Increase in prepaid expenses and other current assets	(28.2)	(7.3)
Decrease in accounts payable/accrued liabilities	(17.9)	(35.9)
Other – net	(6.8)	(7.5)
Net cash provided by operating activities	37.2	30.1
Cash flows from investing activities
Capital expenditures	(51.6)	(74.8)
Proceeds from sale of investments	0.0	2.5
Net cash used for investing activities	(51.6)	(72.3)
Cash flows from financing activities
Issuance costs related to senior unsecured credit facilities	0.0	(2.5)
Repayment of finance lease obligation and other debt, net	(201.8)	0.0
Proceeds (repayment) of finance lease obligation and other debt, net	0.1	(0.1)
Dividends paid	(25.0)	(21.1)
Activity under stock plans	(4.3)	2.7
Net cash provided by (used for) financing activities	(136.0)	34.0
Effect of exchange rate changes on cash and cash equivalents	(1.2)	0.4
Net decrease in cash and cash equivalents	(151.6)	(7.8)
Cash and cash equivalents at beginning of period	227.0	112.0
Cash and cash equivalents at end of period	75.4	104.2
Supplemental data:
Accrual basis additions to plant, property, and equipment	41.1	70.5
Senior Unsecured Credit Facility Two Thousand Twenty Eight [Member]
Cash flows from financing activities
Proceeds from Long-Term Lines of Credit	95.0	98.0
Repayment of senior unsecured credit facility	0.0	(18.0)
Senior Unsecured Credit Facility Two Thousand Twenty Four [Member]
Cash flows from financing activities
Proceeds from Long-Term Lines of Credit	0.0	65.0
Repayment of senior unsecured credit facility	$ 0.0	$ (90.0)

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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, 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 income - net of tax	22.3				22.3
Stock-based activity	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 income - net of tax	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 income - net of tax	6.9				6.9
Stock-based activity	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)
Beginning Balance at Dec. 31, 2023	1,716.5	1.1	936.8	2,168.7	(74.1)	(1,316.0)
Increase (Decrease) in Stockholders' Equity
Net income	36.5			36.5
Dividends paid on common stock	(12.6)			(12.6)
Repurchases of common stock	(100.7)					(100.7)
Change in other comprehensive income - net of tax	(14.9)				(14.9)
Stock-based activity	7.3		17.8			(10.5)
Ending Balance at Mar. 31, 2024	1,632.1	1.1	954.6	2,192.6	(89.0)	(1,427.2)
Beginning Balance at Dec. 31, 2023	1,716.5	1.1	936.8	2,168.7	(74.1)	(1,316.0)
Increase (Decrease) in Stockholders' Equity
Net income	86.5
Change in other comprehensive income - net of tax	(17.2)				(17.2)
Ending Balance at Jun. 30, 2024	1,571.2	1.1	959.6	2,230.2	(91.3)	(1,528.4)
Beginning Balance at Mar. 31, 2024	1,632.1	1.1	954.6	2,192.6	(89.0)	(1,427.2)
Increase (Decrease) in Stockholders' Equity
Net income	50.0			50.0
Dividends paid on common stock	(12.4)			(12.4)
Repurchases of common stock	(101.1)					(101.1)
Change in other comprehensive income - net of tax	(2.3)				(2.3)
Stock-based activity	4.9		5.0			(0.1)
Ending Balance at Jun. 30, 2024	$ 1,571.2	$ 1.1	$ 959.6	$ 2,230.2	$ (91.3)	$ (1,528.4)

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Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]
Dividends paid on common stock price per share	$ 0.15	$ 0.15	$ 0.125	$ 0.125

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Significant Accounting Policies

6 Months Ended

Jun. 30, 2024

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, 2023 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, 2023 was derived from the audited 2023 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 2023 Annual Report on Form 10-K.

Investments in Affiliated Companies

Results for the quarters and six months ended June 30, 2023 included our 50% equity ownership investment in the joint venture in Malaysia which was accounted for using the equity method of accounting. We sold our interest in the joint venture in December 2023.

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Net Income Per Common Share

6 Months Ended

Jun. 30, 2024

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)	2024		2023		2024		2023
Basic net income per common share:
Net income	$	50.0	$	42.5	$	86.5	$	85.2
Weighted average common shares outstanding		82.5		84.7		83.2		84.6
Basic net income per common share	$	0.61	$	0.50	$	1.04	$	1.01
Diluted net income per common share:
Net income	$	50.0	$	42.5		86.5		85.2
Weighted average common shares outstanding — Basic		82.5		84.7		83.2		84.6
Plus incremental shares from assumed conversions:
Restricted stock units		0.4		0.5		0.4		0.5
Stock options		0.3		0.4		0.4		0.4
Weighted average common shares outstanding — Dilutive		83.2		85.6		84.0		85.5
Diluted net income per common share	$	0.60	$	0.50	$	1.03	$	1.00

Total common stock equivalents of 0.5 million and 0.2 million were excluded from the computation of diluted net income per share for the quarters ended June 30, 2024 and 2023, respectively, because to do so would have been anti-dilutive. Total common stock equivalents of 0.4 million and 0.3 million were excluded from the computation of diluted net income per share for the six months ended June 30, 2024 and 2023, respectively, because to do so would have been anti-dilutive.

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Inventories

6 Months Ended

Jun. 30, 2024

Inventory Disclosure [Abstract]

Inventories

Note 3 — Inventories

(In millions)	June 30, 2024		December 31, 2023
Raw materials	$	153.4	$	131.4
Work in progress	$	52.4		46.0
Finished goods	$	145.7		157.0
Total Inventory	$	351.5	$	334.4

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Retirement and Other Postretirement Benefit Plans

6 Months Ended

Jun. 30, 2024

Retirement Benefits [Abstract]

Retirement and Other Postretirement Benefit Plans

Note 4 — Retirement and Other Postretirement Benefit Plans

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

Defined Benefit Retirement Plans

Net Periodic Benefit Costs

Net periodic benefit costs of our defined benefit retirement plans for the quarters and six months ended June 30, 2024 and 2023 were as follows:

	Quarter Ended June 30,					Six Months Ended June 30,
(In millions)	2024			2023		2024			2023
U.S. Nonqualified Defined Benefit Retirement Plans
Service cost	$	-		$	0.3	$	-		$	0.6
Interest cost		0.2			0.1		0.4			0.2
Net amortization		(0.1	)		0.2		(0.2	)		0.4
Net periodic benefit cost	$	0.1		$	0.6	$	0.2		$	1.2

