Financial Analysis

Note 11 Commit ments 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, a …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Note 5 Debt (In millions) June 30, 2026 December 31, 2025 Senior unsecured credit facility $ 265.0 $ 295.0 3.95 % senior notes --- due 2027 - 400.0 5.875 % senior notes --- due 2035 300.0 300.0 4.9 % senior notes --- due 2031 400.0 - Senior notes --- original issue discount ( 0.4 ) ( 0.2 ) Senior notes --- deferred financing costs ( 7.1 ) ( 3.9 ) Non-current portion of finance lease and other debt 1.9 2.1 Long-term debt 959.4 993.0 Total debt $ 959.4 $ 993.0 On March 31, 2026, the Company entered into a new credit agreement (the Credit Agreement) to refinance its senior unsecured credit facility (the Facility). Under the terms of the Credit Agreement the borrowing capacity remained at $ 750 million. The Facility matures on March 31, 2031 . In connection with the refinancing, the Company incurred approximately $ 1.9 million in financing costs which were deferred and will be amortized over the term of the Facility. In addition, the Company recorded a charge of approximately $ 0.3 million in Other expense on the Condensed Consolidated Statements of Operations for closing costs related to the refinancing. Borrowings under the Facility bear interest, at Hexcels option, for SOFR rate 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 the Applicable Margin or (ii) for base rate borrowings, the greatest of (a) the prime rate, (b) the federal funds rate plus …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Quarters Ended June 30, Six Months Ended June 30, (In millions) 2026 2025 2026 2025 Consolidated Net Sales $ 529.3 $ 489.9 $ 1,030.8 $ 946.4 Commercial Aerospace 346.6 293.1 679.3 573.2 Defense, Space & Other 182.7 196.8 351.5 373.2

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

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Note 4 Retirement and Other Postretirement Benefit Plans We maintain qualified defined benefit retirement plans covering certain current and former European employees, as well as nonqualified defined benefit retirement plans, and retirement savings plans covering certain eligible U.S. and European employees and participate in a union sponsored multi-employer pension plan covering certain U.S. employees with union affiliations. In addition, we provide certain postretirement health care and life insurance benefits to eligible U.S. retirees. Defined Benefit Retirement Plans We have nonqualified defined benefit retirement plans covering certain current and former employees that are funded as benefits are incurred. Expense related to the defined benefit retirement plans for the quarters ended June 30, 2026 and 2025 was $ 0.3 million and $ 0.5 million, respectively. Expense related to the defined benefit retirement plans for the six months ended June 30, 2026 and 2025 was $ 0.7 million and $ 1.0 million, respectively. Postretirement Health Care and Life Insurance Benefit Plans We provide certain postretirement health care and life insurance benefits to eligible retirees. Depending upon the plan, benefits are available to eligible employees who retire after meeting certain age and service requirements and were employed by Hexcel as of February 1996. Our funding policy for the postretirement health care and life insurance benefit plans is generally to pay covered expenses as they are …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Note 12 Restructuring We recognized restructuring charges of $ 1.0 million and $ 6.5 million, respectively, for both the quarter and six months ended June 30, 2026, related to the shutdown of industrial-oriented manufacturing at the Leicester, UK facility. These amounts were included in Other operating expense. Anticipated future cash payments as of June 30, 2026 were $ 5.2 million. Activity for the Quarter Ended June 30, 2026 March 31, Restructuring Cash June 30, (In Millions) 2026 Charge FX Impact Paid Non-Cash 2026 Employee termination $ 2.8 $ 0.1 $ $ ( 2.5 ) $ $ 0.4 Impairment and other 4.1 0.9 0.1 ( 0.2 ) 4.8 Total $ 6.9 $ 1.0 $ 0.1 $ ( 2.5 ) $ ( 0.2 ) $ 5.2 Activity for the Six Months Ended June 30, 2026 December 31, Restructuring Cash June 30, (In Millions) 2025 Charge FX Impact Paid Non-Cash 2026 Employee termination $ 2.5 $ 2.4 $ ( 0.1 ) $ ( 4.4 ) $ $ 0.4 Impairment and other 3.0 4.1 ( 2.3 ) 4.8 Total $ 5.5 $ 6.5 $ ( 0.1 ) $ ( 4.4 ) $ ( 2.3 ) $ 5.2 …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

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 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

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 arms 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. 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. Financial information for our operating segments for the quarters and six months ended June 30, 2026 and 2025 were as follows: Composite Engineered Corporate & (In millions) Materials Products Other (a) Total Quarter Ended June 30, 2026 Net sales to external customers $ 421.5 $ 107.8 $ $ 529.3 Intersegment sales …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Note 13 Capital Stock On February 19, 2024, the Board approved a $ 300 million share repurchase plan (the 2024 Share Repurchase Plan). As of December 31, 2025, the 2024 Share Repurchase Plan was fully utilized. The repurchases of the Companys common stock under the 2024 Share Repurchase Plan were 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. On October 22, 2025, the Board approved an additional $ 600 million share repurchase plan (the ""2025 Share Repurchase Plan""), and, as part of the 2025 Share Repurchase Plan, the Company entered into accelerated share repurchase agreements (the ""ASR"") to purchase an aggregate of $ 350 million of the Company's common stock. On October 24, 2025, the Company paid Bank of America, N.A. (Bank of America) and Goldman Sachs & Co. LLC (together with Bank of America, the Counterparties) an aggregate amount of $ 350 million and received an initial delivery of approximately 3.95 million shares of the Company's common stock, representing 80 % of the shares expected to be repurchased under the ASR agreement, at a price of $ 70.95 per share, which was the closing price of our common stock on October 24, 2025. The final settlement under the ASR program with Bank of America occurred on February 27, 2026 and with Goldman Sachs & Co. LLC on March 3, 20 …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing