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, 2023 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number 1-8472 Hexcel Corporation (Exact name of registrant as specified in its charter) (State or Other Jurisdiction of Incorporation or Organizat ...

Financial Data and Key Metrics - Composite Materials segment represented 83% of total sales with an operating margin of 16.2%, up from 14% in the prior year period [2] - Commercial Aerospace sales increased 15.4% to $264.3 million, driven by growth in Airbus A350 and Boeing 787 programs [188] - Space & Defense sales increased 22.1% to $137.5 million, marking the highest quarterly sales ever for this segment [79] - Industrial sales decreased 3.3% to $52.5 million due to lower wind energy sales, partially offset by growth in automotive and other industrial markets [61] - Adjusted operating income was $61.8 million, or 13.6% of sales, compared to $44.7 million, or 11.4% of sales, in the prior year period [62] - Free cash flow for the first half of 2023 was negative $44.7 million, including $37.8 million for the Amesbury property acquisition [11][82] Business Line Performance - Composite Materials segment saw strong demand for Hexcel fiber-rich products, contributing to higher margins [2][96] - Engineered Products segment generated an 8.9% operating margin, softer than usual due to higher development and tooling costs related to space programs [81] - Industrial segment faced headwinds from lower wind energy sales but saw growth in automotive and marine markets [61][128] Market Performance - Commercial Aerospace growth was driven by Airbus A350, Boeing 787, and business jet demand [188] - Space & Defense achieved record sales, supported by programs like F-35, Rafale, and Black Hawk [79][130] - Industrial markets showed mixed performance, with automotive and marine growth offsetting declines in wind energy [61][128] Strategy and Industry Competition - The company is focused on expanding its composite materials portfolio to support next-generation fuel-efficient aircraft and reduce emissions [58][84] - Hexcel is well-positioned to capitalize on the growing demand for lightweight composites in aerospace and defense [58][68] - The acquisition of the Amesbury property provides control and flexibility for future growth and expansion [1][109] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to meet growing demand and navigate supply chain challenges [56][68] - The company is optimistic about the recovery of air travel and the strong backlog of commercial aircraft orders [50][57] - Hexcel is committed to driving efficiency, productivity, and cash management to deliver value to shareholders [12] Other Important Information - The company updated its 2023 guidance, raising sales expectations to $1.765 billion to $1.835 billion and EPS to $1.80 to $1.94 [83] - Hexcel sold its former wind energy facility in Colorado for $11 million, which will be accounted for in Q3 2023 [11] - The company renewed its $750 million revolving credit facility, with a focus on maintaining a target leverage range of 1.5 to 2 times [64] Q&A Session Summary Question: Impact of 737 MAX and A220 rate changes - The company noted strong product mix in Q1, particularly with Hexcel carbon fiber-rich products, driving strong margins [7][96] Question: Free cash flow outlook and facility acquisition - The Amesbury property acquisition was the primary driver of the change in cash flow outlook, with no significant other moving pieces [121] Question: Hexcel's opportunity on Airbus's Wing of Tomorrow project - Hexcel is actively involved in the Wing of Tomorrow project, leveraging its diverse portfolio to optimize wing design [22][125] Question: Wind energy business outlook - The wind energy business has stabilized and is expected to remain solid, driven by legacy products in Europe [23] Question: Capital allocation and share buybacks - The company plans to resume share buybacks in the coming periods, prioritizing organic growth and disciplined M&A [40] Question: Airbus A220-500 potential and CapEx requirements - Hexcel sees significant potential in the A220-500, with opportunities for IM fiber and minimal additional CapEx requirements [27][120] Question: Supply chain alignment with Boeing and Airbus - The company is closely aligned with Boeing and Airbus on production rates and supply chain dynamics [93][151] Question: Margin progression and incremental leverage - Management expects margins to improve as volumes increase, targeting mid-teens margins on $1.8 billion to $1.9 billion in revenue [150][98] Question: Technology and material advancements for future programs - Hexcel is working on multiple material types and technologies to support future aerospace programs, including the Wing of Tomorrow [22][125][176] Question: Defense revenue growth and platform outlook - Space & Defense revenue is expected to grow, with strong performance from programs like F-35 and Rafale [79][130]

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 transition period from to For the Quarterly Period Ended June 30, 2023 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number 1-8472 Hexcel Corporation (Exact name of registrant as specified in its charter) (State or Other Jurisdiction of Incorporation or Organization) ...

Hexcel Corporation (NYSE:HXL) Q1 2023 Earnings Conference Call April 25, 2023 10:00 AM ET Company Participants Patrick Winterlich - CFO Nick Stanage - Chairman, President and CEO Conference Call Participants John McNulty - BMO Capital Markets Robert Spingarn - Melius Research Ken Herbert - RBC Myles Walton - Wolfe Research Kristine Liwag - Morgan Stanley Pete Skibitski - Alembic Global Sheila Kahyaoglu - Jefferies Richard Safran - Seaport Research Michael Ciarmoli - Truist Securities David Strauss - Barclay ...

7 ©2023 Hexcel. All rights reserved. Our products are tougher, stiffer and more durable No products made today will lead to greater fuel efficiency and improved aerodynamics with as much strength and durability as Hexcel carbon fiber, prepreg, honeycomb and engineered products. 9 ©2023 Hexcel. All rights reserved. 30% reduction in waste to landfill 59% Mid-Term: Expanding composites secular penetration Business Jet composite adoption increasing 12 ©2023 Hexcel. All rights reserved. High fuel costs and need ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2023 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number 1-8472 Hexcel Corporation (Exact name of registrant as specified in its charter) (State or Other Jurisdiction of Incorporation or Organization) ...

Part I [Business Overview](index=4&type=section&id=Item%201%20Business) Hexcel leads in advanced lightweight composites for aerospace and industrial markets, operating in two segments, facing supply chain and inflation issues - Hexcel Corporation is a global leader in advanced lightweight composites technology, serving commercial aerospace, space & defense, and industrial markets[16](index=16&type=chunk) - The company operates with two reportable segments: Composite Materials and Engineered Products[18](index=18&type=chunk) - Commercial Aerospace market showed signs of recovery in H2 2021 and continued through 2022, despite ongoing challenges from global logistics, supply chains, and inflationary pressures[19](index=19&type=chunk) [Composite Materials Segment](index=4&type=section&id=Composite%20Materials) This segment manufactures carbon fibers, prepregs, and other advanced materials for aerospace and industrial applications, contributing **$1,279.7 million** (80% of total) to 2022 net sales - The Composite Materials segment manufactures and markets carbon fibers, fabrics, specialty reinforcements, prepregs, structural adhesives, honeycomb, and pultruded profiles[22](index=22&type=chunk) Composite Materials Net Sales to Third-Party Customers | Year | Net Sales (Millions USD) | % of Total Net Sales | | :--- | :--- | :--- | | 2022 | $1,279.7 | ~80% | | 2021 | $1,019.4 | ~80% | | 2020 | $1,185.9 | ~80% | [Engineered Products Segment](index=7&type=section&id=Engineered%20Products) This segment manufactures composite structures and precision machined honeycomb parts, primarily for aerospace, generating **$298.0 million** (20% of total) in 2022 net sales - The Engineered Products segment manufactures and markets composite structures and precision machined honeycomb parts, including 3D printed parts and RF/EMI materials, primarily for the aerospace industry[40](index=40&type=chunk) Engineered Products Net Sales to Third-Party Customers | Year | Net Sales (Millions USD) | % of Total Net Sales | | :--- | :--- | :--- | | 2022 | $298.0 | ~20% | | 2021 | $305.3 | ~20% | | 2020 | $316.5 | ~20% | - The segment holds a 50% ownership interest in a Malaysian joint venture, Aerospace Composites Malaysia Sdn. Bhd. (ACM), with Boeing Worldwide Operations Limited[42](index=42&type=chunk) [Significant Customers](index=8&type=section&id=Significant%20Customers) Hexcel's sales are concentrated with major aerospace customers, with Airbus and its subcontractors accounting for **38%** of 2022 net sales Net Sales to Significant Customers | Customer | 2022 Net Sales (%) | 2021 Net Sales (%) | 2020 Net Sales (%) | | :--- | :--- | :--- | :--- | | Airbus & subcontractors | 38% | 33% | 33% | | Boeing & subcontractors | 14% | 16% | 19% | [Markets](index=8&type=section&id=Markets) Hexcel serves Commercial Aerospace (**58%** of 2022 net sales), Space & Defense (**29%**), and Industrial (**13%**), with Commercial Aerospace being the largest and Industrial declining due to wind energy Net Sales by Market (2022) | Market | % of 2022 Net Sales | | :--- | :--- | | Commercial Aerospace | 58% | | Space & Defense | 29% | | Industrial | 13% | - Commercial Aerospace demand is driven by airline passenger traffic and aircraft replacement rates, with each new generation of aircraft and engines utilizing increasing quantities of advanced composites[48](index=48&type=chunk)[52](index=52&type=chunk)[54](index=54&type=chunk) - Space & Defense market demand is primarily a function of military aircraft procurement and space programs, with the F-35 Lightning and CH-53K being significant programs[57](index=57&type=chunk)[59](index=59&type=chunk) - Industrial market sales declined in 2022, primarily due to lower wind energy sales, despite growth in recreation and other industrial applications; the company closed its Tianjin, China wind facility in 2022[61](index=61&type=chunk) [Backlog](index=10&type=section&id=Backlog) Hexcel's twelve-month order backlog is not a meaningful trend indicator due to multi-year contracts specifying requirements rather than specific quantities or delivery dates - Twelve-month order backlog is not a meaningful trend indicator as multi-year contracts with major customers specify proportions of requirements and terms, not specific quantities or delivery dates[62](index=62&type=chunk) [Raw Materials and Production Activities](index=10&type=section&id=Raw%20Materials%20and%20Production%20Activities) Hexcel's vertically integrated operations produce carbon fiber, but reliance on limited raw material suppliers led to supply disruptions and cost increases in 2021 and 2022 - Hexcel's manufacturing operations are vertically integrated, producing carbon fiber from polyacrylonitrile precursor (PAN) for internal use and external sales[63](index=63&type=chunk)[64](index=64&type=chunk) - The company is highly dependent on a limited number of suppliers for key raw materials, leading to supply disruptions and cost increases in 2021 and 2022 due to global transportation issues, the COVID-19 pandemic, and market volatility[67](index=67&type=chunk)[68](index=68&type=chunk) [Research and Technology; Patents and Know-How](index=11&type=section&id=Research%20and%20Technology%3B%20Patents%20and%20Know-How) Hexcel maintains global Research and Technology (R&T) centers, including a new facility in Salt Lake City, Utah, to develop next-generation composite technology, protected by patents and expertise - Hexcel operates global Research and Technology (R&T) centers, with a new, largest center recently completed in Salt Lake City, Utah, to support next-generation composite technology development[69](index=69&type=chunk)[70](index=70&type=chunk) - The company's products rely on expertise in materials science, textiles, process engineering, and polymer chemistry, protected by patents and know-how, which are actively enforced[71](index=71&type=chunk) [Environmental Matters](index=11&type=section&id=Environmental%20Matters) Hexcel is committed to reducing its environmental impact through operational efficiency and renewable power, while complying with U.S. and international environmental laws - Hexcel is committed to reducing its environmental impact, including carbon footprint, air and water emissions, and waste, through operational efficiency and increasing use of renewable power (e.g., on-site solar projects)[72](index=72&type=chunk)[73](index=73&type=chunk) - The company is subject to U.S. and international environmental and health and safety laws, with increasing global emphasis on emissions reduction supporting demand for its advanced composite light weighting solutions[74](index=74&type=chunk)[75](index=75&type=chunk) [Other Regulatory Matters](index=12&type=section&id=Other%20Regulatory%20Matters) Hexcel must comply with U.S. government regulations and numerous international laws, including export controls and trade restrictions, which can impose compliance costs and affect competitiveness - Hexcel must comply with U.S. government Federal Acquisition Regulations, export controls, and security requirements, with non-compliance potentially leading to fines, penalties, and business loss[77](index=77&type=chunk) - Significant international operations expose the company to numerous global laws and regulations, including export controls, sanctions, customs, and local trade rules, which can impose compliance costs and impact competitiveness[78](index=78&type=chunk) [Sales and Marketing](index=13&type=section&id=Sales%20and%20Marketing) Hexcel sells and markets its products globally through a dedicated staff, independent distributors, and various sales representation offices - Hexcel sells and markets its products globally through a staff of salaried marketing managers, product managers, and sales personnel, as well as independent authorized distributors and sales offices[79](index=79&type=chunk) [Competition](index=13&type=section&id=Competition) Hexcel competes globally in advanced composites based on technology, performance, and price, benefiting from significant barriers to entry like intellectual property and specialized expertise - Hexcel competes globally in advanced composites against other companies and substitute materials (metal, structural foam, wood), with competition based on technology, product performance, delivery, service, price, and customer preference[80](index=80&type=chunk) - Significant barriers to entry in Hexcel's markets include intellectual property, specialized expertise, extensive qualification databases, global manufacturing capacity, and long-term customer relationships[81](index=81&type=chunk) [Human Capital](index=13&type=section&id=Human%20Capital) Hexcel prioritizes attracting, developing, and retaining skilled employees, fostering a values-aligned culture, and ensuring health and safety for its 5,328 global employees, many of whom are unionized - Hexcel focuses on attracting, developing, and retaining skilled talent, guided by corporate values, and invests in training, professional development, and performance management[82](index=82&type=chunk) - Employee health and safety is a top priority, with a global safety culture, regular training, robust systems, and ISO14001:2015 and ISO 45001:2018 certifications[83](index=83&type=chunk) - As of December 31, 2022, Hexcel employed 5,328 full-time employees and contract workers globally, with approximately 22% of U.S. employees and the majority in Europe represented by unions or works' councils[85](index=85&type=chunk) [Other Information](index=14&type=section&id=Other%20Information) Hexcel's website provides free access to SEC filings, but this information is not incorporated by reference into the Annual Report on Form 10-K - Hexcel's website (www.hexcel.com) provides free access to SEC filings (10-Ks, 10-Qs, 8-Ks), but website content is not incorporated by reference into the Annual Report on Form 10-K[86](index=86&type=chunk) [Forward-Looking Statements](index=14&type=section&id=Forward-Looking%20Statements) This report contains forward-looking statements based on uncertain forecasts