(In millions)	June 30, 2024		December 31, 2023
Amounts recognized on the balance sheet for U.S. nonqualified defined benefit retirement plans:
Accrued liabilities	$	13.8	$	1.3
Other non-current liabilities		4.4		16.8
Total accrued benefit	$	18.2	$	18.1

	Quarter Ended June 30,					Six Months Ended June 30,
(In millions)	2024		2023			2024			2023
European Defined Benefit Retirement Plans
Service cost	$	0.1	$	0.1		$	0.3		$	0.3
Interest cost		0.2		1.3			0.3			2.5
Expected return on plan assets		-		(1.2	)		(0.1	)		(2.4	)
Net amortization and deferral		-		0.6			0.1			1.2
Net periodic benefit cost	$	0.3	$	0.8		$	0.6		$	1.6

(In millions)	June 30, 2024		December 31, 2023
Amounts recognized on the balance sheet for European defined benefit retirement plans:
Accrued liabilities		1.4		0.8
Other non-current liabilities		12.6		12.3
Total accrued benefit	$	14.0	$	13.1

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, 2024 and 2023, amounts unrelated to service costs were a charge of $0.3 million and $1.0 million, respectively. For the six months ended June 30, 2024 and 2023, amounts unrelated to service costs were a charge of $0.6 million and $2.0 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 2024 to cover unfunded benefits. We expect to contribute a total of $0.7 million in 2024 to cover unfunded benefits.

Contributions to our European defined benefit retirement plans during the six months ended June 30, 2024 were not material. We plan to contribute approximately $1.1 million during 2024 to our European plans. .

Postretirement Health Care and Life Insurance Benefit Plans

We recorded $0.5 million of net amortization gain deferral for the six months ended June 30, 2023 and an immaterial amount for the six months ended June 30, 2024. Net periodic benefit costs of our postretirement health care and life insurance benefit plans for the six months ended June 30, 2024 and 2023 were immaterial.

(In millions)	June 30, 2024		December 31, 2023
Amounts recognized on the balance sheet:
Accrued liabilities	$	0.2	$	0.2
Other non-current liabilities		0.9		0.9
Total accrued benefit	$	1.1	$	1.1

Amounts contributed in connection with our postretirement plans were immaterial for both the six months ended June 30, 2024 and 2023. We periodically fund our postretirement plans to pay covered expenses as they are incurred. We expect to contribute approximately $0.2 million in 2024 to cover unfunded benefits.

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Debt

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Debt

Note 5 –– Debt

(In millions)	June 30, 2024			December 31, 2023
Current portion of finance lease	$	0.1		$	0.1
Current portion of debt		0.1			0.1
Senior unsecured credit facility		95.0			-
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		(0.5	)		(0.7	)
Senior notes --- deferred financing costs		(1.2	)		(1.6	)
Non-current portion of finance lease and other debt		1.6			1.7
Long-term debt		794.9			699.4
Total debt	$	795.0		$	699.5

On April 25, 2023, the Company entered into a new credit agreement (the “Credit Agreement”) to refinance its senior unsecured credit facility agreement (the “Facility”). Under the terms of the Credit Agreement the borrowing capacity remained 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 are amortized over the life of the Facility.

Borrowings under the Facility bear interest 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 was 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.

As of June 30, 2024, total borrowings under the Facility were $95 million which approximated fair value. Outstanding letters of credit reduce the amount available for borrowing under the Facility. As of June 30, 2024, there were no issued letters of credit under the Facility, resulting in undrawn availability under the Facility of $655 million. The weighted average interest rate for the Facility was 6.7% for the six months ended June 30, 2024. The Company was in compliance with all debt covenants as of June 30, 2024.

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 by 0.25% each time a credit rating applicable to the notes is downgraded. The maximum rate is 5.95%. The effective interest rate for the three months ended June 30, 2024 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 $384.9 million at June 30, 2024.

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. The maximum rate is 6.7%. The effective interest rate for the three months ended June 30, 2024 was 4.9%. Based on quoted prices, the fair value of the Senior Unsecured Notes due in 2025 was $297.1 million at June 30, 2024.

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Derivative Financial Instruments

6 Months Ended

Jun. 30, 2024

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, 2024 and December 31, 2023, we had no outstanding interest rate swap agreements.

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 2026. The aggregate notional amount of these contracts was $373.4 million and $393.3 million at June 30, 2024 and December 31, 2023, 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, losses of $1.9 million and $9.1 million were recorded in other comprehensive (loss) income for the quarter and six months ended June 30, 2024, respectively, and gains of $4.3 million and $8.3 million were recorded for the quarter and six months ended June 30, 2023, respectively. We recognized losses of $1.3 million and $2.0 million in gross margin during the quarters and six months ended June 30, 2024, respectively, and losses of $2.6 million and $6.3 million for the quarter and six months ended June 30, 2023, 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, 2024, we recognized net foreign exchange gains of $0.4 million and $2.0 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 $0.1 million and gains of $0.3 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 (loss) income for the quarters and six months ended June 30, 2024 and June 30, 2023 was as follows:

	Quarter Ended June 30,						Six Months Ended June 30,
(In millions)	2024			2023			2024			2023
Unrealized gains (losses) at beginning of period, net of tax	$	0.5		$	(4.8	)	$	5.3		$	(10.5	)
Losses reclassified to net sales		0.8			2.0			1.3			4.7
Increase (decrease) in fair value		(1.3	)		3.2			(6.6	)		6.2
Unrealized gains (losses) at end of period, net of tax	$	-		$	0.4		$	-		$	0.4

Unrealized gains of $0.4 million recorded in accumulated other comprehensive loss, less taxes of $0.1 million, as of June 30, 2024, are expected to be reclassified into earnings over the next twelve months as the hedged sales are recorded.

