Financial Data and Key Metrics Changes - Fourth quarter sales reached $564 million, a nominal increase from Q4 2018, with adjusted diluted EPS at $0.86, reflecting a 5% year-over-year increase [8][10] - Full year 2019 sales were $2.356 billion, up 8% year-over-year, with adjusted diluted EPS at $3.54, an increase of over 16% compared to the previous year [13][55] - Free cash flow generation reached a record $287 million in 2019, surpassing the previous year's $237.3 million [23][53] Business Line Data and Key Metrics Changes - Aerospace sales in Q4 were impacted by the slowdown in 737 MAX production, but business jets saw a 20% year-over-year sales increase, primarily driven by Gulfstream programs [10][12] - Space & Defense sales increased by 18% in Q4 compared to Q4 2018, with strong contributions from the ARC acquisition and various defense programs [11][44] - Industrial sales declined by approximately 11% compared to a strong Q4 last year, although wind energy sales increased significantly throughout the year [12][46] Market Data and Key Metrics Changes - Commercial aerospace sales for 2019 were 5.1% higher than 2018, totaling almost $1.6 billion, with strong performance from the Airbus A350 and Boeing 787 programs [16][18] - Space & Defense sales for 2019 reached almost $445 million, a 21.6% increase over 2018, driven by the F-35 Joint Strike Fighter and other military programs [18] - Industrial sales in 2019 were $313 million, a 10.6% increase year-over-year, with wind energy sales showing strong growth [19] Company Strategy and Development Direction - The company is focused on operational excellence, continuous improvement, and developing new technologies to enhance customer solutions [22][30] - A transformational merger with Woodward was announced, aimed at creating a premier integrated systems provider to address challenges in fuel efficiency and emissions reduction [31][32] - The company is transitioning its Kent plant strategy to focus on more complex, highly engineered product manufacturing [26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the return of the 737 MAX to service and its impact on future sales, while acknowledging the challenges posed by production suspensions [15][64] - The guidance for 2020 includes flat to low-single digit sales growth and low-to-mid single digit EPS growth, with expectations of strong margin intensity despite headwinds [29][56] - The company anticipates continued investment in research and technology to maintain its leadership position in aerospace composites [60] Other Important Information - The company repurchased approximately $76 million of common stock in Q4 2019, totaling $143 million for the year, with $242 million remaining under the share repurchase program [54] - The effective tax rate for Q4 2019 was 16.6%, with a full-year rate of 21% [52] Q&A Session Summary Question: Synergy potential with Airbus in the Woodward merger - Management noted that while Woodward does not have significant direct sales to Airbus, they have strong positions through engines and tier one suppliers, and discussions on new opportunities are ongoing [70][71] Question: 737 MAX shipsets guidance - In 2019, the company was in the range of 42 to 52 shipsets, and for 2020, they are guiding for 200 shipsets, with production expected to resume midyear [72][73] Question: Capital expenditure reductions - The reduction in capital expenditures is primarily due to productivity initiatives and the slowdown in the MAX production, allowing for a push of spending to future years [76][77] Question: Revenue impact from Kent plant transition - The transition of work from the Kent plant will take two to three years, with efforts to win new packages already underway [83][84] Question: Inventory management challenges - The biggest headwind for 2020 is expected to be inventory management, particularly with uncertainties in the market and the timing of the 737 MAX return to service [90][91] Question: Profitability profile and margin guidance - Management confirmed that the guidance accounts for potential margin pressures from the MAX and 787, but they expect to maintain strong margins through productivity and efficiency improvements [94][96]

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 September 30, 2019 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 of Incorporation) (I.R.S. Empl ...

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, 2019 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 ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents Hexcel Corporation's unaudited condensed consolidated financial statements and management's analysis for the quarter ended March 31, 2019 [ITEM 1. Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents Hexcel Corporation's unaudited condensed consolidated financial statements for the quarter ended March 31, 2019, including balance sheets, statements of operations, comprehensive income, cash flows, and stockholders' equity, along with detailed notes on significant accounting policies, debt, derivatives, and recent acquisition [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section details Hexcel Corporation's financial position, including assets, liabilities, and equity, as of March 31, 2019, and December 31, 2018 | Metric | March 31, 2019 (Millions) | December 31, 2018 (Millions) | | :-------------------------------- | :-------------------------- | :--------------------------- | | Total Assets | $3,166.0 | $2,824.1 | | Total Liabilities | $1,793.6 | $1,502.1 | | Total Stockholders' Equity | $1,372.4 | $1,322.0 | | Goodwill and other intangible assets | $286.2 | $142.3 | | Long-term debt | $1,160.0 | $947.4 | - Total assets increased by **$341.9 million**, and total liabilities increased by **$291.5 million** from December 31, 2018, to March 31, 2019, primarily driven by the ARC acquisition and related debt[10](index=10&type=chunk)[119](index=119&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section presents Hexcel Corporation's revenues, costs, and net income for the quarters ended March 31, 2019, and March 31, 2018 | Metric | Quarter Ended March 31, 2019 (Millions) | Quarter Ended March 31, 2018 (Millions) | YoY Change (%) | | :------------------------------------------ | :-------------------------------------- | :-------------------------------------- | :------------- | | Net sales | $609.9 | $540.1 | 12.9% | | Cost of sales | $442.7 | $397.5 | 11.4% | | Gross margin | $167.2 | $142.6 | 17.3% | | Operating income | $102.8 | $82.4 | 24.8% | | Net income | $72.2 | $61.6 | 17.2% | | Basic net income per common share | $0.85 | $0.68 | 25.0% | | Diluted net income per common share | $0.84 | $0.68 | 23.5% | | Dividends per share | $0.15 | $0.125 | 20.0% | - Gross margin improved to **27.4%** in Q1 2019 from 26.4% in Q1 2018, benefiting from the new Roussillon plant and reduced headwinds from acrylonitrile and wind energy resin pricing[11](index=11&type=chunk)[94](index=94&type=chunk)[110](index=110&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section outlines Hexcel Corporation's comprehensive income, including net income and other comprehensive income components, for the specified quarters | Metric | Quarter Ended March 31, 2019 (Millions) | Quarter Ended March 31, 2018 (Millions) | | :------------------------------------------------ | :-------------------------------------- | :-------------------------------------- | | Net Income | $72.2 | $61.6 | | Currency translation adjustments | $(2.8) | $31.6 | | Net unrealized pension and other benefit actuarial gains and prior service credits | $(0.4) | $(0.8) | | Net unrealized (losses) gains on financial instruments (net of tax) | $(2.7) | $4.8 | | Total other comprehensive (loss) income | $(5.9) | $35.6 | | Comprehensive income | $66.3 | $97.2 | - Total other comprehensive income shifted from a gain of **$35.6 million** in Q1 2018 to a loss of **$5.9 million** in Q1 2019, primarily due to negative currency translation adjustments and unrealized losses on financial instruments[12](index=12&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section details Hexcel Corporation's cash flows from operating, investing, and financing activities for the three months ended March 31, 2019, and 2018 | Cash Flow Activity | Three Months Ended March 31, 2019 (Millions) | Three Months Ended March 31, 2018 (Millions) | | :----------------------------------- | :------------------------------------------- | :------------------------------------------- | | Net cash provided by operating activities | $45.9 | $62.6 | | Net cash used for investing activities | $(219.5) | $(59.5) | | Net cash provided by (used in) financing activities | $184.9 | $(15.5) | | Net increase (decrease) in cash and cash equivalents | $11.0 | $(10.3) | - Net cash used for investing activities significantly increased in Q1 2019 to **$219.5 million**, primarily due to the **$158.4 million** acquisition of ARC Technologies LLC[14](index=14&type=chunk)[123](index=123&type=chunk) - Financing activities provided **$184.9 million** in Q1 2019, a substantial increase from a **$15.5 million** use in Q1 2018, mainly driven by borrowings from the senior unsecured credit facility to fund the ARC acquisition[14](index=14&type=chunk)[124](index=124&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) This section presents changes in Hexcel Corporation's stockholders' equity, including net income, dividends, and treasury stock, for the specified periods | Metric | Balance, March 31, 2019 (Millions) | Balance, March 31, 2018 (Millions) | | :--------------------------------------- | :--------------------------------- | :--------------------------------- | | Total Stockholders' Equity | $1,372.4 | $1,562.5 | | Net income | $72.2 | $61.6 | | Dividends paid on common stock | $(12.7) | $(11.2) | | Change in other comprehensive income – net of tax | $(5.9) | $35.6 | | Acquisition of treasury stock | $(11.2) | $(30.1) | - Stockholders' equity decreased from **$1,562.5 million** at March 31, 2018, to **$1,372.4 million** at March 31, 2019, influenced by net income, dividends, and a negative change in other comprehensive income[16](index=16&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations of significant accounting policies, debt, acquisitions, and other financial statement items - The company adopted ASC 842, Leases, on January 1, 2019, recognizing approximately **$50 million** of right-of-use assets and related liabilities for existing operating leases[18](index=18&type=chunk)[21](index=21&type=chunk) Inventory Category | Inventory Category | March 31, 2019 (Millions) | December 31, 2018 (Millions) | | :----------------- | :------------------------ | :--------------------------- | | Raw materials | $170.3 | $131.4 | | Work in progress | $40.8 | $43.6 | | Finished goods | $123.4 | $122.8 | | Total Inventory | $334.5 | $297.8 | - Total debt increased to **$1,169.7 million** at March 31, 2019, from **$956.8 million** at December 31, 2018, primarily due to increased borrowings under the senior unsecured credit facility to fund the ARC acquisition[40](index=40&type=chunk)[119](index=119&type=chunk) - The company acquired ARC Technologies LLC for approximately **$158.4 million** in cash, recognizing **$82.8 million** of goodwill and **$63.0 million** of intangible assets within the Engineered Products segment[71](index=71&type=chunk)[72](index=72&type=chunk) - Aggregate environmental related accruals were **$2.6 million** as of March 31, 2019, with a potential high-end liability of **$16 million** higher for sites where liability can be estimated[80](index=80&type=chunk)[129](index=129&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion and analysis highlights strong sales growth across all markets, particularly in Commercial Aerospace and Industrial (wind energy), driven by increased production rates and the ARC Technologies acquisition. Profitability improved with higher gross margins and operating income, while operating cash flow decreased due to working capital increases and significant investment in the ARC acquisition - Hexcel acquired ARC Technologies, LLC on January 3, 2019, enhancing its advanced materials portfolio in structural composites and thermoplastics[87](index=87&type=chunk) Net Sales by Market Segment | Market Segment | Q1 2019 Net Sales (Millions) | Q1 2018 Net Sales (Millions) | YoY Change (%) | YoY Change (Constant Currency %) | | :--------------- | :--------------------------- | :--------------------------- | :------------- | :------------------------------- | | Consolidated Net Sales | $609.9 | $540.1 | 12.9% | 14.9% | | Commercial Aerospace | $415.5 | $382.7 | 8.6% | 9.6% | | Space & Defense | $107.8 | $90.1 | 19.6% | 21.8% | | Industrial | $86.6 | $67.3 | 28.7% | 36.8% | - Commercial Aerospace sales were driven by strong performance in A320neo, 737 MAX, 787, and A350 programs, along with strengthening business jet sales[90](index=90&type=chunk)[91](index=91&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk) - Wind energy sales within the Industrial segment improved by **66.6%** (**78.0%** in constant currency) due to the transition to new generation composite blades[93](index=93&type=chunk)[108](index=108&type=chunk) Profitability Metrics | Metric | Q1 2019 | Q1 2018 | YoY Change (%) | | :-------------------------- | :------ | :------ | :------------- | | Gross margin (%) | 27.4% | 26.4% | +1.0 pp | | Operating income (Millions) | $102.8 | $82.4 | 24.8% | | Operating margin (%) | 16.9% | 15.3% | +1.6 pp | | R&T expense (Millions) | $14.9 | $13.8 | 8.0% | | SG&A expense (% of sales) | 8.1% | 8.6% | -0.5 pp | Cash Flow and Debt Metrics | Cash Flow Metric | Q1 2019 (Millions) | Q1 2018 (Millions) | | :-------------------------------- | :----------------- | :----------------- | | Net cash provided by operating activities | $45.9 | $62.6 | | Capital expenditures | $(61.1) | $(59.5) | | Free cash flow (Non-GAAP) | $(15.2) | $3.1 | | Total debt, net of cash | $1,126.0 | $924.1 | | Undrawn credit facility availability | $286.0 | N/A | [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](index=24&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reported no material changes in market risk from the information previously disclosed in its 2018 Annual Report on Form 10-K - No material changes in market risk from the Company's 2018 Annual Report on Form 10-K[135](index=135&type=chunk) [ITEM 4. Controls and Procedures](index=24&type=section&id=ITEM%204.%20Controls%20and%20Procedures) The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2019, and there were no material changes in internal control over financial reporting during the quarter - Disclosure controls and procedures were evaluated and deemed effective as of March 31, 2019[136](index=136&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended March 31, 2019[137](index=137&type=chunk) [PART II. OTHER INFORMATION](index=24&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity security sales, and exhibits for Hexcel Corporation [ITEM 1. Legal Proceedings](index=24&type=section&id=ITEM%201.%20Legal%20Proceedings) Information regarding legal proceedings, including environmental matters such as the Lower Passaic River Study Area and Omega Chemical Corporation Superfund Site, is incorporated by reference from Note 13 of the financial statements - Legal proceedings information is incorporated by reference from Note 13 on pages 15-16 of this Form 10-Q[138](index=138&type=chunk) - Aggregate environmental related accruals were **$2.6 million** as of March 31, 2019, with a potential high-end liability of **$16 million** higher for estimable sites[80](index=80&type=chunk)[129](index=129&type=chunk) [ITEM 1A. Risk Factors](index=24&type=section&id=ITEM%201A.%20Risk%20Factors) The company reported no material changes to its risk factors from the 2018 Annual Report on Form 10-K, except for the addition of a new risk factor concerning non-compliance with government procurement laws and regulations - No material changes in risk factors from the 2018 Annual Report on Form 10-K, with the exception of a new risk factor[139](index=139&type=chunk) - A new risk factor highlights that failure to comply with government procurement laws and regulations could lead to business loss, penalties, or sanctions[140](index=140&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=25&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 193,603 shares of common stock in January 2019 at an average price of $57.75 per share, with approximately $373.6 million remaining under the authorized share repurchase program as of March 31, 2019 Share Repurchase Activity | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :------------------------ | :----------------------------- | :--------------------------- | | January 1 – January 31, 2019 | 193,603 | $57.75 | | February 1 – February 28, 2019 | — | — | | March 1 – March 31, 2019 | — | — | | Total | 193,603 | $57.75 | - As of March 31, 2019, **$373,594,906** remained available under the **$500 million** share repurchase authorization announced on May 7, 2018[141](index=141&type=chunk) [ITEM 6. Exhibits](index=26&type=section&id=ITEM%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including executive severance agreements, certifications from the CEO and CFO, and the XBRL-formatted financial statements - Key exhibits include Form of Executive Severance Agreement (10.1\*), Certifications of Chief Executive Officer and Chief Financial Officer (31.1, 31.2, 32), and XBRL Financial Statements (101)[143](index=143&type=chunk)[146](index=146&type=chunk) [SIGNATURE](index=28&type=section&id=SIGNATURE) The report was formally signed on behalf of Hexcel Corporation by Kimberly Hendricks, Senior Vice President, Corporate Controller and Chief Accounting Officer, on April 23, 2019 - The report was signed by Kimberly Hendricks, Senior Vice President, Corporate Controller and Chief Accounting Officer, on April 23, 2019[149](index=149&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Commission File Number 1-8472 Hexcel Corporation (Exact name of registrant as specified in its charter) Delaware 94-1109521 (State of Incorporation) (I.R.S. Employer Identification No.) Washington, D. C. 20549 FORM 10–K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2018 or ☐ Transition Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the transitio ...