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• Corning (GLW) for advanced composites in aerospace.
• Intel for aircraft materials.
• The Gore-Tex for structural materials in aviation and high-performance industries.

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• Carbon Fibers: Fundamental high-performance fibers providing strength and stiffness to composite materials.
• Prepregs: Ready-to-mold sheets of fibers pre-impregnated with a resin system, simplifying composite part manufacturing.
• Honeycomb Materials: Lightweight core materials that provide structural rigidity and strength in sandwich panel construction.
• Resin Systems & Adhesives: Chemical formulations that bind fibers together to form composite laminates and bond composite structures.
• Composite Structures: Engineered components and assemblies fabricated from Hexcel's advanced composite materials.

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Hexcel (HXL) primarily sells its advanced composite materials and structures to other companies, particularly in the commercial aerospace, space and defense, and industrial markets. Its major customers, which individually represent a significant portion of its sales, include:

• Airbus S.A.S. (Symbol: AIR.PA)
• The Boeing Company (Symbol: BA)

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• Mitsubishi Chemical Group (Symbol: MCXCY)
• Toray Industries, Inc. (Symbol: TRYIY)
• Huntsman Corporation (Symbol: HUN)
• Hexion Inc.

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Thomas C. Gentile III, Chairman, CEO and President

Thomas C. Gentile III was named Chief Executive Officer and President of Hexcel Corporation in May 2024, and was appointed Chairman of the company's Board of Directors in December 2024. Before joining Hexcel, Mr. Gentile served as President and Chief Executive Officer of Spirit AeroSystems from 2016 to 2023. He spent 19 years at GE, holding various leadership positions, including President and Chief Operating Officer of GE Capital, President and Chief Executive Officer of GE Healthcare Systems, and President and Chief Executive Officer of GE Aviation Services. Prior to GE, Mr. Gentile was Vice President, Strategic Planning at CBS Corporation and an Associate Principal/Senior Engagement Manager at McKinsey & Company. He began his career as a Trade Analyst at General Motors. Mr. Gentile previously served as chairperson of the board of directors for InSightec.

Patrick J. Winterlich, Executive Vice President and Chief Financial Officer

Patrick J. Winterlich has served as Executive Vice President and Chief Financial Officer of Hexcel since September 2017. He joined Hexcel in 1998 and has held roles of increasing responsibility in Operations, Finance, and Information Technology, including Senior Vice President - Tax, Systems and Enterprise Reporting. Before joining Hexcel, Mr. Winterlich held various finance roles at Courtaulds. He is a member of the Chartered Institute of Management Accountants. Note: Mr. Winterlich's resignation as CFO is effective November 30, 2025.

Gail E. Lehman, Executive Vice President, Chief Legal and Sustainability Officer

Gail E. Lehman is the Executive Vice President, Chief Legal and Sustainability Officer at Hexcel. She joined the company in 2017, having previously worked at Noranda Aluminum Holding.

Gina Fitzsimons, Executive Vice President, Chief HR and Communications Officer

Gina Fitzsimons serves as Executive Vice President, Chief HR and Communications Officer at Hexcel. She joined Hexcel in June 2019, bringing with her 10 years of prior experience in other roles.

Don Morrison, Senior Vice President and Chief Information Officer

Don Morrison is the Senior Vice President and Chief Information Officer for Hexcel. He joined Hexcel in 2007 as Director, U.S. Information Technology. Prior to Hexcel, Mr. Morrison was a Director of IT Europe & IT Field Services with Novell, Inc. and Vice President-Product Management & Support for Message Transport Systems.

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The key risks to Hexcel Corporation (HXL) are primarily concentrated in its core market and the broader global economic environment.

1. Reliance on Commercial Aerospace Market and OEM Production Delays/Destocking: Hexcel generates a significant majority of its revenue from the commercial aerospace sector, with a substantial portion tied to major Original Equipment Manufacturers (OEMs) like Airbus and Boeing. The business is highly susceptible to production rate adjustments, inventory destocking by these key customers, and broader supply chain disruptions within the aerospace industry. For example, in the third quarter of 2025, commercial aerospace sales dropped by 7.3% year-over-year largely due to inventory adjustments on the Airbus A350 and Boeing 787 programs, directly impacting Hexcel's financial expectations and leading to reduced sales and EPS guidance. Lingering supply chain bottlenecks and reliance on Airbus and Boeing schedules could further impede expected margin recovery and cash flow.
2. Tariffs and Inflationary Pressures: Hexcel faces ongoing headwinds from tariffs, which are anticipated to impact the company by $3 million to $4 million per quarter. Additionally, inflationary pressures related to long-term contracts, such as with the Airbus A350 program, are expected to affect margins by approximately 200 basis points. These factors contribute to increased costs and can pressure profitability.
3. Competitive Landscape and Need for Continuous Innovation: The advanced composites market in which Hexcel operates is highly competitive. The company faces pressure from established players and emerging companies, requiring continuous innovation and cost competitiveness to maintain its market position. Hexcel's ability to differentiate its carbon fiber products and adapt to advancements in manufacturing technologies, such as thermoplastic composites, is crucial for future growth and competitive standing.

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The clear emerging threat for Hexcel is the rapid advancement and increasing adoption of **additive manufacturing (3D printing)**, particularly for structural and semi-structural aerospace components. While Hexcel's traditional carbon fiber and composite prepregs have been critical for lightweighting aircraft, advances in metal additive manufacturing and even advanced composite 3D printing are beginning to offer alternative methods for producing complex, high-performance parts. This technology has the potential to reduce material waste, simplify supply chains, and enable novel designs that could bypass the need for traditional composite manufacturing processes and materials in certain applications, similar to how Netflix's streaming model disrupted Blockbuster's physical rental business by offering a fundamentally different way to consume media.