Commodity Swap Agreements

We use commodity swap agreements to hedge against price fluctuations of raw materials, including propylene (the principal component of acrylonitrile). As of June 30, 2024, we had commodity swap agreements with a notional value of $18.3 million. The swaps mature monthly through June 2026. 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, 2024 and December 31, 2023 were as follows:

	Prepaid and Other Current Assets				Other Assets				Current Liabilities				Non-Current Liabilities
(In millions)	June 30, 2024		December 31, 2023		June 30, 2024		December 31, 2023		June 30, 2024		December 31, 2023		June 30, 2024		December 31, 2023
Derivative Products
Foreign currency forward exchange contracts	$	3.5	$	4.8	$	0.8	$	5.5	$	2.9	$	3.2	$	1.2	$	-
Undesignated hedges		-		-		-		-		0.1		1.4		-		-
Commodity swaps		1.3		0.5		0.2		0.2		0.2		1.5		0.2		0.2
Cross currency and interest rate swap		6.1		4.3		6.1		3.7		-		-		-		-
Total Derivative Products	$	10.9	$	9.6	$	7.1	$	9.4	$	3.2	$	6.1	$	1.4	$	0.2

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Fair Value Measurements

6 Months Ended

Jun. 30, 2024

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. 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, 2024 that would reduce the receivable amount owed, if any, to the Company.

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Revenue

6 Months Ended

Jun. 30, 2024

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, 2024 and 2023:

	Quarter Ended June 30,				Six Months Ended June 30,
(In millions)	2024		2023		2024		2023
Consolidated Net Sales	$	500.4	$	454.3	$	972.7	$	912.0
Commercial Aerospace		320.7		264.3		620.0		548.8
Space & Defense		138.9		137.5		278.0		263.7
Industrial		40.8		52.5		74.7		99.5

Revenue recognized over time gives rise to contract assets, which represent revenue recognized but unbilled. Contract assets are included in our Condensed Consolidated Balance Sheets as a component of current assets. The activity related to contract assets for the six months ended June 30, 2024 was as follows:

(In millions)	Composite Material		Engineered Products		Total
Balance at December 31, 2023	$	8.3	$	16.8	$	25.1
Net revenue billed		1.6		4.4		6.0
Balance at March 31, 2024		9.9		21.2		31.1
Net revenue billed	$	0.4	$	3.0		3.4
Balance at June 30, 2024	$	10.3	$	24.2	$	34.5

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, 2024

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, 2024 and 2023 were as follows:

	(Unaudited)
	Composite		Engineered		Corporate &
(In millions)	Materials		Products		Other (a)			Total
Quarter Ended June 30, 2024
Net sales to external customers	$	408.6	$	91.8	$	—		$	500.4
Intersegment sales		23.9		0.6		(24.5	)		—
Total sales	$	432.5	$	92.4	$	(24.5	)	$	500.4
Other operating expense		-		0.2		—			0.2
Operating income (loss)		74.3		13.0		(15.5	)		71.8
Depreciation and amortization		27.3		3.7		—			31.0
Stock-based compensation		1.1		0.3		1.9			3.3
Accrual basis additions to capital expenditures		18.6		3.9		—			22.5
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
Six Months Ended June 30, 2024
Net sales to external customers	$	788.1	$	184.6	$	—		$	972.7
Intersegment sales		47.2		0.9		(48.1	)		—
Total sales	$	835.3	$	185.5	$	(48.1	)	$	972.7
Other operating expense		0.8		0.6		—			1.4
Operating income (loss)		138.0		25.9		(39.2	)		124.7
Depreciation and amortization		54.5		7.5		—			62.0
Stock-based compensation		4.2		1.1		11.1			16.4
Accrual basis additions to capital expenditures		35.3		5.8		—			41.1
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

(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, 2023	$	87.2		$	164.1		$	251.3
Amortization expense		(0.4	)		(1.3	)		(1.7	)
Currency translation adjustments		(1.6	)		(1.2	)		(2.8	)
Balance at June 30, 2024	$	85.2		$	161.6		$	246.8

At June 30, 2024, the balance of goodwill and intangible assets was $187.6 million and $59.2 million, respectively.

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Accumulated Other Comprehensive Loss

6 Months Ended

Jun. 30, 2024

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, 2024 and December 31, 2023 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, 2023	$	1.0		$	5.7		$	(80.8	)	$	(74.1	)
Other comprehensive (loss) income before reclassifications		0.1			(1.2	)		(13.3	)		(14.4	)
Amounts reclassified from accumulated other comprehensive loss		(0.2	)		(2.6	)		-			(2.8	)
Other comprehensive (loss) income		(0.1	)		(3.8	)		(13.3	)		(17.2	)
Balance at June 30, 2024	$	0.9		$	1.9		$	(94.1	)	$	(91.3	)

(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, 2024 and 2023 were as follows:

	Quarter Ended June 30, 2024						Quarter Ended June 30, 2023						Six Months Ended June 30, 2024						Six Months Ended June 30, 2023
(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	$	(0.1	)	$	(0.1	)	$	0.5		$	0.4		$	(0.2	)	$	(0.2	)	$	1.0		$	0.8
Derivative Products
Foreign currency forward exchange contracts		1.3			0.9			2.6			1.9			2.0			1.3			6.3			4.6
Commodity swaps		0.3			0.2			1.8			1.4			-			(0.1	)		2.7			2.1
Interest rate swaps		(1.5	)		(1.1	)		(1.1	)		(0.8	)		(5.1	)		(3.8	)		(3.2	)		(2.4	)
Total Derivative Products	$	0.1		$	-		$	3.3		$	2.5		$	(3.1	)	$	(2.6	)	$	5.8		$	4.3

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2024

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 judgment 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 January 5, 2024, the U.S. District Court stayed the foregoing claim initiated by OCC until the completion of the Passaic-related Consent Decree process.

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. 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, 2024 and December 31, 2023, our aggregate environmental related accruals were $0.5 million and $0.7 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, 2024, and accrued warranty cost, included in “accrued liabilities” in the Condensed Consolidated Balance Sheets at June 30, 2024 and December 31, 2023, were as follows:

	Product
(In millions)	Warranties
Balance as of December 31, 2023	$	2.8
Warranty expense		0.8
Deductions and other		(0.3	)
Balance as of March 31, 2024	$	3.3
Warranty expense		1.4
Deductions and other		(1.2	)
Balance as of June 30, 2024	$	3.5

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Restructuring

6 Months Ended

Jun. 30, 2024

Restructuring and Related Activities [Abstract]

Restructuring

Note 12 — Restructuring

We recognized restructuring charges of $0.2 million and $1.4 million for the quarter and six months ended June 30, 2024, respectively, primarily related to severance. Anticipated future cash payments as of June 30, 2024 were $1.4 million.

