# EDGAR Filing Document

**Accession Number:** 0000717605
**File Stem:** 0001193125-26-046377
**Filing Date:** 2026-2
**Character Count:** 438634
**Document Hash:** 08116a3b0e5ba90b077a5dcc1a6c7ca6
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-046377.hdr.sgml**: 20260211

**ACCESSION NUMBER**: 0001193125-26-046377

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 119

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260211

**DATE AS OF CHANGE**: 20260211

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** HEXCEL CORP /DE/
- **CENTRAL INDEX KEY:** 0000717605
- **STANDARD INDUSTRIAL CLASSIFICATION:** PLASTICS, MATERIALS, SYNTH RESINS & NONVULCAN ELASTOMERS [2821]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 941109521
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-08472
- **FILM NUMBER:** 26620298

**BUSINESS ADDRESS:**
- **STREET 1:** TWO STAMFORD PLAZA
- **STREET 2:** 281 TRESSER BLVD., 16TH FLOOR
- **CITY:** STAMFORD
- **STATE:** CT
- **ZIP:** 06901
- **BUSINESS PHONE:** 203-969-0666

**MAIL ADDRESS:**
- **STREET 1:** TWO STAMFORD PLAZA
- **STREET 2:** 281 TRESSER BLVD., 16TH FLOOR
- **CITY:** STAMFORD
- **STATE:** CT
- **ZIP:** 06901

?xml version='1.0' encoding='ASCII'? 10-K

![img229463940_0.jpg](img229463940_0.jpg)

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**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D. C. 20549** 

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**FORM** 10-K

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☒ **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**For the Fiscal Year Ended** **December 31,** 2025

**or**

☐ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**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

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Hexcel Corporation

**(Exact name of registrant as specified in its charter)** 

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| | |
|:---|:---|
| Delaware | 94-1109521 |
| **(State or Other Jurisdiction of Incorporation or Organization)** | **(I.R.S. Employer Identification No.)** |

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Two Stamford Plaza

281 Tresser Boulevard

Stamford**,** Connecticut 06901

***(*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:**

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| | | |
|:---|:---|:---|
| **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 |

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**Securities registered pursuant to Section 12(g) of the Act: None**

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Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

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.

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| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☒ | Accelerated filer | ☐ |
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
|  |  | Emerging growth company | ☐ |

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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 or new revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

The aggregate market value of the registrant's common stock held by non-affiliates was $4,492,763,527 based on the reported last sale price of common stock on June 30, 2025, which is the last business day of the registrant's most recently completed second fiscal quarter.

The number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date.

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| | |
|:---|:---|
| **Class** | **Outstanding as of January 30, 2026** |
| **COMMON STOCK** | **75,870,417** |

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**Documents Incorporated by Reference:** 

Portions of Part III will be incorporated by reference to the registrant's definitive proxy statement, in accordance with Instruction G(3) to Form 10-K, to be filed with the Securities and Exchange Commission no later than 120 days after the end of the registrant's fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Auditor Firm Id: Auditor Name: Auditor Location:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**000**42 Ernst & Young LLP Stamford, Connecticut

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**HEXCEL CORPORATION AND SUBSIDIARIES** 

**ANNUAL REPORT ON FORM 10-K**

**For the fiscal year ended December 31, 2025**

**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
|  |  | **Page** |
| **Part I** |  |  |
| Item 1: | [<u>Business</u>](#item1business) | 3 |
| Item 1A: | [<u>Risk Factors</u>](#item1ariskfactors) | 13 |
| Item 1B: | [<u>Unresolved Staff Comments</u>](#item1bunresolvedstaffcomments) | 23 |
| Item 1C: | [<u>Cybersecurity</u>](#item1ccybersecurity) | 23 |
| Item 2: | [<u>Properties</u>](#item2properties) | 25 |
| Item 3: | [<u>Legal Proceedings</u>](#item3legalproceedings) | 25 |
| Item 4: | [<u>Mine Safety Disclosures</u>](#item4minesafety) | 25 |
| **Part II** |  |  |
| Item 5: | [<u>Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities</u>](#item5marketforregistrant) | 26 |
| Item 6: | [<u>\[Reserved\]</u>](#item_6_reserved) | 26 |
| Item 7: | [<u>Management's Discussion and Analysis of Financial Condition and Results of Operations</u>](#item7mda) | 26 |
| Item 7A: | [<u>Quantitative and Qualitative Disclosures About Market Risk</u>](#item7aquantandqual) | 27 |
| Item 8: | [<u>Financial Statements and Supplementary Data</u>](#item8financialstatements) | 27 |
| Item 9: | [<u>Changes in and Disagreements with Accountants on Accounting and Financial Disclosure</u>](#item9disagreementswithauditors) | 27 |
| Item 9A: | [<u>Controls and Procedures</u>](#item9acontrolsandprocedures) | 27 |
| Item 9B: | [<u>Other Information</u>](#item9botherinformation) | 27 |
| Item 9C: | [<u>Disclosure Regarding Foreign Jurisdictions that Prevent Inspections</u>](#item_9c_disclosure_regarding_foreign) | 27 |
| **Part III** |  |  |
| Item 10: | [<u>Directors, Executive Officers and Corporate Governance</u>](#item10directors) | 27 |
| Item 11: | [<u>Executive Compensation</u>](#item11executivecompensation) | 27 |
| Item 12: | [<u>Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters</u>](#item12securityownership) | 28 |
| Item 13: | [<u>Certain Relationships and Related Transactions and Director Independence</u>](#item13directorindependence) | 28 |
| Item 14: | [<u>Principal Accountant Fees and Services</u>](#item14principalaccountantfees) | 28 |
| **Part IV** |  |  |
| Item 15: | [<u>Exhibits and Financial Statement Schedules</u>](#item15exhibits) | 29 |
| Item 16: | [<u>10-K Summary</u>](#item16) | 32 |
| [<u>Signatures</u>](#signatures) |  | 33 |

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**PART I** 

**ITEM 1. Business.** 

**General** 

Hexcel Corporation and its subsidiaries (herein referred to as "Hexcel", "the Company", "we", "us", or "our"), is a global leader in advanced lightweight composites technology. We propel the future of flight and transportation through excellence in advanced material lightweighting solutions that create a better world for us all. Our broad product range includes carbon fiber, specialty reinforcements, prepregs and other fiber-reinforced matrix materials, honeycomb, resins, engineered core and composite structures for use in commercial aerospace, defense and space, and industrial applications.

We are a manufacturer of products within a single industry: Advanced Composites. We have two reportable segments: Composite Materials and Engineered Products. The Composite Materials segment is comprised of our carbon fiber, specialty reinforcements, resin systems, prepregs and other fiber-reinforced matrix materials, and honeycomb core product lines and pultruded profiles. The Engineered Products segment is comprised of lightweight high strength composite structures, radio frequency/electromagnetic interference ("RF/EMI") and microwave absorbing materials, engineered core and specialty machined honeycomb products with added functionality.

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

The following summaries describe the ongoing activities related to the Composite Materials and Engineered Products segments as of December 31, 2025.

***Composite Materials*** 

The Composite Materials segment manufactures and markets carbon fibers, fabrics, and specialty reinforcements, prepregs and other fiber-reinforced matrix materials, structural adhesives, honeycomb, molding compounds, tooling materials, polyurethane systems and laminates that are incorporated into many applications, including commercial and military aircraft, transportation (primarily automotive), recreational products, and other industrial applications.

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The following table identifies the principal products and examples of the primary end-uses from the Composite Materials segment:

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| | | |
|:---|:---|:---|
| **SEGMENT** | **PRODUCTS** | **PRIMARY END-USES** |
| **COMPOSITE MATERIALS** | Carbon Fibers | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;****&nbsp;&nbsp;&nbsp;&nbsp; Raw materials for prepregs, fabrics and specialty reinforcements<br>****&nbsp;&nbsp;&nbsp;&nbsp; Filament winding for various aerospace, defense and industrial applications |
|  | Fabrics, Multi-axials and Specialty Reinforcements | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;****&nbsp;&nbsp;&nbsp;&nbsp; Raw materials for prepregs<br>****&nbsp;&nbsp;&nbsp;&nbsp; Composites and components used in aerospace, defense, automotive and other industrial applications |
|  | Prepregs, Other Fiber-Reinforced Matrix Materials and Resins | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;****&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Epoxy resin systems<br>****&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Composite structures<br>****&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial and military aircraft <br>**** &nbsp;&nbsp;&nbsp;&nbsp; Aero-engines<br>**** &nbsp;&nbsp;&nbsp;&nbsp; Rotorcraft <br>****&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unmanned aerial vehicles<br>****&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Satellites and launchers<br>****&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Automotive<br>****&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bicycles and hockey sticks  |
|  | Structural Adhesives | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;****&nbsp;&nbsp;&nbsp;&nbsp; Bonding of metals, honeycomb and composite materials |
|  | Honeycomb | **** Composite structures and interiors<br>**** Impact and shock absorption systems<br>**** Rotorcraft blades<br>**** Acousti-Cap® |
|  | Pultruded Profiles  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**** Tubes, rods, robotics and medical<br>applications  |

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*Carbon Fibers:* HexTow® carbon fibers are used in certain reinforcements and composite materials. Carbon fibers are also woven into carbon fabrics, used as reinforcement in conjunction with a resin matrix to produce pre-impregnated composite materials (referred to as "prepregs"). Carbon fiber is also used in filament winding to produce finished composite components. Key product applications include structural components for commercial and military aircraft and rotorcraft, jet engine fan blades and fan casings, space launch vehicles, and certain other applications such as recreational and industrial equipment.

*Fabrics, Multi-axials and Specialty Reinforcements:* HexForce® fabrics, multi-axials and specialty reinforcements are made from a variety of fibers, including carbon, glass, aramid and other high strength polymers, quartz, ceramic and other specialty fibers. These reinforcements are used in the production of prepregs and other matrix materials for aerospace and select industrial markets including automotive components, oil exploration and production equipment, and select sporting goods equipment.

*Prepregs:* HexPly® prepregs are used in manufacturing composite laminates and monolithic structures. Prepregs are used in primary and secondary structural aerospace applications such as wing components, horizontal and vertical stabilizer components, fairings, radomes, engine fan blades and cases, engine nacelles as well as overhead storage bins and other interior components. They are also used in many of the industrial and recreational products noted above. Prepregs are manufactured by combining high-performance reinforcement fabrics or unidirectional fibers with a resin matrix to form a composite material that, when cured, has exceptional structural properties not present in either of the constituent materials individually. Prepregs are applied via hand layup, automatic tape layup and advanced fiber placement to produce finished composite components. Prepreg reinforcements include glass, carbon, aramid, quartz, ceramic and other specialty fibers. Resin matrices include bismaleimide, cyanate ester, epoxy, phenolic, polyimide and other specialty resins.

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*Other Fiber-Reinforced Matrix Materials*: Fiber reinforced matrix developments include HexTool®, a specialized form of quasi-isotropic carbon fiber prepreg for use in the cost-effective construction of high temperature resistant composite tooling. HexFIT® film infusion material is a product that combines resin films and dry fiber reinforcements to save lay-up time in production and enables the manufacture of large contoured composite structures.

*Resins*: HexFlow® polymer matrix materials are sold in liquid and film form for use in direct process manufacturing of composite parts. Resins can be combined with fiber reinforcements in manufacturing processes such as resin transfer molding, resin film infusion or vacuum assisted resin transfer molding to support high volume production of composite components for both aerospace and industrial applications, without the need for customer investment in autoclaves.

*Structural Adhesives:* We manufacture and market a comprehensive range of HexBond® film and paste adhesives. These structural adhesives, which bond metal to metal and composites and honeycomb structures, are used in the aerospace industry and for select industrial applications.

*Honeycomb:* HexWeb® honeycomb is a lightweight, cellular structure generally composed of a sheet of nested hexagonal cells. It can also be manufactured in over-expanded and asymmetric cell configurations to meet special design requirements such as contours or complex curvatures. Honeycomb is primarily used as a lightweight core material and acts as a highly efficient energy absorber. When sandwiched between composite or metallic facing skins, honeycomb significantly increases the stiffness of the structure, while adding very little weight.

We produce honeycomb primarily from non-metallic materials though some honeycomb is produced from metallic materials. Non-metallic materials used in the manufacture of honeycomb include fiberglass, carbon fiber, thermoplastics, non-flammable aramid papers, aramid fiber and other specialty materials. Most metallic honeycomb is made from aluminum and is available in a selection of alloys, cell sizes and dimensions. We sell honeycomb as standard blocks and in slices cut from a block. Aerospace is the largest market for honeycomb products.

Our HexWeb® Acousti-Cap® sound attenuating honeycomb used in aircraft engines and nacelles provides dramatic noise reduction during takeoff and landing without a structural weight penalty. Acousti-Cap® incorporates a non-metallic, permeable cap material that is embedded into honeycomb core. In addition, we produce honeycomb for our Engineered Products segment for use in manufacturing finished parts for airframe original equipment manufacturers.

*Polyspeed® Pultruded Profiles*: Hexcel manufactures a wide range of pultruded sections including rods, flat sections, tubes and specific profiles that are usually made from carbon fiber but can also be made from glass, quartz, basalt or other fibers. The profile matrix is a Hexcel formulation of thermoset resin (epoxy or polyurethane). Hexcel pultruded profiles are used in a wide range of industrial applications.

The following tables identify the key customers and the major manufacturing facilities of the Composite Materials segment:

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| | | |
|:---|:---|:---|
|  | **COMPOSITE MATERIALS** |  |
|  | **KEY CUSTOMERS** |  |
| Aernnova | Daher | Lockheed Martin |
| Airbus | Dassault | Nordam |
| Albany International | Embraer | Northrop Grumman |
| Blue Origin | FACC | RTX |
| The Boeing Company | General Dynamics | Safran |
| Bombardier | General Electric | Syensqo |
| CFAN | GKN | Toray |
| CTRM Aero Composites | Leonardo |  |

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| | |
|:---|:---|
| **MANUFACTURING FACILITIES** | **MANUFACTURING FACILITIES** |
| Casa Grande, Arizona | Parla, Spain |
| Dagneux, France | Roussillon, France |
| Decatur, Alabama | Salt Lake City, Utah |
| Duxford, England | Seguin, Texas |
| Illescas, Spain | Stade, Germany |
| Leicester, England | Vert-le-Petit, France |
| Les Avenières, France |  |

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During the third quarter of 2025, the Company completed the divestiture of its operations in Austria. The Company had previously announced in late 2024 that it was exploring strategic options for its operations in Austria and undergoing a process to find a suitable successor. The plant in Neumarkt, Austria only served industrial markets with industrial-grade fibers procured from third parties.

Net sales for the Composite Materials segment to third-party customers were $1,516.2 million in 2025, $1,531.0 million in 2024, and $1,474.2 million in 2023, which represented about 80% of our net sales each year. Net sales for composite materials are highly dependent upon the number of commercial aircraft produced as further discussed under the captions "Significant Customers", "Markets" and "Management's Discussion and Analysis of Financial Condition and Results of Operations".

***Engineered Products*** 

The Engineered Products segment manufactures and markets composite structures and precision machined honeycomb parts primarily for use in the aerospace industry. Composite structures are manufactured from a variety of composite and other materials, including prepregs, honeycomb, and structural adhesives, using such manufacturing processes as autoclave processing, multi-axis numerically controlled machining, heat forming, infusion or resin transfer molding and other composite manufacturing techniques. Composite structures include HexAM® 3D printed parts, which offer significant weight cost and time-to-market reductions compared to incumbent metal or traditional composite technologies. This segment also provides advanced interference control materials, structural composites, and services; dielectric absorber foams and honeycomb; magnetic absorbers; and thermoplastics for commercial and defense applications.

The following table identifies the principal products and examples of the primary end-uses from the Engineered Products segment:

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| | | |
|:---|:---|:---|
| **SEGMENT**  | **PRODUCTS** | **PRIMARY END-USES** |
| **ENGINEERED PRODUCTS** | Composite Structures | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;****&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aircraft structures and finished aircraft components, including wing to body fairings, wing panels, flight deck panels, door liners, rotorcraft blades, spars and tip caps |
|  | Engineered Honeycomb | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;****&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aircraft structural sub-components and semi-finished components used in rotorcraft blades, engine nacelles, and aircraft surfaces (flaps, wings, elevators and fairings) |
|  | RF Interference Control | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;****&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Military and aerospace applications  |

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Net sales for the Engineered Products segment to third-party customers were $377.7 million in 2025, $372.0 million in 2024, and $314.8 million in 2023, which represented approximately 20% of our net sales each year.

In early 2025, the Company divested its Hartford, Connecticut additive printing business and in June 2025, the Company closed its Welkenraedt, Belgium engineered products facility. The divestiture and closure were part of a strategy to streamline operations and focus on the company's core competencies in carbon fiber composites.

The following table identifies the key customers and the major manufacturing facilities of the Engineered Products segment:

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| | |
|:---|:---|
| **ENGINEERED PRODUCTS** | **ENGINEERED PRODUCTS** |
| **KEY CUSTOMERS** | **MANUFACTURING FACILITIES** |
| The Boeing Company | Amesbury, Massachusetts |
| CTRM Aero Composites | Burlington, Washington |
| General Dynamics | Casablanca, Morocco |
| General Electric | Kent, Washington |
| GKN | Pottsville, Pennsylvania |
| Lockheed Martin |  |
| RTX |  |
| Textron |  |

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**Significant Customers**

Approximately 39%, 40% and 39% of our 2025, 2024 and 2023 net sales, respectively, were to Airbus and its subcontractors. Of the 39% of overall sales to Airbus and its subcontractors in 2025, 35% related to Commercial Aerospace market applications and 4% related to Defense & Space market applications. Approximately 13%, 15% and 15% of our 2025, 2024 and 2023 net sales, respectively, were to Boeing and its subcontractors. Of the 13% of overall sales to Boeing and its subcontractors in 2025, 11% related to Commercial Aerospace market applications and 2% related to Defense & Space market applications.

**Markets** 

Our products are sold for a broad range of end-uses where durability, strength and weight are important factors to our customers. Beginning with the first quarter of 2025, sales are now being reported for two markets, Commercial Aerospace, unchanged from past practice, and a new sales category titled Defense, Space & Other, which combines the previous Space & Defense market and the Industrial market. Prior period sales amounts have been reclassified for comparative purposes.

*Commercial Aerospace* 

The Commercial Aerospace industry is our largest user of advanced composites. Commercial Aerospace represented 61% of our 2025 net sales. Approximately 77% of these revenues can be identified as sales to Airbus, Boeing, and their subcontractors for the production of commercial aircraft. Approximately 23% of these revenues were for business jets and regional and other commercial aircraft. The economic benefits to airlines from weight savings in both fuel economy and aircraft range, combined with the aerodynamic design enhancement that comes from the advantages of advanced composites over traditional materials, have resulted in the aerospace industry becoming the leader in the adoption and use of these materials. While military aircraft and spacecraft have led the development and adoption of these materials, Commercial Aerospace has greater production volumes and has commercialized the use of these products. Accordingly, the demand for advanced composites structural material products is closely correlated to the demand for new commercial aircraft.

The use of advanced composites in Commercial Aerospace is primarily in the manufacture of new commercial aircraft and jet engines. These composite materials are designed to last the life of the aircraft and engine so as a result, the aftermarket for these products is minimal. The demand for new commercial aircraft is driven by two principal factors, the first of which is airline passenger traffic (the number of revenue passenger miles flown by the airlines) which affects the required size of airline fleets. Growth in passenger traffic requires growth in the size of the fleet of commercial aircraft operated by airlines worldwide.

A second factor, which is less sensitive to the general economy, is the replacement rates for existing aircraft. The rates of retirement of passenger and freight aircraft, resulting mainly from obsolescence, are determined in part by the regulatory requirements established by various civil aviation authorities worldwide as well as public concern regarding aircraft age, safety, noise, and emissions. These rates may also be affected by the desire of the various airlines to improve operating costs with higher payloads and more fuel-efficient aircraft (which in turn is influenced by the price of fuel) and by reducing maintenance expense. In addition, pressure is increasing on airlines to replace their aging fleet with more fuel efficient and quieter aircraft to be more environmentally responsible. For example, aircraft operators subject to the European Union Emissions Trading Scheme (EU-ETS) are facing high costs to purchase carbon credits for compliance, which may influence fleet replacement plans to purchase lightweight new aircraft. Additionally, the International Civil Aviation Organization (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) emission reduction mandates for international aviation becomes mandatory on January 1, 2027, which may influence fleet renewal. When aircraft are retired from commercial airline fleets, they may be converted to cargo freight aircraft, used for parts, or scrapped.

An additional factor that may cause airlines to defer or cancel orders is their ability to obtain financing, including leasing, for new aircraft orders. This will be dependent both upon the financial health of the airline operators, as well as the overall availability of financing in the marketplace.

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Each new generation of commercial aircraft has used increasing quantities of advanced composites, replacing metals and other materials. This follows the trend previously witnessed in military applications where composites now comprise the majority of the airframe of latest generation aircraft to enhance performance, range and payload, including the F-35 Lightning and the CH-53K heavy lift transport helicopter. Early versions of commercial jet aircraft, such as the Boeing 707, which was developed in the early 1950s, contained almost no composite materials. One of the first commercial aircraft to use a meaningful amount of composite materials, the Boeing 767, entered into service in 1983, and contains approximately 6% composite materials, primarily comprised of interior secondary composite structures. Boeing's legacy 777 aircraft, which entered service in 1995, is approximately 11% composite including composite flaps/ailerons and landing gear doors. The Airbus A380, which was first delivered in 2007, has approximately 23% composite content by weight as the tail structure was built of composites. The Boeing 777X was redesigned with composite wings and a new composite-rich engine and is more than 30% composites. Boeing's 787, which entered into service in 2011, has a content of more than 50% composite materials by weight including composite wings and fuselage. The Airbus A350 XWB ("A350") which has a composite content of 53% by weight was first delivered in December 2014.

Engines and nacelles are also an attractive market for both Hexcel Composite Materials and Engineered Products, including composite fan blades, cowlings, and nacelles. Both Airbus and Boeing introduced updated versions of their narrow body aircraft which utilize composite-rich engines and nacelles but continue to incorporate metal wings and fuselages that were designed decades ago. The Airbus A320neo had its first customer delivery in 2016 and the Boeing 737 MAX entered into service in 2017. The LEAP engines and nacelles on both the A320neo and 737 MAX are composite-rich as is the GE9X engine on the Boeing 777X.

It is expected that future aircraft platforms will offer more opportunities for composite materials than their predecessors, as the Commercial Aerospace industry continues to utilize a greater proportion of advanced composite materials with each new generation of aircraft and each new generation of engines and nacelles. We refer to this steady expansion of the use of composites in aircraft as the "secular penetration of composites" as it potentially increases our average sales per airplane over time.

The impact on Hexcel of Airbus and Boeing production rate changes is typically influenced by two factors: the mix of aircraft produced and the inventory supply chain effects of increases or reductions in aircraft production. We have products on all Airbus and Boeing planes. The shipset or dollar value of our materials varies by aircraft type and aircraft platform. Newer designed aircraft use more of our materials than older generations, and as a materials provider, larger aircraft use more composites by weight than smaller aircraft. On average, for established programs, we deliver products into the supply chain about four to six months prior to aircraft delivery, with a range between one and eighteen months depending on the product and specific aircraft platform. For aircraft that are in the development or ramp-up stage we will have sales as much as several years in advance of the aircraft entry-into-service.

Airbus and Boeing combined backlog at December 31, 2025 was 15,474 aircraft, or a 3.8% increase compared to December 31, 2024. The backlogs are at near record levels reflecting strong demand as well as continued production challenges and constraints within the commercial aerospace supply chain that has been limiting the production of new aircraft. The balance of our Other Commercial Aerospace sales is related to business jets and regional aircraft manufacture, and other commercial aircraft applications. These applications also exhibit increasing utilization of composite materials with each new generation of aircraft.

*Defense, Space & Other*

The Defense, Space & Other market represented 39% of our 2025 net sales. The Defense, Space & Other market has historically been an innovator in the use of, and source of significant demand for, advanced composites. The aggregate demand by Defense, Space & Other customers is primarily a function of procurement of military aircraft, rotorcraft and space craft that utilize advanced composites, including the United States, a number of Western European countries, as well as a select number of other countries globally. We are qualified to supply materials to a broad range of military aircraft, commercial helicopter and space programs, including the Lockheed Martin F-35 (Lightning), Sikorsky CH-53K (King Stallion), Bell-Boeing V-22 (Osprey) tilt rotor aircraft, Sikorsky UH-60 Black Hawk, Dassault Rafale, Airbus A400M and Embraer KC-390 military transport aircraft. The F-35, which is our largest program, represents less than 25% of revenues in this market. No other program accounts for more than 10% of our revenues in this market. The sales from these programs are dependent upon government funding. Space applications for advanced composites include solid rocket booster cases, fairings and payload doors for both government funded and commercial launch vehicles, and satellite buss and solar arrays for military and commercial satellites.

Another growth generating trend for Hexcel is the further penetration of composites in rotorcraft blades, including both new and replacement blades. The Sikorsky Black Hawk wide chord blade program was the largest blade program in 2025 and 2024. Hexcel composites are being used in prototypes of new military and civilian helicopters globally. CH-53K is a growth program, including the composite helicopter blades and new helicopter programs in development which use Hexcel composites in prototypes. The blades include Composite Materials products such as carbon fiber, prepregs, and honeycomb core to improve blade performance. In addition,

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our Engineered Products segment provides specialty value added services such as machining, sub-assembly, and even full blade manufacturing for rotorcraft.

The revenue from industrial-type markets includes automotive, a variety of recreational products, and other industrial applications. In developing new applications, we seek those opportunities where advanced composites technology offers significant benefits to the end user, often applications that demand highly engineered performance. This includes primarily carbon fiber and resin formulations that we produce, although we will procure some glass fiber from third parties that we then combine with our resin formulations and weaving expertise. Automotive is the largest submarket with sales to high-end performance vehicles. Sales to major end user sub-markets, in order of size based on our 2025 sales: general industrial applications (including those sold through distributors), transportation (e.g., automobiles) and consumer electronics, and recreational equipment (e.g., bicycles and hockey sticks). Historically, wind energy comprised the largest submarket within industrial as we would purchase third-party glass fiber and add value with our weaving expertise and resin formulations. The financial returns on new wind energy business became unattractive to the Company as the global wind industry works through a period of turmoil in terms of inflationary cost impacts, logistics challenges, permitting delays, and stiff competition amongst multiple wind turbine manufacturers globally. As previously discussed, in 2025, we divested our Neumarkt, Austria industrial composites business and closed our Welkenraedt, Belgium facility. The divestiture and closure were part of a strategy to streamline operations and focus on our core competencies in carbon fiber and resulted in an exit from prepreg for wind-energy and marine. We will continue to serve select industrial markets that demand the performance of our aerospace-grade composites from our existing aerospace-focused plants, with aerospace-oriented manufacturing assets.

Further discussion of our markets, including certain risks, uncertainties, and other factors with respect to "forward-looking statements" about those markets, is contained under the captions "Management's Discussion and Analysis of Financial Condition and Results of Operations, "Forward Looking Statements" and "Risk Factors."

**Backlog** 

In recent years, our customers have demanded shorter order lead times and "just-in-time" delivery performance. While we have many multi-year contracts with our major aerospace customers, most of these contracts specify the proportion of the customers' requirements that will be supplied by us and the terms under which the sales will occur, not the specific quantities to be procured or the specific dates for delivery. As a result, twelve-month order backlog is not a meaningful trend indicator for us.

**Raw Materials and Production Activities** 

Our manufacturing operations are in many cases vertically integrated. One example of the benefits of our vertical integration is that it enables us to control both the carbon fiber surface structure and resin formulations to optimize their interaction and ensure excellent interfacial adhesion or bonding. We produce and internally use carbon fibers, industrial fabrics, composite materials, and composite structures as well as sell these materials to third-party customers for their use in the manufacture of their products.

We manufacture high performance carbon fiber from polyacrylonitrile precursor ("PAN"). The primary raw material for PAN is acrylonitrile. All of the PAN we produce is for internal carbon fiber production. We utilized between 60% and 65% by value of the carbon fiber we produced in both 2025 and 2024 with the remainder of our output sold to third-party customers. However, as one of the world's largest consumers of high-performance carbon fiber, we also purchase significant quantities of carbon fiber from external sources for our own use. The sources of carbon fiber we can use in any product or application are generally dictated by customer qualifications or certifications. Otherwise, we select a carbon fiber based on performance, price, and availability. With the increasing demand for carbon fiber, particularly in aerospace applications, in recent years we increased our PAN and carbon fiber capacity to serve the growing needs of our customers and our own downstream products.

We formulate a variety of resin systems that are tailored to specific applications and support the process for manufacturing composite parts. The type of epoxy and curative used in the resin systems vary depending on the application being considered, including the required service temperature, mechanical performance, and rate of cure. We continually focus on innovation that will help our customers reduce their cycle time and increase their production through-put, including lower curing temperatures, faster curing times, and enhancing the flow characteristics of the resin formulations, particularly for out-of-autoclave infusion and resin transfer molding manufacturing processes.

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We purchase glass yarn for our aerospace and industrial markets from a number of suppliers in the United States, Europe and Asia as we only produce aerospace-grade carbon fiber. We also purchase aramid and high strength fibers which are produced by only a few companies, and during periods of high demand, can be in short supply. In addition, epoxy and other specialty resins, aramid paper and aluminum specialty foils are used in the manufacture of composite products. A number of these products have only one or two sources qualified for use, so an interruption in their supply could disrupt our ability to meet our customer requirements. When entering into multi-year contracts with aerospace customers, we attempt to get back-to-back commitments from key raw material suppliers. While we are not dependent on any one supplier for the majority of our raw materials, we are highly dependent on our suppliers in order to meet commitments to our customers. We continue to work closely with our key suppliers to ensure that we are able to meet our customer commitments. While we did not experience materially significant issues in the purchase of key raw materials, we have experienced cost increases in both materials and transportation, some of which we have been unable to recover or offset, as well as transportation and performance delays. We continue to monitor the availability (including transportation) and price (including impacts of tariffs and inflation) of raw materials on a regular basis, as well as any potential impact on our operations.

Our manufacturing activities are primarily based on "make-to-order", or "demand pull" based on customer schedules, and to a lesser extent, "make-to-forecast" production requirements. We coordinate closely with key suppliers in an effort to avoid raw material shortages and excess inventories. However, many of the key raw materials we consume are available from relatively few sources, and in many cases the cost of product qualification makes it impractical to develop multiple sources of supply. The lack of availability of these materials could under certain circumstances have a material adverse effect on our consolidated results of operations.

**Research and Technology: Patents and Know-How** 

We maintain seven Research and Technology ("R&T") Centers of Excellence to support our businesses worldwide, including in the U.S., France and the United Kingdom. Through R&T activities, we maintain expertise in precursor and carbon fiber, chemical and polymer formulation and curatives, fabric forming and textile architectures, advanced composite structures, process engineering, application development, analysis and testing of composite materials, computational design, and other scientific disciplines related to our worldwide business base. During the latter part of 2025, we determined that our R&T function will be renamed to Research and Development ("R&D") which will be reflected in our reporting beginning in 2026.

Our products rely primarily on our expertise in materials science, textiles, process engineering and polymer chemistry. Consistent with market demand, we have been placing more emphasis on higher performing products and cost-effective production processes while seeking continually to improve the consistency of our products and our capital efficiency. Towards this end, we have entered into formal and informal alliances, as well as licensing and teaming arrangements, with several customers, suppliers, external agencies, universities and laboratories. We believe that we possess unique capabilities to design, develop, manufacture, and qualify composite materials and structures, including trade secrets and extensive internal knowledge gained from decades of experience. It is our policy to actively enforce our proprietary rights. We believe that the patents and know-how rights currently owned or licensed by Hexcel are adequate for the conduct of our business. We do not believe that our business would be materially affected by the expiration of any single patent or series of related patents, or by the termination of any single license agreement or series of related license agreements.

**Environmental Matters** 

We view climate change as an important social issue that presents some level of risk to our business while also creating opportunities for greater adoption of lightweight advanced composites. Our strategic and operational decision making is influenced by our commitment to reduce the environmental impact of our operations, including our carbon footprint, air and water emissions and waste reduction. We continue to pursue initiatives to improve our emissions profile through operational efficiency improvements that reduce our reliance on fossil fuels and increase our use of renewable power. We procure renewable power through our energy suppliers and at several sites, through power purchase agreements (PPA). We also work with our energy suppliers to provide on-site renewable power including the installation of on-site solar panels at our manufacturing sites in Casa Grande, Arizona and Casablanca, Morocco. The generation of solar power reduces our demand for fossil-fuel powered electricity, which supports our carbon and greenhouse gas emission reduction goals. We have applied this same approach to our product life cycle, implementing circular economic principles to reduce waste – both in our manufacturing and product packaging. At this time, we are not subject to carbon emission trading programs at any of our facilities, though we are actively monitoring country and region-specific regulations and trends to ensure future potential pricing and capital expenditures are incorporated into our product portfolio planning.

Governments and agencies worldwide are increasingly proposing and/or implementing legislation, regulations and other requirements resulting in more restrictive air emission limits globally, which could impact our operations. Changes in environmental and climate change laws or regulations, including laws relating to greenhouse gas emissions, could lead to new or additional investment in manufacturing processes or product designs and could increase environmental compliance expenditures, including

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increased energy, controls and raw materials costs. Conversely, the increasing global emphasis on emissions reduction supports the adoption of our advanced composite light weighting solutions for transportation applications. We also market composite solutions that reduce aircraft engine noise, which benefits local communities near airports, supports aircraft operators in geographies that are subject to local noise abatement programs, and enables more direct routes for aircraft that save fuel rather than having to fly longer routes to avoid noise-sensitive areas.

We are subject to various International and U.S. federal, state, and local environmental and health and safety laws and regulations. We are also potentially subject to liabilities arising under the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA" or "Superfund"), the Clean Air Act, the Clean Water Act, the Resource Conservation and Recovery Act, and similar state local and international laws and regulations that impose responsibility for the control, remediation and abatement of air, water and soil pollutants and the manufacturing, storage, handling and disposal of hazardous substances and waste. We believe that our policies, practices, and procedures are properly designed to prevent unreasonable risk of environmental damage and associated financial liability. To date, environmental control regulations have not had a significant adverse effect on our overall operations and all Hexcel operating sites have been assessed for ISO 14001 readiness and 100% of our sites as of December 31, 2025, are ISO14001:2015 certified under a Corporate umbrella certification.

A discussion of environmental matters is contained in Note 16 to the accompanying consolidated financial statements included in this Annual Report on Form 10-K. For further discussion of risks related to environmental and climate matters and other government regulations, see Item 1A, "Risk Factors" in this Annual Report on Form 10-K.

**Other Regulatory Matters**

As a materials supplier for U.S. prime contractors, and, in some cases, directly to the U.S. government, we are subject to certain U.S. government Federal Acquisition Regulations, the Defense Federal Acquisition Regulations Supplement, and associated procurement regulations. Specifically, we must comply with certain laws and regulations relating to the formation, administration, and performance of U.S. government contracts, including the U.S. government security requirements, such as the National Industrial Security Program Operating Manual and any other applicable U.S. government industrial security regulations, as well as additional government export control laws and regulations. We must follow similar requirements when doing business with foreign governments. In complying with these laws and regulations, we may be required to make additional capital expenditures and incur other costs. Furthermore, failure to comply may result in the imposition of fines and penalties, including contractual damages, civil penalties, criminal penalties, administrative sanctions, suspension or debarment from contracting with the U.S. or foreign government or termination of any applicable facility security clearance, which in turn would preclude us from being awarded classified contracts or, under certain circumstances, performing on our existing classified contracts. The U.S. Government also has the ability to unilaterally terminate existing contracts with us and our U.S. prime customers, reduce the value of such contracts, audit contract-related costs and fees, including allocated indirect costs, and control and potentially prohibit the export of our products, among other things. If a contract supporting the U.S. government was terminated for convenience, we could only seek to recover the costs we have incurred or committed, settlement expenses, and profit on the work completed prior to termination.

As a company with significant international operations, we are also subject to numerous laws and regulations, including export controls and sanctions laws, customs regulations, tariffs, international treaties and local trade rules around the world. These laws, rules and regulations may impose significant costs of compliance on the Company and may impact our competitiveness through restricting our ability to do business in certain places or with certain entities and individuals. Any failure to comply with trade regulations could limit our ability to conduct business internationally.

**Sales and Marketing** 

A staff of salaried marketing managers, product managers and sales personnel sell and market our products directly to customers worldwide. We also use independent authorized distributors for certain products, markets, and regions. In addition, we operate various sales representation offices globally.

**Competition** 

In the production and sale of advanced composites, we compete with a number of U.S. and international companies on a worldwide basis. The broad markets for composites are highly competitive, and we have focused on both specific sub-markets and specialty products within markets. In addition to competing directly with companies offering similar products, we compete with producers of substitutes for composites such as metal, structural foam, and wood. Depending upon the material and markets, relevant competitive factors include technology, product performance, historical database of usage, on-time delivery, service, price, customer preference for sole sourcing and the ease-of-use of our material to support customer-preferred processes.

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We believe that new competitors face significant barriers to entry into many of our markets. These barriers include the intellectual property and unique skills and expertise to design and manufacture carbon fiber and to formulate resin systems for aerospace applications, an extensive database of qualification and performance measurements of our products, the advantages of scale derived from significant global manufacturing capacity for aerospace-grade carbon fiber, and long-term customer relationships developed over decades of designing, manufacturing and working closely with our customers on composite applications. Further, the aerospace industry has rigorous product certification requirements and quality programs including one hundred percent traceability of all raw material and finished goods, and high expectations for consistent on-time delivery, which all act as barriers to entry.

**Human Capital** 

We believe our success depends on the skills, experience, and industry knowledge of our key talent. As such, our management team places significant focus and attention on the attraction, development, and retention of employees, as well as ensuring our corporate culture reflects our values, and our board of directors provides oversight for various employee initiatives. Our Hexcel values guide our actions, reflect our culture, and drive our performance, as explained in our Code of Business Conduct posted on our website at www.hexcel.com. We have made and continue to make significant investments in training and professional development, and we have well-established performance management and talent development processes that encourage employees to aspire to different career opportunities and for our managers to provide regular feedback and coaching to develop employees.

The health and safety of our employees is a continual focus and a top priority. Our initiatives and actions to reduce injuries and illnesses have led to significant improvements to our safety performance over time. We have attained these improvements by fostering a global safety culture supported with regular training and education that includes robust systems and philosophies centered on personal responsibility and accountability. There is a high-level of leadership engagement, ensuring risks are assessed, robust procedures and guidance are available with worker training, mitigation is managed through the hierarchy of management controls, and appropriate safety equipment is installed and operational at all of our manufacturing sites worldwide. We also have leading indicators in place to prevent safety events, and rigorous reviews of root causation and systemic corrective actions when safety incidents do occur. Hexcel achieved corporate umbrella certification for both ISO14001:2015 and ISO 45001:2018 in 2019. Achieving both certifications to these globally recognized management system standards underscores Hexcel's commitment to excellence in environmental, health, and safety performance. This milestone reflects the dedication of our senior leadership to driving continuous improvement by reducing workplace injuries and illnesses, minimizing the environmental impact of our operations, ensuring adherence to rigorous compliance obligations, and reinforcing our position as a sustainable and trusted supplier.

An engaged, innovative, skilled, and collaborative workforce is critical to our continued leadership in the advanced composites industry. We operate globally under policies and programs that provide competitive wages, benefits, and terms of employment. We are committed to efforts to foster an inclusive work environment that supports our global workforce through recruiting efforts, equitable compensation policies, and educational workshops to promote a positive and collaborative culture. Our recruitment efforts include targeted university recruitment and attendance at conferences, which have historically been a major source of candidates for our summer internship program and Early Career Program for new hires.

Employee levels are managed to align with business demand and, while we have experienced and continue to expect tight labor markets, management believes it currently has sufficient human capital to operate our business successfully. As of December 31, 2025, we employed 5,563 full-time employees and contract workers: 3,050 in the United States and 2,513 in other countries. We employ a minimal number of contract workers. Approximately 26% of employees in the United States and the majority of those in Europe are represented by unions or works' councils. We believe that our relations with employees, unions and works' councils are good. The total number of full-time employees and contract workers as of December 31, 2024 and 2023 was 5,894 and 5,590, respectively.

**Other Information** 

Our internet website is www.hexcel.com. Information contained on or accessible through our website, including any reports available therein, is not a part of, and is not incorporated by reference into, this Annual Report on Form 10-K or any other report or document we file with the Securities and Exchange Commission ("SEC"). Any reference to our website in this Annual Report on Form 10-K is intended to be an inactive textual reference only. We make available, free of charge through our website, our Form 10-Ks, 10-Qs and 8-Ks, and any amendments to these forms, as soon as reasonably practicable after filing with, or furnishing to, the SEC.

**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,"

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"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. No assurance can be given that any commitment, plan, initiative, projection, goal, expectation, or prospect set forth in this Annual Report on Form 10-K can or will be achieved. Inclusion of information in this Annual Report on Form 10-K is not an indication that the subject or information is material to our business or operating results.

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 on our revenues; (c) expectations with regard to raw material cost and availability, including any impact associated with quotas, duties, tariffs, taxes or other similar restrictions upon the import or export of materials; (d) expectations of composite content on new commercial aircraft programs and our share of those requirements; (e) expectations regarding revenues from defense and space applications, including whether certain programs might be curtailed or discontinued, and government funding opportunities; (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 research and technology investment, 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; (p) expectations relating to our accelerated share repurchase program and other share repurchases; and (q) our expectations of financial results for 2026 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, including U.S. trade policy and retaliatory actions taken in response; reductions in sales to any significant customers, particularly Airbus or Boeing, including related to regulatory activity or public scrutiny impacting the Boeing 737 MAX; 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, inflation, and tariffs; 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 build or delivery rates; any impact from a shutdown of the U.S. federal government; changes in government defense procurement or investment budgets; timely new product development or introduction; our ability to install, staff and qualify necessary capacity or complete capacity expansions to meet customer demand; the market prices of our common stock during the term and after the completion of the accelerated share repurchase period; uncertainty regarding our ability to complete share repurchases within the proposed timing or at all; uncertainty regarding the amount and timing of future share repurchases or dividends and the source of funds used for such repurchases or dividends; cybersecurity-related risks, including the potential impact of breaches or intrusions; currency exchange rate fluctuations; uncertainty related to governmental actions and changes in political, social and economic conditions, including the effect of change in global trade policies, tariff rates, economic sanctions and embargoes; 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 this report. We caution you not to place undue reliance upon these forward-looking statements, which speak only as of the date they are made. 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 1A. Risk Factors** 

You should carefully consider the following risk factors and all other information contained in this Annual Report on Form 10-K and the documents we incorporate by reference in this Annual Report on Form 10-K. Any of the following risks could materially and adversely affect our business, financial condition, results of operations and cash flows. While we believe we have identified and discussed below the material risks affecting our business, there may be additional risks and uncertainties that we do not presently

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know or that we do not currently believe to be material that may adversely affect our business, financial condition, results of operations or cash flows in the future, and may require significant management time and attention. You should not interpret the disclosure of any risk factor to imply that the risk has not already materialized.

**Risks Related to Our Strategy** 

***The markets in which we operate can be cyclical, and downturns in them may adversely affect the results of our operations.*** 

Some of the markets in which we operate have been, to varying degrees, cyclical and have experienced downturns. A downturn in these markets could occur at any time as a result of events that are industry specific, such as aircraft production slowdown resulting from the impact of a public health crisis on air travel, the grounding, regulatory scrutiny and/or suspension or discontinuation of aircraft in which our products are used, or other macroeconomic events, such as geopolitical conditions, global conflict, political unrest or terrorist attacks, or an economic downturn or recession. Any deterioration in any of the cyclical markets we serve could adversely affect our financial performance and operating results.

Since 2022, air traffic has continued to grow and led to record demand for aircraft. However, supply chain challenges in the Commercial Aerospace industry, as well as labor disruptions and regulatory issues experienced by certain participants in the industry, continue to delay planned production and negatively impact aircraft build rates in 2025. Ongoing or additional deferrals, cancellations, or reductions in demand that result in decreased aircraft build rates would, if significant, have a negative impact on sales for our Commercial Aerospace products and as a result reduce our operating income. Approximately 61% of our sales for 2025 were derived from sales to the Commercial Aerospace industry. Ongoing pressures on build rates, or reductions in demand, for commercial aircraft or a delay in deliveries could result from many factors, including delays in the startup or ramp-up of new programs, suspension or discontinuation of current commercial aircraft programs, changes in the propensity for the general public to travel by air (including as a result of terrorist events and any subsequent military response, a public health crisis or a global conflict), a significant change in the cost of aviation fuel, a change in technology resulting in the use of alternative materials, environmental concerns (including climate change), consolidation and liquidation of airlines, availability of funding for new aircraft purchases or leases, inventory corrections or disruptions throughout the supply chain, quality issues or product defects, labor disruptions and work stoppages and slower macroeconomic growth.

At different times, both Airbus and Boeing have experienced various delays in the start and ramp up of several aircraft programs. For instance, both Boeing and Airbus have, in recent years, experienced difficulties meeting production goals due to supply chain delays and disruptions, including quality issues, and, during recent years, Boeing experienced delays in production due to strikes by factory workers, impacting both 737 MAX and other commercial aircraft production and military aircraft and defense systems. In the past, such matters have delayed our expected growth, or our effective utilization of capacity installed for such growth. Future delays, or production cuts arising from the impact of macroeconomic events, geopolitical conditions, global conflict or supply chain and labor disruptions, in these or other major new customer programs could similarly impact our results.

In addition, our customers emphasize the need for cost reduction or other improvements in contract terms throughout the supply chain. In response to these pressures, we may be required to accept increased risk or face the prospects of margin compression on some products in the future. Where possible, we seek to offset or mitigate the impact of such pressures through productivity and performance improvements, cost index contractual provisions, hedging and other actions, which may not be successful.

***A significant decline in business with Airbus, Boeing, or other significant customers could materially impact our business, operating results, prospects, and financial condition.*** 

We have concentrated customers in the Commercial Aerospace and the Defense, Space & Other markets. In the Commercial Aerospace market, approximately 77%, and in the Defense, Space & Other market, approximately 16%, of our 2025 sales were made to Airbus and Boeing and their related subcontractors. For the years ended December 31, 2025 and December 31, 2024, approximately 39% and 40% of our total consolidated sales, respectively, were to Airbus, and its related subcontractors and approximately 13% and 15% of our total consolidated sales, respectively, were to Boeing and its related subcontractors. Significant changes in the demand for our customers' end products, program delays, the share of their requirements that is awarded to us or changes in the design or materials used to construct their products could result in a significant loss of business with these customers. The loss of, or significant reduction in, purchases by Airbus or Boeing or any of our other significant customers could materially impair our business, operating results, prospects and financial condition. The level of purchases and product mix demanded by our customers is often affected by events beyond their control, including general economic conditions, demand for their products, conditions in the airline industry, regulatory scrutiny and/or suspension or discontinuation of aircraft, disruptions in deliveries, business disruptions, strikes and other factors, which could have a material adverse effect on our business, financial condition, results of operations, and cash flows.

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***Reductions in defense and space spending could result in a decline in our sales.*** 

Defense and space production that has occurred in recent years may not be sustained, individual programs important to Hexcel may be cancelled, production may not continue to grow or may decrease and the increased demand for composite-intensive programs may not continue. In addition, the production of military aircraft, unmanned aerial vehicles and missiles depends upon defense budgets and the related demand for defense and related equipment. Approximately 39% of our 2025 sales were to the Defense, Space & Other market, of which approximately 88% were related to military programs in the United States and other countries. In addition to normal business risks, our indirect supply of products to the U.S. and foreign government is subject to unique risks largely beyond our control. The level of U.S. and foreign defense spending is hard to predict, and defense budgets could be negatively impacted by several factors, including, but not limited to, a change in defense spending policy as a result of the political environment or otherwise, military aid to countries experiencing global conflict, the government's budget deficits or the breach of debt ceilings, other spending priorities, increased defense regulatory requirements resulting in additional expenses, the cost of sustaining the U.S. military presence internationally, potential political pressure to reduce military spending and future potential government shutdowns, each of which could cause U.S. and foreign defense budgets to remain unchanged or to decline.

***If we fail to comply with government procurement laws and regulations, including those related to information security, we could lose business and be liable for various penalties or sanctions.*** 

We must comply with laws and regulations relating to the formation, administration, and performance of U.S. government contracts, including government security requirements and additional government export control laws and regulations, as well as certain cybersecurity certifications and other cybersecurity requirements. We must follow similar requirements when doing business with foreign governments. These regulations and other requirements regularly evolve, and new laws, regulations or procurement requirements or changes to current ones (including, for example, regulations related to cybersecurity, privacy, information classification and protection, cost accounting, recovery of employee compensation costs, counterfeit parts, pensions, anti-human trafficking, specialty metals, conflict minerals and use of certain non-U.S. equipment and materials) could significantly increase our costs and risks and reduce our profitability. In complying with these laws and regulations, we may incur significant costs, and non-compliance may result in the imposition of fines and penalties, including contractual damages. If we fail to comply with these laws and regulations or if a government audit, review, or investigation uncovers improper or illegal activities, we may be subject to civil penalties, criminal penalties, or administrative sanctions or suspension or debarment from contracting with the U.S. government and the foreign governments with whom we do business. In addition, failure to follow the requirements of the National Industrial Security Program Operating Manual or any other applicable U.S. government industrial security regulations could, among other things, result in termination of any facility security clearance, which in turn would preclude us from being awarded classified contracts or, under certain circumstances, performing on our existing classified contracts.

***If we are unable to develop new products on a timely basis, it could adversely affect our business and prospects.*** 

We believe that our future success depends, in part, on our ability to develop, on a timely basis, technologically advanced products that meet or exceed current industry standards, including developing products with an improved environmental footprint that continue to contribute to the environmental sustainability goals of our customers. Although we believe we have certain technological and other advantages over our competitors, maintaining such advantages will require us to continue investing in research and development and sales and marketing. In addition, to successfully compete, we may need to implement artificial intelligence strategies for our products, which may be costly or ineffective, introduce errors, cause loss of intellectual property, and raise complex regulatory compliance, intellectual property and other issues. There can be no assurance that we will be able to make the technological advances necessary to maintain such competitive advantages or that we can recover major research and development expenses.

***Acquisitions, divestitures, mergers, business combinations or joint ventures may entail certain operational and financial risks.*** 

In recent years, as part of our strategy to streamline operations and focus on our core competencies, we have engaged in strategic activities, including business restructuring and divestitures or closures of certain facilities and investments. We expect to continue to explore complementary mergers, acquisitions, investments and joint ventures and may also pursue additional divestures or closures of business lines or investments that do not fit with our core strategy. We may also engage in further vertical integration and business restructuring.

With respect to potential mergers or acquisitions, we may face competition for attractive targets and may not be able to acquire potential targets on terms or at prices acceptable to us, if at all. In addition, these types of transactions may require significant liquidity, which may not be available on terms favorable to us, or at all.

Further, we cannot provide any assurance that we will realize the intended benefits from any such transactions. The process of integrating acquired businesses into our existing operations may result in unforeseen operating difficulties and may require additional financial resources and attention from management that would otherwise be available for the ongoing development or expansion of our existing operations. Even if successfully integrated, the acquired business may not achieve the results we expect or produce expected benefits in the time frame planned.

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Divestitures involve risks and uncertainties, such as the ability to successfully complete any strategic divestures in a timely manner, or at all, and to realize the expected benefits of such transactions. Divestitures of businesses also involve a number of other risks, including significant costs and expenses, loss of customer relationships, and decrease in revenues and earnings associated with the divested business.

**Risks Related to Our Operations**

***The global macroeconomic environment could negatively impact our business and our financial position, results of operations and/or cash flows could be materially adversely affected.*** 

Our business, financial position, results of operations and cash flows have been and may continue to be adversely impacted by the global macroeconomic environment, which has experienced, and continues to experience, extraordinary challenges, including high rates of inflation and interest rates; volatile energy costs; widespread disruptions in supply chains, including constrained raw material availability; workforce challenges, including labor shortages; political and social unrest; and market volatility. In addition, our business has been negatively impacted as a result of the tariffs, sanctions, and other restrictions on goods imposed by the U.S. government and similar measures imposed by governments outside the United States, and we expect to continue to experience impacts to our business in the future. In particular, tariffs have increased the cost of materials used to manufacture our products and may in the future reduce our ability to sell products globally and/or increase costs of domestic goods, energy, freight and other related costs. These challenges have, among other things, led to increased costs, labor and supply shortages, and transportation and performance delays and disruptions and have adversely affected us, our industry, our customers and suppliers and others with whom we do business. We (including our suppliers and other partners) have and may continue to experience inflationary pressures, supply chain disruption, including as a result of tariffs, trade restrictions and other barriers, and labor, material and transportation cost increases at a rate higher than anticipated. Given the nature of our business and our contracts (many of which are fixed price and of long duration), we have been and may, in the future, continue to be unable to recover some of these increased costs or to offset such costs with greater than expected efficiencies. While some aspects of the macroeconomic environment appear to be improving, and we have been able to mitigate some of the challenges, including seeking exemptions and alternative sourcing, where available, engaging in industry advocacy and implementing price increases, where feasible, other challenges persist. We cannot predict how long these challenges will persist or how they will change over time, or how the macroeconomic environment will evolve and continue to impact us. While we continue to work proactively to mitigate these challenges, if we are unable to do so successfully, our financial position, results of operations and/or cash flows could be materially adversely affected.

***Our results of operations would be adversely affected by a shortage of trained personnel or work stoppages and may be adversely affected by increasing labor costs.*** 

Our business has historically been dependent on a highly trained workforce because of the complex nature of our products. As of December 31, 2025, approximately 26% of employees in the United States were unionized and the majority in Europe were represented by a works council. We periodically need to renegotiate our collective bargaining and works council agreements, and any failure to negotiate new agreements or extensions in a timely manner could result in work stoppages or slowdowns. Recent labor activity in the aerospace industry, including union strikes and extended labor negotiations, may have an adverse impact on such efforts and may result in work stoppages or slowdowns, or increased labor costs. Our ability to hire, train, assimilate and retain a qualified workforce has also been impacted by the ongoing labor market disruptions. If we are unable to hire and retain a sufficient number of trained personnel, or we experience a significant or prolonged work stoppage in such an environment, including due to salary negotiation challenges with employees covered by collective bargaining or works council agreements, our ability to secure new business and our results of operations and financial condition could be adversely affected. In recent years, in addition to labor shortages, we also experienced increases in labor costs in the countries in which we operate due to rising inflation rates and localized labor market disruptions. Further increases in labor costs could significantly reduce our profit margins if we are unable to flow such costs through to our customers.

***Our ability to attract, retain and motivate key employees is vital to our success.*** 

Our success, competitiveness and ability to execute on our global strategies and maintain a culture of innovation depend in large part on our ability to attract, retain and motivate qualified employees and leaders with expertise and capabilities. Achieving this objective may be difficult due to many factors, including fluctuations in global economic and industry conditions, such as the impact of inflation, management changes, increasing local and global competition for talent, particularly due to the increase in remote working opportunities, the availability of qualified employees, restructuring and alignment activities (including workforce reductions), and the attractiveness of our compensation and benefit programs. If we are unable to attract, retain and motivate qualified employees and leaders, we may be unable to fully capitalize on current and new market opportunities, which could adversely impact our business and results of operations. The loss or retirement of employees presents particular challenges to the extent they involve the departure of knowledgeable and experienced employees and the resulting need to identify and train existing or new candidates to perform necessary functions, and ineffective succession planning could result in unexpected costs, reduced productivity, and/or difficulties

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with respect to internal processes and controls. If we are unable to attract and retain a qualified workforce, we may be unable to maintain our competitive position and our future success could be materially adversely affected.

***We have engaged in restructuring and alignment activities from time to time and there can be no assurance that our efforts will have the intended effects.*** 

From time to time, we have responded to changes in our industry and the markets we serve, or other changes in our business, by restructuring or aligning our operations, including the divestiture of our operations in Austria in 2025 and the divestiture of our Hartford, Connecticut business and closure of the Welkenraedt, Belgium plant during 2025 as part of our strategy to streamline operations and focus on core competencies. Due to necessary cost reduction measures or changes in the industry and markets in which we compete, we may decide to implement additional restructuring or alignment activities in the future, such as closing plants, selling or idling certain equipment or operations, or making additions, reductions or other changes to our management or workforce. These restructuring and/or alignment activities generally result in charges and expenditures that may adversely affect our financial results for one or more periods. Restructuring and/or alignment activities can also create unanticipated consequences, such as instability or distraction among our workforce, and we cannot provide any assurance that any restructuring or alignment efforts that we undertake will result in the intended benefits. A variety of risks could cause us not to realize expected cost savings, including, among others: (a) higher than expected severance costs related to headcount reductions; (b) higher than expected costs of closing plants; (c) incurring costs to hire new employees or delays or difficulty hiring the employees needed; and (d) delays in the anticipated timing of activities related to our cost-saving plan. If we are unable to align our operations in light of evolving market conditions, it could have an adverse effect on our business, financial condition, results of operations, and cash flows.

***A decrease in supply, interruptions at key facilities or an increase in cost of raw materials could result in a material decline in our profitability.*** 

The occurrence of material operational problems or interruptions, including, but not limited to, as a result of the failure of key equipment, a quality or financial failure of a sole source or major supplier, the effects of natural disasters or climate change-related events, the impact of any public health crises, ongoing supply chain disruptions and supply shortages, the impact of tariffs and other trade barriers and restrictions, energy disruption caused by ongoing global conflict, the inability to install, staff and/or qualify necessary capacity, political or social unrest, the failure to achieve planned manufacturing improvements or other causes, or any other inability to meet customer requirements, may have a material adverse effect on the productivity and profitability of a particular manufacturing facility, and could have a material effect on the Company as a whole.

***We have substantial international operations subject to uncertainties that could affect our operating results.*** 

We believe that revenue from sales outside the U.S. will continue to account for a material portion of our total revenue for the foreseeable future. In 2025, 47% of our production and 57% of our customer sales occurred outside of the United States. Additionally, we have invested significant resources in our international operations, and we intend to continue to make such investments in the future. Our business and results of operations are subject to numerous risks of doing business internationally including: (a) general economic, political, legal, social and health conditions unfavorable to our growth strategy, including the impact of rising inflation and other global economic conditions on labor and supply costs and availability, changes in currency exchange rates, geopolitical conditions and global conflicts; (b) longer payment cycles of foreign customers or challenges in enforcing agreements and collecting receivables through certain foreign legal systems; (c) the cost of compliance with international trade laws of all of the countries in which we do business, including export control laws, relating to sales and purchases of goods and equipment and transfers of technology; (d) government actions having a direct or indirect adverse impact on our international business and market opportunities, including, but not limited to, tariffs and other trade restrictions imposed by the United States, China and other jurisdictions; (e) adverse tax consequences, such as fluctuating tax rates, withholding requirements on foreign earnings or limitations on repatriations of

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earnings; and (f) the potential difficulty in enforcing our intellectual property rights in certain foreign countries, and the potential for the intellectual property rights of others to affect our ability to sell products in certain markets. Any one of these could adversely affect our financial condition and results of operations. For instance, as a result of the tariffs, sanctions, and other restrictions imposed on goods imported into the U.S. during 2025, and similar measures imposed by governments outside the U.S., we are experiencing, and expect to continue to experience, impacts to our business, including increases in the cost of materials used to manufacture our product. Such measures may in the future reduce our ability to sell products globally and/or increase costs of domestic goods, energy, freight and other related costs. While we have taken actions to mitigate these risks, such as seeking exemptions and alternative sourcing, where available, engaging in industry advocacy and implementing price increases, where feasible, there can be no assurance that these actions will be effective, and we could continue to be adversely impacted by such tariffs and other restrictions. In addition, although we are not experiencing direct material adverse effects on our business resulting from ongoing global conflicts, the global implications, including increased inflation, escalating energy costs, and constrained raw material availability, and thus increasing costs, as well as embargos on flights from certain countries, are impacting the global economy and the aerospace industry in particular.

Fluctuations in currency exchange rates may influence the profitability and cash flows of our business. For example, most of our European operations sell a majority of the products they produce in U.S. dollars, yet the labor and overhead costs and portions of raw material costs incurred in the manufacture of those products are primarily denominated in Euros, British pound sterling or U.S. dollars. As a result, the local currency margins of goods manufactured with costs denominated in local currency, yet sold in U.S. dollars, will vary with fluctuations in currency exchange rates, reducing when the U.S. dollar weakens against the Euro and British pound sterling. In addition, the reported U.S. dollar value of the local currency financial statements of our foreign subsidiaries will vary with fluctuations in currency exchange rates. While we enter into currency hedge agreements in an attempt to mitigate these types of fluctuations, we cannot remove all fluctuations or hedge all exposures, or we may not be successful in hedging our exposure, and our earnings are impacted by changes in currency exchange rates.

We currently do not have political risk insurance in the countries in which we conduct business. While we carefully consider these risks when evaluating our international operations, we cannot provide assurance that we will not be materially adversely affected as a result of such risks.

***We could be adversely affected by environmental and safety requirements, as well as legal, regulatory or market measures to address climate change.*** 

Our operations require the handling, use, storage, transport and disposal of certain regulated materials and wastes. As a result, we are subject to various laws and regulations pertaining to pollution and protection of the environment, health, and safety. These requirements govern, among other things, emissions to air, discharge to waters, the generation, handling, storage, transport, treatment and disposal of regulated materials and waste, and remediation of contaminated sites. We have made, and will continue to make, capital and other expenditures to comply with these laws and regulations. These laws and regulations are complex, change frequently and could become more stringent in the future.

In some cases, regulatory bodies have decided and may decide in the future to limit or ban certain materials we use in our manufacturing process due to potentially significant health and safety risks to people or the environment. Such limitations or bans have resulted in, and may in the future require us to consider, the use of alternative raw materials or changes to our method of operations. Such alternatives often require customer approval and may result in additional costs, including higher raw material expenses, changes in operational methods, and additional customer qualifications. The formulation changes could also impact the utility of our products.

We have been named as a "potentially responsible party" under Superfund or similar state laws at certain former and current sites requiring clean up. These laws generally impose liability for costs to investigate and remediate contamination without regard to fault. Under certain circumstances, liability may be joint and several, resulting in one responsible party being held responsible for the entire cleanup obligation. Liability may also include damages to natural resources. We have incurred and likely will continue to incur expenses to investigate and clean up certain of our existing and former facilities, for which we believe we have adequate reserves. The ongoing operation of our manufacturing plants also entails environmental risks, and we may incur material costs or liabilities in the future that could adversely affect us. Although most of our properties have been the subject of environmental site assessments, there can be no assurance that all potential instances of soil and groundwater contamination have been identified, even at those sites where assessments have been conducted. Accordingly, we may discover previously unknown environmental conditions and the cost of remediating such conditions may be material. See Note 16 to the consolidated financial statements included elsewhere in this Annual Report on Form 10-K.

We may also be required to comply with evolving environmental, health and safety laws, regulations or requirements that may be adopted or imposed in the future or to address newly discovered information or conditions that require a response. As our business

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expands to meet customer and market demands, and community growth impacts local ambient air and water limits, additional controls are anticipated to be required.

In addition, concerns about the relationship between greenhouse gases and global climate change, and an increased focus on carbon neutrality, have resulted, and may continue to result, in additional regulations at the national and international level to address topics of concern such as carbon neutrality and to monitor, regulate, control and tax emissions of carbon dioxide and other greenhouse gases. A number of governmental bodies have introduced or are contemplating legislative or regulatory changes in response to climate change, including regulating greenhouse gas emissions and increasing mandatory disclosures. The continued lack of consistent climate legislation creates economic and regulatory uncertainty. The outcome of new legislation or regulation in the U.S. and other jurisdictions in which we operate has resulted in, and may in the future result in, new or additional requirements, including mandatory disclosure requirements, and fees or restrictions on certain activities. Our manufacturing plants use energy, including electricity and natural gas, and some of our plants emit amounts of greenhouse gases that are, and may in the future be affected by these legislative and regulatory efforts. Compliance with greenhouse gas and climate change initiatives has resulted, and may in the future result in, additional costs to us, including increased energy, transportation and raw material costs, additional taxes, additional compliance costs, reduced emission allowances or additional restrictions on production or operations. We expect we will be required to make additional investments in our facilities and equipment, change our manufacturing processes, obtain substitute materials, which may cost more or be less available or harder to source, fund offset projects, or undertake other costly activities as a result of these laws and regulations. In addition, failure to comply with applicable regulations could result in fines or government investigations or actions, which could affect our business, financial condition, results of operations and cash flows. We could also face increased costs related to defending and resolving legal claims and other litigation related to climate change and the alleged impact of our operations on climate change.

In addition to compliance obligations related to climate change, customer environmental and sustainability requirements, including procurement policies that include social and emissions reduction or other environmental standards and requirements that suppliers are required comply with, as well as sustainability goals and targets that we have adopted, could cause us to alter our manufacturing, operations, equipment processes, or product offerings, and incur substantial expense to meet these requirements. We are actively reviewing and implementing projects to reduce our energy intensity and greenhouse gas emissions, but there is no guarantee that such options or projects will be technologically and/or environmentally feasible, or that we will be able to implement any such projects on a timely or cost-effective basis. The failure to comply with customer environmental or sustainability requirements, or similar types of requests, could adversely affect our relationships with such customers, which in turn could adversely affect our business, financial condition, results of operations and cash flows. Furthermore, our reputation could be damaged if we or others in our industry do not act, or are perceived not to act, responsibly with respect to our impact on the environment, or if we fail to achieve our sustainability goals or targets, which could limit our ability to grow and otherwise adversely affect our results of operations.

***Our business and operations may be adversely affected by cybersecurity breaches or other information technology system or network intrusions.*** 

We depend heavily on information technology and computerized systems to communicate and operate effectively. We store sensitive data, including proprietary business information, intellectual property, regulated data (U.S. government and other), customer data and confidential employee or other personal data, in our systems. In addition to internal information technology systems, we leverage cloud-based systems, where data is stored and exchanged with external third-party vendors. From time to time, we experience attempted cyberattacks on our information technology systems, either directly or indirectly via our supply chain or third-party vendors, which are becoming more sophisticated and could have a material impact on us. These cyberattacks, which could be related to industrial or foreign government espionage, activism, or financial motivations, continue to evolve and become more sophisticated and include attempting to covertly introduce malware to our systems, performing reconnaissance, phishing and other means of social engineering, impersonating authorized users, and stealing, corrupting, restricting our access to data or otherwise compromising the integrity, confidentiality, and/or availability of our systems hardware and networks and the information on them, among other activities. In addition, as we increase our use of artificial intelligence tools into our operations, the risk of unauthorized access to our data and of making errors or erroneous decisions based on our reliance on such tools will increase. Further, as artificial intelligence capabilities improve and are increasingly adopted, they may be used to identify vulnerabilities and craft increasingly sophisticated cybersecurity attacks, and vulnerabilities may be introduced from the use of artificial intelligence by us, our customers, suppliers and other business partners and third-party providers.

We continue to update our infrastructure, security tools, planning, employee training and processes to protect against cybersecurity incidents, including both external and internal threats, and to prevent their occurrence or recurrence. We have implemented various measures, including technical security controls, employee training, comprehensive monitoring of our networks and systems, maintenance of backup systems and the use of disaster recovery capability. While Company personnel have been tasked to detect and investigate any security incidents, we cannot guarantee that such measures will be effective or sufficient to prevent a

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cyberattack, and future cyberattacks could still occur and could go undetected and persist for an extended period of time. Such cyberattacks could lead to data corruption or loss of data and exposure of proprietary and confidential information, disruptions in or damage to critical systems, production downtimes or operational delays, and theft of data, funds, or intellectual property, and we may be unable to mitigate potential consequences of these attacks. In addition, we face information technology security and fraud risks due to increased remote work, which may create additional information security vulnerabilities and/or magnify the impact of any disruption in our information technology systems. The unauthorized use of our confidential or proprietary business information could harm our competitive position and reputation, reduce the value of our investment in research and development and other strategic initiatives, cause us to breach contractual commitments to our customers or other third parties, or otherwise adversely affect our business.

Our customers, partners, vendors, suppliers, subcontractors and others to whom we entrust confidential data, and on whom we rely to provide products and services, face similar threats and growing requirements, including ones for which others may seek to hold us responsible. While we impose cybersecurity requirements on with our top-tier suppliers and have implemented cybersecurity requirements in our standard supplier contract terms as well as our Supplier Code of Conduct, we do not control such third parties and our ability to monitor their cybersecurity is limited. As such, we cannot ensure the cybersecurity measures they take will be sufficient to protect any information we share with them or prevent any disruption arising from a technology failure, cyberattack or other information or security breach. We depend on such parties to implement adequate controls and safeguards to protect against and report cyber incidents. If such parties fail to deter, detect or report cyber incidents in a timely manner, we may suffer from financial and other harm, including to our information, operations, financial results, performance, employees and reputation.

An intrusion may also result in fines, penalties, litigation or governmental investigations and proceedings, increased mitigation and remediation expenses, diminished competitive advantages through reputational damages and increased operational costs. Further, cybersecurity and data protection laws and regulations continue to evolve, and are increasingly demanding, both in the U.S. and globally, which adds compliance complexity and may increase our costs of compliance and expose us to litigation, monetary damages, regulatory enforcement actions or fines in one or more jurisdictions. Additionally, we have incurred, and expect to continue to incur, costs to comply with increased cybersecurity protections and standards of our customers, including the U.S. government. While we carry cybersecurity insurance, we cannot be certain that our coverage will be adequate for liabilities actually incurred, that insurance will continue to be available to us on economically reasonable terms, or at all, or that any insurer will not deny coverage as to any future claim.

***We operate our business in regions subject to natural disasters and other severe weather events and any disruption to our business resulting from such events could adversely affect our revenue and results of operations.***

We operate, and rely on suppliers who operate, in regions subject to natural disasters and other severe weather events. Extreme weather events and changing weather patterns present physical risks on existing infrastructure that may become more frequent or more severe as a result of factors related to climate change. In addition, the impacts of climate change on global water resources may result in water scarcity, which could in the future impact our ability to access sufficient quantities of water in certain locations and result in increased costs. We have in the past and will continue in the future to assess potential manufacturing and operational risks related to climate change, including risk of exposure to rising sea levels and significant rainfall, flooding, wildfire, drought, earthquake, hurricane or tornado events within our supply chain. We previously determined that a small percentage of our suppliers manufacture in vulnerable locations, which may impact distribution of raw materials to our operations, although we have taken actions to mitigate the potential impact where possible. We also have two sites in the southeast United States, a region vulnerable to severe weather events (i.e., hurricanes, tornadoes and floods), that are associated with excess warming. Although preventative measures may help to mitigate damage, such measures could be costly, and any disaster could adversely affect our ability to conduct business, including disrupting our supply of raw materials, damaging our manufacturing facilities or otherwise affecting production, transportation and delivery of our products, or affect demand for our products, and the insurance we maintain may not be adequate to cover our losses resulting from any business interruption resulting from a natural disaster or other severe weather events. Further, recurring extreme weather events could reduce the availability or increase the cost of insurance. Any future disruptions to our operations as a result of a natural disaster or severe weather event could have a material adverse impact on our liquidity, financial condition and results of operations.

***Our business could be negatively impacted by sustainability matters and/or our reporting of such matters.***

&nbsp;&nbsp;&nbsp;&nbsp;The legislative environment and stakeholders' views relating to sustainability and related policies, practices and metrics could result in additional costs, and could adversely impact our reputation, consumer perception, employee retention, and willingness of third parties to do business with us. For instance, our customers may require us to implement sustainability or other corporate social responsibility procedures or standards before they continue to do business with us. If our sustainability and social policies and practices fail to meet regulatory requirements or stakeholders' evolving expectations and standards for responsible corporate

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citizenship, our reputation and employee retention may be negatively impacted, and we may face reputational challenges in the event that our sustainability and social policies, practices and metrics do not meet the standards set by certain constituencies, which are often inconsistent in approach. At the same time, there also exists anti-sustainability sentiment among certain stakeholders and government institutions, and we may face scrutiny, reputational risk, lawsuits or market access restrictions from these parties regarding any such initiatives we have adopted. In addition, some investors and customers may use sustainability criteria to guide their investment and buying strategies, and may not invest in or do business with us, or continue to do so, if they believe our policies relating to sustainability matters are inadequate or, on the other hand, have a negative response to such policies as a result of anti-sustainability sentiment. Inconsistency of legislation and regulations among jurisdictions, including anti-sustainability or legislation, and expected additional regulations may also affect the costs of compliance with such laws and regulations.

In addition, from time to time, we communicate certain initiatives, targets or goals regarding sustainability matters. Although we intend to meet these commitments, we may be required to expend significant resources to do so, which could increase our operational costs. Further, there can be no assurance of the extent to which any of our commitments will be achieved, if at all; we could fail, or be perceived to fail, in our achievement of such initiatives, targets or goals, or we could fail in fully and accurately reporting our progress on such initiatives, targets and goals. In addition, we could be criticized for the scope of such initiatives, targets or goals or perceived as not acting responsibly in connection with these matters. Any such matters could have a material adverse effect on our business.

***We are exposed to risks related to the use of artificial intelligence tools by us and others.***

Our use of artificial intelligence tools may subject us to significant competitive, legal, regulatory and other risks, and there can be no assurance that our use of artificial intelligence tools will enhance our business operations or result in a benefit to us. Additionally, there could be adverse impacts from inaccurate or flawed algorithms, training or data sets. Our use of artificial intelligence tools could also result in the loss of confidential information or intellectual property or an inability to claim or enforce intellectual property rights, as well as subject us to risks related to intellectual property infringement or misappropriation, data privacy, cybersecurity and the unauthorized use of company information. The jurisdictions in which we conduct business have and may adopt laws and regulations related to artificial intelligence that could cause us to incur greater compliance costs, limit our use of artificial intelligence tools, or subject us to legal liabilities.

***We may not be able to service our debt obligations or satisfy covenants included in our outstanding debt.***

Our ability to meet our interest expense and debt service obligations will depend on our future performance, including the cash we generate from operating activities, which could be affected by financial, business, economic and other factors, including potential changes in laws or regulations, industry conditions, industry supply and demand, customer preferences and pressure from competitors. If we are unable to meet our debt service obligations, including to repay or refinance debt as it becomes due, or we fail to comply with our financial and other negative covenants contained in the agreements governing our indebtedness, we may be required to refinance all or part of our debt, sell strategic assets at unfavorable prices, incur additional indebtedness or issue common stock or other equity securities, which we may not be able to do on acceptable terms or in amounts sufficient to meet our needs. If we are able to raise additional funds through the issuance of equity securities, such issuance would also result in dilution to our stockholders. Our inability to service our obligations or refinance our debt could have a material and adverse effect on our business, financial condition or operating results. In addition, we have been, and may continue to be, negatively impacted by high interest rates.

In addition, the credit ratings of our debt could be subject to a downgrade. If a ratings downgrade were to occur, we could experience higher borrowing costs in the future and more restrictive debt covenants, which would reduce profitability and diminish operational flexibility. A ratings downgrade could also limit our access to certain sources of debt financing.

**Risks Related to Our Common Stock**

***We cannot make any guarantees with respect to payment of dividends on, or repurchases of, our common stock.***

We currently pay quarterly dividends; however, our board of directors regularly evaluates our capital allocation strategy and dividend policy, and any future determination to pay, maintain or increase cash dividends will be at the discretion of our board of directors and will depend upon, among other factors, our results of operations, financial condition, capital requirements and contractual or legal restrictions, including the requirements of our revolving credit facility and other financing agreements to which we may be a party. No assurance can be given that cash dividends will continue to be declared and paid at historical levels or at all.

Our share repurchase program does not have an expiration date, and we are not obligated to repurchase a specified number or dollar value of shares, on any particular timetable or at all. There can be no assurance that we will repurchase stock at favorable prices. On October 22, 2025, the Board approved an additional $600 million share repurchase plan (the "2025 Share Repurchase Plan"), which amount was in addition to the remaining availability under the 2024 Share Repurchase Plan (which was fully utilized as of

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December 31, 2025). In connection with the 2025 Share Repurchase Plan, on October 22, 2025, the Company entered into accelerated share repurchase agreements, pursuant to which the Company agreed to repurchase an aggregate of $350 million of shares, which repurchase is scheduled to be completed in the first quarter of 2026. The share repurchase program, even if fully implemented, may not enhance long-term stockholder value.

***Our amended and restated bylaws (the "bylaws") provide that the Court of Chancery of the State of Delaware will be the exclusive forum for certain legal actions between us and our stockholders, which could discourage lawsuits against the Company and our directors and officers***.

Our bylaws provide to the fullest extent permitted by law that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware will be the sole and exclusive forum for any derivative action or proceeding brought on our behalf, any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers, employees or agents to us or our stockholders, any action asserting a claim arising pursuant to any provision of the Delaware General Corporation Law (the "DGCL") or our restated certificate of incorporation, as amended (the "certificate of incorporation"), or bylaws, or any action asserting a claim governed by the internal affairs doctrine of the State of Delaware.

To the fullest extent permitted by law, this exclusive forum provision applies to state and federal law claims, including claims under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended (the "Exchange Act"), although the Company will not be deemed to have waived its compliance with the federal securities laws and the rules and regulations thereunder. The enforceability of similar choice of forum provisions in other companies' organizational documents has been challenged in legal proceedings, and it is possible that, in connection with claims arising under federal securities laws or otherwise, a court could find the exclusive forum provision contained in the bylaws to be inapplicable or unenforceable.

This exclusive forum provision may limit the ability of our stockholders to bring a claim in a judicial forum that such stockholders find favorable for disputes with the Company or our directors or officers, which may discourage such lawsuits against the Company and our directors and officers. Alternatively, if a court were to find this exclusive forum provision inapplicable to, or unenforceable in respect of, one or more of the specified types of actions or proceedings described above, we may incur additional costs associated with resolving such matters in other jurisdictions, which could negatively affect our business, results of operations and financial condition.

***Certain provisions of our certificate of incorporation, bylaws, and the DGCL have anti-takeover effects and could delay, discourage, defer or prevent a tender offer or takeover attempt that a stockholder might consider to be in the stockholders' best interests***.

Certain provisions of our certificate of incorporation and bylaws and the DGCL may have the effect of delaying or preventing changes in control if our board of directors determines that such changes in control are not in the best interests of the Company and its stockholders. Such provisions include, among other things, those that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•prohibit stockholders from taking action by written consent and do not permit stockholders to call a special meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•authorize the board of directors, without further action by the stockholders, to issue shares of preferred stock in one or more series, and with respect to each series, to fix the number of shares constituting that series, and establish the rights and terms of that series;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•establish advance notice procedures for stockholders to submit proposals and nominations of candidates for election to the board of directors to be brought before a stockholders meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•do not provide stockholders cumulative voting rights with respect to director elections;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•provide that the bylaws may be amended by the board of directors without stockholder approval, to the extent permitted by law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•do not opt out of Section 203 of the DGCL, which generally prohibits a Delaware corporation from engaging in a "business combination" with any interested stockholder (generally speaking, a stockholder who holds 15% or more of our voting stock) for three years from the date such stockholder becomes an interested stockholder, unless certain conditions are met.

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These provisions may delay or discourage transactions involving an actual or potential change in the Company's control or change in the board of directors or management, including transactions in which stockholders might otherwise receive a premium for their shares of common stock or transactions that our stockholders might otherwise deem to be in their best interests. Accordingly, these provisions could adversely affect the price of our common stock.

**ITEM 1B. Unresolved Staff Comments** 

None.

**Item 1C. Cybersecurity**

At Hexcel, we are committed to the security of our products and services, the protection of employee, customer and Company data, and the safeguarding of our manufacturing capability. Our cybersecurity program is led by our Chief Information Officer ("CIO"), who has over 20 years of experience in information technology leadership and 10 years of experience directly overseeing our information security program and holds a Master of Business Administration in technology management. As a part of our cybersecurity program, we have engaged, and in the future may continue to engage, third-party consultants and advisors, including a third-party consultant with extensive experience designing, leading, and maintaining the implementation and assurance frameworks for organizational information, to provide virtual chief information security officer services, including establishing a security architecture, policies, practices, and response capabilities.

Our CIO regularly updates senior management on our cybersecurity risk governance and management and the status of ongoing efforts to strengthen cybersecurity effectiveness. Our board of directors views cybersecurity as a strategic priority and therefore shares oversight of management's actions in implementing our overall cybersecurity program, the audit committee of the board of directors. Our CIO reports directly to our board of directors at least twice annually to ensure continued alignment with evolving threats and governance standards. The audit committee of the board of directors also periodically reviews the cybersecurity program as part of its oversight of information technology and cybersecurity risk.

As part of our cybersecurity program, we maintain various protections designed to safeguard against cyberattacks, including firewalls, anti-malware, intrusion prevention and detection systems, access controls and other encryption configurations and cybertechnologies, and continuously monitor and audit our information technology and data assets to detect any anomalies and to respond quickly to threats that may arise. We periodically conduct intrusion and penetration testing through third parties to evaluate our cybersecurity response capability. We also regularly conduct employee awareness training on email management (phishing), safe internet browsing, malware, and other cybersecurity risks and routinely communicate with employees about the potential for cybersecurity threats, including the latest adversary trends and social engineering techniques, and how to avoid them through our established communications channels.

We have adopted and implemented an approach to identify and mitigate cybersecurity risks within our overall enterprise risk management program that is based on a recognized framework established by the National Institute of Standards and Technology. Additionally, we maintain externally validated Cybersecurity Maturity Model Certification (CMMC) Level 2 certification in compliance with U.S. Department of War requirements. The board of directors is responsible for overseeing management's enterprise risk management program, and receives regular reports on cybersecurity risk identification, monitoring and mitigation from our Chief Financial Officer as part of its review of that program, in addition to the regular reports received from the CIO as part of the board's overall cybersecurity program review and the audit committee's review of information technology and cybersecurity risk.

We evaluate the opportunities and threats posed by newly emerging artificial intelligence technologies on an ongoing basis. We utilize artificial intelligence and generative artificial intelligence in our internal defense systems. However, we manage and restrict access to external artificial intelligence tools to prevent and limit the use of Hexcel's data to train artificial intelligence models. As the Company deploys new artificial intelligence capability, we expect to continue to perform security assessments to reduce the risk of embedded malware and to prevent the use of Hexcel's data to train public artificial intelligence models.

As part of our cybersecurity risk management, we have established controls and procedures to guide the Company through an active threat or incident to the recovery of normal business, following industry-standard data protection standards. The controls and procedures provide for the identification, notification, escalation, communication, and remediation of cybersecurity incidents to management, including where appropriate the board of directors, so that decisions regarding the public disclosure and reporting of such incidents can be made in a timely manner. We maintain an Executive Cyber Response Team composed of senior leaders across various functions, including our CIO, Chief Legal Officer, Chief Accounting Officer and Vice President of Communications. The Executive Cyber Response Team is trained and experienced in managing cybersecurity incidents and meets regularly to practice and refine our processes for incident response, management and escalation through tabletop exercises simulating cyberattacks administered by a legal advisor with extensive experience in cyber investigations, cyber threats and cyber-enabled frauds. The results

------

of such exercises are then reported to management and our board of directors. The third-party legal advisor also assesses and advises on our overall cybersecurity program, reports to our board of directors on a periodic basis and is engaged to provide support in the event an attack or other intrusion were to be successful.

Furthermore, as part of our cybersecurity management, we are committed to strong third-party risk management. We impose cybersecurity requirements on, and actively and routinely address cybersecurity capabilities with our top-tier suppliers and have implemented cybersecurity requirements in our standard supplier contract terms, as well as our Supplier Code of Conduct, to address cybersecurity risk. Additionally, we validate cybersecurity practices of key suppliers as may be necessary to comply with applicable regulations or flow-down requirements from our customers.

The Company maintains disaster recovery plans for key applications and site-specific incident response plans, as well as a cybersecurity and related insurance policies as a measure of added protection.

While the Company faces a number of cybersecurity risks in connection with its business, as of the date of this report, the Company is not aware of any risks from cybersecurity threats that have materially affected or are reasonably likely to materially affect the Company, including its business strategy, results of operations, or financial condition. However, there can be no assurance that the Company, or its third-party service providers, will not experience a cybersecurity threat or incident in the future that could have a material adverse effect on the Company, including its business strategy, results of operations, or financial condition. For further discussion of the risks related to cybersecurity, see the risk factors discussed under Item 1A. "Risk Factors" in this report.

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**ITEM 2. Properties** 

We own and lease manufacturing facilities and sales offices located throughout the United States and in other countries, as noted below. The corporate offices and principal corporate support activities are located in leased facilities in Stamford, Connecticut. Our research and technology administration and principal laboratories are located in Duxford, England; Les Avenières, France; Salt Lake City, Utah and Decatur, Alabama.

The following table lists our manufacturing facilities by geographic location, related segment, and principal products manufactured and total square footage.

---

| | | | |
|:---|:---|:---|:---|
| **Manufacturing Facilities** | **Manufacturing Facilities** | **Manufacturing Facilities** | **Manufacturing Facilities** |
| **Facility Location** | **Segment** | **Principal Products** | **Total Square Footage** |
| **United States:** |  |  |  |
| Amesbury, Massachusetts | Engineered Products | Microwave and RF Absorbing Composite Materials | 222425 |
| Burlington, Washington | Engineered Products | Engineered Honeycomb Parts | 252124 |
| Casa Grande, Arizona | Composite Materials | Honeycomb and Honeycomb Parts | 443123 |
| Decatur, Alabama | Composite Materials | PAN Precursor (used to produce Carbon Fibers) | 819863 |
| Kent, Washington | Engineered Products | Composite structures | 486400 |
| Pottsville, Pennsylvania | Engineered Products | Engineered Honeycomb Parts | 312000 |
| Salt Lake City, Utah | Composite Materials | Carbon Fibers; Prepregs | 1365000 |
| Seguin, Texas | Composite Materials | Fabrics; Specialty Reinforcements | 228815 |
| **International:** |  |  |  |
| Casablanca, Morocco | Engineered Products | Engineered Honeycomb Parts | 333832 |
| Dagneux, France | Composite Materials | Prepregs | 213698 |
| Duxford, England | Composite Materials | Prepregs; Adhesives; Honeycomb and Honeycomb Parts | 417109 |
| Illescas, Spain | Composite Materials | Carbon Fibers | 58986 |
| Leicester, England | Composite Materials | Lightweight Multiaxials Fabrics | 134657 |
| Les Avenières, France | Composite Materials | Fabrics; Specialty Reinforcements | 490000 |
| Parla, Spain | Composite Materials | Prepregs | 147186 |
| Roussillon, France | Composite Materials | PAN Precursor and Carbon Fibers | 222170 |
| Stade, Germany | Composite Materials | Prepregs | 154268 |
| Vert-le-Petit, France | Composite Materials | Pultruded profiles; Prepregs and Adhesives | 70944 |

---

We lease the land on which the Burlington, Washington and Roussillon, France facilities are located. The Company still owns the Welkenraedt, Belgium facility, however, earlier in 2025, its operations were shutdown. In addition, in 2025, we divested the facility in Neumarkt, Austria and the South Windsor, Connecticut business. We also lease portions of the facilities located in Casa Grande, Arizona; Pottsville, Pennsylvania; Parla, Spain; and Leicester, England. In addition to the facility in Amesbury, Massachusetts, we also lease land and a building at another location in Amesbury. We own all other remaining manufacturing facilities. For further information, refer to "Management's Discussion and Analysis of Financial Condition and Results of Operations" and to [<u>Note 7</u>](#leasingarrangements) to the accompanying Consolidated Financial Statements of this Annual Report on Form 10-K.

**ITEM 3. Legal Proceedings** 

The information required by Item 3 is contained within [<u>Note 16</u>](#notecommitments) of this Annual Report on Form 10-K and is incorporated herein by reference.

**ITEM 4. Mine Safety Disclosures** 

Not applicable.

------

&nbsp;&nbsp;&nbsp;&nbsp;

**PART II** 

**ITEM 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities** 

Hexcel common stock is traded on the New York Stock Exchange under the symbol HXL.

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 Company's 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. The final number of shares to be repurchased will be based on the average of the daily volume-weighted average prices of the Company's common stock during the term of the ASR Agreements, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR Agreements. Upon final settlement of the ASR, under certain circumstances, each of the Counterparties may be required to deliver additional shares of common stock, or the Company may be required to deliver shares of common stock or to make a cash payment, at its election, to the Counterparties. The final settlement of each transaction under the ASR Agreements is scheduled to occur in the first quarter of 2026.

In connection with the ASR, on October 21, 2025, the Company provided notice to the lenders pursuant to its senior unsecured revolving credit agreement to borrow $350.0 million under the revolving credit facility to fund the initial settlement of the ASR.

During the year ended December 31, 2025, we repurchased 5,720,616 shares of common stock, including the shares repurchased pursuant the ASR, under both repurchase plans at a cost of $454.3 million, including sales commissions and excise taxes, leaving approximately $380.6 million available for additional repurchases under the 2025 Share Repurchase Plan. The acquisition of these shares was accounted for under the treasury stock method.

The following is a summary of share repurchase activity during the fiscal quarter ended December 31, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Period** | **(a)<br>Total Number of Shares Purchased** | **(b)<br>Average Price Paid per Share** | **(c)<br>Total Number of Shares<br>Purchased as Part <br>of Publicly Announced<br>Plans or Programs** | **(d)<br>Approximate Dollar Value (Millions) of Shares<br> that May Yet Be Purchased<br> Under the Plans or Programs** |
| &nbsp;&nbsp;October 1 — October 31, 2025 | 3946442<br> (a) | $70.95<br> (a) | 3946442 | $380.6 |
| &nbsp;&nbsp;Total | 3946442 | $70.95 | 3946442 | $380.6 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Shares reflect 80% of shares expected to be received under the ASR agreement based on the closing price of Hexcel common stock on October 24, 2025. The final settlement under the ASR Agreements is scheduled to occur in the first quarter of 2026.

On January 31, 2026, there were 337 holders of record of our common stock.

**ITEM 6. [Reserved]** 

**ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations** 

The information required by Item 7 is contained on pages [<u>34 to 40</u>](#mda)of this Annual Report on Form 10-K under "Management's Discussion and Analysis of Financial Condition and Results of Operations" and is incorporated herein by reference.

------

**ITEM 7A. Quantitative and Qualitative Disclosures about Market Risk** 

The information required by Item 7A is contained under the heading "Market Risks" on pages [<u>39 to 40</u>](#marketrisks) of this Annual Report on Form 10-K and is incorporated herein by reference.

**ITEM 8. Financial Statements and Supplementary Data** 

The information required by Item 8 is contained on pages [<u>41 to 76</u>](#consolidatedfinancialstatementsindex)of this Annual Report on Form 10-K under "Consolidated Financial Statements and Supplementary Data" and is incorporated herein by reference. The Reports of Independent Registered Public Accounting Firm are contained on page [<u>43 to 45</u>](#report_independent_registered_public_acc) of this Annual Report on Form 10-K under the captions "Reports of Independent Registered Public Accounting Firm" and are incorporated herein by reference.

**ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure** 

None.

**ITEM 9A. Controls and Procedures** 

Our Chief Executive Officer and Interim Chief Financial Officer have evaluated our disclosure controls and procedures as of December 31, 2025 and 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 Exchange Act 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 Interim Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Our Chief Executive Officer and Interim Chief Financial Officer have concluded that there have not been any changes in our internal control over financial reporting during the fourth quarter ended December 31, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Management's report on our internal control over financial reporting is contained on [<u>page 42</u>](#managements_report_on_internal_control)of this Annual Report on Form 10-K and is incorporated herein by reference.

**ITEM 9B. Other Information** 

No directors or officers, as defined in Rule 16a-1(f) of the Exchange Act, adopted, modified or terminated a "Rule 10b5-1 trading arrangement," or a "non-Rule 10b5-1 trading arrangement," each as defined in Regulation S-K Item 408, during the fourth quarter of 2025.

**ITEM 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections** 

Not applicable.

**PART III** 

**ITEM 10. Directors, Executive Officers and Corporate Governance** 

The information required by Item 10 will be incorporated by reference to the Company's definitive proxy statement, in accordance with Instruction G(3) to Form 10-K, to be filed with the SEC no later than 120 days after the end of the Company's fiscal year.

**ITEM 11. Executive Compensation** 

The information required by Item 11 will be incorporated by reference to the Company's definitive proxy statement, in accordance with Instruction G(3) to Form 10-K, to be filed with the SEC no later than 120 days after the end of the Company's fiscal year.

------

**ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters** 

The information required by Item 12 will be incorporated by reference to the Company's definitive proxy statement, in accordance with Instruction G(3) to Form 10-K, to be filed with the SEC no later than 120 days after the end of the Company's fiscal year.

**ITEM 13. Certain Relationships and Related Transactions, and Director Independence** 

The information required by Item 13 will be incorporated by reference to the Company's definitive proxy statement, in accordance with Instruction G(3) to Form 10-K, to be filed with the SEC no later than 120 days after the end of the Company's fiscal year.

**ITEM 14. Principal Accountant Fees and Services** 

The information required by Item 14 will be incorporated by reference to the Company's definitive proxy statement, in accordance with Instruction G(3) to Form 10-K, to be filed with the SEC no later than 120 days after the end of the Company's fiscal year.

------

**PART IV** 

**ITEM 15. Exhibits, Financial Statement Schedules**

(a) Financial Statements, Financial Statement Schedules and Exhibits

---

| | |
|:---|:---|
| (1) | Financial Statements: |
|  | Reports of Independent Registered Public Accounting Firm |
|  | Consolidated Balance Sheets as of December 31, 2025 and 2024 |
|  | Consolidated Statements of Operations for each of the three years ended December 31, 2025, 2024 and 2023 |
|  | Consolidated Statements of Comprehensive Income (Loss) for each of the three years ended December 31, 2025, 2024 and 2023 |
|  | Consolidated Statements of Stockholders' Equity for each of the three years ended December 31, 2025, 2024 and 2023 |
|  | Consolidated Statements of Cash Flows for each of the three years ended December 31, 2025, 2024 and 2023 |
|  | Notes to the Consolidated Financial Statements |

---

(2) Consolidated Financial Statement Schedules:

All financial statement schedules are omitted as they are inapplicable, or the required information has been included in the consolidated financial statements or notes thereto.

(3) Exhibits:

The following list of exhibits includes exhibits submitted with this Annual Report on Form 10-K as filed with the SEC and those incorporated by reference to other filings.

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 3.1 | [<u>Restated Certificate of Incorporation of Hexcel Corporation (incorporated herein by reference to Exhibit 1 to the Company's Registration Statement on Form 8-A dated July 9, 1996, Registration No. 1-08472).</u>](https://www.sec.gov/Archives/edgar/data/717605/0000912057-96-014127.txt) |
| 3.2 | [<u>Certificate of Amendment of the Restated Certificate of Incorporation of Hexcel Corporation (incorporated herein by reference to Exhibit 3.2 to the Company's Annual Report on Form 10-K/A for the fiscal year ended December 31, 2002, filed on March 31, 2003).</u>](https://www.sec.gov/Archives/edgar/data/717605/000104746903011238/a2106961zex-3_2.txt) |
| 3.3 | [<u>Amended and Restated Bylaws of Hexcel Corporation (as of September 12, 2023) (incorporated herein by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K dated September 15, 2023)</u>](https://www.sec.gov/Archives/edgar/data/717605/000093041323002140/c107034_ex3-1.htm) |
| 4.1 | [<u>Indenture, dated as of August 3, 2015, between Hexcel Corporation and U.S. Bank National Association, as Trustee (incorporated herein by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K dated August 3, 2015).</u>](https://www.sec.gov/Archives/edgar/data/717605/000119312515274802/d95488dex41.htm) |
| 4.2 | [<u>First Supplemental Indenture, dated as of August 3, 2015, between Hexcel Corporation and U.S. Bank National Association, as Trustee (incorporated herein by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K dated August 3, 2015).</u>](https://www.sec.gov/Archives/edgar/data/717605/000119312515274802/d95488dex42.htm) |
| 4.3 | [<u>Second Supplemental Indenture, dated as of February 16, 2017, between Hexcel Corporation and U.S. Bank National Association, as Trustee (incorporated herein by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K dated February 16, 2017).</u>](https://www.sec.gov/Archives/edgar/data/0000717605/000119312517046729/d336953dex41.htm) |
| 4.4<br>| [<u>Third Supplemental Indenture, dated as of February 26, 2025, between Hexcel Corporation and U.S. Bank Trust Company, National Association (as successor to U.S. Bank National Association), as Trustee (incorporated herein by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K dated February 26, 2025).</u>](https://www.sec.gov/Archives/edgar/data/717605/000114036125006094/ef20044028_ex4-2.htm) |
| 4.5 | [<u>Form of Note for 3.950% Senior Notes due 2027 (incorporated herein by reference to Exhibit A of Exhibit 4.1 to the Company's Current Report on Form 8-K dated February 16, 2017).</u>](https://www.sec.gov/Archives/edgar/data/717605/000119312517046729/d336953dex41.htm) |
| 4.6 | [<u>Form of Note for 5.875% Senior Notes due 2035 (incorporated herein by reference to Exhibit A of Exhibit 4.2 to the Company's Current Report on Form 8-K dated February 26, 2025).</u>](https://www.sec.gov/Archives/edgar/data/717605/000114036125006094/ef20044028_ex4-2.htm) |
| 4.7 | [<u>Description of Hexcel Corporation's Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934 (incorporated herein by reference to Exhibit 4.6 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023).</u>](https://www.sec.gov/Archives/edgar/data/717605/000095017024012245/hxl-ex4_6.htm) |

---

------

---

| | |
|:---|:---|
| 10.1\*\* | [<u>Credit Agreement, dated as of April 25, 2023, by and among Hexcel Corporation, as borrower, the lenders party thereto, Citizens Bank N.A., as agent for the lenders, and the other institutions party thereto (incorporated herein by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated April 28, 2023).</u>](https://www.sec.gov/Archives/edgar/data/717605/000093041323001421/c106287_ex10-1.htm) |
| 10.2\* | [<u>Hexcel Corporation 2013 Incentive Stock Plan, as amended (incorporated herein by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated May 10, 2019).</u>](https://www.sec.gov/Archives/edgar/data/717605/000093041319001638/c93624_10-1.htm) |
| 10.3\* | [<u>Hexcel Corporation Management Incentive Compensation Plan, as Amended and Restated on December 8, 2016 (incorporated herein by reference to Exhibit 10.6 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2016).</u>](https://www.sec.gov/Archives/edgar/data/717605/000156459017001309/hxl-ex106_377.htm) |
| 10.4 | [<u>Form of Employee Option Agreement (2014 - 2017) (incorporated herein by reference to Exhibit 10.8 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2016).</u>](https://www.sec.gov/Archives/edgar/data/717605/000156459017001309/hxl-ex108_378.htm) |
| 10.5\* | [<u>Form of Option Agreement for Executive Officers (2020) (incorporated herein by reference to Exhibit 10.10 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019).</u>](https://www.sec.gov/Archives/edgar/data/717605/000156459020005037/hxl-ex1010_269.htm) |
| 10.6\* | [<u>Form of Option Agreement for Non-U.S. Executive Officers (2020) (incorporated herein by reference to Exhibit 10.13 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019).</u>](https://www.sec.gov/Archives/edgar/data/717605/000156459020005037/hxl-ex1013_263.htm) |
| 10.7\* | [<u>Form of Option Agreement for Executive Officers (2021) (incorporated herein by reference to Exhibit 10.18 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020).</u>](https://www.sec.gov/Archives/edgar/data/717605/000156459021004881/hxl-ex1018_143.htm) |
| 10.8\* | [<u>Form of Option Agreement for Non-U.S. Executive Officers (2021) (incorporated herein by reference to Exhibit 10.21 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020).</u>](https://www.sec.gov/Archives/edgar/data/717605/000156459021004881/hxl-ex1021_147.htm) |
| 10.9\* | [<u>Form of Performance Based Award Agreement for Executive Officers (2023) (incorporated herein by reference to Exhibit 10.23 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022).</u>](https://www.sec.gov/Archives/edgar/data/717605/000095017023002099/hxl-ex10_23.htm) |
| 10.10\* | [<u>Form of Performance Based Award Agreement for Non-U.S. Executive Officers (2023) (incorporated herein by reference to Exhibit 10.24 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022).</u>](https://www.sec.gov/Archives/edgar/data/717605/000095017023002099/hxl-ex10_24.htm) |
| 10.11\* | [<u>Form of Option Agreement for Executive Officers (2024) (incorporated herein by reference to Exhibit 10.18 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023).</u>](https://www.sec.gov/Archives/edgar/data/717605/000095017024012245/hxl-ex10_18.htm) |
| 10.12\* | [<u>Form of Option Agreement for Non-U.S. Executive Officers (2024) (incorporated herein by reference to Exhibit 10.19 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023).</u>](https://www.sec.gov/Archives/edgar/data/717605/000095017024012245/hxl-ex10_19.htm) |
| 10.13\* | [<u>Form of Performance Based Award Agreement for Executive Officers (2025) (incorporated herein by reference to Exhibit 10.15 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024).</u>](https://www.sec.gov/Archives/edgar/data/717605/000095017025014412/hxl-ex10_15.htm) |
| 10.14\* | [<u>Form of Performance Based Award Agreement for Non-U.S. Executive Officers (2025) (incorporated herein by reference to Exhibit 10.16 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024).</u>](https://www.sec.gov/Archives/edgar/data/717605/000095017025014412/hxl-ex10_16.htm) |
| 10.15\* | [<u>Form of Option Agreement for Executive Officers (2025) (incorporated herein by reference to Exhibit 10.17 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024).</u>](https://www.sec.gov/Archives/edgar/data/717605/000095017025014412/hxl-ex10_17.htm) |
| 10.16\* | [<u>Form of Option Agreement for Non-U.S.Executive Officers (2025) (incorporated herein by reference to Exhibit 10.18 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024).</u>](https://www.sec.gov/Archives/edgar/data/717605/000095017025014412/hxl-ex10_18.htm) |
| 10.17\* | [<u>Form of Restricted Stock Unit Agreement for Executive Officers (2025) (incorporated herein by reference to Exhibit 10.19 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024).</u>](https://www.sec.gov/Archives/edgar/data/717605/000095017025014412/hxl-ex10_19.htm) |
| 10.18\* | [<u>Form of Restricted Stock Unit Agreement for Non-U.S. Executive Officers (2025) (incorporated herein by reference to Exhibit 10.20 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024).</u>](https://www.sec.gov/Archives/edgar/data/717605/000095017025014412/hxl-ex10_20.htm) |
| 10.19\* | [<u>Form of Performance Based Award Agreement for Executive Officers (2026).</u>](hxl-ex10_19.htm) |
| 10.20\* | [<u>Form of Performance Based Award Agreement for Non-U.S. Executive Officers (2026).</u>](hxl-ex10_20.htm) |
| 10.21\*<br>| [<u>Hexcel Corporation Nonqualified Deferred Compensation Plan, effective as of January 1, 2005, Amended and Restated as of January 1, 2023 (incorporated herein by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2023).</u>](https://www.sec.gov/Archives/edgar/data/717605/000095017023014118/hxl-ex10_1.htm) |
| 10.22\*<br>| [<u>Supplemental Executive Retirement Agreement dated October 28, 2009, between Nick L. Stanage and Hexcel Corporation (incorporated herein by reference to Exhibit 99.1 to the Company's Current Report on Form 8-K dated October 28, 2009).</u>](https://www.sec.gov/Archives/edgar/data/717605/000110465909060835/a09-30803_3ex99d1.htm) |

---

------

---

| | |
|:---|:---|
| 10.23\*<br>| [<u>Amendment No. 1 to the Supplemental Executive Retirement Agreement dated October 28, 2009, between Nick L. Stanage and Hexcel Corporation, effective December 31, 2020 (incorporated herein by reference to Exhibit 10.30 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020).</u>](https://www.sec.gov/Archives/edgar/data/717605/000156459021004881/hxl-ex1030_219.htm) |
| 10.24\* | [<u>Amendment No. 2 to the Supplemental Executive Retirement Agreement dated October 28, 2009, between Nick L. Stanage and Hexcel Corporation, effective July 26, 2021 (incorporated herein by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2021).</u>](https://www.sec.gov/Archives/edgar/data/0000717605/000156459021037963/hxl-ex102_205.htm) |
| 10.25\* | [<u>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).</u>](https://www.sec.gov/Archives/edgar/data/717605/000095017024046457/hxl-ex10_2.htm) |
| 10.26\* | [<u>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).</u>](https://www.sec.gov/Archives/edgar/data/717605/000095017024046457/hxl-ex10_3.htm) |
| 10.27\* | [<u>Hexcel Corporation Executive Severance Policy (incorporated herein by reference to Exhibit 10.3 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2013).</u>](https://www.sec.gov/Archives/edgar/data/717605/000110465913076682/a13-19560_1ex10d3.htm) |
| 10.28\* | [<u>Form of Officer Severance Agreement entered into between Hexcel Corporation and Gail Lehman, dated October 2, 2017 (incorporated herein by reference to Exhibit 99.1 to the Company's Current Report on Form 8-K dated October 6, 2017).</u>](https://www.sec.gov/Archives/edgar/data/717605/000119312517305839/d472004dex991.htm) |
| 10.29\* | [<u>Amendment to the Officer Severance Agreement, dated October 2, 2017, between Hexcel Corporation and Gail E. Lehman, dated June 1, 2018 (incorporated herein by reference to Exhibit 10.3 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2018).</u>](https://www.sec.gov/Archives/edgar/data/717605/000156459018017213/hxl-ex103_13.htm) |
| 10.30\* | [<u>Form of Officer Severance Agreement entered into between Hexcel Corporation and Gina Fitzsimons, dated October 6, 2023 (incorporated herein by reference to Exhibit 10.31 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023).</u>](https://www.sec.gov/Archives/edgar/data/717605/000095017024012245/hxl-ex10_31.htm) |
| 10.31\* | [<u>Form of Restricted Stock Unit Agreement – Executive Retention Award (incorporated herein by reference to Exhibit 10.4 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2024).</u>](https://www.sec.gov/Archives/edgar/data/717605/000095017024084437/hxl-ex10_4.htm) |
| 10.32\* | [<u>Director Compensation Program, effective May 2, 2024 (incorporated herein by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated December 5, 2024).</u>](https://www.sec.gov/Archives/edgar/data/717605/000093041324000038/c107554_ex10-1.htm) |
| 10.33\* | [<u>Form of Restricted Stock Unit Agreement for Non-Employee Directors (incorporated herein by reference to Exhibit 10.21 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2017).</u>](https://www.sec.gov/Archives/edgar/data/717605/000156459018001551/hxl-ex1021_13.htm) |
| 10.34\* | [<u>Form of Restricted Stock Unit Agreement for Non-Employee Directors (Annual Grant - 2020) (incorporated herein by reference to Exhibit 10.31 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019).</u>](https://www.sec.gov/Archives/edgar/data/717605/000156459020005037/hxl-ex1031_264.htm) |
| 10.35\* | [<u>Form of Restricted Stock Unit Agreement for Non-Employee Directors (Retainer - 2020) (incorporated herein by reference to Exhibit 10.32 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019).</u>](https://www.sec.gov/Archives/edgar/data/717605/000156459020005037/hxl-ex1032_265.htm) |
| 10.36\* | [<u>Form of Restricted Stock Unit Agreement for Non-Employee Directors (2021 Deferred Annual Grant) (incorporated herein by reference to Exhibit 10.46 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020).</u>](https://www.sec.gov/Archives/edgar/data/717605/000156459021004881/hxl-ex1046_141.htm) |
| 10.37\* | [<u>Form of Restricted Stock Unit Agreement for Non-Employee Directors (2021 Deferred Retainer Grant) (incorporated herein by reference to Exhibit 10.48 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020).</u>](https://www.sec.gov/Archives/edgar/data/717605/000156459021004881/hxl-ex1048_139.htm) |
| 10.38\* | [<u>Form of Restricted Stock Unit Agreement for Non-Employee Directors (2024 Deferred Annual Grant) (incorporated herein by reference to Exhibit 10.39 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023).</u>](https://www.sec.gov/Archives/edgar/data/717605/000095017024012245/hxl-ex10_39.htm) |
| 10.39\* | [<u>Form of Restricted Stock Unit Agreement for Non-Employee Directors (2024 Deferred Retainer Grant) (incorporated herein by reference to Exhibit 10.40 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023).</u>](https://www.sec.gov/Archives/edgar/data/717605/000095017024012245/hxl-ex10_40.htm) |
| 10.40\* | [<u>Hexcel Corporation 2016 Employee Stock Purchase Plan (as amended and restated effective May 8, 2025) (incorporated herein by reference to Exhibit 99.1 to the Company's Registration Statement on Form S-8, Registration Statement No. 333-288052, filed on June 13, 2025).</u>](https://www.sec.gov/Archives/edgar/data/717605/000093041325001961/c113015_ex99-1.htm) |

---

------

---

| | |
|:---|:---|
| 10.41\* | [<u>Form of Indemnification Agreement for Directors and Officers (incorporated herein by reference to Exhibit 10.53 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022).</u>](https://www.sec.gov/Archives/edgar/data/717605/000095017023002099/hxl-ex10_53.htm) |
| 10.42\*<br>| [<u>Form of Accelerated Share Repurchase Agreements, dated October 22, 2025 (incorporated herein by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated October 23, 2025).</u>](https://www.sec.gov/Archives/edgar/data/717605/000093041325003284/c114272_ex10-1.htm) |
| 19 | [<u>Hexcel Corporation Insider Trading Policy (incorporated herein by reference to Exhibit 19 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024).</u>](https://www.sec.gov/Archives/edgar/data/717605/000095017025014412/hxl-ex19.htm) |
| 21 | [<u>Subsidiaries of the Company.</u>](hxl-ex21.htm) |
| 23.1 | [<u>Consent of Ernst & Young LLP.</u>](hxl-ex23_1.htm) |
| 24 | [<u>Power of Attorney (included on signature page).</u>](#signatures) |
| 31.1 | [<u>Certification of Chief Executive Officer, Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</u>](hxl-ex31_1.htm) |
| 31.2 | [<u>Certification of Interim Chief Financial Officer, Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</u>](hxl-ex31_2.htm) |
| 32 | [<u>Certification of Chief Executive Officer and Interim 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).</u>](hxl-ex32.htm) |
| 97 | [<u>Hexcel Corporation Mandatory Clawback Policy (incorporated herein by reference to Exhibit 97 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023).</u>](https://www.sec.gov/Archives/edgar/data/717605/000095017024012245/hxl-ex97.htm) |
| 101 | The following financial statements from the Company's Annual Report on Form 10-K for the year ended December 31, 2025, formatted in Inline XBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Stockholders' Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements.  |
| 104 | Cover Page Interactive Data File: the cover page XBRL tags are embedded within the Inline XBRL document and are contained within Exhibit 101. |

---

\* Indicates management contract or compensatory plan or arrangement.

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

**ITEM 16. Form 10-K Summary**

None.

------

**SIGNATURES**

**Pursuant to the requirements of Section 13 or 15(d) 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** |
| February 11, 2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; /s/ THOMAS C. GENTILE III |
| (Date) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Thomas C. Gentile III |
|  | Chairman of the Board of Directors, |
|  | Chief Executive Officer and President |

---

**KNOWN TO ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints each of Thomas C. Gentile III, Michael C. Lenz and Gail Lehman, individually, his or her attorney-in-fact, with the power of substitution, for him or her in any and all capacities, to sign any amendments to this report, and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, hereby ratifying and confirming all that each said attorney-in-fact, or his or her substitute or substitutes, may do or cause to be done by virtue hereof.** 

**Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.** 

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| /s/ THOMAS C. GENTILE III | Chairman of the Board of Directors, | February 11, 2026 |
| (Thomas C. Gentile III) | Chief Executive Officer and President |  |
|  | **(Principal Executive Officer)** |  |
| /s/ MICHAEL C. LENZ | Executive Vice President,  | February 11, 2026 |
| (Michael C. Lenz) | Interim Chief Financial Officer<br>**(Principal Financial Officer)** |  |
| /s/ AMY S. EVANS | Senior Vice President,  | February 11, 2026 |
| (Amy S. Evans) | Chief Accounting Officer |  |
|  | **(Principal Accounting Officer)** |  |
| /s/ JEFFREY C. CAMPBELL | Director | February 11, 2026 |
| (Jeffrey C. Campbell) |  |  |
| &nbsp;&nbsp;&nbsp; <br>/s/ JAMES J. CANNON | <br>Director | <br>February 11, 2026 |
| (James J. Cannon) |  |  |
| &nbsp;&nbsp;&nbsp;/s/ CYNTHIA M. EGNOTOVICH | Director | February 11, 2026 |
| (Cynthia M. Egnotovich) |  |  |
| <br>/s/ GUY C. HACHEY | <br>Director | <br>February 11, 2026 |
| (Guy C. Hachey) |  |  |
| <br>/s/ PATRICIA A. HUBBARD  | <br>Director | <br>February 11, 2026 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Dr. Patricia A. Hubbard)

---

| | | |
|:---|:---|:---|
| /s/ DAVID H. LI | Director | February 11, 2026 |
| (David H. Li) |  |  |
| /s/ NICK L. STANAGE | Director | February 11, 2026 |
| (Nick L. Stanage) |  |  |
| <br>/s/ CATHERINE A. SUEVER | <br>Director | <br>February 11, 2026 |
| (Catherine A. Suever) |  |  |

---

------

**MANAGEMENT'S DISC** **USSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS** 

Management's discussion and analysis of the Company's financial condition and results of operations for the year ended December 31, 2025, and comparison to the year ended December 31, 2024 should be read in conjunction with the consolidated financial statements and notes of this Annual Report on Form 10-K.

For discussion and analysis of financial condition and results of operations for 2024 compared to 2023 refer to Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations in our 2024 Annual Report on Form 10-K, filed with the SEC on February 5, 2025, which is incorporated by reference into this Management's Discussion and Analysis of Financial Condition and Results of Operations.

**Business Overview** 

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
| **(In millions)** | **2025** | **2024** |
| Net sales | $**1893.9** | $1903.0 |
| Gross margin % | **23.0%** | 24.7% |
| Operating income | $**171.6** | $186.1 |
| Operating income % | **9.1%** | 9.8% |
| Interest expense, net | $**37.7** | $31.2 |
| Income tax expense | $**25.6** | $22.8 |
| Net income | $**109.4** | $132.1 |

---

 **Business Trends** 

Since 2022, the Commercial Aerospace market and our business have seen signs of recovery from the economic impacts of the COVID-19 pandemic, driven by growth in air travel and an increase in aircraft build rates. The post-recovery period, however, has had many challenges across the markets Hexcel operates in, including delays in aircraft production rates, related to, among other impacts, global logistics, supply chain issues, economic conditions, inflationary pressures, tariff impacts, and effects from geopolitical issues and conflicts. While these challenges have had and may continue to have further negative impacts on our operations, supply chain, transportation networks and customers, all of which have and may continue to compress our financial results, we see positive indicators for a sustained recovery in commercial aircraft production and strong demand in the defense and space market as global defense budgets continue to increase as a result of an uncertain geopolitical environment and the development of new platforms.

Beginning with the first quarter of 2025, sales are being reported for two markets, Commercial Aerospace, unchanged from past practice, and a new sales category titled Defense, Space & Other, which combines the previous Space & Defense market and the Industrial market. Sales amounts for the year ended December 31, 2024 have been reclassified for comparative purposes.

In 2025, our Commercial Aerospace sales decreased 4.0% compared to 2024 primarily due to lower sales for certain Airbus and Boeing programs, partially offset by increased Other Commercial Aerospace sales driven by strength in regional jets. The demand for new commercial aircraft continues to be principally driven by airline passenger traffic (measured by revenue passenger miles) and the replacement rate for existing aircraft. The Commercial Aerospace industry continues to utilize a greater proportion of advanced composite materials with each new generation of aircraft.

Defense, Space & Other sales in 2025 increased 5.4% compared to 2024. Year over year growth was led by military helicopters, including the Black Hawk and CH-53-K, as well as other military aircraft structures, launchers and satellites.

**Results of Operations** 

We have two reportable segments: Composite Materials and Engineered Products. Although these segments provide customers with different products and services, they often overlap within our two end business markets: Commercial Aerospace and Defense, Space & Other. Therefore, we also find it meaningful to evaluate the sales of our segments through these business markets. Further discussion and additional financial information about our segments may be found in Note 18 to the accompanying consolidated financial statements of this Annual Report on Form 10-K.

***Net Sales:*** Consolidated net sales of $1,893.9 million for 2025 decreased by less than 1% compared to 2024.

The following table summarizes net sales to third-party customers by segment and end market in 2025 and 2024:

------

---

| | | | |
|:---|:---|:---|:---|
| **(In millions)** | **Commercial<br>Aerospace** | **Defense, Space & Other** | **Total** |
| **2025 Net Sales** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Composite Materials | $**980.2** | $**536.0** | $**1516.2** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Engineered Products | **166.7** | **211.0** | **377.7** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $**1146.9** | $**747.0** | $**1893.9** |
|  | **61%** | **39%** | **100%** |
| 2024 Net Sales |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Composite Materials | $1008.2 | $522.8 | $1531.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Engineered Products | 186.0 | 186.0 | 372.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $1194.2 | $708.8 | $1903.0 |
|  | 63% | 37% | 100% |

---

**Sales by Segment** 

<u>Composite Materials:</u> Net sales of $1,516.2 million for the year ended December 31, 2025 decreased $14.8 million or 1.0% from the prior year. Commercial Aerospace sales decreased 2.8% in 2025 as compared to 2024 primarily driven by lower sales for certain Airbus and Boeing programs. Defense, Space & Other sales for 2025 increased by 2.5% over the prior year primarily driven by higher sales of launchers.

<u>Engineered Products:</u> For the year ended December 31, 2025, net sales of $377.7 million increased $5.7 million or 1.5% as compared to the prior year, driven by a 13.4% increase in Defense, Space & Other sales driven by military helicopters and aircraft structures, partially offset by a 10.4% decrease in Commercial Aerospace sales attributable to softness in select Boeing and other commercial aerospace programs.

**Sales by Market**

<u>Commercial Aerospace:</u> Net sales of $1,146.9 million decreased 4.0% for the year ended December 31, 2025 as compared to the year ended December 31, 2024 primarily due to lower sales for the Airbus A350, Boeing 787 and 737 MAX, partially offset by increased Airbus A320neo sales. Other Commercial Aerospace sales increased reflecting growth in regional jets.

<u>Defense, Space & Other:</u> For the year ended December 31, 2025, net sales of $747.0 million increased 5.4% as compared to the year ended December 31, 2024. The increase was due to strength in domestic and international helicopter programs including the Black Hawk, CH-53K, and a European fighter program as well as growth in launchers and satellites.

**2025 Consolidated Results Compared to 2024**

***Gross Margin:*** Gross margin for 2025 was $434.8 million or 23.0% of net sales as compared to $469.8 million or 24.7% of net sales in 2024. Lower margins for 2025 as compared to the prior year were due to sales mix, tariffs, and inventory reduction actions which drove unfavorable cost leverage.

***Selling, General and Administrative ("SG&A") Expenses:*** SG&A expenses for 2025 were $169.0 million or 8.9% of net sales as compared to $176.6 million or 9.3% of net sales for 2024. The $7.6 million decrease in SG&A expenses in 2025 compared to 2024 was primarily due to lower employee-related costs partially offset by higher professional fees.

***Research and Technology ("R&T") Expenses:*** R&T expenses for 2025 were $56.4 million or 3.0% of net sales and in 2024 were $57.1 million or 3.0% of net sales. The year-over-year decrease of $0.7 million was primarily attributable to lower material and supplies costs.

***Other operating expense:*** For the year ended December 31, 2025, other operating expense was $37.8 million which included charges of $28.2 million related to the closure of the Belgium facility, $4.5 million for the divestitures of the Austria and Hartford, Connecticut businesses and a $3.9 million non-income tax charge related to the net value of a foreign entity. Other operating expense for the year ended December 31, 2024 of $50.0 million included $47.7 million of asset impairments and other charges primarily associated with the divestiture of the Austria business and $2.3 million of restructuring costs.

------

***Operating income:*** Operating income for the year ended December 31, 2025 was $171.6 million as compared to $186.1 million for the year ended December 31, 2024. Operating income as a percent of sales was 9.1% and 9.8% in 2025 and 2024, respectively. The decrease in operating income in 2025 compared to 2024 was driven by lower margins, partially offset by lower SG&A expenses and Other operating expense as mentioned above.

Depreciation and amortization expense of $122.3 million for the year ended December 31, 2025 decreased $1.7 million from the year ended December 31, 2024.

***Other income:*** Other non-operating income for the year ended December 31, 2025 of $1.1 million included settlement and curtailment gains related to our U.S. and Belgium retirement plans, partially offset by debt extinguishment costs. We did not incur other non-operating income in 2024.

***Interest expense:*** Interest expense was $37.7 million and $31.2 million for the years ended December 31, 2025 and 2024, respectively, with the year over year increase due to higher average debt levels.

***Income tax expense:*** For the years ended December 31, 2025 and 2024, we had a tax provision of $25.6 million and $22.8 million, respectively.

***Net income:*** Net income was $109.4 million or $1.37 per diluted share for the year ended December 31, 2025 compared to net income of $132.1 million or $1.59 per diluted share for the year ended December 31, 2024. The decrease in 2025 was driven by lower margins.

**Financial Condition** 

In 2025, we ended the year with total debt, net of cash, of $922.0 million and generated $230.5 million of operating cash resulting in $157.2 million of free cash flow (cash provided by operating activities less cash paid for capital expenditures). We expect our cash flow needs for fiscal year 2026 will be funded by cash generated from our operations as well as available borrowings under our Senior Unsecured Revolving Credit Facility (the "Facility") as needed.

We have a portfolio of derivatives related to currencies, interest rates and commodities. We monitor our counterparties, and we only use those rated investment grade.

***Liquidity*** 

Our cash on hand at December 31, 2025 was $71.0 million, as compared to $125.4 million at December 31, 2024. Of the total cash on hand at December 31, 2025, $39.9 million was held by our foreign locations. As of December 31, 2025 total debt was $993.0 million, as compared to $700.7 million at December 31, 2024. As of December 31, 2025, we were in compliance with all debt covenants.

As of December 31, 2025, total outstanding borrowings under the Facility were $295.0 million. The credit agreement for the Facility permits us to issue letters of credit up to an aggregate amount of $50 million. Outstanding letters of credit reduce the amount available for borrowing under the Facility. As of December 31, 2025, there were no issued letters of credit under the Facility, resulting in undrawn availability under the Facility of $455.0 million.

Short-term liquidity requirements consist primarily of normal recurring operating expenses and working capital needs, capital expenditures, dividend payments, debt obligations and debt service requirements. We expect to meet our short-term liquidity requirements through net cash from operating activities, cash on hand and the Facility. As of December 31, 2025, long-term liquidity requirements consist primarily of obligations under our long-term debt obligations. We do not have any significant required debt repayments until February 2027 when our 3.95% Senior Unsecured Notes are due.

For more information regarding debt, including the Facility, see Note 6, Debt, to the accompanying consolidated financial statements of this Annual Report on Form 10-K.

On October 22, 2025, the Board approved an additional $600 million share repurchase plan (the "2025 Share Repurchase Plan"). Also on October 22, 2025, 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 . In connection with the ASR, on October 21, 2025, the Company provided notice to the lenders pursuant to the Credit Agreement to borrow $350.0 million under the Facility to fund the initial settlement of the ASR.

------

The remaining authorization under the 2025 Share Repurchase Plan at December 31, 2025 was $380.6 million. On January 28, 2026, our Board of Directors declared a quarterly dividend of $0.18 per share payable to stockholders of record as of February 9, 2026, with a payment date of February 17, 2026.

***Operating Activities***: We generated $230.5 million in cash from operating activities during 2025, a decrease of $59.4 million from 2024. The decrease in the current year was primarily due to lower net income and use of cash for long term assets and liabilities including amounts related to retirement plans. Working capital was of slight use of cash for both 2025 and 2024. Working capital for the year ended December 31, 2025 reflects higher accounts receivable and lower accruals, offset by lower inventories.

***Investing Activities:*** Net cash used for investing activities was $76.0 million in 2025 compared to $87.0 million in 2024. Capital expenditures for 2025 were $73.3 million compared to $87.0 million in 2024. Payments related to the divestiture of the Austria and Hartford businesses were $2.7 million in 2025.

***Financing Activities:*** Net cash used for financing activities was $212.3 million in 2025 as compared to $301.7 million in 2024. In 2025, borrowings were $480.0 million, while repayments were $185.0 million. During 2025, the Company issued $300.0 million in aggregate principal amount of 5.875% Senior Unsecured Notes due in 2035 and in conjunction with this issuance, the Company redeemed the $300.0 million in aggregate principal amount of 4.7% Senior Unsecured Notes that were due in August 2025. In 2024, borrowings and repayments were both $160.0 million. Dividend payments to shareholders were $53.9 million and $49.3 million in the years ended December 31, 2025 and 2024, respectively. Repurchases of common stock totaled $454.3 million and $252.2 million in the years ended December 31, 2025 and 2024, respectively.

***Financial Obligations and Commitments:*** The next significant scheduled debt maturity will not occur until February 2027 when our 3.95% Senior Unsecured Notes are due. In addition, certain sales and administrative offices, data processing equipment, vehicles and manufacturing equipment, land and facilities are leased under operating leases.

The following table summarizes the scheduled maturities as of December 31, 2025 of financial obligations and expiration dates of commitments for the years ended 2026 through 2030 and thereafter.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **(In millions)** | **2026** | **2027** | **2028** | **2029** | **2030** | **Thereafter** | **Total** |
| Senior unsecured credit facility due 2028 | $— | $— | $295.0 | $— | $— | $— | $295.0 |
| 5.875% senior notes due 2035 |  |  |  |  |  | 300.0 | 300.0 |
| 3.95% senior notes due 2027 |  | 400.0 |  |  |  |  | 400.0 |
| Purchase obligations | 18.4 | 14.2 | 6.3 | 5.7 | 5.6 | 38.1 | 88.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Subtotal | $18 | $414.2 | $301.3 | $5.7 | $6 | $338 | $1083.3 |
| Operating leases | 7.8 | 6.8 | 6.0 | 4.2 | 1.3 | 2.1 | 28.2 |
| Total financial obligations | $26.2 | $421.0 | $307.3 | $9.9 | $6.9 | $340.2 | $1111.5 |
| Interest payments | 50.9 | 36.2 | 23.1 | 17.6 | 17.6 | 82.3 | 227.7 |
| Estimated benefit plan contributions | 3.3 | 1.8 | 2.6 | 1.6 | 1.1 | 8.5 | 18.9 |
| Total commitments | $80.4 | $459.0 | $333.0 | $29.1 | $25.6 | $431.0 | $1358.1 |

---

As of December 31, 2025, we had $1.4 million of unrecognized tax benefits. This represents tax benefits associated with various tax positions taken, or expected to be taken, on domestic tax returns that have not been recognized in our financial statements due to uncertainty regarding their resolution. The resolution or settlement of these tax positions with the taxing authorities is at various stages.

For further information regarding our financial obligations and commitments, see Notes 6, 7, 8 and 16 to the accompanying consolidated financial statements of this Annual Report on Form 10-K.

**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.

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
| **(In millions)** | **2025** | **2024** |
| **GAAP operating income** | $**171.6** | $186.1 |
| Other operating expense (1) | **37.8** | 50.0 |
| **Adjusted operating income (Non-GAAP)** | $**209.4** | $236.1 |

---

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
| **(In millions, except per diluted share data)** | **Net<br>Income** | **EPS** | **Net<br>Income** | **EPS** |
| **GAAP net income** | $**109.4** | $**1.37** | $132.1 | $1.59 |
| &nbsp;&nbsp;Other operating expense, net of tax (1) | **30.3** | **0.38** | 40.5 | 0.49 |
| &nbsp;&nbsp;Other income, net of tax (2) | **(1.0)** | **(0.01)** |  |  |
| &nbsp;&nbsp;Tax expense (benefit) (3) | **2.1** | **0.02** | (4.1) | (0.05) |
| **Adjusted net income (Non-GAAP)** | $**140.8** | $**1.76** | $168.5 | $2.03 |

---

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
| **(In millions)** | **2025** | **2024** |
| **Net cash provided by operating activities** | $**230.5** | $289.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Capital expenditures | **(73.3)** | (87.0) |
| **Free cash flow (Non-GAAP)** | $**157.2** | $202.9 |

---

(1)The year ended December 31, 2025 included charges related to the closure of the Welkenraedt, Belgium facility, the divestitures of our Neumarkt, Austria and Hartford, Connecticut businesses and a non-income tax charge related to the net value of a foreign entity. The year ended December 31, 2024 included asset impairments, charges primarily associated with the divestiture of our Neumarkt, Austria business and restructuring costs.

(2)The year ended December 31, 2025 included curtailment and settlement gains related to the U.S. and Belgium retirement plans as well as debt extinguishment costs.

(3)The year ended December 31, 2025 included a tax charge for a valuation allowance related to the closure of the Welkenraedt, Belgium facility, the release of FIN 48 reserves and provision adjustments related to the finalization of prior year tax returns. Tax benefit for the year ended December 31, 2024 included a provision adjustment to finalize prior year tax returns and benefits associated with our R&T expenditures.

**Critical Accounting Policies and Estimates** 

Our consolidated financial statements are prepared based upon the selection and application of accounting principles generally accepted in the United States of America, which require us to make estimates and assumptions about future events that affect amounts reported in our financial statements and accompanying notes. Future events and their effects cannot be determined with absolute certainty. Therefore, the determination of estimates requires the exercise of judgment. Actual results could differ from those estimates, and any such differences may be significant to the financial statements. The accounting policies below are those we believe are the most critical to the preparation of our financial statements and require the most difficult, subjective, and complex judgments. Our other accounting policies are described in the accompanying Notes to the consolidated financial statements of this Annual Report on Form 10-K.

*Income Taxes*

We have operations in several countries throughout the world where we are subject to income and similar taxes. The estimation of income tax amounts often involves the interpretation of complex regulations and tax laws. In addition, estimations also must consider the impact foreign taxes may have on domestic taxes, as well as the analysis of the realizability of deferred tax assets, tax audit

------

findings and uncertain tax positions. Although we believe our tax accruals are adequate, differences may occur in the future, depending on the resolution of pending and new tax matters.

Deferred tax assets and liabilities are determined based on temporary differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided against a deferred tax asset when it is more likely than not that all or some portion of the deferred tax asset will not be realized. The determination of the required valuation allowance and the amount, if any, of deferred tax assets to be recognized involves significant estimates regarding the timing and amount of reversal of taxable temporary differences, future taxable income, and the implementation of tax planning strategies. In particular, ASC 740, Income Taxes, requires that all available positive and negative evidence be weighed to determine whether a valuation allowance should be recorded.

We are subject to taxation in the U.S. and various states and foreign jurisdictions. The amount of income taxes we pay are subject to ongoing audits by federal, state and foreign tax authorities, which may result in proposed assessments. Our estimate for the potential outcome for any uncertain tax issue is judgmental. We assess our income tax positions, and record tax benefits for all years subject to examination based upon our evaluation of the facts, circumstances and information available at the reporting date. We recognize interest accrued related to unrecognized tax benefits as a component of interest expense and penalties as a component of income tax expense in the consolidated statements of operations. If we do not believe that it is more likely than not that a tax benefit will be sustained, no tax benefit is recognized. As of December 31, 2025, we had uncertain tax positions for which it is reasonably possible that amounts of unrecognized tax benefits could significantly change over the next year. These uncertain tax positions relate to our tax returns from 2022 onward.

For further discussion, see Note 9, Income taxes, to the accompanying consolidated financial statements of this Annual Report on Form 10-K.

*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 16, Commitments and Contingencies, to the accompanying consolidated financial statements of this Annual Report on Form 10-K.

**Market Risks** 

As a result of our global operating and financing activities, we are exposed to various market risks that may affect our consolidated results of operations and financial position. These market risks include, but are not limited to, fluctuations in currency exchange rates, which impact the U.S. dollar value of transactions, assets and liabilities denominated in foreign currencies and fluctuations in interest rates, which impact the amount of interest we must pay on certain debt instruments. Our primary currency exposures are in Europe, where we have significant business activities. To a lesser extent, we are also exposed to fluctuations in the prices of certain commodities, such as electricity, natural gas, acrylonitrile, aluminum, and certain chemicals. In addition, we have several contracts with both suppliers and customers that contain pricing adjustments based on the price of oil outside of a specified band.

We attempt to net individual exposures, when feasible, taking advantage of natural offsets. In addition, we employ or may employ interest rate, commodity and foreign currency financial instruments for the purpose of hedging certain specifically identified interest rate, commodity, and currency exposures. The use of these financial instruments is intended to mitigate some of the risks associated with fluctuations in interest rates, commodities and currency exchange rates but does not eliminate such risks. We do not use financial instruments for trading or speculative purposes.

*Interest Rate Risks* 

Outstanding balances that exist under our Facility are included in our long-term debt bear interest at variable rates. From time to time we have entered into interest rate swap agreements to change the underlying mix of variable and fixed interest rate debt. These interest rate swap agreements have modified the percentage of total debt that is exposed to changes in market interest rates. Assuming a 10% favorable and a 10% unfavorable change in the underlying weighted average interest rates of our variable rate debt and swap agreements, interest expense for 2025 of $37.7 million would not be materially impacted.

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*Foreign Currency Exchange Risks* 

As of December 31, 2025, we operated ten manufacturing facilities in Europe and Africa which generated approximately 47% of our 2025 consolidated net sales. Our European business activities primarily involve three major currencies — the U.S. dollar, the British pound sterling, and the Euro. We also conduct business and sell products to customers throughout the world. Most of the sales in these countries are denominated in U.S. dollars and they have local currency expenses. Currency risk for the Africa location is not considered material.

In 2025, our European subsidiaries had third-party sales of $0.9 billion of which approximately 68% were denominated in U.S. dollars, 31% were denominated in Euros and 1% were denominated in British pounds sterling. While we seek to reduce the exposure of our European subsidiaries to their sales in non-functional currencies through the purchase of raw materials in the same currency as that of the product sale, the net contribution of these sales to cover the costs of the subsidiary in its functional currency will vary with changes in foreign exchange rates, and as a result, so will vary the European subsidiaries' percentage margins and profitability. For revenues denominated in the functional currency of the subsidiary, changes in foreign currency exchange rates increase or decrease the value of these revenues in U.S. dollars, but do not affect the profitability of the subsidiary in its functional currency. The value of our investments in these countries could be impacted by changes in currency exchange rates over time and could impact our ability to profitably compete in international markets.

We attempt to net individual functional currency positions of our various European subsidiaries, to take advantage of natural offsets and reduce the need to employ foreign currency forward exchange contracts. We attempt to hedge some, but not necessarily all, of the net exposures of our European subsidiaries resulting from sales they make in non-functional currencies. The benefit of such hedges varies with time and the foreign exchange rates at which the hedges are set. For example, when the Euro strengthened against the U.S. dollar, the benefit of new hedges placed was much less than the value of hedges they replaced that were entered into when the U.S. dollar was stronger. We may place additional foreign currency hedges when the dollar strengthens against the Euro or British pound. We do not seek to hedge the value of our European subsidiaries' functional currency sales and profitability in U.S. dollars. We also enter into short-term foreign currency forward exchange contracts, usually with a term of ninety days or less, to hedge net currency exposures. Any unrealized gain or loss on these foreign currency forward exchange contracts would be offset by corresponding decreases or increases, respectively, of the underlying transaction being hedged.

We have performed a sensitivity analysis as of December 31, 2025 using a modeling technique that measures the changes in the fair values arising from a hypothetical 10% adverse movement in the levels of foreign currency exchange rates relative to the U.S. dollar with all other variables held constant. The analysis includes all of our foreign currency hedge contracts. The sensitivity analysis indicated that a hypothetical 10% adverse movement in foreign currency exchange rates would have an approximately $0.4 million impact on our 2025 operating income. However, it should be noted that over time as the adverse movement (in our case a weaker dollar as compared to the Euro or the British pound sterling) continues and new hedges are layered in at the adverse rate, the impact would be more significant. For example, had we not had any hedges in place for 2025, a 10% adverse movement would have reduced our operating income by approximately $29.8 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 entered into contracts to exchange U.S. dollars for Euros and British pound sterling through June 2028. The aggregate notional amount of these contracts was $403.4 million at December 31, 2025. The purpose of these contracts is to hedge a portion of the forecasted transactions of 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. For the three years ended December 31, 2025, hedge ineffectiveness was immaterial. Cash flows associated with these contracts are classified within net cash provided by operating activities of continuing operations.

For further discussion, see Note 15, Derivative Financial Instruments, to the accompanying consolidated financial statements of this Annual Report on Form 10-K.

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**Consolidated Financial Statements and Supplementary Data** 

---

| | |
|:---|:---|
| **Description** | **Page** |
| &nbsp;&nbsp;&nbsp;&nbsp;[<u>Management's Responsibility for Consolidated Financial Statements</u>](#managementresponsibilityforconsolid) | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;[<u>Management's Report on Internal Control Over Financial Reporting</u>](#managements_report_on_internal_control) | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;[<u>Reports of Independent Registered Public Accounting Firm</u>](#report_independent_registered_public_acc) | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Financial Statements of Hexcel Corporation and Subsidiaries: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Consolidated Balance Sheets as of December 31, 2025 and 2024</u>](#condensed_balance_sheets) | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Consolidated Statements of Operations for each of the three years ended December 31, 2025, 2024 and 202</u>](#consolidated_statements_operations)3 | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Consolidated Statements of Comprehensive Income (Loss) for each of the three years ended December 31, 2025, 2024 and 2023</u>](#consolidated_statements_operations) | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Consolidated Statements of Stockholders' Equity for each of the three years ended December 31, 2025, 2024 and 2023</u>](#consolidated_statements_stockholders_equ) | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Consolidated Statements of Cash Flows for each of the three years ended December 31, 2025, 2024, and 2023</u>](#consolidated_cash_flows) | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Notes to the Consolidated Financial Statements</u>](#notestotheconsolidatedfinancial) | 50 |

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**<u>M</u><u>anagement's Responsibility for Consolidated Financial Statements</u>** 

Hexcel management has prepared and is responsible for the consolidated financial statements and the related financial data contained in this report. These financial statements, which include estimates, were prepared in accordance with accounting principles generally accepted in the United States of America. Management uses its best judgment to ensure that such statements reflect fairly the consolidated financial position, results of operations and cash flows of the Company.

The Audit Committee of the Board of Directors reviews and monitors the consolidated financial statements and accounting policies of Hexcel. These financial statements and policies are reviewed regularly by management and such financial statements are audited by our independent registered public accounting firm, Ernst & Young LLP. The Audit Committee, composed solely of outside directors, meets periodically, separately, and jointly, with management and the independent registered public accounting firm.

**<u>Management's Report on Internal Control Over Financial Reporting</u>** 

Hexcel management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended, as a process designed by, or under the supervision of, the company's principal executive and principal financial officers and effected by the company's board of directors, management and other personnel 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 and includes those policies and procedures that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company's assets that could have a material effect on the financial statements.

Hexcel management has assessed the effectiveness of our internal control over financial reporting as of December 31, 2025. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in *Internal Control-Integrated Framework (2013)*. Based on our assessment, management concluded that, as of December 31, 2025, our internal control over financial reporting was effective.

The effectiveness of Hexcel's internal control over financial reporting, as of December 31, 2025, has been audited by Ernst & Young LLP, an independent registered public accounting firm, as stated in its report that appears on page 45.

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**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** 

**To the Stockholders and Board of Directors of Hexcel Corporation**

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of Hexcel Corporation and Subsidiaries' (the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income, stockholders' equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 11, 2026 expressed an unqualified opinion thereon.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

**Critical Audit Matter**

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

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| | |
|:---|:---|
|  | &nbsp;&nbsp;***Revenue Recognition*** |
| &nbsp;&nbsp;*Description of the Matter* | &nbsp;&nbsp;The Company's revenue was $1,893.9 million for the year ended December 31, 2025. As explained in Notes 1 and 11 to the consolidated financial statements, revenue is predominately derived from a single performance obligation under long-term agreements with customers and pricing is fixed and determinable. The majority of revenue is recognized at a point in time when the customer has obtained control of the product. <br>The principal consideration for our determination that performing procedures relating to revenue recognition is a critical audit matter is the extensive audit effort in performing procedures related to the Company's revenue recognition.<br>|

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| | |
|:---|:---|
| &nbsp;&nbsp;*How We Addressed the Matter in Our Audit* | &nbsp;&nbsp;We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls that address the risks of material misstatement relating to revenue recognition.<br>Our procedures included, among others, (i) assessing the completeness, accuracy, and existence of revenue recognized by testing the correlation of revenue to accounts receivable and cash, (ii) testing a sample of revenue transactions by obtaining and inspecting source documents, including purchase orders, invoices, proof of shipment and cash receipts and (iii) confirming a sample of outstanding customer invoice balances, and for confirmations not returned, obtaining and inspecting source documents, including invoices, proof of shipment, and subsequent cash receipts, where applicable. We also evaluated the Company's revenue recognition disclosures included in Notes 1 and 11.<br>|

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/s/ Ernst & Young LLP

We have served as the Company's auditor since 2016.

Stamford, Connecticut

February 11, 2026

------

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

**To the Stockholders and Board of Directors of Hexcel Corporation** 

**Opinion on Internal Control over Financial Reporting**

We have audited Hexcel Corporation and subsidiaries' internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Hexcel Corporation and subsidiaries' (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income, stockholders' equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and our report dated February 11, 2026 expressed an unqualified opinion thereon.

**Basis for Opinion**

The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management's Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

**Definition and Limitations of Internal Control Over Financial Reporting**

A company's internal control over financial reporting is a process designed 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. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

Stamford, Connecticut

February 11, 2026

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**Hexcel Corporation and Subsidiaries**

**Consolidated Balance Sheets**

**As of December 31,** 

---

| | | |
|:---|:---|:---|
| **(In millions)** | **2025** | **2024** |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $**71.0** | $125.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | **249.3** | 212.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | **328.8** | 356.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract assets | **35.9** | 29.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | **45.7** | 50.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Assets held for sale | **—** | 7.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | **730.7** | 781.5 |
| Property, plant and equipment | **3322.4** | 3163.1 |
| Less accumulated depreciation | **(1710.9)** | (1566.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment, net | **1611.5** | 1596.7 |
| Goodwill and other intangible assets | **239.8** | 237.0 |
| Investments in affiliated companies | **5.0** | 5.0 |
| Other assets | **117.0** | 105.4 |
| Total assets | $**2704.0** | $2725.6 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term borrowings | $**—** | $0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | **146.6** | 142.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued compensation and benefits | **79.0** | 99.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial instruments | **3.8** | 8.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | **93.3** | 99.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Liabilities held for sale | **-** | 4.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | **322.7** | 353.5 |
| Long-term debt | **993.0** | 700.6 |
| Retirement obligations | **28.4** | 31.9 |
| Deferred income taxes | **86.7** | 81.2 |
| Other non-current liabilities | **22.5** | 30.5 |
| Total liabilities | **1453.3** | 1197.7 |
| Stockholders' equity: |  |  |
| Common stock, $0.01 par value, 200.0 shares authorized, 112.1 shares and 111.6 shares<br> issued at December 31, 2025 and 2024, respectively | **1.1** | 1.1 |
| Additional paid-in capital | **994.9** | 970.0 |
| Retained earnings | **2307.0** | 2251.5 |
| Accumulated other comprehensive loss | **(12.9)** | (115.0) |
|  | **3290.1** | 3107.6 |
| Less – Treasury stock, at cost, 36.4 shares at December 31, 2025 and 30.6 shares <br> at December 31, 2024 | **(2039.4)** | (1579.7) |
| Total stockholders' equity | **1250.7** | 1527.9 |
| Total liabilities and stockholders' equity | $**2704.0** | $2725.6 |

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

------

**Hexcel Corporation and Subsidiaries**

**Consolidated Statements of Operations**

**For the Years Ended December 31,**

---

| | | | |
|:---|:---|:---|:---|
| **(In millions, except per share data)** | **2025** | **2024** | **2023** |
| Net sales | $**1893.9** | $1903.0 | $1789.0 |
| Cost of sales | **1459.1** | 1433.2 | 1355.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross margin | **434.8** | 469.8 | 433.2 |
| Selling, general and administrative expenses | **169.0** | 176.6 | 163.8 |
| Research and technology expenses | **56.4** | 57.1 | 52.7 |
| Other operating expense | **37.8** | 50.0 | 1.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating income | **171.6** | 186.1 | 215.3 |
| Interest expense, net | **37.7** | 31.2 | 34.0 |
| Other (income) expense | **(1.1)** | **—** | 71.6 |
| &nbsp;&nbsp;&nbsp;&nbsp; Income before income taxes, and equity in earnings from affiliated companies | **135.0** | 154.9 | 109.7 |
| Income tax expense | **25.6** | 22.8 | 12.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income before equity in earnings | **109.4** | 132.1 | 97.6 |
| Equity in earnings from affiliated companies | **—** | **—** | 8.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | $**109.4** | $132.1 | $105.7 |
| Basic net income per common share: | $**1.38** | $1.61 | $1.25 |
| Diluted net income per common share: | $**1.37** | $1.59 | $1.24 |
| Weighted-average common shares: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | **79.5** | 82.3 | 84.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | **80.0** | 83.0 | 85.5 |
| **Hexcel Corporation and Subsidiaries** |  |  |  |
| **Consolidated Statements of Comprehensive Income** |  |  |  |
| **For the Years Ended December 31,** |  |  |  |
| **(In millions)** | **2025** | **2024** | **2023** |
| Net Income | $**109.4** | $132.1 | $105.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency translation adjustments | **87.0** | (29.1) | 29.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net unrealized pension and other benefit actuarial<br> loss and prior service credits (net of tax) | **(0.4)** | (1.7) | 50.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net unrealized gains (losses) on financial instruments (net of tax) | **15.5** | (10.1) | 21.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other comprehensive income (loss) | **102.1** | (40.9) | 100.3 |
| Comprehensive income | $**211.5** | $91.2 | $206.0 |

---

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

------

**Hexcel Corporation and Subsidiaries**

**Consolidated Statements of Stockholders' Equity**

**For the Years Ended December 31, 2025, 2024 and 2023**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | **Common Stock** | **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 | $2104.9 | $(174.4) | $(1282.4) | $1554.2 |
| Net income | **—** |  | 105.7 |  |  | 105.7 |
| Dividends on common stock ($0.50 per share) | **—** |  | (41.9) |  |  | (41.9) |
| Repurchases of common stock | **—** |  |  |  | (30.1) | (30.1) |
| Change in other comprehensive loss – net of tax | **—** |  |  | 100.3 |  | 100.3 |
| Stock-based activity | **—** | 31.8 |  |  | (3.5) | 28.3 |
| **Balance, December 31, 2023** | $1.1 | $936.8 | $2168.7 | $(74.1) | $(1316.0) | $1716.5 |
| Net income | **—** |  | 132.1 |  |  | 132.1 |
| Dividends on common stock ($0.60 per share) | **—** |  | (49.3) |  |  | (49.3) |
| Repurchases of common stock | **—** |  |  |  | (252.2) | (252.2) |
| Change in other comprehensive income – net of tax | **—** |  |  | (40.9) |  | (40.9) |
| Stock-based activity | **—** | 33.2 |  |  | (11.5) | 21.7 |
| **Balance, December 31, 2024** | $1.1 | $970.0 | $2251.5 | $(115.0) | $(1579.7) | $1527.9 |
| Net income | **—** | **—** | **109.4** | **—** | **—** | **109.4** |
| Dividends on common stock ($0.68 per share) | **—** | **—** | **(53.9)** | **—** | **—** | **(53.9)** |
| Repurchases of common stock | **—** |  |  |  | **(454.3)** | **(454.3)** |
| Change in other comprehensive loss – net of tax | **—** | **—** | **—** | **102.1** | **—** | **102.1** |
| Stock-based activity | **—** | **24.9** | **—** | **—** | **(5.4)** | **19.5** |
| **Year Ended December 31, 2025** | $**1.1** | $**994.9** | $**2307.0** | $**(12.9)** | $**(2039.4)** | $**1250.7** |

---

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

------

**Hexcel Corporation and Subsidiaries**

**Consolidated Statements of Cash Flows**

**For the Years Ended December 31,** 

---

| | | | |
|:---|:---|:---|:---|
| **(In millions)** | **2025** | **2024** | **2023** |
| **Cash flows from operating activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | $**109.4** | $132.1 | $105.7 |
| Reconciliation to net cash provided by operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | **122.3** | 124.0 | 124.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs and debt discount | **0.1** | 0.4 | 0.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | **5.9** | (16.7) | (32.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity in earnings from affiliated companies | **—** |  | (8.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | **14.4** | 22.2 | 20.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring expenses, net of payments | **9.1** |  | (4.4) |
| &nbsp;&nbsp;&nbsp;&nbsp; Debt extinguishment costs | **0.4** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Loss on divestiture of assets | **4.9** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pension settlement | **—** |  | 70.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of assets | **—** |  | (0.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment of assets | **—** | 28.9 | 3.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss (gain) on sale of investments | **—** |  | 3.0 |
| Changes in assets and liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in accounts receivable | **(22.5)** | 10.7 | (8.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;Decrease (increase) in inventories | **45.4** | (34.0) | (8.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in prepaid expenses and other current assets | **(4.0)** | (6.7) | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Decrease) increase in accounts payable/accrued liabilities | **(20.4)** | 29.2 | (12.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other – net | **(34.5)** | (0.2) | 1.9 |
| Net cash provided by operating activities | **230.5** | 289.9 | 257.1 |
| **Cash flows from investing activities** |  |  |  |
| Capital expenditures | **(73.3)** | (87.0) | (108.2) |
| Payments on divestiture of assets | **(2.7)** |  |  |
| Proceeds from sale of assets | **—** |  | 10.3 |
| Proceeds from sale of investments | **—** |  | 47.2 |
| Net cash used for investing activities | **(76.0)** | (87.0) | (50.7) |
| **Cash flows from financing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowing from senior unsecured credit facility - 2028 | **480.0** | 160.0 | 98.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayment of senior unsecured credit facility - 2028 | **(185.0)** | (160.0) | (98.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowing from senior unsecured credit facility - 2024 | **—** |  | 65.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayment of senior unsecured credit facility - 2024 | **—** |  | (90.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;Redemption of 4.7% senior notes due 2025 | **(300.0)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of 5.875% senior notes due 2035 | **300.0** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayment of finance lease obligation and other debt, net | **(4.2)** | 0.3 | (0.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance costs related to senior credit facility | **—** |  | (2.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends paid | **(53.9)** | (49.3) | (42.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchase of stock | **(454.3)** | (252.2) | (30.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Activity under stock plans | **5.1** | (0.5) | 7.4 |
| Net cash used for financing activities | **(212.3)** | (301.7) | (92.6) |
| Effect of exchange rate changes on cash and cash equivalents | **3.4** | (2.8) | 1.2 |
| Net (decrease) increase in cash and cash equivalents | **(54.4)** | (101.6) | 115.0 |
| Cash and cash equivalents at beginning of period | **125.4** | 227.0 | 112.0 |
| Cash and cash equivalents at end of period | $**71.0** | $125.4 | $227.0 |
| **Supplemental data:** |  |  |  |
| Cash paid during the year for: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest, net of capitalized interest | $**40.2** | $33.5 | $34.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income Taxes | $**7.3** | $42.2 | $59.1 |
| Accrual basis additions to property, plant and equipment | $**81.2** | $81.1 | $121.6 |

---

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

------

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS** 

**Note 1 — Significant Accounting Policies** 

*Nature of Operations* 

Hexcel Corporation and its subsidiaries (herein referred to as "Hexcel", "the Company", "we", "us", or "our"), is a global leader in advanced lightweight composites technology. We propel the future of flight and transportation through excellence in advanced material lightweighting solutions that create a better world for us all. Our broad product range includes carbon fiber, specialty reinforcements, prepregs and other fiber-reinforced matrix materials, honeycomb, resins, engineered core and composite structures for use in commercial aerospace, defense and space, and industrial applications.

We serve international markets through manufacturing facilities, sales offices and representatives located in the Americas, Europe, Asia Pacific, India, and Africa. We also had a presence in Malaysia where we were a partner in a joint venture which manufactures composite structures for Commercial Aerospace applications. In December 2023, we sold our 50% interest in the joint venture and received net proceeds of approximately $44.7 million and recorded a loss on the sale of $3.0 million (including the write-off of approximately $9.0 million in currency translation adjustments) which was included in Other expense in the Consolidated Statements of Operations for the year ended December 31, 2023.

*Principles of Consolidation* 

The accompanying consolidated financial statements include the accounts of Hexcel Corporation and its subsidiaries after elimination of all intercompany accounts, transactions, and profits. Results for the years ended 2023 included our 50% equity ownership investment in the joint venture in Malaysia which was accounted for using the equity method of accounting. As mentioned above, we sold our interest in the joint venture in December 2023.

*Basis of Presentation*

The accompanying consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") and are in conformity with U.S. generally accepted accounting principles ("GAAP"). Our fiscal year end is December 31st. Unless otherwise stated, all years and dates refer to our fiscal year.

*Assets and Liabilities Held for Sale*

During the third quarter of 2025, the Company completed the divestiture of its Austria operations for which we had previously announced, during the fourth quarter of 2024, that we were exploring strategic options and undergoing a process to find a suitable successor.

As of December 31, 2024, the assets and liabilities of the Austria operations were classified as held for sale. The table below presents the carrying amounts of the assets and liabilities:

---

| | |
|:---|:---|
|  | December 31, |
| **(In millions)** | 2024 |
| Accounts receivable | $6.2 |
| Inventories | 1.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Assets held for sale | $7.5 |
| Accounts payable | $2.4 |
| Accrued liabilities | 0.9 |
| Other non-current liabilities | 0.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Liabilities held for sale | $4.2 |

---

*Use of Estimates* 

Preparation of the accompanying consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

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*Cash and Cash Equivalents* 

Cash and cash equivalents include cash on hand and all highly liquid investments with an original maturity of three months or less when purchased. Our cash equivalents are held in money market investments with strong sponsor organizations which are monitored on a continuous basis.

*Inventories* 

Inventories are stated at the lower of cost or net realizable value, with cost determined using a standard rate per unit of finished goods when the plant is operating at normal or planned capacity. Inventory is reported at its estimated net realizable value based upon our historical experience with inventory becoming obsolete due to age, changes in technology and other factors. Inventory cost consists of materials, labor, and manufacturing related overhead associated with the purchase and production of inventories.

*Property, Plant and Equipment* 

Property, plant and equipment, including capitalized interest applicable to major project expenditures, is recorded at cost. Asset and accumulated depreciation accounts are eliminated for dispositions, with resulting gains or losses reflected in earnings. Depreciation of plant and equipment is provided generally using the straight-line method over the estimated useful lives of the various assets. The estimated useful lives range from 10 to 40 years for buildings and improvements and from 3 to 25 years for machinery and equipment. Repairs and maintenance are expensed as incurred, while major replacements and betterments are capitalized and depreciated over the remaining useful life of the related asset.

*Leases*

The Company regularly enters into operating leases for certain buildings, equipment, parcels of land, and vehicles and accounts for such leases under the provisions of Accounting Standards Codification ("ASC") 842, accounting for leases. Accordingly, we capitalize all agreements with terms for more than one year, where a right of use asset was identified. Generally, amounts capitalized represent the present value of minimum lease payments over the term, and the duration is equivalent to the base agreement, however, management uses certain assumptions when determining the value and duration of leases. These assumptions include, but are not limited to, the probability of renewing a lease term, certain future events impacting lease payments, as well as fair values not explicit in an agreement. Such assumptions impacted the duration of many of our building leases, as well as certain of our equipment leases. In addition, we elected certain expedients, such as the election to capitalize lease and non-lease components of an agreement as a single component for purposes of simplicity, with the exception of those related to equipment and machinery.

In determining the lease renewal, management considers the need and ability to substitute a given asset, as well as certain conditions such as related contractual obligations to our customers (i.e., a contractual obligation of a customer requiring certain manufacturing proximities). In determining fair value, management considers the stand-alone value of an asset in an ordinary market as well as incurring certain costs to terminate an agreement. Most of our leases do not include variable payments but contain scheduled escalations. Any lease payments tied to certain future indexes are adjusted on a go-forward basis as those indexes become known.

*Goodwill and Other Intangible Assets* 

Goodwill represents the excess of the purchase price over the fair value of the identifiable net assets of an acquired business. Goodwill is tested for impairment at the reporting unit level annually, in the fourth quarter, or when events or changes in circumstances indicate that goodwill might be impaired. The Company performed a qualitative assessment ("Step Zero") and determined that it was more likely than not that the fair values of our reporting units were not less than their carrying values and it was not necessary to perform a quantitative goodwill impairment test.

We amortize the cost of other intangibles over their estimated useful lives unless such lives are deemed indefinite. We have indefinite lived intangible assets which are not amortized but are tested annually for impairment during the fourth quarter of each year, or when events or changes in circumstances indicate the potential for impairment. If the carrying amount of the indefinite lived intangible exceeds the fair value, it is written down to its fair value, which is calculated using a discounted cash flow model.

*Impairment of Long-Lived Assets* 

The Company reviews long-lived assets, including property, plant and equipment and definite-lived intangible assets, for impairment whenever changes in circumstances or events may indicate that the carrying amounts are not recoverable. These indicators include, but are not limited to: a significant decrease in the market price of a long-lived asset, a significant change in the extent or

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manner in which a long-lived asset is used or its physical condition, a significant adverse change in legal factors or business climate that could affect the value of a long-lived asset, an accumulation of costs significantly in excess of the amount expected for the acquisition or construction of a long-lived asset, a current period operating or cash flow loss combined with a history of losses associated with a long-lived asset and a current expectation that, more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated life.

*Software Development Costs* 

Costs incurred to develop software for internal use and for software accessed through the cloud in a hosting arrangement are accounted for under ASC 350-40, *"Internal-Use Software."* All costs relating to the preliminary project stage and the post-implementation/operation stage are expensed as incurred. Costs incurred during the application development stage are capitalized and amortized over the useful life of the software or the noncancelable term of the hosting arrangement, which can range from three to ten years. The amortization of capitalized costs commences after testing has been completed, the software/module/component is ready for its intended use and is not dependent on the completion on any other modules/components.

*Debt Financing Costs* 

Debt financing costs are deferred and amortized to interest expense over the life of the related debt. We capitalize financing fees related to our revolving credit facility and record them as a non-current asset in our Consolidated Balance Sheets. Financing fees related to our bonds and notes are capitalized and recorded as a non-current contra liability in our Consolidated Balance Sheets. See Note 6, Debt, for further information on debt financing costs.

*Share-Based Compensation* 

The fair value of Restricted Stock Units ("RSUs") is equal to the market price of our stock at date of grant and is amortized to expense ratably over the vesting period. Performance restricted stock units ("PRSUs") are a form of RSUs in which the number of shares ultimately received depends on the extent to which we achieve a specified performance target. The fair value of the PRSU is based on the closing market price of the Company's common stock on the date of grant and is amortized straight-line over the total vesting period. A change in the performance measure expected to be achieved is recorded as an adjustment in the period in which the change occurs. We use the Black-Scholes model to calculate the fair value for all stock option grants, based on the inputs relevant on the date granted, such as the market value of our shares, prevailing risk-free interest rate, etc. The value of the portion of the award, after considering potential forfeitures, that is ultimately expected to vest is recognized as expense in our consolidated statements of operations on a straight-line basis over the requisite service periods. The value of RSUs, PRSUs and non-qualifying options awards for retirement eligible employees is expensed on the grant date as they are fully vested.

*Currency Translation* 

The assets and liabilities of international subsidiaries are translated into U.S. dollars at year-end exchange rates, and revenues and expenses are translated at average exchange rates during the year. Cumulative currency translation adjustments are included in "accumulated other comprehensive loss" in the stockholders' equity section of the Consolidated Balance Sheets.

*Revenue Recognition* 

Revenue is predominantly derived from a single performance obligation under long-term agreements with our customers and pricing is fixed and determinable. The majority of our revenue is recognized at a point in time when the customer has obtained control of the product. We have determined that individual purchase orders ("PO"), whose terms and conditions taken with a master agreement, create the revenue contracts which are generally short-term in nature. For those sales which are not tied to a long-term agreement, we generate a PO that is subject to our standard terms and conditions.

Revenue is recognized over time for customer contracts that contain a termination for convenience clause ("T for C") and where the products produced do not have an alternative use. For revenue recognized over time, we estimate the amount of revenue earned at a given point during the production cycle based on certain costs factors such as raw materials and labor incurred to date, plus a reasonable profit, which is known as the cost-to-cost input method.

Our revenue recognition policy recognizes the following practical expedients allowed under ASC 606:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Payment terms with our customers which are one year or less, are not considered a performance obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Shipping and handling fees and costs incurred in connection with products sold are recorded in cost of sales in our Consolidated Statements of Operations and are not considered a performance obligation to our customers.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Our performance obligations on our orders are generally satisfied within one year from a given reporting date therefore we omit disclosure of the transaction price allocated to remaining performance obligations on open orders.

*Product Warranty* 

We provide for an estimated amount of product warranty at the point a claim is probable and estimable. This estimated amount is provided by product and based on current facts, circumstances, and historical warranty experience.

*Research and Technology* 

Significant costs are incurred each year in connection with research and technology ("R&T") programs that are expected to contribute to future earnings. Such costs are related to the development and, in certain instances, the qualification and certification of new and improved products and their uses. R&T costs are expensed as incurred.

*Income Taxes* 

We provide for income taxes using the asset and liability approach*.* Under this approach, deferred income tax assets and liabilities reflect tax net operating loss and credit carryforwards and the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting and income tax purposes. Deferred tax assets require a valuation allowance when it is not more likely than not, based on the evaluation of positive and negative evidence, that the deferred tax assets will be realized. The realization of deferred tax assets is dependent upon the timing and magnitude of future taxable income prior to the expiration of the deferred tax assets' attributes. When events and circumstances dictate, we evaluate the realizability of our deferred tax assets and the need for a valuation allowance by forecasting future taxable income. Investment tax credits are recorded on a flow-through basis, which reflects the credit in net income as a reduction of the provision for income taxes in the same period as the credit is realized for federal income tax purposes. In addition, we recognize interest accrued related to unrecognized tax benefits as a component of interest expense and penalties as a component of income tax expense in the Consolidated Statements of Operations.

*Concentration of Credit Risk* 

Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of trade accounts receivable. Two customers and their related subcontractors accounted for approximately 52% of our annual net sales in 2025, 55% in 2024 and 54% in 2023. Refer to Note 18 for further information on significant customers. We perform ongoing credit evaluations of our customers' financial condition but generally do not require collateral or other security to support customer receivables. We establish an allowance for doubtful accounts based on factors surrounding the credit risk of specific customers, historical trends, and other financial information.

*Derivative Financial Instruments* 

We use various financial instruments, including foreign currency forward exchange contracts, commodity, and interest rate agreements, to manage our exposure to market fluctuations by generating cash flows that offset, in relation to their amount and timing, the cash flows of certain foreign currency denominated transactions, commodities or underlying debt instruments. We mark our foreign exchange forward contracts to fair value. When the derivatives qualify, we designate our foreign currency forward exchange contracts as cash flow hedges against forecasted foreign currency denominated transactions and report the changes in fair value of the instruments in "accumulated other comprehensive loss" until the underlying hedged transactions affect income. We designate our interest rate agreements as fair value or cash flow hedges against specific debt instruments and recognize interest differentials as adjustments to interest expense as the differentials may occur; the fair value of the interest rate swaps is recorded in other assets or other non-current liabilities with a corresponding amount to "accumulated other comprehensive loss". We do not use financial instruments for trading or speculative purposes.

In accordance with accounting guidance, we recognize all derivatives as either assets or liabilities on our Consolidated Balance Sheets and measure those instruments at fair value.

*Self-insurance* 

We are self-insured up to specific levels for certain medical and health insurance and workers' compensation plans. Accruals are established based on actuarial assumptions and historical claim experience and include estimated amounts for incurred but not reported claims.

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*Recently Adopted Accounting Standards* 

During the fourth quarter of 2025, the Company adopted Accounting Standards Updated ("ASU") No. 2023-09*, Income Taxes (Topic 240)*, which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit disaggregated between domestic and foreign and (3) income tax expense or benefit from continuing operations disaggregated by Federal, state, and foreign. The update also requires entities to disclose their income tax payments to various jurisdictions. For further information please see Note 9 Income Taxes, in the Notes to the Consolidated Financial Statements.

*Recently Issued Accounting Standards* 

In November 2024, the Financial Accounting Standards Board ("FASB") issued ASU 2024-03, *Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses,* which requires entities to disclose additional information about specific expense categories in the notes to the financial statements on an interim and annual basis. This guidance is effective for annual reporting periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statement disclosures.

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Recognition and Measurement of Internal-Use Software Costs. The amendment modernizes the accounting for internal-use software and enhances the disclosure requirements. The guidance is effective for annual reporting periods beginning after December 15, 2027, including interim periods within those annual periods. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statement disclosures.

In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements. The amendments are intended to further align hedge accounting with the economic results of an entity's risk-management activities. The standard is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. The amended guidance is intended to expand the population of hedged risks eligible for aggregation in a single group or pool, thereby reducing cost, complexity, and the risk of unintuitive missed forecasts in the application of these hedging strategies. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements and related disclosures.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. The amendments clarify the applicability of ASC 270 and reorganize interim disclosure requirements to improve navigability and consistency across interim reporting periods. The amendments are not intended to change the fundamental nature of interim reporting or expand or reduce current interim disclosure requirements. The amendments are effective for interim reporting periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact on its interim financial reporting processes and related disclosures.

*New Tax Legislation*

On July 4, 2025, the U.S. President signed into law H.R.1, the legislation commonly known as the One Big Beautiful Bill ("OBBB"). This legislation extended, modified, or made permanent many of the tax provisions which were initially enacted as part of the Tax Cuts and Jobs Act (TCJA) of 2017. The OBBB contains a number of tax provisions including, but not limited to, immediate expensing of domestic research and experimental expenditures, modifications to the limitation on business interest, bonus depreciation modifications, as well as international tax provision modifications. These tax provisions apply to either tax years beginning after December 31, 2024 or December 31, 2025. Please see Note 9, Income Taxes, in the Notes to the Consolidated Financial Statements for additional information.

**Note 2 — Inventories** 

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| **(In millions)** | **2025** | **2024** |
| Raw materials | $**150.7** | $161.1 |
| Work in progress | **42.3** | 41.6 |
| Finished goods | **135.8** | 153.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total inventory | $**328.8** | $356.2 |

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**Note 3— Accounts Receivable**

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| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
| **(In millions)** | **2025** | **2024** |
| Accounts receivable | $**249.8** | $212.8 |
| Allowance for doubtful accounts | **(0.5)** | (0.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | $**249.3** | $212.0 |

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&nbsp;&nbsp;&nbsp;&nbsp;Bad debt expense was immaterial for all years presented.

**Note 4 — Net Property, Plant and Equipment** 

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| **(In millions)** | **2025** | **2024** |
| Land | $**123.9** | $119.2 |
| Buildings | **766.3** | 727.5 |
| Equipment | **2122.7** | 2028.1 |
| Construction in progress | **306.4** | 285.5 |
| Finance lease | **3.1** | 2.8 |
| &nbsp;&nbsp;Property, plant and equipment | **3322.4** | 3163.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less accumulated depreciation | **(1710.9)** | (1566.4) |
| &nbsp;&nbsp;Net property, plant and equipment | $**1611.5** | $1596.7 |

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Depreciation expense related to property, plant and equipment for the years ended December 31, 2025, 2024 and 2023, was $116.7 million, $117.5 million and $118.0 million, respectively. Capitalized interest of $15.2 million, $10.7 million, and $6.7 million for 2025, 2024 and 2023, respectively, was included in construction in progress. Capitalized costs associated with software accessed through a hosting arrangement were $27.6 million for 2025, $17.6 million for 2024, and $7.4 million for 2023 and are included within other assets on the Consolidated Balance Sheet.

**Note 5 — Goodwill and Purchased Intangible Assets** 

Changes in the carrying amount of gross goodwill and other purchased intangibles for the years ended December 31, 2025 and 2024, by segment, are as follows:

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| | | | |
|:---|:---|:---|:---|
| **(In millions)** | **Composite<br>Materials** | **Engineered<br>Products** | **Total** |
| Balance as of December 31, 2023 | $87.2 | $164.1 | $251.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization expense | (1.8) | (5.0) | (6.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible Asset Impairment |  | (5.2) | (5.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency translation adjustments and other | (2.3) |  | (2.3) |
| Balance as of December 31, 2024 | $83.1 | $153.9 | $237.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization expense | **(1.6)** | **(4.0)** | **(5.6)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible Asset Impairment |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency translation adjustments and other | **8.4** |  | **8.4** |
| **Balance as of December 31, 2025** | $**89.9** | $**149.9** | $**239.8** |

---

We performed our annual impairment review of goodwill as of November 30, 2025 and determined that it was more likely than not that the fair values of our reporting units are above their carrying values and that no impairment exists. The goodwill and intangible asset balances as of December 31, 2025 included $6.6 million of indefinite-lived intangible assets, $41.6 million of a definite-lived intangible asset (net of accumulated amortization of $48.2 million) and $191.6 million of goodwill. Of the $191.6 million of goodwill, $76.2 million is allocated to the Composite Materials segment and $115.4 million to the Engineered Products segment.

The weighted average remaining life of the finite lived intangible assets is 8 years. Amortization related to the definite lived intangible assets for the next five years and thereafter is as follows:

------

---

| | |
|:---|:---|
| **(In millions)** |  |
| 2026 | $5.7 |
| 2027 | 5.5 |
| 2028 | 5.0 |
| 2029 | 5.0 |
| 2030 | 5.0 |
| Thereafter | 15.4 |
| Total | $41.6 |

---

Note 6– Debt

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| **(In millions)** | **2025** | **2024** |
| Current portion of finance lease | $**—** | $0.1 |
| &nbsp;&nbsp;Current portion of debt | **—** | 0.1 |
| Senior unsecured credit facility - due 2028 | **295.0** |  |
| 4.7% senior notes — due 2025 | **—** | 300.0 |
| 3.95% senior notes — due 2027 | **400.0** | 400.0 |
| 5.875% senior notes --- due 2035 | **300.0** |  |
| Senior notes — original issue discount | **(0.2)** | (0.4) |
| Senior notes — deferred financing costs | **(3.9)** | (0.9) |
| Non-current portion of finance leases and other | **2.1** | 1.9 |
| &nbsp;&nbsp;Long-term debt | **993.0** | 700.6 |
| Total debt | $**993.0** | $700.7 |

---

*Senior Unsecured Credit Facility*

On April 25, 2023, the Company entered into a new credit agreement (the "Credit Agreement") to refinance its senior unsecured revolving credit facility (the "Facility"). Under the terms of the Credit Agreement the borrowing capacity remained at $750 million. The Facility matures in April 2028.

Borrowings under the Facility bear interest, at the Company's option, for Secured Overnight Financing Rate ("SOFR") borrowings at (i) an Adjusted Term SOFR rate (subject to a 0.00% floor), where such "Adjusted Term SOFR" rate is equal to the Term SOFR rate for the applicable interest period plus 0.10%, plus the Applicable Margin or (ii) for base rate borrowings, the greatest of (a) the prime rate, (b) the federal funds rate plus 0.50% and (c) the Adjusted Term SOFR rate (subject to a 0.00% floor) for a one-month interest period plus 1.00%, in each case plus the Applicable Margin. The "Applicable Margin" initially 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 $50.0 million of the Facility may be used for letters of credit. The Credit Agreement enables the Company, from time to time, to add term loans or to increase the revolving credit commitment in an aggregate amount not to exceed $500 million.

The Credit Agreement contains customary covenants that place restrictions on, among other things, the incurrence of debt by any subsidiaries of the Company, granting of liens and sale of all or substantially all of the assets of the Company and its subsidiaries taken as a whole. The Credit Agreement also contains financial covenants that require the Company to maintain a minimum interest coverage ratio and a maximum consolidated net leverage ratio. As of December 31, 2025, we were in compliance with all debt covenants.

On October 22, 2025, the Company entered into a $350.0 million accelerated share repurchase program which was funded through the Facility.

As of December 31, 2025, net borrowings under the Facility were $295.0 million, which approximated fair value. Outstanding letters of credit reduce the amount available for borrowing under the Facility. As of December 31, 2025, there were no issued letters of credit under the Facility, resulting in undrawn availability under the Facility of $455.0 million. The weighted average interest rate for the Facility was 5.34% for the year ended December 31, 2025.

The balance of unamortized deferred financing costs related to the Facility was $1.4 million at December 31, 2025 and $2.0 million at December 31, 2024.

------

*3.95% Senior Notes* 

In 2017, the Company issued $400.0 million in aggregate principal amount of 3.95% Senior Unsecured Notes due February 15, 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 2025 was 4.0% inclusive of an approximately 0.25% benefit of treasury locks. The fair value of the senior notes due in 2027 based on quoted prices utilizing Level 2 inputs (as defined in Note 19) was $399.2 million at December 31, 2025. The balance of unamortized deferred financing costs and debt discount related to the senior notes was $0.6 million at December 31, 2025 and $1.1 million at December 31, 2024.

*5.875% Senior Notes*

During the first quarter of 2025, the Company issued $300.0 million in aggregate principal amount of 5.875% Senior Unsecured Notes due in 2035. 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 7.875%. Interest on the notes will be payable semiannually in arrears on February 26 and August 26 of each year, which began on August 26, 2025. The effective interest rate for 2025 was 6.0% inclusive of an approximately 0.10% benefit of treasury locks. The issuance of these senior notes resulted in the Company incurring financing fees of $3.9 million that have been deferred and will be recognized over the term of the senior notes. The fair value of the senior notes due in 2035 based on quoted prices utilizing Level 2 inputs (as defined in Note 19) was $315.5 million at December 31, 2025.

In conjunction with the issuance of the 5.875% Senior Unsecured Notes, the Company redeemed the $300.0 million in aggregate principal amount of 4.7% Senior Unsecured Notes that were due in August 2025. The redemption of these senior notes resulted in debt extinguishment costs of $0.4 million which were recorded in Other expense on the Consolidated Statements of Operations for the year ended December 31, 2025.

**Note 7 — Leases**

At December 31, 2025, we had approximately $25.7 million of right of use assets recorded in non-current other assets, and $25.7 million of related liabilities, $18.7 million of which was included in other non-current liabilities with the current portion of $7.0 million included in accrued liabilities. The weighted average of the remaining lease terms was approximately 5 years. We discount the future lease payments of our leases using the prevailing rates extended to us by our lenders relevant to the period of inception. These rates are comprised of SOFR plus a stated spread less a component related to collateralization. The rates are relative to the duration of the lease at inception and the country of origin. The weighted average interest rate used in calculating the fair values listed above was 4.2%.

The following table lists the schedule of future undiscounted cash payments related to right of use assets by year:

---

| | |
|:---|:---|
| **(In millions)** |  |
| 2026 | $7.8 |
| 2027 | 6.8 |
| 2028 | 6.0 |
| 2029 | 4.2 |
| 2030 | 1.3 |
| Thereafter | 2.1 |
| Total lease payments | 28.2 |
| Less: Imputed interest | 2.5 |
| Present value of lease payments | $25.7 |

---

Operating lease expense recognized during the years ended December 31, 2025, 2024 and 2023, was $16.1 million, $15.3 million and $16.1 million, respectively. Expense related to operating leases which have a duration of a year or less were not material. Expenses for finance leases for the years ended December 31, 2025, 2024 and 2023 were not material.

------

---

| | | | |
|:---|:---|:---|:---|
| **(In millions)** | **Balance Sheet Classification** | **2025** | **2024** |
| Operating lease ROU assets | Other assets | $**25.7** | $25.4 |
| Operating lease current liabilities | Accrued liabilities | **7.0** | 6.0 |
| Operating lease long-term liabilities | Other non-current liabilities | **18.7** | 19.4 |
| **&nbsp;&nbsp;&nbsp;&nbsp;Total operating lease liabilities** |  | $**25.7** | $25.4 |
| Finance lease, gross | Property, plant & equipment, net | **3.1** | 2.8 |
| Finance lease accumulated depreciation | Property, plant & equipment, net | **1.5** | 1.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Finance lease, net** |  | $**1.6** | $1.6 |
| Finance lease current liabilities | Accrued liabilities | **—** | 0.1 |
| Finance lease long-term liabilities | Long-term debt | **—** | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total finance lease liabilities** |  | $**—** | $0.1 |

---

**Note 8 — 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 three years ended December 31, 2025 was $1.9 million, $1.6 million, and $5.7 million, respectively. The amounts for the year ended December 31, 2023 do not include a non-cash charge of $70.5 million related to the completion of the buy-out of the UK pension plan and a gain of $1.9 million related to excess assets from the UK pension plan that reverted back to the Company.

*Multi-Employer Plan* 

The Company is party to a multi-employer pension plan covering certain U.S. employees with union affiliations. The plan is the Western Metal Industry Pension Fund, ("the Plan"). The Plan's employer identification number is 91-6033499; the Plan number is 001. In 2025, 2024 and 2023 the Plan reported Hexcel Corporation as being an employer that contributed greater than 5% of the Plan's total contributions. The collective bargaining agreement was renewed on October 1, 2025 for a five-year term. The Plan has been listed in "critical status" and has been operating in accordance with a Rehabilitation Plan since 2010. The Plan, as amended under the Rehabilitation Plan, reduced the adjustable benefits of the participants, and levied a surcharge on employer contributions. Expense related to the multi-employer plan for the three years ended December 31, 2025 was $1.7 million, $1.7 million, and $1.5 million, respectively.

*Retirement Savings Plan* 

Under the defined contribution retirement savings plans, eligible employees can make contributions up to certain thresholds of their annual compensation. The Company also makes matching contributions each year. Expense related to the matching contributions for the defined contribution plans for the three years ended December 31, 2025 was $20.4 million, $22.7 million, and $20.1 million, respectively.

*Postretirement Plans* 

In addition to defined benefit and retirement savings plan benefits, we also 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 incurred.

------

*Non-Qualified Deferred Compensation Plan*

Under the deferred compensation plan, eligible U.S. employees may make tax-deferred contributions that cannot be made under the 401(k) Plan because of Internal Revenue Service limitations. We match 50% of a participant's contributions up to 6% of the participant's excess compensation pay as well as provide the same fixed and profit-sharing contributions as provided under the 401(k) plan.

We have elected to fund our deferred compensation obligation through a rabbi trust. The rabbi trust is subject to creditor claims in the event of insolvency, but the assets held in the rabbi trust are not available for general corporate purposes. Amounts in the rabbi trust are invested in a number of funds based on the funds available under our 401(k) plan, other than the Hexcel stock fund. The securities are carried at fair value and are included in other assets on the Consolidated Balance Sheets. We record trading gains and losses in general and administrative expenses on the Consolidated Statements of Operations, along with the offsetting amount related to the increase or decrease in deferred compensation to reflect our exposure to liabilities for payment under the deferred compensation plan.

*Net Periodic Pension Expense*

The measurement date used to determine the benefit obligations and plan assets of the defined benefit retirement and postretirement plans was December 31, 2025. All costs related to our pensions are included as a component of operating income in our Consolidated Statements of Operations.

During 2025, the Company paid $16.5 million to settle certain plans. As of December 31, 2025, the total benefit obligation was $21.0 million, and the fair value of plan assets was $4.0 million, resulting in a net projected benefit obligation ("PBO") of $17.0 million ($2.4 million recorded in current liabilities and $14.6 million in other non-current liabilities). As of December 31, 2024 the total benefit obligation was $37.8 million, and the fair value of plan assets was $4.0 million, resulting in a net PBO of $33.8 million ($17.4 million recorded in current liabilities and $16.4 million in other non-current liabilities).

**Note 9 — Income Taxes**

During the fourth quarter of 2025, the Company adopted ASU No. 2023-09*, Income Taxes (Topic 240): Improvements to Income Tax Disclosures,* which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit disaggregated between domestic and foreign and (3) income tax expense or benefit from continuing operations disaggregated by Federal, state, and foreign. The update also requires entities to disclose their income tax payments (net of refunds) disaggregated by Federal, state, and foreign.

Income before income taxes and the provision for income taxes, for the three years ended December 31, 2025, were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **(In millions)** | **2025** | **2024** | **2023** |
| Income before income taxes: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. | $**108.8** | $97.8 | $128.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;International | **26.2** | 57.1 | (18.8) |
| &nbsp;&nbsp;Total income before income taxes | $**135.0** | $154.9 | $109.7 |
| &nbsp;&nbsp;Income tax expense (benefit): |  |  |  |
| &nbsp;&nbsp;Current: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. | $**14.5** | $26.4 | $36.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State | **1.3** | 2.3 | 1.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;International | **3.9** | 10.8 | 6.5 |
| &nbsp;&nbsp;Current income tax expense | **19.7** | 39.5 | 44.8 |
| Deferred: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. | $**4.5** | $(26.9) | $(13.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State | **(0.1)** | (1.7) | (3.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;International | **1.5** | 11.9 | (15.7) |
| &nbsp;&nbsp;Deferred income tax benefit | **5.9** | (16.7) | (32.7) |
| &nbsp;&nbsp;Total income tax expense | $**25.6** | $22.8 | $12.1 |

---

------

A reconciliation of the provision for income taxes at the U.S. federal statutory income tax rate of 21.0% to the effective income tax rate, for the years ended December 31, 2025, 2024 and 2023 is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2024** | **2024** | **2023** | **2023** |
| **<u>(Dollar amounts in millions)</u>** | **Amount** | **Percent** | **Amount** | **Percent** | **Amount** | **Percent** |
| U.S. Federal Statutory Tax Rate | $**28.3** | **21.0%** | $32.5 | 21.0% | $23.0 | 21.0% |
| **State and local income tax, net of federal income tax effect (1)** | **1.2** | **0.9%** | 0.6 | 0.4% | (1.6) | (1.5)% |
| Foreign tax effects |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Austria |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation allowance | **(0.3)** | **(0.2)%** | 5.7 | 3.7% |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange difference | **—** | **—** | 3.6 | 2.3% |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | **(0.1)** | **(0.1)%** | (0.1) | (0.1)% | (0.3) | (0.3)% |
| &nbsp;&nbsp;&nbsp;&nbsp; Belgium |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation allowance | **2.8** | **2.1%** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | **0.3** | **0.2%** | 0.3 | 0.2% | 0.2 | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp; Morocco |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation allowance | **(1.8)** | **(1.3)%** | (0.1) | (0.1)% | 0.3 | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | **0.2** | **0.1%** |  |  | 0.5 | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp; United Kingdom |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax Incentives | **(2.5)** | **(1.9)%** | (2.6) | (1.7)% | (4.0) | (3.6)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pension plan settlement | **—** | **—** |  |  | (4.4) | (4.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | **0.4** | **0.3%** | 0.8 | 0.5% | 0.9 | 0.8% |
| &nbsp;&nbsp;&nbsp;&nbsp; Luxembourg | **2.2** | **1.6%** | 2.1 | 1.4% | 1.4 | 1.3% |
| &nbsp;&nbsp;&nbsp;&nbsp; Other foreign jurisdictions | **(1.2)** | **(0.9)%** | 1.1 | 0.7% | 0.8 | 0.7% |
| **Effect of changes in tax laws or rates enacted in the current period** | **—** | **—** |  |  |  |  |
| **Effect of cross-border tax laws** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign-derived intangible income | **(1.6)** | **(1.1)%** | (4.7) | (3.0)% | (3.9) | (3.6)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency loss | **(0.2)** | **(0.1)%** | (5.0) | (3.2)% |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; R&D related tax impacts | **—** | **—** | (10.2) | (6.6)% |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other effects of cross-border tax laws | **0.3** | **0.2%** | 0.7 | 0.5% | 1.1 | 1.0% |
| **Tax credits** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; R&D tax credits | **(3.4)** | **(2.5)%** | (5.4) | (3.5)% | (4.0) | (3.6)% |
| **Changes in valuation allowances** | **—** | **—** |  |  |  |  |
| **Nontaxable or nondeductible items** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employee benefits and related | **1.7** | **1.3%** | 2.2 | 1.4% | 1.7 | 1.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other nontaxable or nondeductible items | **1.0** | **0.7%** | 1.4 | 0.9% | 0.9 | 0.8% |
| **Changes in unrecognized tax benefits** | **(1.7)** | **(1.3)%** | (0.1) | (0.1)% | (0.5) | (0.4)% |
| **Effective tax rate** | $**25.6** | **19.0%** | $22.8 | 14.7% | $12.1 | 11.0% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) State taxes in Connecticut and Utah contributed to the majority of the tax effect in this category for the year ended December 31, 2025. State taxes in California and Utah contributed to the majority of the tax effect in this category for the year ended December 31, 2024. State taxes in Massachusetts and Utah contributed to the majority of the tax effect in this category for the year ended December 31, 2023.

We do not provide for additional income or withholding taxes for any undistributed foreign earnings as we do not currently have any specific plans to repatriate funds from our international subsidiaries; however, we may do so in the future if a dividend can be remitted with no material tax impact. As of December 31, 2025, we have approximately $204.0 million of unremitted foreign earnings that we intend to keep indefinitely reinvested. Additionally, due to withholding tax, basis computations and other tax related considerations, it is not practicable to estimate any taxes to be provided on outside basis differences at this time.

The table below provides income taxes paid (net of refunds received) for the years ended December 31, 2025, 2024 and 2023:

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---

| | | | |
|:---|:---|:---|:---|
| **(In millions)** | **2025** | **2024** | **2023** |
| **Jurisdiction** |  |  |  |
| Federal | $**0.6** | $32.8 | $50.7 |
| State |  |  |  |
| &nbsp;&nbsp;California | **1.3** |  |  |
| &nbsp;&nbsp;Connecticut | **0.5** |  |  |
| &nbsp;&nbsp;Other | **0.6** | 2.1 | 3.0 |
| Foreign |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Spain | **2.7** | 5.7 | 4.8 |
| &nbsp;&nbsp; Luxembourg | **0.7** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other | **0.9** | 1.6 | 0.6 |
| **Total income taxes paid/(refund)** | $**7.3** | $42.2 | $59.1 |

---

The Organization for Economic Cooperation and Development ("OECD") Pillar Two global minimum tax rules, requiring a minimum effective tax rate of 15%, are effective for tax years beginning on or after January 1, 2024. Under Pillar Two, a top-up tax will be required for certain jurisdictions whose effective tax rate falls below the 15% minimum rate. Although the U.S. has not yet enacted legislation to adopt Pillar Two, nearly all European Union member states have enacted the Pillar Two legislation. After considering the applicable tax law changes associated with Pillar Two legislation, we determined there was no material impact to our provision for income taxes for the 12 months ended December 31, 2025. The Company will continue to monitor for additional guidance and legislative changes related to Pillar Two in the jurisdictions where we operate.

*Deferred Income Taxes* 

Deferred income taxes result from tax attributes including foreign tax credits, net operating loss carryforwards and temporary differences between the recognition of items for income tax purposes and financial reporting purposes. Principal components of deferred income taxes as of December 31, 2025 and 2024 are:

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| | | |
|:---|:---|:---|
| **(In millions)** | **2025** | **2024** |
| Assets |  |  |
| Net operating loss carryforwards | $**83.6** | $76.0 |
| Tax credit carryforwards | **11.7** | 10.3 |
| Stock-based compensation | **7.4** | 7.7 |
| Other comprehensive income | **—** | 1.4 |
| Inventory reserves | **7.8** | 10.8 |
| Right of use liability | **5.9** | 6.0 |
| Capitalized research and development expenditures | **41.9** | 43.8 |
| Reserves and other | **10.6** | 11.2 |
| Subtotal | **168.9** | 167.2 |
| Valuation allowance | **(10.7)** | (13.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $**158.2** | $153.5 |
| Liabilities |  |  |
| Accelerated depreciation | **(165.7)** | (164.1) |
| Accelerated amortization | **(23.1)** | (18.8) |
| Right of use asset | **(5.9)** | (6.0) |
| Other | **(10.8)** | (5.9) |
| Total liabilities | **(205.5)** | $(194.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net deferred tax liabilities | $**(47.3)** | $(41.3) |

---

Deferred tax assets and deferred tax liabilities as presented in the Consolidated Balance Sheets as of December 31, 2025 and 2024 are as follows and are recorded in other assets and deferred income taxes in the Consolidated Balance Sheets:

------

---

| | | |
|:---|:---|:---|
| **(In millions)** | **2025** | **2024** |
| Long-term deferred tax assets, net | $**39.4** | $39.9 |
| Long-term deferred tax liability, net | **(86.7)** | (81.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net deferred tax liabilities | $**(47.3)** | $(41.3) |

---

The deferred tax assets for the respective periods were assessed for recoverability and, where applicable, a valuation allowance was recorded to reduce the total deferred tax asset to an amount that will, more likely than not, be realized in the future. The valuation allowance as of December 31, 2025 relates to certain U.S. and foreign tax attributes for which we have determined, based upon historical results and projected future book and taxable income levels, that a valuation allowance should continue to be maintained. The valuation allowance decreased by $3.0 million in 2025 primarily as a result of changes in the realization of deferred tax assets in a foreign jurisdiction. The net change in the total valuation allowance for the years ended December 31, 2025 and 2024, was a decrease of $3.0 million and an increase of $6.2 million, respectively.

Although realization is not assured, we have concluded that it is more likely than not that the deferred tax assets, for which a valuation allowance was determined to be unnecessary, will be realized in the ordinary course of operations based on the available positive and negative evidence, including scheduling of deferred tax liabilities and projected income from operating activities. The amount of the net deferred tax assets considered realizable, however, could be reduced in the near term if actual future income or income tax rates are lower than estimated, or if there are differences in the timing or amount of future reversals of existing taxable or deductible temporary differences.

*Net Operating Loss & Tax Credit Carryforwards* 

At December 31, 2025, we had tax credit carryforwards for U.S. state tax purposes of $11.4 million available to offset future income taxes. These credits will begin to expire if not utilized in 2026. We also had net operating loss carryforwards for U.S. state and foreign income tax purposes of $2.8 million and $333.2 million, respectively, for which there were foreign valuation allowances of $11.7 million as of December 31, 2025. Our foreign net operating losses can be carried forward without limitation in Belgium, Germany, France, Luxembourg, Morocco, and the U.K. We have a valuation allowance against certain foreign net operating losses for which the Company believes it is not more likely than not that the net operating losses will be utilized.

*Uncertain Tax Positions* 

Our unrecognized tax benefits at December 31, 2025 relate to U.S. federal and various state jurisdictions.

The following table summarizes the activity related to our unrecognized tax benefits.

---

| | | | |
|:---|:---|:---|:---|
|  | **Unrecognized Tax Benefits** | **Unrecognized Tax Benefits** | **Unrecognized Tax Benefits** |
| **(In millions)** | **2025** | **2024** | **2023** |
| Balance as of January 1, | $**2.8** | $2.4 | $2.5 |
| Additions based on tax positions related to the current year | **0.3** | 0.5 | 0.4 |
| Expiration of the statute of limitations for the assessment of taxes | **(1.7)** | (0.1) | (0.5) |
| **Balance as of December 31,** | $**1.4** | $2.8 | $2.4 |

---

We had unrecognized tax benefits of $1.4 million at December 31, 2025, of which $1.4 million, if recognized, would impact our annual effective tax rate. In addition, we recognize interest accrued related to unrecognized tax benefits as a component of interest expense and penalties as a component of income tax expense in the Consolidated Statements of Operations. The Company did not recognize any interest expense or penalties related to the above unrecognized tax benefits in 2025 and 2024. The Company had no accrued interest as of December 31, 2025 and 2024.

We are subject to taxation in the U.S. and various states and foreign jurisdictions. Foreign and U.S. state jurisdictions have statutes of limitations generally ranging from 3 to 5 years. Years in major jurisdictions that remain open to examination are the U.S. (2022 onward for Federal purposes and 2021 onward for state purposes), Austria (2020 onward), Belgium (2016 onward), France (2022 onward), Spain (2021 onward), Germany (2022 onward), Luxembourg (2020 onward), and the U.K. (2021 onward). We are currently under examination in certain state and foreign tax jurisdictions.

------

**Note 10 — Capital Stock** 

*Common Stock Outstanding* 

Common stock outstanding as of December 31, 2025, 2024 and 2023 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| **(Number of shares in millions)** | **2025** | **2024** | **2023** |
| Common stock: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance, beginning of year | **111.6** | 110.8 | 110.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Activity under stock plans | **0.5** | 0.8 | 0.4 |
| Balance, end of year | **112.1** | 111.6 | 110.8 |
| Treasury stock: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance, beginning of year | **30.6** | 26.7 | 26.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repurchased | **5.8** | 3.9 | 0.5 |
| Balance, end of year | **36.4** | 30.6 | 26.7 |
| Common stock outstanding | **75.7** | 81.0 | 84.1 |

---

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 Company's 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. The final number of shares to be repurchased will be based on the average of the daily volume-weighted average prices of the Company's common stock during the term of the ASR Agreements, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR Agreements. Upon final settlement of the ASR, under certain circumstances, each of the Counterparties may be required to deliver additional shares of common stock, or the Company may be required to deliver shares of common stock or to make a cash payment, at its election, to the Counterparties. The final settlement of each transaction under the ASR Agreements is scheduled to occur in the first quarter of 2026 and in each case may be accelerated at the option of the applicable Counterparty.

In connection with the ASR, on October 21, 2025, the Company provided notice to the lenders pursuant to the Credit Agreement to borrow $350.0 million under the Facility to fund the initial settlement of the ASR.

During the year ended December 31, 2025, we repurchased 5,720,616 shares of common stock, including the shares purchased pursuant to the ASR, under both repurchase plans at a cost of $454.3 million, including sales commissions and excise taxes, leaving approximately $380.6 million available for additional repurchases under the 2025 Share Repurchase Plan. The acquisition of these shares was accounted for under the treasury stock method.

&nbsp;&nbsp;&nbsp;&nbsp;Dividends per share of common stock for 2025 and 2024 were $0.68 and $0.60, respectively. For the years ended December 31, 2025 and 2024, we paid $53.9 million and $49.3 million in dividends for each year, respectively.

**Note 11 — Revenue**

Our revenue is primarily derived from the sale of inventory under long-term contracts with our customers. The majority of our revenue is recognized at a point in time. 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, which contains a termination for convenience clause ("T for C") that requires the customer to 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 contracts that have a T for C clause 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.

------

We disaggregate our revenue based on market for analytical purposes. The following table details our revenue by market for the years ended December 31, 2025, 2024 and 2023:

---

| | | | |
|:---|:---|:---|:---|
| **(In millions)** | **2025** | **2024** | **2023** |
| **Consolidated Net Sales** | $**1893.9** | $1903.0 | $1789.0 |
| Commercial Aerospace | **1146.9** | 1194.2 | 1068.2 |
| Defense, Space & Other | **747.0** | 708.8 | 720.8 |

---

Revenue recognized over time gives rise to contract assets, which represent revenue recognized but unbilled. Contract assets are included in our Consolidated Balance Sheets as a component of current assets. The activity related to contract assets is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Composite** | **Engineered** |  |
| **(In millions)** | **Materials** | **Products** | **Total** |
| Opening adjustment - January 1, 2023 | $9.1 | $22.9 | $32.0 |
| Net revenue billed | (0.8) | (6.1) | (6.9) |
| Balance at December 31, 2023 | $8.3 | $16.8 | $25.1 |
| Net revenue billed | 0.8 | 3.9 | 4.7 |
| Balance at December 31, 2024 | $9.1 | $20.7 | $29.8 |
| Net revenue billed | **2.3** | **3.8** | **6.1** |
| **Balance at December 31, 2025** | $**11.4** | $**24.5** | $**35.9** |

---

Contract assets as of December 31, 2025, will be billed and reclassified to accounts receivable during 2026. Accounts receivable, net, includes amounts billed to customers where the right to payment is unconditional.

**Note 12 — Restructuring** 

We recognized restructuring charges of $28.4 million for the year ended December 31, 2025 primarily related to severance and impairments. Anticipated future cash payments as of December 31, 2025 were $5.5 million.

We recognized restructuring charges of $2.3 million and $0.8 million for the years ended December 31, 2024 and December 31, 2023, respectively, primarily related to severance and asset impairments. Restructuring charges are recorded in Other Operating Expense on the Consolidated Statements of Operations.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31,** | **Restructuring** |  | **Cash** |  | **December 31,** |
| **(In Millions)** | **2024** | **Charge** | **FX Impact** | **Paid** | **Non-Cash** | **2025** |
| Employee termination | $1.5 | $21.7 | $0.1 | $(20.8) | $— | $2.5 |
| Impairment and other |  | 6.7 |  |  | (3.7) | $3.0 |
| **Total** | $**1.5** | $**28.4** | $**0.1** | $**(20.8)** | $**(3.7)** | $**5.5** |
|  | **December 31,** | **Restructuring** |  | **Cash** |  | **December 31,** |
| **(In Millions)** | **2023** | **Charge** | **FX Impact** | **Paid** | **Non-Cash** | **2024** |
| Employee termination | $1.2 | $2.3 | $(0.2) | $(2.2) | $0.4 | $1.5 |
| Impairment and other |  |  |  |  |  |  |
| **Total** | $1.2 | $2.3 | $(0.2) | $(2.2) | $0.4 | $1.5 |
|  | **December 31,** | **Restructuring** |  | **Cash** |  | **December 31,** |
| (In Millions) | **2022** | **Charge** | **FX Impact** | **Paid** | **Non-Cash** | **2023** |
| Employee termination | $5.4 | $0.5 | $— | $(4.7) | $— | $1.2 |
| Impairment and other |  | 0.3 |  |  | (0.3) |  |
| **Total** | $5.4 | $0.8 | $(0.2) | $(4.7) | $(0.3) | $1.2 |

---

------

**Note 13 — Stock-Based Compensation** 

The following table details the stock-based compensation expense by type of award for the years ended December 31, 2025, 2024 and 2023:

---

| | | | |
|:---|:---|:---|:---|
| **(In millions)** | **2025** | **2024** | **2023** |
| Non-qualified stock options | $**3.6** | $4.6 | $4.5 |
| Restricted stock, service based ("RSUs") | **8.8** | 8.4 | 7.7 |
| Restricted stock, performance based ("PRSUs") | **1.2** | 8.4 | 8.0 |
| Employee stock purchase plan | **0.8** | 0.8 | 0.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | $**14.4** | $22.2 | $20.9 |
| Tax benefit from stock exercised and converted during the period | $**0.9** | $6.7 | $2.5 |

---

*Non-Qualified Stock Options* 

Non-qualified stock options ("NQOs") have been granted to our employees and directors under our stock compensation plan. Options granted generally vest over three years and expire ten years from the date of grant.

A summary of option activity under the plan for the three years ended December 31, 2025 is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Number of** | **Weighted-** | **Remaining** |
|  | **Options** | **Average** | **Contractual Life** |
|  | **(In millions)** | **Exercise Price** | **(in years)** |
| **Outstanding at December 31, 2022** | 1.8 | $52.01 | 5.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options granted | 0.2 | $68.79 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options exercised | (0.2) | $42.95 |  |
| **Outstanding at December 31, 2023** | 1.8 | $54.58 | 5.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options granted | 0.3 | $65.76 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options exercised | (0.3) | $45.53 | - |
| **Outstanding at December 31, 2024** | 1.8 | $57.54 | 5.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options granted | **0.1** | $**66.83** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options exercised | **(0.2)** | $**48.62** |  |
| **Outstanding at December 31, 2025** | **1.7** | $**58.70** | 4.4 |

---

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
| **(In millions, except weighted average exercise price)** | **2025** | **2024** |
| Aggregate intrinsic value of outstanding options | $**26.2** | $14.2 |
| Aggregate intrinsic value of exercisable options | $**23.5** | $13.5 |
| Total intrinsic value of options exercised | $**2.7** | $5.6 |
| Total number of options exercisable | **1.4** | 1.3 |
| Weighted average exercise price of options exercisable | $**56.57** | $55.35 |
| Total unrecognized compensation cost on non-vested options (a) | $**3.0** | $2.9 |

---

(a)Unrecognized compensation cost relates to non-vested stock options and is expected to be recognized over the remaining vesting period ranging from one year to three years.

*Valuation Assumptions in Estimating Fair Value* 

We estimated the fair value of stock options at the grant date using the Black-Scholes option pricing model with the following assumptions for the years ended December 31, 2025, 2024 and 2023:

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **2023** |
| &nbsp;&nbsp;Risk-free interest rate | **4.40%** | 3.98%--4.53% | 3.51% |
| &nbsp;&nbsp;Expected option life (in years) | 6.08 | 6.09 | 6.05 |
| &nbsp;&nbsp;Dividend yield | **1.0%** | 0.9% | 0.7% |
| &nbsp;&nbsp;Volatility | **36.50%** | 33.23%--34.53% | 37.14% |
| &nbsp;&nbsp;Weighted-average fair value per option granted | $**26.27** | $24.32 | $26.81 |

---

------

The weighted-average expected life is derived from the average midpoint between the vesting and the contractual term and considers the effect of both the inclusion and exclusion of post-vesting cancellations during the ten-year period. Expected volatility is calculated based on a blend of both historic volatility of our common stock and implied volatility of our traded options. We weigh both volatility inputs equally and utilize the average as the volatility input for the Black-Scholes calculation. The risk-free interest rate for the expected term is based on the U.S. Treasury yield curve in effect at the time of grant and corresponding to the expected term.

*Restricted Stock Units — Service Based* 

As of December 31, 2025, a total of 387,418 shares of service based restricted stock units were outstanding, which vest based on years of service under the 2003 and 2013 incentive stock plan. RSUs are granted to key employees, executives, and directors of the Company. The fair value of the RSU is based on the closing market price of the Company's common stock on the date of grant and is amortized on a straight-line basis over the requisite service period. The stock-based compensation expense recognized is based on an estimate of shares ultimately expected to vest, and therefore it has been reduced for estimated forfeitures. The total compensation expense related to awards granted to retirement-eligible employees is recognized on the grant date.

The table presented below provides a summary of the Company's RSU activity for the years ended December 31, 2025, 2024 and 2023:

---

| | | |
|:---|:---|:---|
|  | **RSUs** | **Weighted-Average** |
|  | **Number of (In millions)** | **Fair Value Grant Date** |
| &nbsp;&nbsp;**Outstanding at December 31, 2022** | 0.5 | $46.93 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RSUs granted | 0.1 | $67.69 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RSUs issued | (0.1) | $53.05 |
| &nbsp;&nbsp;**Outstanding at December 31, 2023** | 0.5 | $50.41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RSUs granted | 0.1 | $66.02 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RSUs issued | (0.2) | $48.22 |
| &nbsp;&nbsp;**Outstanding at December 31, 2024** | 0.4 | $57.48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RSUs granted | **0.2** | $**63.96** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RSUs issued | **(0.2)** | $**58.00** |
| &nbsp;&nbsp;**Outstanding at December 31, 2025** | **0.4** | $**59.31** |

---

As of December 31, 2025, there was total unrecognized compensation cost related to non-vested RSUs of $7.2 million, which is to be recognized over the remaining vesting period ranging from one year to three years.

*Restricted Stock Units — Performance Based*

As of December 31, 2025, a total of 418,475 shares of performance based restricted stock units were outstanding under the 2003 and 2013 incentive stock plan. The total amount of PRSUs that will ultimately vest is based on the achievement of various financial performance targets set forth by the Company's Compensation Committee on the date of grant. PRSUs are based on a three-year performance period. The stock-based compensation expense related to awards granted to retirement-eligible employees is expensed on the grant date and is trued up as projections change. The fair value of the PRSU is based on the closing market price of the Company's common stock on the date of grant and is amortized straight-line over the total three-year period. A change in the performance measure expected to be achieved is recorded as an adjustment in the period in which the change occurs.

------

The table presented below provides a summary, of the Company's PRSU activity, at original grant amounts, for the years ended December 31, 2025, 2024, and 2023:

---

| | | |
|:---|:---|:---|
|  |  | **Weighted-** |
|  | **Number of** | **Average** |
|  | **PRSUs** | **Grant Date** |
|  | **(In millions)** | **Fair Value** |
| &nbsp;&nbsp;**Outstanding at December 31, 2022** | 0.4 | $53.71 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PRSUs granted | 0.1 | $68.79 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PRSUs issued |  | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PRSUs cancelled | (0.1) | $73.75 |
| &nbsp;&nbsp;**Outstanding at December 31, 2023** | 0.4 | $53.19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PRSUs granted | 0.3 | $58.72 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PRSUs issued | (0.3) | $45.05 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PRSUs cancelled |  | $— |
| &nbsp;&nbsp;**Outstanding at December 31, 2024** | 0.4 | $62.56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PRSUs granted | **0.1** | $**69.96** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PRSUs issued | **(0.1)** | $**52.17** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PRSUs cancelled |  | $— |
| &nbsp;&nbsp;**Outstanding at December 31, 2025** | **0.4** | $**62.56** |

---

As of December 31, 2025, there was total unrecognized compensation cost related to non-vested PRSUs of $5.6 million, which is to be recognized over the remaining vesting period ranging from one year to three years. The final amount of compensation cost to be recognized is dependent upon our financial performance.

*Stock-Based Compensation Cash Activity* 

During 2025, 2024, and 2023 cash received from stock option exercises was $5.8 million, $7.1 million and $7.8 million, respectively. We used $5.0 million, $11.3 million and $3.2 million in cash related to the shares withheld to satisfy employee tax obligations for RSUs and PRSUs converted during the years ended December 31, 2025, 2024 and 2023, respectively.

We classify the cash flows resulting from these tax benefits as financing cash flows. We either issue new shares of our common stock or utilize treasury shares upon the exercise of stock options or the conversion of stock units.

*Shares Authorized for Grant* 

In 2019, an amendment to the Hexcel Corporation 2013 Incentive Stock Plan (the "Plan") was adopted that increased the number of shares of the Company's common stock authorized for issuance under the Plan by 3,300,000 shares. As of December 31, 2025, an aggregate of 1.9 million shares were authorized for future grant under our stock plan, which covers stock options, RSUs, PRSUs and at the discretion of Hexcel, could result in the issuance of other types of stock-based awards.

*Employee Stock Purchase Plan ("ESPP")* 

The Company offers an ESPP, which allowed for eligible employees to contribute up to 10% of their base earnings, to a maximum of $25,000 in a calendar year, toward the quarterly purchase of our common stock at a purchase price equal to 85% of the fair market value of the common stock. There were 101,387, 80,589, and 73,809 ESPP shares purchased in 2025, 2024 and 2023, respectively.

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**Note 14 — Net Income Per Common Share** 

Computations of basic and diluted net income per common share for the years ended December 31, 2025, 2024 and 2023, are as follows:

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| | | | |
|:---|:---|:---|:---|
| **(In millions, except per share data)** | **2025** | **2024** | **2023** |
| ***Basic net income per common share:*** |  |  |  |
| Net income | $**109.4** | $132.1 | $105.7 |
| Weighted average common shares outstanding | **79.5** | 82.3 | 84.6 |
| Basic net income per common share | $1.38 | $1.61 | $1.25 |
| ***Diluted net income per common share:*** |  |  |  |
| Weighted average common shares outstanding — Basic | **79.5** | 82.3 | 84.6 |
| *Plus incremental shares from assumed conversions:* |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted stock units | **0.4** | 0.4 | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock options | **0.2** | 0.3 | 0.4 |
| Weighted average common shares outstanding — Dilutive | **80.0** | 83.0 | 85.5 |
| Dilutive net income per common share | $**1.37** | $1.59 | $1.24 |
| Anti-dilutive shares outstanding, excluded from computation | **1.0** | 0.9 | 0.3 |

---

**Note 15 — Derivative Financial Instruments** 

The Company entered into treasury lock agreements to protect against unfavorable movements in the benchmark treasury rate related to the issuance of our 5.875% Senior Unsecured Notes. These hedges were designated as cash flow hedges, thus any change in fair value was recorded as a component of other comprehensive income. As part of the issuance of our 5.875% Senior Unsecured Notes, we net settled these derivatives for $3.6 million in cash and the deferred gains recorded in other comprehensive income will be released to interest expense over the life of the senior notes. The remaining balance of deferred gains as of December 31, 2025 was approximately $3.3 million. The effect of the settled treasury locks reduces the effective interest rate of the senior notes by approximately 0.10%.

*Cross Currency and Interest Rate Swap Agreements*

In November 2020, we entered into a cross currency and interest rate swap which was 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 rate were recorded to the general ledger and offset the fair value re-measurement of the hedged item. The net difference in the interest rates coupons was recorded as a credit to interest expense. The derivative swapped €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 settled semi-annually. The principal amortized each year on November 15, as follows: for years 1 through 4, beginning November 15, 2021, €50 million versus $59.2 million, and the 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 June 2028. The aggregate notional amount of these contracts was $403.4 million at December 31, 2025 and $386.4 million at December 31, 2024. The purpose of these contracts is to hedge a portion of the forecasted transactions of 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 was gains of $33.6 million, losses of $19.3 million, and gains of $10.5 million, for the years ended December 31, 2025, 2024 and 2023, respectively, and are recorded in other comprehensive (loss) income.

The fair values of outstanding derivative financial instruments as of December 31, 2025 and December 31, 2024 were as follows:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Prepaid and Other Current Assets** | **Prepaid and Other Current Assets** | **Other Assets** | **Other Assets** | **Current Liabilities** | **Current Liabilities** | **Non-Current Liabilities** | **Non-Current Liabilities** |
| **(In millions)** | **December 31, 2025** | **December 31, 2024** | **December 31, 2025** | **December 31, 2024** | **December 31, 2025** | **December 31, 2024** | **December 31, 2025** | **December 31, 2024** |
| Derivative Products |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency forward exchange contracts | $**10.7** | $1.5 | **4.0** | $0.1 | $**0.2** | $6.8 | $**0.3** | $5.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Undesignated hedges | **—** | **—** | **—** | **—** | **—** | 0.1 | **—** | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity swaps | **—** |  | **—** |  | **3.6** | 1.1 | **0.5** | 0.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cross currency and interest rate swap | **—** | 13.9 | **—** |  | **—** | **—** | **—** | **—** |
| Total Derivative Products | $**10.7** | $15.4 | $**4.0** | $0.1 | $**3.8** | $8.0 | $**0.8** | $5.5 |

---

During the years ended December 31, 2025 and 2024, the net impact for the hedges recognized in sales was a gain of $8.9 million and a loss of $1.5 million, respectively. For the two years ended December 31, 2025 and 2024, hedge ineffectiveness was immaterial.

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 years ended December 31, 2025, 2024 and 2023, we recognized net foreign exchange losses of $1.8 million, gains of $4.0 million, and gains of $1.4 million, respectively, in the Consolidated Statements of Operations. The carrying amount of the contracts for asset and liability derivatives not designated as hedging instruments was $0.1 million of current liabilities on our Consolidated Balance Sheets at December 31, 2025.

The activity, net of tax, in accumulated other comprehensive loss related to foreign currency forward exchange contracts for the years ended December 31, 2025, 2024 and 2023 was as follows:

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| | | | |
|:---|:---|:---|:---|
| **(In millions)** | **2025** | **2024** | **2023** |
| Unrealized gain (loss) at beginning of period, net of tax | $**(7.9)** | $5.2 | $(10.5) |
| Loss reclassified to net sales | **(6.6)** | 1.1 | 8.0 |
| (Decrease) increase in fair value | **25.0** | (14.2) | 7.7 |
| Unrealized gain (loss) at end of period, net of taxes | $**10.5** | $(7.9) | $5.2 |

---

Unrealized gains of $10.6 million recorded in accumulated other comprehensive loss, net of tax of $2.8 million, as of December 31, 2025 are expected to be reclassified into earnings over the next twelve months as the hedged sales are recorded. The impact of credit risk adjustments was immaterial for the three years.

*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 December 31, 2025, the Company had commodity swap agreements with a notional value of $11.4 million. The swaps mature monthly through October 2027. 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 value of the commodity swap agreements was a liability of $4.2 million (of which $0.5 million was recorded in long term liabilities) at December 31, 2025 and a liability of $1.3 million (of which $0.3 million was recorded in long term liabilities) at December 31, 2024.

**Note 16 — 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 are neither probable and/or reasonably estimable of having a material 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

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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. In December 2024, the District Court granted the issuance of the Consent Decree, however, this decision has been appealed. Briefing on the appeal was completed in January 2026.

Environmental remediation reserve activity for the three years ended December 31, 2025, 2024 and 2023 was as follows:

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| | | | |
|:---|:---|:---|:---|
| **(In millions)** | **2025** | **2024** | **2023** |
| Beginning remediation accrual balance | $**0.3** | $0.7 | $0.8 |
| Current period expenses |  |  | 0.3 |
| Cash expenditures | **(0.2)** | (0.4) | (0.4) |
| Ending remediation accrual balance | $**0.1** | $0.3 | $0.7 |

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*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 December 31, 2025 and December 31, 2024, our aggregate environmental related accruals were $0.1 million and $0.3 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*

Warranty expense for the years ended December 31, 2025, 2024 and 2023 and accrued warranty cost, included in "other accrued liabilities" in the Consolidated Balance Sheets were as follows:

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| | |
|:---|:---|
|  | **Product** |
| **(In millions)** | **Warranties** |
| Balance as of December 31, 2022 | $3.1 |
| Warranty expense | 3.3 |
| Deductions and other | (3.6) |
| Balance as of December 31, 2023 | $2.8 |
| Warranty expense | 2.9 |
| Deductions and other | (3.3) |
| Balance as of December 31, 2024 | $2.4 |
| Warranty expense | **3.0** |
| Deductions and other | **(2.4)** |
| **Balance as of December 31, 2025** | $**3.0** |

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*Purchase Obligations*

At December 31, 2025, purchase commitments were $18.4 million for 2026, $14.2 million for 2027, $6.3 million for 2028, $5.7 million for 2029, $5.6 million for 2030, and $38.1 million thereafter.

**Note 17 — Accumulated Other Comprehensive Loss** 

Comprehensive income represents net income and other gains and losses affecting stockholders' equity that are not reflected in the Consolidated Statements of Operations.

The components of accumulated other comprehensive loss as of December 31, 2025 and 2024 were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Unrecognized<br>Net Defined<br>Benefit** | **Change in<br>Fair Value<br>of Derivatives** | **Foreign<br>Currency** |  |
| **(In millions)** | **Plan Costs** | **Products** | **Translation** | **Total** |
| Balance at December 31, 2023 | $1.0 | $5.7 | $(80.8) | $(74.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss) before reclassifications | (1.4) | (16.1) | (29.1) | (46.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amounts reclassified from accumulated other comprehensive<br> loss | (0.3) | 6.0 | **—** | 5.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss) | (1.7) | (10.1) | (29.1) | (40.9) |
| Balance at December 31, 2024 | $(0.7) | $(4.4) | $(109.9) | $(115.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive (loss) income before reclassifications | **1.5** | **14.7** | **87.0** | **103.2** |
| &nbsp;&nbsp;&nbsp;&nbsp;Amounts reclassified from accumulated other comprehensive<br> loss | **(1.9)** | **0.8** |  | **(1.1)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive loss | **(0.4)** | **15.5** | **87.0** | **102.1** |
| Balance at December 31, 2025 | $**(1.1)** | $**11.1** | $**(23.0)** | $**(12.9)** |

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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 years ended December 31, 2025, 2024 and 2023 were as follows:

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---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2023** | **Year Ended December 31, 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** |
| Defined Benefit and Postretirement Plan Costs | $(2.1) | $(1.9) | $(0.4) | $(0.3) | $72.3 | $54.3 |
| Derivative Products |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency forward exchange contracts | (8.9) | (6.6) | 1.5 | 1.1 | 10.9 | 8.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commodity swaps | 2.9 | 2.3 | 0.7 | 0.5 | 5.3 | 4.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps | 6.7 | 5.1 | 5.7 | 4.4 | 0.7 | 0.5 |
| Total Derivative Products | $0.7 | $0.8 | $7.9 | $6.0 | $16.9 | $12.5 |

---

**Note 18** — **Segment Information** 

We report two segments, Composite Materials and Engineered Products. Corporate and certain other expenses are not allocated to the segments, except to the extent that the expense can be directly attributable to the segment. Corporate & Other is shown to reconcile to Hexcel's consolidated results. Hexcel's Chief Executive Officer and President, Thomas C. Gentile III, is the Company's Chief Operating Decision-Maker ("CODM"). He assesses the performance of the Company's entire business, as well as the individual segments, and is the ultimate decision maker in allocating resources within the Company. The CODM has leadership teams, organized along the various functions/lines of our business, with whom he regularly reviews and assesses segment operations and performance.

The financial results for our 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 segments based on operating income, and generally account for intersegment sales based on arm's length prices. Specifically, the CODM uses operating income to evaluate income generated from segment assets (return on assets) and to make decisions such as whether and where to reinvest profits back into the business.

In addition to the product line-based segmentation of our business, we also monitor sales into our principal end markets as a means to understanding demand for our products.

The following tables present financial information on our segments as of December 31, 2025, 2024 and 2023 and for the years then ended.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Composite** | **Engineered** | **Corporate &** |  |
| **(In millions)** | **Materials** | **Products** | **Other (a)** | **Total** |
| **Year Ended December 31, 2025** |  |  |  |  |
| Net sales to external customers | $**1516.2** | $**377.7** | $**—** | $**1893.9** |
| Intersegment sales | **79.0** | **3.8** | **(82.8)** |  |
| Total sales | **1595.2** | **381.5** | **(82.8)** | **1893.9** |
| Cost of sales | **1217.6** | **319.8** | **(78.3)** | **1459.1** |
| Gross margin | **377.6** | **61.7** | **(4.5)** | **434.8** |
| Selling, general and administrative expenses | **105.2** | **15.2** | **48.6** | **169.0** |
| Research and technology expenses | **48.6** | **4.1** | **3.7** | **56.4** |
| Other operating expense | **2.8** | **29.3** | **5.7** | **37.8** |
| Operating income (loss) | $**221.0** | $**13.1** | $**(62.5)** | $**171.6** |
| **Year Ended December 31, 2024** |  |  |  |  |
| Net sales to external customers | $1531.0 | $372.0 | $— | $1903.0 |
| Intersegment sales | 90.0 | 1.2 | (91.2) |  |
| Total sales | 1621.0 | 373.2 | (91.2) | 1903.0 |
| Cost of sales | 1218.8 | 299.5 | (85.1) | 1433.2 |
| Gross margin | 402.2 | 73.7 | (6.1) | 469.8 |
| Selling, general and administrative expenses | 98.3 | 21.7 | 56.6 | 176.6 |
| Research and technology expenses | 48.1 | 4.7 | 4.3 | 57.1 |
| Other operating expense | 40.8 | 7.7 | 1.5 | 50.0 |
| Operating income (loss) | $215.0 | $39.6 | $(68.5) | $186.1 |
| **Year Ended December 31, 2023** |  |  |  |  |
| Net sales to external customers | $1474.2 | $314.8 | $— | $1789.0 |
| Intersegment sales | 70.6 | 2.4 | (73.0) |  |
| Total sales | 1544.8 | 317.2 | (73.0) | 1789.0 |
| Cost of sales | 1165.1 | 261.1 | (70.4) | 1355.8 |
| Gross margin | 379.7 | 56.1 | (2.6) | 433.2 |
| Selling, general and administrative expenses | 95.5 | 19.0 | 49.3 | 163.8 |
| Research and technology expenses | 45.1 | 4.1 | 3.5 | 52.7 |
| Other operating expense | 1.2 | 0.2 |  | 1.4 |
| Operating income (loss) | $237.9 | $32.8 | $(55.4) | $215.3 |

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---

| | | | | |
|:---|:---|:---|:---|:---|
| **(In millions)** | **Composite<br>Materials** | **Engineered<br>Products** | **Corporate &<br>Other** | **Total** |
| Depreciation and amortization |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | $**109.4** | $**12.9** | $**—** | $**122.3** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 | 109.1 | 14.9 |  | 124.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 | 110.4 | 14.4 |  | 124.8 |
| Equity in earnings (losses) from affiliated companies |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | $**—** | $**—** | $**—** | $**—** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 |  | 8.1 |  | 8.1 |
| Segment assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | $**2066.7** | $**596.2** | $**41.1** | $**2704.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 | 2147.6 | 541.4 | 36.6 | 2725.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 | 2309.3 | 543.1 | 66.1 | 2918.5 |
| Investments in affiliated companies |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | $**—** | $**—** | $**5.0** | $**5.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |  |  | 5.0 | 5.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 |  |  | 5.0 | 5.0 |
| Accrual basis additions to property, plant and equipment |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | $**75.1** | $**6.1** | $**—** | $**81.2** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 | 67.1 | 14.0 |  | 81.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 | 70.9 | 50.7 |  | 121.6 |
| Stock-based compensation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | $**5.3** | $**1.3** | $**7.8** | $**14.4** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 | 6.1 | 1.5 | 14.6 | 22.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 | 6.2 | 1.7 | 13.0 | 20.9 |

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*Geographic Data* 

Net sales and long-lived assets, by geographic area, consisted of the following for the three years ended December 31, 2025, 2024 and 2023:

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| | | | |
|:---|:---|:---|:---|
| **(In millions)** | **2025** | **2024** | **2023** |
| **Net Sales by Geography (a):** |  |  |  |
| &nbsp;&nbsp;United States | $**997.5** | $955.8 | $888.2 |
| &nbsp;&nbsp;International |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;France | **331.3** | 340.8 | 320.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Spain | **209.5** | 199.4 | 183.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Germany | **135.0** | 149.2 | 153.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;United Kingdom | **162.2** | 167.8 | 150.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Austria | **27.0** | 38.1 | 56.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | **31.4** | 51.9 | 37.1 |
| &nbsp;&nbsp;Total international | **896.4** | 947.2 | 900.8 |
| &nbsp;&nbsp;**Total consolidated net sales** | $**1893.9** | $1903.0 | $1789.0 |
| **Net Sales to External Customers (b):** |  |  |  |
| &nbsp;&nbsp;United States | $**813.8** | $779.9 | $737.5 |
| &nbsp;&nbsp;International |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Germany | **129.5** | 141 | 141.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;France | **170.5** | 170.1 | 174.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Spain | **136.2** | 147.7 | 138.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;United Kingdom | **68.6** | 66.7 | 65.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | **575.3** | 597.6 | 532.2 |
| &nbsp;&nbsp;Total international | **1080.1** | 1123.1 | 1051.5 |
| &nbsp;&nbsp;**Total consolidated net sales** | $**1893.9** | $1903.0 | $1789.0 |
| **Long-lived Assets (c):** |  |  |  |
| &nbsp;&nbsp;United States | $**1342.1** | $1363.8 | $1410.3 |
| &nbsp;&nbsp;International |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;France | **323.7** | 294.8 | 322.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;United Kingdom | **106.0** | 99.8 | 107.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Spain | **45.5** | 42.4 | 45.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | **59.7** | 58.2 | 73.6 |
| &nbsp;&nbsp;Total international | **534.9** | 495.2 | 549.0 |
| &nbsp;&nbsp;**Total consolidated long-lived assets** | $**1877.0** | $1859.0 | $1959.3 |

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**(a)**Net sales by geography based on the location in which the product sold was manufactured.

**(b)**Net sales to external customers based on the location to which the product sold was delivered.

**(c)**Long-lived assets primarily consist of property, plant and equipment, net and goodwill at December 31, 2025, 2024 and 2023. Also included are right of use assets related to operating leases.

*Significant Customers*

Approximately 39%, 40% and 39% of our 2025, 2024 and 2023 net sales, respectively, were to Airbus and its subcontractors and approximately 13%, 15% and 15% of our 2025, 2024 and 2023 net sales, respectively, were to Boeing and its subcontractors.

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**Note 19— Fair Value Measurements** 

The fair values of our financial instruments are classified into one of the following categories:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Level 2: Observable inputs other than quoted prices in active markets but corroborated by market data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•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.

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 position). 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 Consolidated Balance Sheet.

Below is a summary of valuation techniques for all Level 2 financial assets and liabilities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Cross Currency and Interest Rate Swap Agreements — valued using the USD Secured Overnight Financing Rate ("SOFR") curves and quoted forward foreign exchange prices at the reporting date.

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

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

For more information regarding fair values for our financial assets and liabilities, see Note 15, Derivative Financial Instruments, to the accompanying consolidated financial statements of this Annual Report on Form 10-K.

Counterparties to the above contracts are highly rated financial institutions, none of which experienced any significant downgrades in 2025 that would reduce the receivable amount owed, if any, to the Company.

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## Exhibit 10.19

Exhibit 10.19

PERFORMANCE BASED AWARD AGREEMENT

under the

Hexcel Corporation 2013 Incentive Stock Plan

This Performance Based Award 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 a Performance Based Award ("PBA") 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Notice of Grant; Acceptance of PBA</u>. A Notice of Grant is attached hereto as Annex A and incorporated by reference herein. The PBA awarded pursuant to this Agreement may result in the Grantee being awarded up to that number of unrestricted shares of Common Stock equal to the Maximum Share Award (as defined 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 this PBA. By accepting the Agreement, the Grantee agrees to be bound by the terms of the Plan and this Agreement and further agrees that all of the decisions and determinations of the Committee shall be final and binding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Incorporation of Plan</u>. 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 PBA granted hereunder constitutes 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Performance Periods; Award of Unrestricted Shares of Common Stock</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Grantee's right to receive all, a portion or a multiple of the PBA Target Share Award, as defined in the Notice of Grant, shall be contingent upon the extent to which the Company achieves the performance measures for the Long-Term Performance Period, as determined by the Committee in accordance with the performance schedule and payout curve established under Annex B attached hereto. Notwithstanding anything contained in Annex B to the contrary, the Committee may in its sole discretion increase or decrease the portion of the PBA Target Share Award determined to be earned for the Long-Term Performance Period (or the related levels of achievement of the performance measures) to equitably account for any events or developments affecting achievement of the performance measures occurring during the Long-Term Performance Period that were not anticipated at the Grant Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Committee shall certify the degree of achievement of the Long-Term

Performance Measures at the end of the Long-Term Performance Period promptly (but in no event later than 60 days) after the end of the Long-Term Performance Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Termination of Employment; Pro-rata Award</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 "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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to Section 4(c) and Section 5, if during the Long-Term Performance Period, the Grantee's employment with a member of the Hexcel Group is involuntarily terminated without Cause, then the Grantee shall be entitled to receive that number of PBA Shares that the Grantee would have been entitled to receive under Section 3 had the Grantee been employed by a member of the Hexcel Group at the end of the Long-Term Performance Period multiplied by a fraction equal to M/36, where M is the number of partial or total months the Grantee is employed by a member of the Hexcel Group during the Long-Term Performance Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to Section 5, if, at any time during the Long-Term Performance Period, the Grantee's employment with a member of the Hexcel Group terminates due to the Grantee's Retirement or Disability, then, following the completion of the Long-Term Performance Period, the Grantee shall be entitled to receive such number of PBA Shares as determined under Section 3 above without regard to any pro-ration under Section 4(b). Subject to Section 5, if, following the Grantee's Retirement or termination by the

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Hexcel Group following the Grantee's Disability, the Grantee dies prior to the end of the Long-Term Performance Period, then the Grantee's estate shall be entitled to receive 100% of the PBA Target Share Award, as defined in the Notice of Grant, within 60 days after the Grantee's death (or where additional time is needed for administrative reasons, at such later time as is permitted under Section 409A of the Code).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Subject to Section 5, if, at any time during the Long-Term Performance Period, the Grantee's employment with a member of the Hexcel Group terminates due to the Grantee's death, then the Grantee's estate shall be entitled to receive 100% of the PBA Target Share Award, as defined in the Notice of Grant, within 60 days after the Grantee's death (or where additional time is needed for administrative reasons, at such later time as is permitted under Section 409A of the Code).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If, at any time during the Long-Term Performance Period the Grantee's employment with a member of the Hexcel Group terminates for any reason other than due to death, Disability, Retirement, or involuntary termination by a member of the Hexcel Group without Cause, the Grantee shall receive no PBA Shares and this PBA shall be null and void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Grantee (or the Grantee's legal representative) shall become entitled to receive PBA Shares earned under Section 4(b) or Section 4(c) (other than the last sentence thereof) at the same time as the Grantee would have become entitled to receive PBA Shares under Section 3 if the Grantee were employed by a member of the Hexcel Group at the end of the Long-Term Performance Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Change in Control</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding any other provision of this Agreement, if a Change in Control occurs any time on or after the start of the Long-Term Performance Period, but prior to the last day of the Long-Term Performance Period, then the Grantee shall immediately be awarded the PBA Target Share Award (within 10 days after the Change in Control), and any dividend equivalents that have been credited to the Grantee pursuant to Section 6(c). Delivery of the PBA Shares pursuant to this Section 5 shall discharge any obligation the Company has or may have to the Grantee under this Agreement in its entirety and the Grantee shall not be entitled to any additional award under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 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 PBA 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).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Transferability of PBA; No Incidents of Ownership; Dividend Equivalents</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The PBA 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 the PBA in contravention of this Section 6(a) is void ab initio. The PBA shall not be subject to execution, attachment or other process.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Grantee shall not possess any incidents of ownership (including, without limitation, dividend and voting rights) in shares of Common Stock in respect of this PBA unless and until the Grantee becomes the holder of record of the PBA Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Should any cash dividends be declared and paid with respect to the shares of Common Stock during the period between (I) the Grant Date and (II) the last day of the Long-Term Performance Period, 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 underlying PBA Target Share Award at the time of the declaration of the dividend were outstanding shares of Common Stock. At the same time that the corresponding PBA is converted to shares of Common Stock and distributed to the Grantee as set forth in Section 3, the Company shall pay to the Grantee a lump sum cash payment equal to the value of the cash dividends credited to the Grantee's Dividend Equivalent Account that correspond to such PBA Shares (less withholdings for Tax-Related Items, defined in Section 9 below); provided, however, that any dividends that were credited to the Grantee's Dividend Equivalent Account that are attributable to PBA Shares 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Forfeiture of PBA and PBA Shares on Certain Conditions</u>. 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:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything to the contrary contained in this Agreement, should the Grantee breach the "Protective Condition" (as defined in Section 7(b)), then (I) The PBA awarded pursuant to this Agreement shall immediately be forfeited upon such breach, (II) the Grantee shall immediately deliver to the Company the number of PBA 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 that have not been sold or otherwise disposed of, and (III) with respect to any PBA 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 that have been sold or otherwise disposed of, the Grantee shall immediately pay to the Company, in cash, an amount equal to the Fair Market Value of such PBA Shares as of the date acquired by the Grantee. The Company may elect to reduce the number of PBA Shares, or the amount of the cash payment, otherwise due under clauses (II) and (III) to reflect the Grantee's liability for taxes payable on such PBA Shares and/or proceeds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "Protective Condition" shall mean that (I) 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 (II) 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, directly or indirectly, in any substantially similar or related capacity, as the Grantee was engaged or employed by any member of the Hexcel Group during the Grantee's employment, 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 where the Grantee performed services for any member of the Hexcel Group during the preceding 24 months of the Grantee's employment or engagement with Hexcel Group if the Hexcel Group carries out or engaged in a like business therein at such time (notwithstanding the foregoing, to the extent the Grantee is a Louisiana based employee, the geographic scope of this non-compete provision shall apply only to Union Parish); 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 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 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). The Grantee acknowledges that the business of the Hexcel Group is conducted nationwide and worldwide. The Grantee also acknowledges that the restrictions in this section are therefore reasonably restricted geographically to the entire United States of America, as well as all countries in which any member of the Hexcel Group does business. The Grantee also acknowledges and agrees that (A) complying with the restrictions contained in Section 7(a) and Section 7(b) would not prevent the Grantee from earning a living and (B) such restrictions are necessary and reasonable (including, without limitation, with respect to geographic scope and duration, as applicable) to protect the Hexcel Group's valid business interests (including, without limitation, relationships with customers, goodwill, the protection of trade secrets and other confidential and proprietary Information, protection from unfair competition, and other protectable interests).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Nothing in this Agreement prevents the Grantee from providing, without prior notice to the Company, information to any governmental or administrative authorities regarding possible violations of law or otherwise testifying or participating in any investigation or proceeding by any governmental or administrative authorities regarding possible violations of law or filing a charge or complaint with any securities regulatory agency or authority. This Agreement does not limit the Grantee's right to receive an award for information provided to any securities regulatory agency or authority. Moreover, this Agreement does not, in any way, restrict or impede the Grantee from exercising protected rights to the extent that such rights cannot be waived by agreement, including but not limited to the Grantee's Section 7 rights under the National Labor Relations Act. The Grantee represents and acknowledges that he or she had a reasonable opportunity to consult with counsel of the Grantee's choice prior to signing this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) This paragraph (d) shall apply if the Grantee is an executive officer or officer (as defined in Rule 3b-7or Rule 3b-2 under the Exchange Act). In accordance with the Company's policy adopted by the Board on the Potential Impact on Compensation from Executive Misconduct, if it is determined, within eighteen (18) full calendar months after the date on which the Grantee became entitled to receive any PBA Shares, that the Grantee engaged in misconduct resulting in the inaccurate reporting of the Company's financial results, and the number of PBA Shares the Grantee became entitled to receive (the "Incorrect Number of Shares") was greater than the number of PBA Shares that would have been awarded, paid or delivered to, or realized by, the Grantee, if calculated based on the accurate reporting of financial results (the "Correct Number of Shares"), then (I) if the Grantee has not yet received the PBA Shares, the number of PBA Shares to which the Grantee shall be entitled shall be immediately reduced from the Incorrect Number of Shares to the Correct Number of Shares, (II) if the Grantee has received the PBA Shares, then the Grantee shall immediately deliver to the Company that number of PBA Shares equal to the difference between the Incorrect Number of Shares and

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the Correct Number of Shares (the "Forfeited Shares"), and (III) if the Grantee has received the PBA Shares and sold any of the Forfeited Shares in an arms' length transaction or disposed of such shares in any other manner, the Grantee shall immediately deliver to the Company all proceeds from the arms' length sales of such Forfeited Shares and, if disposed of otherwise than in an arms' length sale, the Fair Market Value of such shares determined at the time of disposition. The PBA Shares and proceeds to be delivered under clauses (II) and (III) may be reduced to reflect the Grantee's liability for taxes payable on such PBA Shares and/or proceeds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In the event any of Section 7(a), Section 7(b) or Section 7(d) 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 the jurisdiction in which the Company shall have the ability to seek remedies against the Grantee arising from any activity prohibited by this Section 7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) 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 PBA 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. Without limiting the preceding sentence, the PBA granted hereunder shall be subject to the Company's Clawback Policy (CP No. 1.7) or any similar successor policy adopted by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Issuance of PBA Shares</u>. Except as otherwise provided in Sections 4(c), 4(d), 5(a) or 11(e) of this Agreement, any PBA Shares to be issued to the Grantee under this PBA (i) shall be delivered to the Grantee promptly after the Committee certifies achievement of the performance measures for the Long-Term Performance Period, as determined by the Committee in accordance with the performance schedule and payout curve established under Annex B attached hereto (but in no event later than 60 days following the end of the Long-Term Performance Period), and (ii) may be issued in either certificated form or in uncertificated form (via the Direct Registration System or otherwise).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Taxes</u>. The Company shall not be obligated to deliver any PBA Shares (or any other amounts hereunder) to the Grantee or the Grantee's legal representative unless and until the Grantee or the Grantee's legal representative shall have paid or otherwise satisfied in full the amount of all federal, state, local, foreign or other tax required to be withheld by the Company or a Subsidiary in connection with the grant, vesting or payment of the PBA (the "Tax-Related Items"). In this regard, at the time of distribution of PBA Shares, the Grantee hereby authorizes the Company and/or a Subsidiary, or their respective agents, to satisfy any applicable withholding obligations for Tax-Related Items by withholding PBA Shares otherwise issuable to the Grantee upon the settlement of the Restricted Units with a value equal to the required withholding, provided that (a) to the extent necessary to qualify for an exemption from application of Section 16(b) of the Exchange Act, if applicable, such share withholding procedure will be subject to the express prior approval of the Board or the Committee; and (b) in no event shall the value of the PBA Shares retained exceed the amount of taxes required to be withheld based on the maximum statutory tax rates in the Grantee's applicable taxing jurisdictions. If the obligation for Tax-Related Items is satisfied by withholding PBA Shares, for tax purposes, the Grantee is deemed to have been issued the full number of PBA Shares otherwise payable upon settlement of the Restricted Units, notwithstanding that a number of the PBA Shares is held back solely for the purpose of satisfying the withholding obligations for Tax-Related Items. Without limiting the foregoing, the Company may permit (in accordance with procedures established by the Company) or require the Grantee to pay an amount equal to all or any portion of the applicable Tax-Related Items directly to the Company or a Subsidiary by check or wire transfer, or the Company may satisfy the Tax Related Items by withholding from the Grantee's salary, wages, or any other amounts payable to the Grantee, in accordance with applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>No Guarantee of Employment</u>. 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Section 409A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) It is intended that this Agreement comply in all respects with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event that the PBA 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Except as otherwise specifically provided herein, the time for distribution of PBA Shares under this PBA shall not be accelerated or delayed for any reason, unless to the extent necessary to comply with or permitted under the Applicable Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 PBA Shares issuable or amounts payable to the Grantee under this PBA on account of his or her termination of employment (including without limitation any dividend equivalents payable to the Grantee pursuant to Section 6(c) if payable on account of his or her termination of employment) shall be paid to the Grantee upon the later of (i) the date such PBA Shares would otherwise be issuable or such amounts would otherwise be payable to the Grantee under this PBA without regard to this Section 11(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 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Notices</u>. 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Amendment; Waiver</u>. The Committee may modify this Agreement upon written notice to the Grantee. Any amendment to the Plan shall be deemed to be an amendment to this Agreement to the extent that the amendment is applicable hereto. Notwithstanding the foregoing, no amendment of the Plan or this Agreement shall adversely affect the rights of the Grantee under this Agreement without the Grantee's consent, unless Section 11(b) applies. 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Governing Law/Jurisdiction/Resolution of Disputes</u>. 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Miscellaneous</u>. 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Severability</u>. 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Definitions</u>. For purposes of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "Beneficial Owner" (and variants thereof) shall have the meaning given in Rule 13d-3 promulgated under the Exchange Act, modified to reflect ownership pursuant to Section 318(a) of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "Cause" shall mean any (i) willful and continued failure by the Grantee to obey the reasonable instructions of a person to whom the Grantee reports, (ii) willful and continued neglect by the Grantee of the Grantee's duties and obligations as an employee of the Hexcel Group or (iii) willful misconduct of the Grantee or other actions in bad faith by the Grantee which are to the detriment of the Hexcel Group including, without limitation, conviction of a felony, embezzlement or misappropriation of funds or conviction of any act of fraud. For purposes of the foregoing, no act or failure to act on the Grantee's part shall be deemed "willful" unless done, or omitted to be done, by the Grantee not in good faith and without the reasonable belief that the Grantee's act, or failure to act, was in the best interest of the Hexcel Group;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "Change in Control" shall mean any of the following events (provided that the transactions or events also constitute a "change in control event," as defined in Treasury Regulation Section 1.409A-3(i)(5)):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if any Person is or becomes the Beneficial Owner, directly or indirectly, of more than 50% of either (A) the combined fair market value of the then outstanding stock of the Company (the "Total Fair Market Value") or (B) the combined voting power of the then outstanding securities entitled to vote generally in the election of directors of the Company (the "Total Voting Power"); excluding, however, the following: (I) any acquisition by the Company or any of its Subsidiaries, (II) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any of its Subsidiaries, (III) any Person who becomes such a Beneficial Owner in connection with a transaction described in the exclusion within paragraph (iv) below and (IV) any acquisition of additional stock or securities by a Person who owns more than 50% of the Total Fair Market Value or Total Voting Power of the Company immediately prior to such acquisition; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company that, together with any securities acquired directly or indirectly by such Person within the immediately preceding twelve-consecutive month period, represent 40% or more of the Total Voting Power of the Company; excluding, however, any acquisition described in subclauses (I) through (IV) of subsection (i) above; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a change in the composition of the Board such that the individuals who, as of the effective date of this Agreement, constitute the Board (such individuals shall be hereinafter referred to as the "Incumbent Directors") cease for any reason to constitute at least a majority of the Board; provided, however, for purposes of this definition, that any individual who becomes a director subsequent to such effective date, whose election, or nomination for election by the Company's stockholders, was made or approved by a vote of at least a majority of the Incumbent Directors (or directors whose election or nomination for election was previously so approved) shall be considered an Incumbent Director; but, provided, further, that any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a person or legal entity other than the Board shall not be considered an Incumbent Director; provided finally, however, that, as of any time, any member of the Board who has been a director for at least twelve consecutive months immediately prior to such time shall be considered an Incumbent Director for purposes of this definition, other than for the purpose of the first proviso of this definition; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) there is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company or a sale or other disposition of all or substantially all of the assets of the Company ("Corporate Transaction"); excluding, however, such a Corporate Transaction (A) pursuant to which all or substantially all of the individuals and entities who are the Beneficial Owners, respectively, of the outstanding Common Stock of the Company and Total Voting Power immediately prior to such Corporate Transaction will Beneficially Own, directly or indirectly, more than 50%, respectively, of the outstanding Common Stock and the combined voting power of the then outstanding Common Stock and the combined voting power of the then outstanding securities entitled to vote generally in the election of directors of the company resulting from such Corporate Transaction (including, without limitation, a company which as a result of such transaction owns the Company or all or substantially all of the Company's assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership immediately prior to such Corporate Transaction of the outstanding Common Stock and Total Voting Power, as the case may be, and (B) immediately following which the individuals who comprise the Board immediately prior thereto constitute at least a majority of the board of directors of the company resulting from such Corporate Transaction (including, without limitation, a company which as a result of such transaction owns the Company or all or substantially all of the Company's assets either directly or through one or more subsidiaries);provided, however, that notwithstanding anything to the contrary in subsections (i) through (iv) above, an event which does not constitute a change in the ownership of the Company, a change in the effective control of the Company, or a change in the ownership of a substantial portion of the assets of the Company, each as defined in Section 1.409A-3(i)(5) of the Treasury Regulations (or any successor provision), shall not be considered a Change in Control for purposes of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "Disability" shall have the same meaning as in the Company's then current long-term disability plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "Exchange Act" shall mean the U.S. Securities Exchange Act of 1934, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "Hexcel Group" shall mean the Company and its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "Long-Term Performance Period" shall mean the period beginning on January 1, 2026 and ending on December 31, 2028;

(h) "Maximum Share Award" is the maximum amount of unrestricted shares of Common Stock that can be awarded to the Grantee under this PBA, which is 200% of the PBA Target Share Award, exclusive of any amounts credited as dividend equivalents to Grantee pursuant to Section 6(c);

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(i) "PBA Shares" shall mean the unrestricted shares of Common Stock that Grantee is entitled to receive under this Agreement pursuant to Section 3, Section 4 or Section 5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "PBA Target Share Award" shall mean the number of unrestricted shares of Common Stock set forth on Annex A (which number represents the number of unrestricted shares that can be awarded to the Grantee under this PBA if the Target Level of 100% for each of the performance measures is achieved as set forth in Annex B);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "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);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "Retirement" shall mean termination of the Grantee's employment with a member of the Hexcel Group, other than by reason of death or Cause, either (A) at or after age 65 or (B) at or after age 55 after five (5) years of employment by the Hexcel Group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "Subsidiary" shall mean any "subsidiary" of the Company within the meaning of Rule 405 under the Securities Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "Target Level" for each of the performance measures is defined on Annex B.

**<u>Annex A</u>**

**<u>NOTICE OF GRANT</u>**

**<u>PERFORMANCE BASED AWARD</u>**

**<u>HEXCEL CORPORATION 2013 INCENTIVE STOCK PLAN</u>**

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

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

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| | |
|:---|:---|
| &nbsp;&nbsp; <br>Grantee<br>| &nbsp;&nbsp; <br>Participant Name |
| &nbsp;&nbsp; <br>Grant Date<br>| &nbsp;&nbsp; <br>Grant Date |
| &nbsp;&nbsp; <br> Target number of unrestricted shares of Common Stock which may be granted as a result of this PBA ("PBA Target Share Award") | &nbsp;&nbsp; <br>Number of Awards Granted |

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

__________________________ **HEXCEL CORPORATION** 

Grantee

By:_________________________

Gail E. Lehman

EVP Chief Legal & Sustainability Officer

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## Exhibit 10.20

Exhibit 10.20

PERFORMANCE BASED AWARD AGREEMENT

under the

Hexcel Corporation 2013 Incentive Stock Plan

This Performance Based Award 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 a Performance Based Award ("PBA") 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Notice of Grant; Acceptance of PBA</u>. A Notice of Grant is attached hereto as Annex A and incorporated by reference herein. The PBA awarded pursuant to this Agreement may result in the Grantee being awarded up to that number of unrestricted shares of Common Stock equal to the Maximum Share Award (as defined 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 this PBA. By accepting the Agreement, the Grantee agrees to be bound by the terms of the Plan and this Agreement and further agrees that all of the decisions and determinations of the Committee shall be final and binding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Incorporation of Plan</u>. 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 PBA granted hereunder constitutes 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Performance Periods; Award of Unrestricted Shares of Common Stock</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Grantee's right to receive all, a portion or a multiple of the PBA Target Share Award, as defined in the Notice of Grant, shall be contingent upon the extent to which the Company achieves the performance measures for the Long-Term Performance Period, as determined by the Committee in accordance with the performance schedule and payout curve established under Annex B attached hereto. Notwithstanding anything contained in Annex B to the contrary, the Committee may in its sole discretion increase or decrease the portion of the PBA Target Share Award determined to be earned for the Long-Term Performance Period (or the related levels of achievement of the performance measures) to equitably account for any events or developments affecting achievement of the performance measures occurring during the Long-Term Performance Period that were not anticipated at the Grant Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Committee shall certify the degree of achievement of the Long-Term

Performance Measures at the end of the Long-Term Performance Period promptly (but in no event later than 60 days) after the end of the Long-Term Performance Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Termination of Employment; Pro-rata Award</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 "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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to Section 4(c) and Section 5, if during the Long-Term Performance Period, the Grantee's employment with a member of the Hexcel Group is involuntarily terminated without Cause, then the Grantee shall be entitled to receive that number of PBA Shares that the Grantee would have been entitled to receive under Section 3 had the Grantee been employed by a member of the Hexcel Group at the end of the Long-Term Performance Period multiplied by a fraction equal to M/36, where M is the number of partial or total months the Grantee is employed by a member of the Hexcel Group during the Long-Term Performance Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to Section 5, if, at any time during the Long-Term Performance Period, the Grantee's employment with a member of the Hexcel Group terminates due to the Grantee's Retirement or Disability, then, following the completion of the Long-Term Performance Period, the Grantee shall be entitled to receive such number of PBA Shares as determined under Section 3 above without regard to any pro-ration under Section 4(b). Subject to Section 5, if, following the Grantee's Retirement or termination by the

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Hexcel Group following the Grantee's Disability, the Grantee dies prior to the end of the Long-Term Performance Period, then the Grantee's estate shall be entitled to receive 100% of the PBA Target Share Award, as defined in the Notice of Grant, within 60 days after the Grantee's death (or where additional time is needed for administrative reasons, at such later time as is permitted under Section 409A of the Code).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Subject to Section 5, if, at any time during the Long-Term Performance Period, the Grantee's employment with a member of the Hexcel Group terminates due to the Grantee's death, then the Grantee's estate shall be entitled to receive 100% of the PBA Target Share Award, as defined in the Notice of Grant, within 60 days after the Grantee's death (or where additional time is needed for administrative reasons, at such later time as is permitted under Section 409A of the Code).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If, at any time during the Long-Term Performance Period the Grantee's employment with a member of the Hexcel Group terminates for any reason other than due to death, Disability, Retirement, or involuntary termination by a member of the Hexcel Group without Cause, the Grantee shall receive no PBA Shares and this PBA shall be null and void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Grantee (or the Grantee's legal representative) shall become entitled to receive PBA Shares earned under Section 4(b) or Section 4(c) (other than the last sentence thereof) at the same time as the Grantee would have become entitled to receive PBA Shares under Section 3 if the Grantee were employed by a member of the Hexcel Group at the end of the Long-Term Performance Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Change in Control</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding any other provision of this Agreement, if a Change in Control occurs any time on or after the start of the Long-Term Performance Period, but prior to the last day of the Long-Term Performance Period, then the Grantee shall immediately be awarded the PBA Target Share Award (within 10 days after the Change in Control), and any dividend equivalents that have been credited to the Grantee pursuant to Section 6(c). Delivery of the PBA Shares pursuant to this Section 5 shall discharge any obligation the Company has or may have to the Grantee under this Agreement in its entirety and the Grantee shall not be entitled to any additional award under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 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 PBA 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).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Transferability of PBA; No Incidents of Ownership; Dividend Equivalents</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The PBA 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 the PBA in contravention of this Section 6(a) is void ab initio. The PBA shall not be subject to execution, attachment or other process.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Grantee shall not possess any incidents of ownership (including, without limitation, dividend and voting rights) in shares of Common Stock in respect of this PBA unless and until the Grantee becomes the holder of record of the PBA Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Should any cash dividends be declared and paid with respect to the shares of Common Stock during the period between (I) the Grant Date and (II) the last day of the Long-Term Performance Period, 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 underlying PBA Target Share Award at the time of the declaration of the dividend were outstanding shares of Common Stock. At the same time that the corresponding PBA is converted to shares of Common Stock and distributed to the Grantee as set forth in Section 3, the Company shall pay to the Grantee a lump sum cash payment equal to the value of the cash dividends credited to the Grantee's Dividend Equivalent Account that correspond to such PBA Shares (less withholdings for Tax-Related Items, defined in Section 9 below); provided, however, that any dividends that were credited to the Grantee's Dividend Equivalent Account that are attributable to PBA Shares 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Forfeiture of PBA and PBA Shares on Certain Conditions</u>. 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:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything to the contrary contained in this Agreement, should the Grantee breach the "Protective Condition" (as defined in Section 7(b)), then (I) The PBA awarded pursuant to this Agreement shall immediately be forfeited upon such breach, (II) the Grantee shall immediately deliver to the Company the number of PBA 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 that have not been sold or otherwise disposed of, and (III) with respect to any PBA 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 that have been sold or otherwise disposed of, the Grantee shall immediately pay to the Company, in cash, an amount equal to the Fair Market Value of such PBA Shares as of the date acquired by the Grantee. The Company may elect to reduce the number of PBA Shares, or the amount of the cash payment, otherwise due under clauses (II) and (III) to reflect the Grantee's liability for taxes payable on such PBA Shares and/or proceeds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "Protective Condition" shall mean that (I) 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 (II) 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, directly or indirectly, in any substantially similar or related capacity, as the Grantee was engaged or employed by any member of the Hexcel Group during the Grantee's employment, 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 where the Grantee performed services for any member of the Hexcel Group during the preceding 24 months of the Grantee's employment or engagement with Hexcel Group if the Hexcel Group carries out or engaged in a like business therein at such time; 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 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 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). The Grantee acknowledges that the business of the Hexcel Group is conducted nationwide and worldwide. The Grantee also acknowledges that the restrictions in this section are therefore reasonably restricted geographically to the entire United States of America, as well as all countries in which any member of the Hexcel Group does business. The Grantee also acknowledges and agrees that (A) complying with the restrictions contained in Section 7(a) and Section 7(b) would not prevent the Grantee from earning a living and (B) such restrictions are necessary and reasonable (including, without limitation, with respect to geographic scope and duration, as applicable) to protect the Hexcel Group's valid business interests (including, without limitation, relationships with customers, goodwill, the protection of trade secrets and other confidential and proprietary Information, protection from unfair competition, and other protectable interests).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Nothing in this Agreement prevents the Grantee from providing, without prior notice to the Company, information to any governmental or administrative authorities regarding possible violations of law or otherwise testifying or participating in any investigation or proceeding by any governmental or administrative authorities regarding possible violations of law or filing a charge or complaint with any securities regulatory agency or authority. This Agreement does not limit the Grantee's right to receive an award for information provided to any securities regulatory agency or authority. Moreover, this Agreement does not, in any way, restrict or impede the Grantee from exercising protected rights to the extent that such rights cannot be waived by agreement, including but not limited to the Grantee's Section 7 rights under the National Labor Relations Act. The Grantee represents and acknowledges that he or she had a reasonable opportunity to consult with counsel of the Grantee's choice prior to signing this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) This paragraph (d) shall apply if the Grantee is an executive officer or officer (as defined in Rule 3b-7or Rule 3b-2 under the Exchange Act). In accordance with the Company's policy adopted by the Board on the Potential Impact on Compensation from Executive Misconduct, if it is determined, within eighteen (18) full calendar months after the date on which the Grantee became entitled to receive any PBA Shares, that the Grantee engaged in misconduct resulting in the inaccurate reporting of the Company's financial results, and the number of PBA Shares the Grantee became entitled to receive (the "Incorrect Number of Shares") was greater than the number of PBA Shares that would have been awarded, paid or delivered to, or realized by, the Grantee, if calculated based on the accurate reporting of financial results (the "Correct Number of Shares"), then (I) if the Grantee has not yet received the PBA Shares, the number of PBA Shares to which the Grantee shall be entitled shall be immediately reduced from the Incorrect Number of Shares to the Correct Number of Shares, (II) if the Grantee has received the PBA Shares, then the Grantee shall immediately deliver to the Company that number of PBA Shares equal to the difference between the Incorrect Number of Shares and the Correct Number of Shares (the "Forfeited Shares"), and (III) if the Grantee has received the PBA Shares and sold any of the Forfeited Shares in an arms' length transaction or disposed of such shares in any other manner, the Grantee shall immediately deliver

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to the Company all proceeds from the arms' length sales of such Forfeited Shares and, if disposed of otherwise than in an arms' length sale, the Fair Market Value of such shares determined at the time of disposition. The PBA Shares and proceeds to be delivered under clauses (II) and (III) may be reduced to reflect the Grantee's liability for taxes payable on such PBA Shares and/or proceeds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In the event any of Section 7(a), Section 7(b) or Section 7(d) 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 the jurisdiction in which the Company shall have the ability to seek remedies against the Grantee arising from any activity prohibited by this Section 7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) 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 PBA 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. Without limiting the preceding sentence, the PBA granted hereunder shall be subject to the Company's Clawback Policy (CP No. 1.7) or any similar successor policy adopted by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Issuance of PBA Shares</u>. Except as otherwise provided in Sections 4(c), 4(d), 5(a) or 14(e) of this Agreement, any PBA Shares to be issued to the Grantee under this PBA (i) shall be delivered to the Grantee promptly after the Committee certifies achievement of the performance measures for the Long-Term Performance Period, as determined by the Committee in accordance with the performance schedule and payout curve established under Annex B attached hereto (but in no event later than 60 days following the end of the Long-Term Performance Period), and (ii) may be issued in either certificated form or in uncertificated form (via the Direct Registration System or otherwise).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall not be obligated to deliver any PBA Shares (or any other amounts hereunder) to the Grantee or the Grantee's legal representative unless and until the Grantee or the Grantee's legal representative shall have paid or otherwise satisfied in full the amount of all federal, state, local, foreign or other tax required to be withheld by the Company or a Subsidiary in connection with the grant, vesting or payment of the PBA (the "Tax-Related Items"). In this regard, at the time of distribution of PBA Shares, the Grantee hereby authorizes the Company and/or a Subsidiary, or their respective agents, to satisfy any applicable withholding obligations for Tax-Related Items by withholding PBA Shares otherwise issuable to the Grantee upon the settlement of the Restricted Units with a value equal to the required withholding, provided that (a) to the extent necessary to qualify for an exemption from application of Section 16(b) of the Exchange Act, if applicable, such share withholding procedure will be subject to the express prior approval of the Board or the Committee; and (b) in no event shall the value of the PBA Shares retained exceed the amount of taxes required to be withheld based on the maximum statutory tax rates in the Grantee's applicable taxing jurisdictions. If the obligation for Tax-Related Items is satisfied by withholding PBA Shares, for tax purposes, the Grantee is deemed to have been issued the full number of PBA Shares otherwise payable upon settlement of the Restricted Units, notwithstanding that a number of the PBA Shares is held back solely for the purpose of satisfying the withholding obligations for Tax-Related Items. Without limiting the foregoing, the Company may permit (in accordance with procedures established by the Company) or require the Grantee to pay an amount equal to all or any portion of the applicable Tax-Related Items directly to the Company or a Subsidiary by check or wire transfer, or the Company may satisfy the Tax Related Items by withholding from the Grantee's salary, wages, or any other amounts payable to the Grantee, in accordance with applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Regardless of any action the Company or its Subsidiary takes with respect to any such Tax-Related Items, the Grantee acknowledges that the ultimate liability for all Tax-Related Items legally due by the Grantee is and remains the Grantee's responsibility and may exceed the amount actually withheld by the Company or its Subsidiary. The Grantee further acknowledges that the Company and its Subsidiary (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the PBA, including the grant, vesting or settlement of the PBA and the subsequent sale of any PBA Shares acquired at settlement; and (ii) do not commit to structure the terms of the grant or any aspect of the PBA to reduce or eliminate the Grantee's liability for Tax-Related Items. Further, if the Grantee has become subject to tax in more than one jurisdiction between the Grant Date and the date of any relevant taxable event, the Grantee acknowledges that the Company or its Subsidiaries may be required to collect, withhold or account for Tax-Related Items in more than one jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>No Guarantee of Employment</u>. 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>No Entitlement or Claims for Compensation</u>. In connection with the acceptance of the grant of the PBA under this Agreement, the Grantee acknowledges the following:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Plan is established voluntarily by the Company, the grant of performance based awards under the Plan is made at the discretion of the Committee and the Plan may be modified, amended, suspended or terminated by the Company at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The grant of the PBA is voluntary and occasional and does not create any contractual or other right to receive future grants of performance based awards, or benefits in lieu of performance based awards, even if performance based awards have been granted repeatedly in the past.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All decisions with respect to future grants of performance based awards, if any, will be at the sole discretion of the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Grantee is voluntarily participating in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) This grant of the PBA and any PBA Shares acquired under the Plan in connection with the PBA are extraordinary items that do not constitute compensation of any kind for services of any kind rendered to the Company or any Subsidiary and which are outside the scope of the Grantee's employment contract, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) This grant of the PBA and any shares acquired under the Plan and their value are not to be considered part of the Grantee's normal or expected compensation or salary for any purpose, including, but not limited to, calculating any severance, resignation, termination, payment in lieu of notice, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) This grant of the PBA and any PBA Shares acquired under the Plan in connection with the PBA are not intended to replace any pension rights or compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The future value of PBA Shares is unknown and cannot be predicted with certainty. If the Grantee vests in the PBA and receives PBA Shares, the value of the acquired shares may increase or decrease. The Grantee acknowledges and agrees that neither the Company nor any Subsidiary shall be liable for any foreign exchange rate fluctuation between the Grantee's local currency and the United States Dollar that may affect the value of the PBA or of any amounts received by the Grantee pursuant to the PBA or the subsequent sale of any PBA Shares acquired in connection with the PBA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Grantee shall have no rights, claim or entitlement to compensation or damages as a result of the Grantee's termination of employment or service for any reason whatsoever, whether or not in breach of contract or local labor law, insofar as these rights, claim or entitlement arise or may arise from the Grantee's ceasing to have rights under or be entitled to the PBA as a result of such termination or loss or diminution in value of the PBA or any of the PBA Shares received in connection with the PBA as a result of such termination, and the Grantee irrevocably releases the Company and its Subsidiaries, as applicable, from any such rights, entitlement or claim that may arise. If, notwithstanding the foregoing, any such right or claim is found by a court of competent jurisdiction to have arisen, then, by accepting this Agreement, the Grantee shall be deemed to have irrevocably waived the Grantee's entitlement to pursue such rights or claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Data Privacy</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Grantee hereby acknowledges and understands that the Grantee's personal data is collected, retained, used, processed, disclosed and transferred, in electronic or other form, as described in this Agreement by and among, as applicable, the Grantee's employer, the Company and its Subsidiaries, and third parties assisting in the implementation, administration and management of the Plan for the exclusive purpose of implementing, administering and managing the Grantee's participation in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Grantee understands that the Grantee's employer, the Company and its Subsidiaries hold certain personal information about the Grantee regarding the Grantee's employment, the nature and amount of the Grantee's compensation and the fact and conditions of the Grantee's participation in the Plan, including, but not limited to, the Grantee's name, home address, telephone number and e-mail address, date of birth, social insurance number or other identification number, salary, nationality, job title, any equity or directorships held in the Company or its Subsidiaries, and details of all performance based awards or any other entitlement to equity awarded, canceled, exercised, vested, unvested or outstanding in the Grantee's favor, in connection with the implementation, management and administration of the Plan (the "Data").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Grantee understands that the Data may be transferred to the Company, its Subsidiaries and any third parties assisting in the implementation, administration and management of the Plan, that these recipients may be located in the Grantee's country, or elsewhere, and that the recipient's country may have a lower standard of data privacy rights and protections than the Grantee's country of residence. The Grantee understands that the Grantee may request a list with the names and addresses of any recipients of the Data by contacting the Grantee's local human resources representative. The Grantee understands that the recipients receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing the Grantee's participation in the Plan, including transfers of such Data to a broker or other third party. The Grantee

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understands that the Data will be held only as long as is necessary to implement, administer and manage the Grantee's participation in the Plan in accordance with applicable law. The Grantee understands that the Grantee may, at any time, request to access or be provided the Data, request additional information about the storage and processing of the Data, require any corrections or amendments to the Data, in any case without cost and to the extent permitted by law, by contacting in writing the Grantee's local human resources representative. The Grantee may also refuse or withdraw the consents in the Agreement; the Grantee understands, however, that not providing or withdrawing consent to the processing of his/her Data may affect the Grantee's ability to participate in the Plan. For more information on the processing of his or her Data and other personal data, the Grantee is referred to the Privacy Notice made available provided to him/her by his/her employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Country Specific Terms</u>. Notwithstanding anything to the contrary herein, the PBA shall be subject to the Country-Specific Terms attached hereto as an Addendum to this Agreement. In addition, if the Grantee relocates to one of the countries included in the Country-Specific Terms, the special terms and conditions for such country will apply to the Grantee to the extent the Company determines that the application of such terms and conditions is necessary or advisable in order to comply with local law or facilitate the administration of the Plan. The Country-Specific Terms constitute part of this Agreement and are incorporated herein by reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Section 409A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) It is intended that this Agreement comply in all respects with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event that the PBA 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Except as otherwise specifically provided herein, the time for distribution of PBA Shares under this PBA shall not be accelerated or delayed for any reason, unless to the extent necessary to comply with or permitted under the Applicable Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 PBA Shares issuable or amounts payable to the Grantee under this PBA on account of his or her termination of employment (including without limitation any dividend equivalents payable to the Grantee pursuant to Section 6(c) if payable on account of his or her termination of employment) shall be paid to the Grantee upon the later of (i) the date such PBA Shares would otherwise be issuable or such amounts would otherwise be payable to the Grantee under this PBA without regard to this Section 14(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 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Notices</u>. 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Amendment; Waiver</u>. The Committee may modify this Agreement upon written notice to the Grantee. Any amendment to the Plan shall be deemed to be an amendment to this Agreement to the extent that the amendment is applicable hereto. Notwithstanding the foregoing, no amendment of the Plan or this Agreement shall adversely affect the rights of the Grantee under this Agreement without the Grantee's consent, unless Section 11(b) applies. 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.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Governing Law/Jurisdiction/Resolution of Disputes</u>. 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Miscellaneous</u>. 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Severability</u>. 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Definitions</u>. For purposes of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "Beneficial Owner" (and variants thereof) shall have the meaning given in Rule 13d-3 promulgated under the Exchange Act, modified to reflect ownership pursuant to Section 318(a) of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "Cause" shall mean any (i) willful and continued failure by the Grantee to obey the reasonable instructions of a person to whom the Grantee reports, (ii) willful and continued neglect by the Grantee of the Grantee's duties and obligations as an employee of the Hexcel Group or (iii) willful misconduct of the Grantee or other actions in bad faith by the Grantee which are to the detriment of the Hexcel Group including, without limitation, conviction of a felony, embezzlement or misappropriation of funds or conviction of any act of fraud. For purposes of the foregoing, no act or failure to act on the Grantee's part shall be deemed "willful" unless done, or omitted to be done, by the Grantee not in good faith and without the reasonable belief that the Grantee's act, or failure to act, was in the best interest of the Hexcel Group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "Change in Control" shall mean any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if any Person is or becomes the Beneficial Owner, directly or indirectly, of more than 50% of either (A) the combined fair market value of the then outstanding stock of the Company (the "Total Fair Market Value") or (B) the combined voting power of the then outstanding securities entitled to vote generally in the election of directors of the Company (the "Total Voting Power"); excluding, however, the following: (I) any acquisition by the Company or any of its Subsidiaries, (II) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any of its Subsidiaries, (III) any Person who becomes such a Beneficial Owner in connection with a transaction described in the exclusion within paragraph (iv) below and (IV) any acquisition of additional stock or securities by a Person who owns more than 50% of the Total Fair Market Value or Total Voting Power of the Company immediately prior to such acquisition; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company that, together with any securities acquired directly or indirectly by such Person within the immediately preceding twelve-consecutive month period, represent 40% or more of the Total Voting Power of the Company; excluding, however, any acquisition described in subclauses (I) through (IV) of subsection (i) above; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a change in the composition of the Board such that the individuals who, as of the effective date of this Agreement, constitute the Board (such individuals shall be hereinafter referred to as the "Incumbent Directors") cease for any reason to constitute at least a majority of the Board; provided, however, for purposes of this definition, that any individual who becomes a director subsequent to such effective date, whose election, or nomination for election by the Company's stockholders, was made or approved by a vote of at least a majority of the Incumbent Directors (or directors whose election or nomination for election was previously so approved) shall be considered an Incumbent Director; but, provided, further, that any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a person or legal entity other than the Board shall not be considered an Incumbent Director; provided finally, however, that, as of any time, any member of the Board who has been a director for at least twelve consecutive months immediately prior to such time shall be considered an Incumbent Director for purposes of this definition, other than for the purpose of the first proviso of this definition; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) there is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company or a sale or other disposition of all or substantially all of the assets of the Company ("Corporate Transaction"); excluding, however, such a Corporate Transaction (A) pursuant to which all or substantially all of the individuals and entities who are the

------

Beneficial Owners, respectively, of the outstanding Common Stock of the Company and Total Voting Power immediately prior to such Corporate Transaction will Beneficially Own, directly or indirectly, more than 50%, respectively, of the outstanding Common Stock and the combined voting power of the then outstanding Common Stock and the combined voting power of the then outstanding securities entitled to vote generally in the election of directors of the company resulting from such Corporate Transaction (including, without limitation, a company which as a result of such transaction owns the Company or all or substantially all of the Company's assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership immediately prior to such Corporate Transaction of the outstanding Common Stock and Total Voting Power, as the case may be, and (B) immediately following which the individuals who comprise the Board immediately prior thereto constitute at least a majority of the board of directors of the company resulting from such Corporate Transaction (including, without limitation, a company which as a result of such transaction owns the Company or all or substantially all of the Company's assets either directly or through one or more subsidiaries);provided, however, that notwithstanding anything to the contrary in subsections (i) through (iv) above, an event which does not constitute a change in the ownership of the Company, a change in the effective control of the Company, or a change in the ownership of a substantial portion of the assets of the Company, each as defined in Section 1.409A-3(i)(5) of the Treasury Regulations (or any successor provision), shall not be considered a Change in Control for purposes of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "Disability" shall have the same meaning as in the Company's then current long-term disability plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "Exchange Act" shall mean the U.S. Securities Exchange Act of 1934, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "Hexcel Group" shall mean the Company and its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "Long-Term Performance Period" shall mean the period beginning on January 1, 2026 and ending on December 31, 2028;

(h) "Maximum Share Award" is the maximum amount of unrestricted shares of Common Stock that can be awarded to the Grantee under this PBA, which is 200% of the PBA Target Share Award, exclusive of any amounts credited as dividend equivalents to Grantee pursuant to Section 6(c);

(i) "PBA Shares" shall mean the unrestricted shares of Common Stock that Grantee is entitled to receive under this Agreement pursuant to Section 3, Section 4 or Section 5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "PBA Target Share Award" shall mean the number of unrestricted shares of Common Stock set forth on Annex A (which number represents the number of unrestricted shares that can be awarded to the Grantee under this PBA if the Target Level of 100% for each of the performance measures is achieved as set forth in Annex B);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "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);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "Retirement" shall mean termination of the Grantee's employment with a member of the Hexcel Group, other than by reason of death or Cause, either (A) at or after age 65 or (B) at or after age 55 after five (5) years of employment by the Hexcel Group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "Subsidiary" shall mean any "subsidiary" of the Company within the meaning of Rule 405 under the Securities Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "Target Level" for each of the performance measures is defined on Annex B.

**ADDENDUM TO PERFORMANCE BASED AWARD AGREEMENT**

**COUNTRY-SPECIFIC TERMS**

**FOR PARTICIPANTS OUTSIDE THE U.S.**

These Country-Specific Terms include additional terms and conditions that govern the PBA awarded to the Grantee under the Plan if the Grantee resides in one of the countries listed below. Capitalized terms used but not defined in these Country-Specific Terms are defined in the Plan or this Agreement and have the meanings set forth therein.

**<u>FRANCE</u>**

<u>French Sub-Plan</u>

------

The PBA is intended to qualify for specific treatment under French tax and social security laws and is subject to the provisions below and the Specific and Additional Terms and Conditions for French Employees (the "French Sub-Plan"), which has been provided to the Grantee and is incorporated herein. Capitalized terms below shall have the same definitions assigned to them under the French Sub-Plan and the Agreement.

<u>No Dividend Equivalents</u>. The Grantee shall not be entitled to any dividend equivalents with respect to the PBA and accordingly, no dividend equivalents shall be credited to the Grantee.

<u>Closed Periods</u>

The Grantee may be subject to restrictions on sale of PBA Shares during Closed Periods as set forth in the French Sub-Plan.

**<u>UNITED KINGDOM</u>**

<u>PBA Payable Only in Shares</u>. Notwithstanding any discretion in the Plan or anything to the contrary in this Agreement, the grant of the PBA does not provide the Grantee any right to receive a cash payment and the PBA may be settled only in shares of Common Stock.

<u>Termination of Service</u>. The Grantee has no right to compensation or damages on account of any loss in respect of the PBA under the Plan where the loss arises or is claimed to arise in whole or part from: (a) the termination of the Grantee's office or employment; or (b) notice to terminate the Grantee's office or employment. This exclusion of liability shall apply however termination of office or employment, or the giving of notice, is caused, and however compensation or damages are claimed. For the purpose of the Plan, the implied duty of trust and confidence is expressly excluded.

**<u>Annex A</u>**

**<u>NOTICE OF GRANT</u>**

**<u>PERFORMANCE BASED AWARD</u>**

**<u>HEXCEL CORPORATION 2013 INCENTIVE STOCK PLAN</u>**

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

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

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| | |
|:---|:---|
| &nbsp;&nbsp; <br>Grantee<br>| &nbsp;&nbsp; <br>Participant Name |
| &nbsp;&nbsp; <br>Grant Date<br>| &nbsp;&nbsp; <br>Grant Date |
| &nbsp;&nbsp; <br>Target number of unrestricted shares of Common Stock which may be granted as a result of this PBA ("PBA Target Share Award") | &nbsp;&nbsp; <br>Number of Awards Granted |

---

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

__________________________ **HEXCEL CORPORATION** 

Grantee

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By:_________________________

Gail E. Lehman

EVP Chief Legal & Sustainability Officer

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## Ex-21

**<u>Exhibit 21</u>**

**<u>SUBSIDIARIES OF HEXCEL CORPORATION</u>**

**<u>DOMESTIC:</u>**

1. ACM Holdings LLC (Delaware)

2. ARC Technologies LLC (Massachusetts)

3. Hexcel Foundation (California)

4. Hexcel LLC (Delaware)

5. Hexcel Pottsville Corporation (Delaware)

6. Hexcel Reinforcements Corp. (Delaware)

**<u>FOREIGN:</u>**

7. Hexcel Asia Pacific Trading Limited (Hong Kong)

8. Hexcel Austria GMBH (Austria)

9. Hexcel Composites GmbH (Germany)

10. Hexcel Composites India LLP (India)

11. Hexcel Composites Limited (UK)

12. Hexcel Composites Pension Trustees Limited (UK)

13. Hexcel Composites SARLAU (Morocco)

14. Hexcel Composites SASU (France)

15. Hexcel Composites Sdn. Bhd. (Malaysia)

16. Hexcel Composites (Shanghai) Commercial Information Consultancy Services Co. Ltd. (China)

17. Hexcel Composites S.L.U. (Spain)

18. Hexcel Composites S.R.L. (Belgium)

19. Hexcel Composites S.r.1. (Italy)

20. Hexcel Europe Limited (UK)

21. Hexcel Fibers SASU (France)

22. Hexcel Fibers S.L.U. (Spain)

23. Hexcel Finance Holdings Luxembourg S.a.r.1. (Luxembourg)

24. Hexcel Financing Luxembourg S.a.r.l. (Luxembourg)

25. Hexcel Holdings Hong Kong Limited (Hong Kong)

26. Hexcel Holdings Luxembourg S.a r.l. (Luxembourg)

27. Hexcel Holding Spain, S.L.U. (Spain)

28. Hexcel Holdings SASU (France)

29. Hexcel Holdings (UK) Limited (UK)

30. Hexcel Ireland Limited (Ireland)

31. Hexcel Japan K. K. (Japan)

32. Hexcel LLC Luxembourg SCS (Luxembourg)

33. Hexcel Overseas (UK)

34. Hexcel Reinforcements Holdings Luxembourg SARL (Luxembourg)

35. Hexcel Reinforcements SASU (France)

36. Hexcel Reinforcements UK Limited (UK)

37. Hexcel Research Limited (UK)

38. Hexcel (U.K.) Limited (UK)

39. Societe de Technologies Appliquees aux Materiaux EURL (France)

40. Structil S.A.S.U. (France)

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## Exhibit 23.1

**Exhibit 23.1** 

**Consent of Independent Registered Public Accounting Firm**

We consent to the incorporation by reference in the following Registration Statements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Registration Statement (Form S-3 No. 333-278173)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Registration Statement (Form S-8 No. 333-288052)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Registration Statement (Form S-8 No. 333-256928)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Registration Statement (Form S-8 No. 333-231742)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Registration Statement (Form S-8 No. 333-211953)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Registration Statement (Form S-8 No. 333-188292)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Registration Statement (Form S-8 No. 333-166354)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Registration Statement (Form S-8 No. 333-160202)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Registration Statement (Form S-8 No. 333-160203)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Registration Statement (Form S-8 No. 333-160204)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Registration Statement (Form S-8 No. 333-104159)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Registration Statement (Form S-8 No. 333-104158)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Registration Statement (Form S-8 No. 333-90060)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Registration Statement (Form S-8 No. 333-85196)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Registration Statement (Form S-8 No. 333-104160)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Registration Statement (Form S-8 No. 333-90062)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Registration Statement (Form S-8 No. 333-67944)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Registration Statement (Form S-8 No. 333-67946)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Registration Statement (Form S-8 No. 333-46472)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Registration Statement (Form S-8 No. 333-46476)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Registration Statement (Form S-8 No. 333-46626)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Registration Statement (Form S-8 No. 333-83745)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Registration Statement (Form S-8 No. 333-83747)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Registration Statement (Form S-8 No. 333-57223)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Registration Statement (Form S-8 No. 333-36099)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Registration Statement (Form S-8 No. 333-36163)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Registration Statement (Form S-8 No. 333-01225)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Registration Statement (Form S-8 No. 333-31125)

of our reports dated February 11, 2026, with respect to the consolidated financial statements of Hexcel Corporation and Subsidiaries and the effectiveness of internal control over financial reporting of Hexcel Corporation and Subsidiaries, included in this Annual Report (Form 10-K) of Hexcel Corporation and Subsidiaries for the year ended December 31, 2025.

/s/ Ernst & Young LLP

Stamford, Connecticut

February 11, 2026

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## Exhibit 31.1

**Exhibit 31.1** 

**CERTIFICATION OF CHIEF EXECUTIVE OFFICER** 

I, Thomas C. Gentile III, certify that:

1. I have reviewed this annual report on Form 10-K 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

---

| | |
|:---|:---|
| February 11, 2026 | /s/ Thomas C. Gentile III |
| (Date) | Thomas C. Gentile III |
|  | Chairman of the Board of Directors, Chief Executive Officer and President |

---

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## Exhibit 31.2

**Exhibit 31.2** 

**CERTIFICATION OF CHIEF FINANCIAL OFFICER** 

I, Michael C. Lenz, certify that:

1. I have reviewed this annual report on Form 10-K 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

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| | |
|:---|:---|
| February 11, 2026 | /s/ Michael C. Lenz |
| (Date) | Michael C. Lenz |
|  | Executive Vice President And |
|  | Interim Chief Financial Officer |

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## Ex-32

**Exhibit 32** 

**CERTIFICATION**

**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 Annual Report of Hexcel Corporation ("Hexcel") on Form 10-K for the year ended December 31, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Thomas C. Gentile III, Chairman of the Board of Directors, Chief Executive Officer and President of Hexcel, and Michael C. Lenz, Executive Vice President and Interim Chief Financial Officer of Hexcel, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Hexcel.

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| | |
|:---|:---|
| February 11, 2026 | /s/ THOMAS C. GENTILE III |
| (Date) | Thomas C. Gentile III |
|  | Chairman of the Board of Directors, |
|  | Chief Executive Officer and President |
| February 11, 2026 | /s/ MICHAEL C. LENZ |
| (Date) | Michael C. Lenz |
|  | Executive Vice President and Interim |
|  | Chief Financial Officer |

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*A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Hexcel Corporation and will be retained by Hexcel Corporation and furnished to the Securities and Exchange Commission or its staff upon request.* 

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