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Hexcel Corporation (symbol: HXL) operates in key addressable markets primarily focused on advanced composite materials and engineered products. Their main markets include Commercial Aerospace, Space & Defense, and Industrial applications.

Commercial Aerospace and Space & Defense Markets

Hexcel is a prominent supplier of advanced composites, including carbon fiber, prepregs, and honeycomb core products, to the aerospace and defense sectors.

• The global aerospace composites market is projected to grow from USD 30.3 billion in 2025 to USD 53.4 billion by 2030, demonstrating a Compound Annual Growth Rate (CAGR) of 12.0%.
• Another estimate places the global aerospace composites market size at USD 29.4 billion in 2024, with a forecast to reach USD 98.23 billion by 2035, at a CAGR of 11.94% from 2025 to 2035.
• Specifically, the commercial aerospace composites market is expected to reach $29.5 billion by 2026, with an 8.3% CAGR.
• The defense aerospace composites market is projected to reach $12.3 billion by 2025.
• Hexcel holds a global market share of approximately 15-20% in aerospace composites as of 2023.

Industrial Market

Hexcel's Industrial market segment focuses on diverse applications such as automotive, recreational products, marine, and wind turbine blades, where lightweighting and high-performance materials are crucial.

• The global carbon fiber market, a significant component of Hexcel's industrial offerings, is anticipated to increase from $5.75 billion in 2024 to $10.68 billion by 2030, at a CAGR of 10.9%.
• Within the industrial sector, Hexcel provides materials for wind turbine blades. The global wind turbine nacelle market, which houses critical turbine components, was valued at USD 49.92 billion in 2024 and is projected to reach USD 346.26 billion by 2032, exhibiting a CAGR of 25.56% during the forecast period.

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Hexcel Corporation (HXL) is poised for future revenue growth over the next two to three years, driven by several key factors:

1. Commercial Aerospace Market Recovery and Increased Aircraft Production Rates: Hexcel anticipates significant growth from the ongoing recovery in the commercial aerospace sector. The company's 2024 sales showed a 12% increase in commercial aerospace, and it forecasts approximately 10% year-over-year growth for 2025, despite existing supply chain challenges. This is supported by near-record backlogs at major aircraft manufacturers like Airbus and Boeing, indicating a multi-year growth cycle for original equipment production. Specific aircraft programs like the Airbus A320neo, A350, and Boeing 787 are expected to contribute to this growth.

2. Enhanced Adoption of Advanced Lightweight Composite Materials: A core driver for Hexcel is the increasing integration of its lightweight advanced composite materials in both existing and next-generation aircraft programs. This trend is fueled by the aerospace industry's demand for greater fuel efficiency and reduced emissions, where Hexcel's materials offer a superior strength-to-weight ratio compared to traditional metals. Newer aircraft designs inherently incorporate more of Hexcel's advanced composites.

3. Growth in Defense, Space, and Other Markets: Beyond commercial aviation, Hexcel is experiencing consistent revenue growth in its defense, space, and other industrial segments. In 2024, the company saw sales growth in defense programs such as the Sikorsky CH-53K military helicopters and Lockheed F-35 fighter jets. The Defense, Space & Other segment reported a 13.3% year-over-year sales increase in Q3 2025.

4. New Product Development and Innovation: Hexcel prioritizes innovation to secure its position on future aircraft platforms. The company is actively developing and enhancing its lightweight materials. Examples include the launch of HexTow IM9 24K, a new continuous carbon fiber, and HexPly M51, a rapid-curing prepreg designed for high-rate production of structural composite parts. Hexcel is also exploring advanced technologies such as thermoplastic composite solutions and 3D printed parts for aerospace applications.

5. Strategic Acquisitions: Hexcel has indicated that inorganic growth through "disciplined strategic deployment of our robust and growing capital resources" is a key priority for 2025. This suggests that strategic acquisitions could contribute to expanding the company's market reach and revenue streams in the coming years.

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Share Repurchases

• Hexcel announced a new $600 million share repurchase authorization in October 2025, which includes a $350 million accelerated share repurchase program. The remaining authorization after the ASR is approximately $384 million.
• In the first nine months of 2025, Hexcel repurchased $100.9 million of its common stock. In Q2 2025, $50.5 million was repurchased, bringing year-to-date repurchases to $100.9 million and $350 million over the last 18 months, representing nearly 6% of outstanding stock.
• An additional $300 million share repurchase program was approved by the Board of Directors in February 2024, with approximately $65 million in stock purchased year-to-date through February 16, 2024. The company did not repurchase any common stock during 2022.

Share Issuance

• There were no significant share issuances for capital-raising purposes reported over the last 3-5 years. The number of issued shares increased slightly from 111.6 million at December 31, 2024, to 112.0 million at September 30, 2025.

Capital Expenditures

• Hexcel's guidance for 2025 indicates capital expenditures will be less than $90 million. For the three-year period from 2024 to 2026, capital expenditures are expected to remain below $100 million per year.
• Capital expenditures on an accrual basis were $49.9 million for the first nine months of 2025, a decrease from $59.6 million for the same period in 2024.
• The primary focus of capital expenditures includes the "Future Factory Initiative," which involves investments in lean projects, digitization, and automation to drive efficiency and reduce unit costs. The company plans to keep capital expenditures subdued to leverage existing capacity.