			Activity for the Quarter Ended June 30, 2024
	March 31,		Restructuring				Cash					June 30,
(In Millions)	2024		Charge		FX Impact		Paid			Non-Cash		2024
Employee termination	$	1.9	$	0.2	$	0.1	$	(0.8	)	$	—	$	1.4
Impairment and other		—		—		—		—			—		—
Total	$	1.9	$	0.2	$	0.1	$	(0.8	)	$	—	$	1.4
			Activity for the Six Months Ended June 30, 2024
	December 31,		Restructuring				Cash					June 30,
(In Millions)	2023		Charge		FX Impact		Paid			Non-Cash		2024
Employee termination	$	1.2	$	1.4	$	—	$	(1.2	)	$	—	$	1.4
Impairment and other		—		—		—		—			—		—
Total	$	1.2	$	1.4	$	—	$	(1.2	)	$	—	$	1.4

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Capital Stock

6 Months Ended

Jun. 30, 2024

Stockholders' Equity Note [Abstract]

Capital Stock

Note 13 — Capital Stock

Under the share repurchase plan adopted by the Board of Directors of the Company (the "Board") in May 2018 (the “2018 Repurchase Plan"), the Board authorized $500 million for the repurchase of the Company's common stock which was fully utilized as of June 30, 2024. The repurchase of the Company’s common stock under the 2018 Repurchase Plan was all made in open market transactions. On February 19, 2024, the Board approved a $300 million share repurchase plan (the “2024 Share Repurchase Plan”) which is in addition to the amount that remained available for repurchases under the 2018 Repurchase Plan. The repurchase of the Company’s common stock under the 2024 Share Repurchase Plan are anticipated to be made in open market transactions, block transactions, privately negotiated purchase transactions or other purchase techniques at the discretion of management based upon consideration of market, business, legal, accounting, and other factors.

During the three months ended June 30, 2024, the Company repurchased 1,459,736 shares of common stock in open market transactions under the share repurchase plans at an average price of $68.51 per share and at a cost of $101.1 million, including commissions and excise tax, leaving approximately $285.3 million available for additional repurchases under the 2024 Share Repurchase Plan. During the six months ended June 30, 2024, the Company repurchased a total of 2,857,491 shares at a total cost of $201.8 million.. The acquisition of these shares was accounted for under the treasury method.

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Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2024

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, 2023 was derived from the audited 2023 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 2023 Annual Report on Form 10-K.

Investments in Affiliated Companies

Investments in Affiliated Companies

Results for the quarters and six months ended June 30, 2023 included our 50% equity ownership investment in the joint venture in Malaysia which was accounted for using the equity method of accounting. We sold our interest in the joint venture in December 2023.

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Net Income Per Common Share (Tables)

6 Months Ended

Jun. 30, 2024

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)	2024		2023		2024		2023
Basic net income per common share:
Net income	$	50.0	$	42.5	$	86.5	$	85.2
Weighted average common shares outstanding		82.5		84.7		83.2		84.6
Basic net income per common share	$	0.61	$	0.50	$	1.04	$	1.01
Diluted net income per common share:
Net income	$	50.0	$	42.5		86.5		85.2
Weighted average common shares outstanding — Basic		82.5		84.7		83.2		84.6
Plus incremental shares from assumed conversions:
Restricted stock units		0.4		0.5		0.4		0.5
Stock options		0.3		0.4		0.4		0.4
Weighted average common shares outstanding — Dilutive		83.2		85.6		84.0		85.5
Diluted net income per common share	$	0.60	$	0.50	$	1.03	$	1.00

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Inventories (Tables)

6 Months Ended

Jun. 30, 2024

Inventory Disclosure [Abstract]

Schedule of Inventories

(In millions)	June 30, 2024		December 31, 2023
Raw materials	$	153.4	$	131.4
Work in progress	$	52.4		46.0
Finished goods	$	145.7		157.0
Total Inventory	$	351.5	$	334.4

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Retirement and Other Postretirement Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2024

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, 2024 and 2023 were as follows:

	Quarter Ended June 30,					Six Months Ended June 30,
(In millions)	2024			2023		2024			2023
U.S. Nonqualified Defined Benefit Retirement Plans
Service cost	$	-		$	0.3	$	-		$	0.6
Interest cost		0.2			0.1		0.4			0.2
Net amortization		(0.1	)		0.2		(0.2	)		0.4
Net periodic benefit cost	$	0.1		$	0.6	$	0.2		$	1.2

Schedule of Amounts Recognized on Balance Sheet

(In millions)	June 30, 2024		December 31, 2023
Amounts recognized on the balance sheet for U.S. nonqualified defined benefit retirement plans:
Accrued liabilities	$	13.8	$	1.3
Other non-current liabilities		4.4		16.8
Total accrued benefit	$	18.2	$	18.1

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)	2024		2023			2024			2023
European Defined Benefit Retirement Plans
Service cost	$	0.1	$	0.1		$	0.3		$	0.3
Interest cost		0.2		1.3			0.3			2.5
Expected return on plan assets		-		(1.2	)		(0.1	)		(2.4	)
Net amortization and deferral		-		0.6			0.1			1.2
Net periodic benefit cost	$	0.3	$	0.8		$	0.6		$	1.6

Schedule of Amounts Recognized on Balance Sheet

(In millions)	June 30, 2024		December 31, 2023
Amounts recognized on the balance sheet for European defined benefit retirement plans:
Accrued liabilities		1.4		0.8
Other non-current liabilities		12.6		12.3
Total accrued benefit	$	14.0	$	13.1

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, 2024 and 2023 were immaterial.

(In millions)	June 30, 2024		December 31, 2023
Amounts recognized on the balance sheet:
Accrued liabilities	$	0.2	$	0.2
Other non-current liabilities		0.9		0.9
Total accrued benefit	$	1.1	$	1.1

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Debt (Tables)

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Schedule of Debt and Capital Lease Obligations

(In millions)	June 30, 2024			December 31, 2023
Current portion of finance lease	$	0.1		$	0.1
Current portion of debt		0.1			0.1
Senior unsecured credit facility		95.0			-
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		(0.5	)		(0.7	)
Senior notes --- deferred financing costs		(1.2	)		(1.6	)
Non-current portion of finance lease and other debt		1.6			1.7
Long-term debt		794.9			699.4
Total debt	$	795.0		$	699.5

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Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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

The change in fair value of our foreign currency forward exchange contracts under hedge designations recorded net of tax within accumulated other comprehensive (loss) income for the quarters and six months ended June 30, 2024 and June 30, 2023 was as follows:

	Quarter Ended June 30,						Six Months Ended June 30,
(In millions)	2024			2023			2024			2023
Unrealized gains (losses) at beginning of period, net of tax	$	0.5		$	(4.8	)	$	5.3		$	(10.5	)
Losses reclassified to net sales		0.8			2.0			1.3			4.7
Increase (decrease) in fair value		(1.3	)		3.2			(6.6	)		6.2
Unrealized gains (losses) at end of period, net of tax	$	-		$	0.4		$	-		$	0.4

Schedule of Fair Values of Outstanding Financial Instruments

The fair values of outstanding derivative financial instruments as of June 30, 2024 and December 31, 2023 were as follows:

	Prepaid and Other Current Assets				Other Assets				Current Liabilities				Non-Current Liabilities
(In millions)	June 30, 2024		December 31, 2023		June 30, 2024		December 31, 2023		June 30, 2024		December 31, 2023		June 30, 2024		December 31, 2023
Derivative Products
Foreign currency forward exchange contracts	$	3.5	$	4.8	$	0.8	$	5.5	$	2.9	$	3.2	$	1.2	$	-
Undesignated hedges		-		-		-		-		0.1		1.4		-		-
Commodity swaps		1.3		0.5		0.2		0.2		0.2		1.5		0.2		0.2
Cross currency and interest rate swap		6.1		4.3		6.1		3.7		-		-		-		-
Total Derivative Products	$	10.9	$	9.6	$	7.1	$	9.4	$	3.2	$	6.1	$	1.4	$	0.2

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Revenue (Tables)

6 Months Ended

Jun. 30, 2024

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, 2024 and 2023:

	Quarter Ended June 30,				Six Months Ended June 30,
(In millions)	2024		2023		2024		2023
Consolidated Net Sales	$	500.4	$	454.3	$	972.7	$	912.0
Commercial Aerospace		320.7		264.3		620.0		548.8
Space & Defense		138.9		137.5		278.0		263.7
Industrial		40.8		52.5		74.7		99.5

Schedule of Activity Related to Contract Assets

The activity related to contract assets for the six months ended June 30, 2024 was as follows:

(In millions)	Composite Material		Engineered Products		Total
Balance at December 31, 2023	$	8.3	$	16.8	$	25.1
Net revenue billed		1.6		4.4		6.0
Balance at March 31, 2024		9.9		21.2		31.1
Net revenue billed	$	0.4	$	3.0		3.4
Balance at June 30, 2024	$	10.3	$	24.2	$	34.5

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Schedule of Operating Segment Reporting Information

Financial information for our operating segments for the quarters and six months ended June 30, 2024 and 2023 were as follows:

	(Unaudited)
	Composite		Engineered		Corporate &
(In millions)	Materials		Products		Other (a)			Total
Quarter Ended June 30, 2024
Net sales to external customers	$	408.6	$	91.8	$	—		$	500.4
Intersegment sales		23.9		0.6		(24.5	)		—
Total sales	$	432.5	$	92.4	$	(24.5	)	$	500.4
Other operating expense		-		0.2		—			0.2
Operating income (loss)		74.3		13.0		(15.5	)		71.8
Depreciation and amortization		27.3		3.7		—			31.0
Stock-based compensation		1.1		0.3		1.9			3.3
Accrual basis additions to capital expenditures		18.6		3.9		—			22.5
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
Six Months Ended June 30, 2024
Net sales to external customers	$	788.1	$	184.6	$	—		$	972.7
Intersegment sales		47.2		0.9		(48.1	)		—
Total sales	$	835.3	$	185.5	$	(48.1	)	$	972.7
Other operating expense		0.8		0.6		—			1.4
Operating income (loss)		138.0		25.9		(39.2	)		124.7
Depreciation and amortization		54.5		7.5		—			62.0
Stock-based compensation		4.2		1.1		11.1			16.4
Accrual basis additions to capital expenditures		35.3		5.8		—			41.1
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

(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, 2023	$	87.2		$	164.1		$	251.3
Amortization expense		(0.4	)		(1.3	)		(1.7	)
Currency translation adjustments		(1.6	)		(1.2	)		(2.8	)
Balance at June 30, 2024	$	85.2		$	161.6		$	246.8

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Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Schedule of Components of Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss as of June 30, 2024 and December 31, 2023 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, 2023	$	1.0		$	5.7		$	(80.8	)	$	(74.1	)
Other comprehensive (loss) income before reclassifications		0.1			(1.2	)		(13.3	)		(14.4	)
Amounts reclassified from accumulated other comprehensive loss		(0.2	)		(2.6	)		-			(2.8	)
Other comprehensive (loss) income		(0.1	)		(3.8	)		(13.3	)		(17.2	)
Balance at June 30, 2024	$	0.9		$	1.9		$	(94.1	)	$	(91.3	)

(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, 2024 and 2023 were as follows:

	Quarter Ended June 30, 2024						Quarter Ended June 30, 2023						Six Months Ended June 30, 2024						Six Months Ended June 30, 2023
(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	$	(0.1	)	$	(0.1	)	$	0.5		$	0.4		$	(0.2	)	$	(0.2	)	$	1.0		$	0.8
Derivative Products
Foreign currency forward exchange contracts		1.3			0.9			2.6			1.9			2.0			1.3			6.3			4.6
Commodity swaps		0.3			0.2			1.8			1.4			-			(0.1	)		2.7			2.1
Interest rate swaps		(1.5	)		(1.1	)		(1.1	)		(0.8	)		(5.1	)		(3.8	)		(3.2	)		(2.4	)
Total Derivative Products	$	0.1		$	-		$	3.3		$	2.5		$	(3.1	)	$	(2.6	)	$	5.8		$	4.3

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2024

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, 2024, and accrued warranty cost, included in “accrued liabilities” in the Condensed Consolidated Balance Sheets at June 30, 2024 and December 31, 2023, were as follows:

	Product
(In millions)	Warranties
Balance as of December 31, 2023	$	2.8
Warranty expense		0.8
Deductions and other		(0.3	)
Balance as of March 31, 2024	$	3.3
Warranty expense		1.4
Deductions and other		(1.2	)
Balance as of June 30, 2024	$	3.5

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Restructuring (Tables)

6 Months Ended

Jun. 30, 2024

Restructuring and Related Activities [Abstract]