Hexcel Corporation (NYSE:HXL) Q4 2022 Earnings Conference Call January 26, 2023 10:00 AM ET Company Participants Patrick Winterlich - Chief Financial Officer Nick Stanage - Chairman, President and CEO Kurt Goddard - Vice President, Investor Relations Conference Call Participants David Strauss - Barclays Pete Skibitski - Alembic Global Ron Epstein - Bank of America Myles Walton - Wolfe Research Robert Spingarn - Melius Research Kristine Liwag - Morgan Stanley Gautam Khanna - Cowen Mike Sison - Wells Fargo Mi ...

2 ©2023 Hexcel. All rights reserved. Leader in markets undergoing secular growth Broadest aerospace composite solution portfolio OUR HEXCEL PURPOSE | --- | --- | --- | |-------|----------------------------------------|------------------------------------------------------------------------------| | | | Leading, sole source positions in key markets with high barriers to entry | | • | INNOVATIVE SOLUTIONS | | | • | PROVEN EXECUTION | Sustainable competitive advantage | | | | | | • | EXPANDING MARGINS ON MARKE ...

Financial Data and Key Metrics Changes - Third quarter sales reached almost $365 million, representing a 12% increase in constant currency compared to Q3 2021 [10] - Adjusted diluted EPS for the third quarter was $0.33, up from $0.13 in the previous year [10] - Gross margin improved to 22.4% from 19.8% year-over-year, reflecting operating leverage despite inflationary pressures [22] - Year-to-date total sales increased by almost 22% year-over-year in constant currency, with EPS of $0.88 compared to $0.11 last year [16] Business Line Data and Key Metrics Changes - Commercial aerospace sales were approximately $209 million, up 26.5% in constant currency, driven by growth in Airbus A350 and A320 NEO programs [10][19] - Space and Defense sales totaled about $109 million, remaining flat in constant currency, but year-to-date sales increased nearly 5% [12][20] - Industrial sales decreased by over 8% in constant currency, primarily due to lower wind energy sales, despite growth in other industrial markets [21] Market Data and Key Metrics Changes - Commercial aerospace accounted for approximately 57% of total third quarter sales, while Space and Defense represented 30% [19] - The industrial segment comprised 13% of total sales, with wind energy making up around 20% of industrial sales [21] Company Strategy and Development Direction - The company aims to meet strong market demand, particularly in aerospace, as passenger numbers recover to pre-pandemic levels [6][39] - Hexcel is focused on operational excellence, streamlining processes, and driving productivity to enhance customer performance [9] - The company is committed to innovation in lightweight composite materials, positioning itself to capitalize on growth opportunities in aerospace and defense [8][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the aerospace market and the continued demand for lightweight composites [6][39] - The company is preparing for strong growth in 2023, with expectations of increased production rates from major customers [39][76] - Management acknowledged challenges such as inflationary pressures and supply chain constraints but remains focused on operational efficiency [9][22] Other Important Information - The company declared a quarterly dividend of $0.10, payable to stockholders of record as of November 4 [32] - Capital expenditures for the first nine months of 2022 were $49.1 million, reflecting higher maintenance and growth CapEx [29] - Free cash flow for the first nine months of 2022 was negative $1.9 million, primarily due to increased inventory levels [30] Q&A Session Summary Question: Free cash flow guidance and working capital - Management explained the decision to build inventory levels as a buffer against supply chain constraints, which is expected to strengthen free cash flow in 2023 [46][47] Question: Boeing product intake and sales pressure - Management confirmed that while Boeing's MAX program is ramping up, the 787 production remains slow, impacting sales [52][53] Question: Industrial segment outlook for 2023 - Management indicated that the industrial segment, particularly high-end automotive and recreation, is expected to remain strong despite potential economic downturns [61][62] Question: Labor challenges and training - Management acknowledged the ongoing challenges in training new hires but noted improvements in recruitment processes [77][78] Question: Seasonality impact on sales - Management clarified that Q3 sales typically decline due to seasonal factors in Europe, which returned to a more standard pattern post-pandemic [90] Question: Currency hedging and its impact - Management discussed the benefits of their hedging strategy, which is expected to provide margin stability moving into 2023 [105][106]