Schedule of Restructuring

			Activity for the Quarter Ended June 30, 2024
	March 31,		Restructuring				Cash					June 30,
(In Millions)	2024		Charge		FX Impact		Paid			Non-Cash		2024
Employee termination	$	1.9	$	0.2	$	0.1	$	(0.8	)	$	—	$	1.4
Impairment and other		—		—		—		—			—		—
Total	$	1.9	$	0.2	$	0.1	$	(0.8	)	$	—	$	1.4
			Activity for the Six Months Ended June 30, 2024
	December 31,		Restructuring				Cash					June 30,
(In Millions)	2023		Charge		FX Impact		Paid			Non-Cash		2024
Employee termination	$	1.2	$	1.4	$	—	$	(1.2	)	$	—	$	1.4
Impairment and other		—		—		—		—			—		—
Total	$	1.2	$	1.4	$	—	$	(1.2	)	$	—	$	1.4

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Significant Accounting Policies - Additional Information (Details)	Jun. 30, 2023
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 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, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Basic net income (loss) per common share:
Net income	$ 50.0	$ 36.5	$ 42.5	$ 42.7	$ 86.5	$ 85.2
Weighted average common shares outstanding - Basic (in shares)	82.5		84.7		83.2	84.6
Basic net income per common share	$ 0.61		$ 0.5		$ 1.04	$ 1.01
Diluted net income per common share:
Net income	$ 50.0		$ 42.5		$ 86.5	$ 85.2
Weighted average common shares outstanding - Basic (in shares)	82.5		84.7		83.2	84.6
Plus incremental shares from assumed conversions:
Weighted average common shares outstanding - Dilutive (in shares)	83.2		85.6		84.0	85.5
Diluted net income per common share	$ 0.6		$ 0.5		$ 1.03	$ 1
Restricted Stock Units
Plus incremental shares from assumed conversions:
Incremental shares from assumed conversions	0.4		0.5		0.4	0.5
Stock Options
Plus incremental shares from assumed conversions:
Incremental shares from assumed conversions	0.3		0.4		0.4	0.4

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Net Income Per Common Share - Additional Information (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share [Abstract]
Anti-dilutive securities excluded from computation of earnings per share amount (in shares)	500	200	400	300

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Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 153.4	$ 131.4
Work in progress	52.4	46.0
Finished goods	145.7	157.0
Total Inventory	$ 351.5	$ 334.4

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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, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
U.S.
Net periodic benefit costs of defined benefit retirement plans
Service cost	$ 0.0	$ 0.3	$ 0.0	$ 0.6
Interest cost	0.2	0.1	0.4	0.2
Net amortization and deferral	(0.1)	0.2	(0.2)	0.4
Net periodic benefit cost	$ 0.1	$ 0.6	$ 0.2	$ 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	$ 0.1	$ 0.3	$ 0.3
Interest cost	0.2	1.3	0.3	2.5
Expected return on plan assets	0.0	(1.2)	(0.1)	(2.4)
Net amortization and deferral	0.0	0.6	0.1	1.2
Net periodic benefit cost	$ 0.3	$ 0.8	$ 0.6	$ 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, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Amounts recognized on the balance sheet:
Other non-current liabilities	$ 31.1		$ 31.1		$ 42.6
Defined Benefit Retirement Plans | U.S.
Amounts recognized on the balance sheet:
Accrued liabilities	13.8		13.8		1.3
Other non-current liabilities	4.4		4.4		16.8
Total accrued benefit	$ 18.2		$ 18.2		$ 18.1
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:
Accrued liabilities	$ 1.4		$ 1.4		$ 0.8
Other non-current liabilities	12.6		12.6		12.3
Total accrued benefit	14.0		14.0		13.1
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	0.9		0.9		0.9
Total accrued benefit	$ 1.1		$ 1.1		$ 1.1

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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, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Amounts recognized on the balance sheet:
Employer contribution to defined benefit retirement plans			$ 0.7
Defined Benefit Retirement Plans
Amounts recognized on the balance sheet:
Amounts unrelated to service costs, benefit	$ 0.3	$ 1.0	0.6	$ 2.0
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	$ 0.1	$ (0.2)	$ 0.2	$ (0.4)
Defined Benefit Retirement Plans | European
Amounts recognized on the balance sheet:
Expected employer contribution in full current year	1.1		1.1
Net amortization gain deferral	(0.0)	$ (0.6)	(0.1)	(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, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Current portion of finance lease	$ 0.1	$ 0.1
Current portion of debt	0.1	0.1
Long-term debt	794.9	699.4
Non-current portion of finance lease and other debt	1.6	1.7
Total debt	795.0	699.5
Senior unsecured credit facility
Debt Instrument [Line Items]
Long-term debt	95.0	0.0
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	(0.5)	(0.7)
Senior notes --- deferred financing costs	(1.2)	(1.6)
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, 2024
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, 2024	Dec. 31, 2017	Dec. 31, 2015	Dec. 31, 2023
Debt Instrument [Line Items]
Debt Instrument, Unused Borrowing Capacity, Description		Borrowings under the Facility bear interest 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 was 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		$ 794.9			$ 699.4
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
Debt Instrument, Maturity Date, Description	April 2028
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		95.0
Undrawn availability under credit facility		$ 655.0
Weighted average interest rate		6.70%
Senior Unsecured Revolving Credit Facility Matures In April Two Thousand Twenty Eight [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 50.0
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		$ 384.9
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%
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%
Fair value of senior unsecured notes		$ 297.1

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Derivative Financial Instruments - Additional Information (Details) € in Millions, CHE in Millions, $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Nov. 30, 2020 USD ($)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) Item	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)	Nov. 30, 2020 EUR (€)	Nov. 30, 2020 CHE	Dec. 31, 2017
Derivative [Line Items]
Foreign currency unrealized gains expected to be reclassified into earnings over next twelve months		$ 0.4		$ 0.4
Foreign currency unrealized gains expected to be reclassified into earnings over next twelve months, taxes		0.1		0.1
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						€ 270	CHE 270
Derivative amortization period	5 years
Derivative fixed interest rate (as a percent)	0.30%						0.30%	0.30%
Derivative, additional fixed interest rate	1.115%						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]
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		1.9		$ 9.1
Foreign Currency Forward Exchange Contracts | Designated as Hedging Instrument
Derivative [Line Items]
Notional amount		373.4		373.4		$ 393.3
Foreign Currency Forward Exchange Contracts | Designated as Hedging Instrument | Cash Flow Hedging
Derivative [Line Items]
Gains (losses) in other comprehensive income, effective portion			$ 2.6		$ 6.3
Net gain (loss) recognized in gross margin		1.3	4.3	2.0	8.3
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		0.4	$ 0.1	2.0	$ 0.3
Commodity Swap Agreements
Derivative [Line Items]
Notional amount		$ 18.3		$ 18.3

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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, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Derivative [Line Items]
Beginning Balance		$ 1,632.1	$ 1,622.2	$ 1,716.5	$ 1,554.2
Ending Balance		1,571.2	1,666.1	1,571.2	1,666.1
Designated as Hedging Instrument
Derivative [Line Items]
Beginning Balance	[1]			5.7
Ending Balance	[1]	1.9		1.9
Designated as Hedging Instrument | Foreign Currency Forward Exchange Contracts
Derivative [Line Items]
Beginning Balance		0.5	(4.8)	5.3	(10.5)
Losses (gains) reclassified to net sales		0.8	2.0	1.3	4.7
Decrease in fair value		(1.3)	3.2	(6.6)	6.2
Ending Balance		$ 0.0	$ 0.4	$ 0.0	$ 0.4

[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, 2024	Dec. 31, 2023
Derivatives, Fair Value [Line Items]
Prepaid and other Current Assets	$ 63.1	$ 43.0
Current Liabilities	293.7	315.9
Derivative Products
Derivatives, Fair Value [Line Items]
Prepaid and other Current Assets	10.9	9.6
Other Assets	7.1	9.4
Current Liabilities	3.2	6.1
Non-Current Liabilities	1.4	0.2
Foreign Currency Forward Exchange Contracts | Derivative Products
Derivatives, Fair Value [Line Items]
Prepaid and other Current Assets	3.5	4.8
Other Assets	0.8	5.5
Current Liabilities	2.9	3.2
Non-Current Liabilities	1.2	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	0.1	1.4
Non-Current Liabilities	0.0	0.0
Commodity Swap Agreements | Derivative Products
Derivatives, Fair Value [Line Items]
Prepaid and other Current Assets	1.3	0.5
Other Assets	0.2	0.2
Current Liabilities	0.2	1.5
Non-Current Liabilities	0.2	0.2
Cross currency and interest rate swap | Derivative Products
Derivatives, Fair Value [Line Items]
Prepaid and other Current Assets	6.1	4.3
Other Assets	6.1	3.7
Current Liabilities	0.0	0.0
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, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ (13.7)	$ (11.5)	$ (23.6)	$ (23.2)

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Fair Value Measurements - Additional Information (Details) $ in Millions	6 Months Ended
	Jun. 30, 2024 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, 2024
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, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation Of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 500.4	$ 454.3	$ 972.7	$ 912.0
Commercial Aerospace
Disaggregation Of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	320.7	264.3	620.0	548.8
Space & Defense
Disaggregation Of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	138.9	137.5	278.0	263.7
Industrial
Disaggregation Of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 40.8	$ 52.5	$ 74.7	$ 99.5

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Revenue - Schedule of Activity Related to Contract Assets (Details) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2024	Mar. 31, 2024
Change in Contract with Customer Asset [Line Items]
Beginning Balance	$ 31.1	$ 25.1
Net revenue billed	3.4	6.0
Ending Balance	34.5	31.1
Composite Materials
Change in Contract with Customer Asset [Line Items]
Beginning Balance	9.9	8.3
Net revenue billed	0.4	1.6
Ending Balance	10.3	9.9
Engineered Products
Change in Contract with Customer Asset [Line Items]
Beginning Balance	21.2	16.8
Net revenue billed	3.0	4.4
Ending Balance	$ 24.2	$ 21.2

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Segment Information - Schedule of Operating Segment Reporting Information (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Segment Reporting Information [Line Items]
Total sales		$ 500.4	$ 454.3	$ 972.7	$ 912.0
Other operating expense		0.2	0.5	1.4	0.7
Operating income (loss)		71.8	61.3	124.7	124.1
Depreciation and amortization		31.0	31.0	62.0	61.7
Stock-based compensation		3.3	2.8	16.4	15.7
Accrual basis additions to capital expenditures		22.5	53.7	41.1	70.5
Intersegment Elimination
Segment Reporting Information [Line Items]
Total sales	[1]	(24.5)	(19.0)	(48.1)	(39.3)
Corporate & Other and Intersegment Elimination
Segment Reporting Information [Line Items]
Total sales	[1]	(24.5)	(19.0)	(48.1)	(39.3)
Other operating expense	[1]		0.0	0.0	0.0
Operating income (loss)	[1]	(15.5)	(9.7)	(39.2)	(32.1)
Depreciation and amortization	[1]	0.0	0.0	0.0	0.0
Stock-based compensation	[1]	1.9	1.4	11.1	10.4
Accrual basis additions to capital expenditures	[1]	0.0	0.0	0.0	0.0
Composite Materials
Segment Reporting Information [Line Items]
Total sales		408.6	378.5	788.1	756.7
Composite Materials | Intersegment Elimination
Segment Reporting Information [Line Items]
Total sales		23.9	18.5	47.2	37.8
Composite Materials | Operating Segments
Segment Reporting Information [Line Items]
Total sales		432.5	397.0	835.3	794.5
Other operating expense			0.3	0.8	0.5
Operating income (loss)		74.3	64.2	138.0	137.4
Depreciation and amortization		27.3	27.5	54.5	54.7
Stock-based compensation		1.1	1.1	4.2	4.2
Accrual basis additions to capital expenditures		18.6	12.9	35.3	26.0
Engineered Products
Segment Reporting Information [Line Items]
Total sales		91.8	75.8	184.6	155.3
Engineered Products | Intersegment Elimination
Segment Reporting Information [Line Items]
Total sales		0.6	0.5	0.9	1.5
Engineered Products | Operating Segments
Segment Reporting Information [Line Items]
Total sales		92.4	76.3	185.5	156.8
Other operating expense		0.2	0.2	0.6	0.2
Operating income (loss)		13.0	6.8	25.9	18.8
Depreciation and amortization		3.7	3.5	7.5	7.0
Stock-based compensation		0.3	0.3	1.1	1.1
Accrual basis additions to capital expenditures		$ 3.9	$ 40.8	$ 5.8	$ 44.5

[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, 2024 USD ($)
Changes in the carrying amount of gross goodwill and other purchased intangibles
Balance at Period Beginning	$ 251.3
Amortization expense	(1.7)
Currency translation adjustments	(2.8)
Balance at Period Ending	246.8
Composite Materials
Changes in the carrying amount of gross goodwill and other purchased intangibles
Balance at Period Beginning	87.2
Amortization expense	(0.4)
Currency translation adjustments	(1.6)
Balance at Period Ending	85.2
Engineered Products
Changes in the carrying amount of gross goodwill and other purchased intangibles
Balance at Period Beginning	164.1
Amortization expense	(1.3)
Currency translation adjustments	(1.2)
Balance at Period Ending	$ 161.6

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Segment Information - Additional Information (Details) $ in Millions	Jun. 30, 2024 USD ($)
Segment Reporting [Abstract]
Goodwill	$ 187.6
Intangible assets	$ 59.2

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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, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance		$ 1,632.1	$ 1,716.5	$ 1,622.2	$ 1,554.2	$ 1,716.5	$ 1,554.2
Other comprehensive (loss) income		(2.3)	(14.9)	6.9	22.3	(17.2)	29.2
Ending Balance		1,571.2	1,632.1	1,666.1	1,622.2	1,571.2	1,666.1
Unrecognized Net Defined Benefit and Postretirement Plan Costs
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance			1.0			1.0
Other comprehensive (loss) income before reclassifications						0.1
Amounts reclassified from accumulated other comprehensive loss						(0.2)
Other comprehensive (loss) income						(0.1)
Ending Balance		0.9				0.9
Change in Fair Value of Derivatives Products
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	[1]		5.7			5.7
Other comprehensive (loss) income before reclassifications	[1]					(1.2)
Amounts reclassified from accumulated other comprehensive loss	[1]					(2.6)
Other comprehensive (loss) income	[1]					(3.8)
Ending Balance	[1]	1.9				1.9
Foreign Currency Translation
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance			(80.8)			(80.8)
Other comprehensive (loss) income before reclassifications						(13.3)
Amounts reclassified from accumulated other comprehensive loss						0.0
Other comprehensive (loss) income						(13.3)
Ending Balance		(94.1)				(94.1)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance		(89.0)	(74.1)	(152.1)	(174.4)	(74.1)	(174.4)
Other comprehensive (loss) income before reclassifications						(14.4)
Amounts reclassified from accumulated other comprehensive loss						(2.8)
Other comprehensive (loss) income		(2.3)	(14.9)	6.9	22.3	(17.2)
Ending Balance		$ (91.3)	$ (89.0)	$ (145.2)	$ (152.1)	$ (91.3)	$ (145.2)

[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, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
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	$ (0.1)	$ 0.5	$ (0.2)	$ 1.0
Reclassification adjustment from AOCI on derivatives, net gains (losses)	(0.1)	0.4	(0.2)	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	0.1	3.3	(3.1)	5.8
Reclassification adjustment from AOCI on derivatives, tax expense (benefit)	0.0	2.5	(2.6)	4.3
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	1.3	2.6	2.0	6.3
Reclassification adjustment from AOCI on derivatives, tax expense (benefit)	0.9	1.9	1.3	4.6
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	0.3	1.8	0.0	2.7
Reclassification adjustment from AOCI on derivatives, tax expense (benefit)	0.2	1.4	(0.1)	2.1
Change in Fair Value of Derivatives Products | Interest Rate Swaps
Accumulated Other Comprehensive Income Loss [Line Items]
Reclassification adjustment from AOCI on unrecognized net defined benefit and postretirement plan costs, tax	(1.5)	(1.1)	(5.1)	(3.2)
Reclassification adjustment from AOCI on derivatives, tax expense (benefit)	$ (1.1)	$ (0.8)	$ (3.8)	$ (2.4)

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Commitments and Contingencies - Additional Information (Details) $ in Millions				1 Months Ended		6 Months Ended
	Mar. 24, 2023 Entity	Dec. 16, 2022 USD ($) Prp	Oct. 18, 2021 USD ($) mi	Aug. 31, 2017 Entity	Mar. 31, 2016 USD ($) mi	Jun. 30, 2024 USD ($) Entity mi	Dec. 31, 2023 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						$ 0.5	$ 0.7
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
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, 2024	Mar. 31, 2024
Changes in accrued product warranty cost
Balance at the beginning of the period	$ 3.3	$ 2.8
Warranty expense	1.4	0.8
Deductions and other	(1.2)	(0.3)
Balance at the end of the period	$ 3.5	$ 3.3

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Restructuring - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023
Restructuring Cost and Reserve [Line Items]
Restructuring charge	$ 0.2	$ 1.4
Anticipated future cash payments	$ 1.4	$ 1.4	$ 1.9	$ 1.2

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Restructuring - Schedule of Restructuring (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2024
Restructuring Cost and Reserve [Line Items]
Beginning Balance	$ 1.9	$ 1.2
Restructuring Charge	0.2	1.4
FX Impact	0.1	0.0
Cash Paid	(0.8)	(1.2)
Non-Cash	0.0	0.0
Ending Balance	1.4	1.4
Employee termination
Restructuring Cost and Reserve [Line Items]
Beginning Balance	1.9	1.2
Restructuring Charge	0.2	1.4
FX Impact	0.1	0.0
Cash Paid	(0.8)	(1.2)
Non-Cash	0.0	0.0
Ending Balance	1.4	1.4
Impairment and other
Restructuring Cost and Reserve [Line Items]
Beginning Balance	0.0	0.0
Restructuring Charge	0.0	0.0
FX Impact	0.0	0.0
Cash Paid	0.0	0.0
Non-Cash	0.0	0.0
Ending Balance	$ 0.0	$ 0.0

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Capital Stock (Additional Information) (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended	6 Months Ended
	Feb. 19, 2024	Jun. 30, 2024	Jun. 30, 2024
May 2018 Repurchase Plan Member
Equity, Class of Treasury Stock [Line Items]
Additional repurchase shares of common stock value	$ 300.0
Authorized amount to repurchase outstanding common stock		$ 500.0	$ 500.0
2024 Share Repurchase Plan
Equity, Class of Treasury Stock [Line Items]
Number of shares repurchased		1,459,736	2,857,491
Average price per share		$ 68.51	$ 68.51
Cost of repurchase of common stock		$ 101.1	$ 201.8
Additional repurchase shares of common stock value		$ 285.3