| Segment Information |
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 |
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Engineered |
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Corporate & |
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(In millions) |
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Materials |
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Products |
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Other (a) |
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Total |
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Year Ended December 31, 2025 |
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Net sales to external customers |
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$ |
1,516.2 |
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$ |
377.7 |
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$ |
— |
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$ |
1,893.9 |
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Intersegment sales |
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79.0 |
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3.8 |
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(82.8 |
) |
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— |
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Total sales |
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1,595.2 |
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381.5 |
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(82.8 |
) |
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1,893.9 |
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Cost of sales |
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1,217.6 |
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319.8 |
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(78.3 |
) |
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1,459.1 |
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Gross margin |
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377.6 |
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61.7 |
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(4.5 |
) |
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434.8 |
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Selling, general and administrative expenses |
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105.2 |
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15.2 |
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48.6 |
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169.0 |
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Research and technology expenses |
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48.6 |
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4.1 |
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3.7 |
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56.4 |
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Other operating expense |
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2.8 |
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29.3 |
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5.7 |
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37.8 |
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Operating income (loss) |
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$ |
221.0 |
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$ |
13.1 |
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$ |
(62.5 |
) |
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$ |
171.6 |
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Year Ended December 31, 2024 |
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Net sales to external customers |
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$ |
1,531.0 |
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$ |
372.0 |
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$ |
— |
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$ |
1,903.0 |
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Intersegment sales |
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90.0 |
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1.2 |
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(91.2 |
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— |
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Total sales |
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1,621.0 |
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373.2 |
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(91.2 |
) |
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1,903.0 |
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Cost of sales |
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1,218.8 |
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299.5 |
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(85.1 |
) |
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1,433.2 |
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Gross margin |
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402.2 |
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73.7 |
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(6.1 |
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469.8 |
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Selling, general and administrative expenses |
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98.3 |
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21.7 |
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56.6 |
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176.6 |
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Research and technology expenses |
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48.1 |
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4.7 |
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4.3 |
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57.1 |
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Other operating expense |
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40.8 |
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7.7 |
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1.5 |
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50.0 |
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Operating income (loss) |
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$ |
215.0 |
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$ |
39.6 |
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$ |
(68.5 |
) |
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$ |
186.1 |
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Year Ended December 31, 2023 |
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Net sales to external customers |
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$ |
1,474.2 |
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$ |
314.8 |
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$ |
— |
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$ |
1,789.0 |
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Intersegment sales |
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70.6 |
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2.4 |
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(73.0 |
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— |
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Total sales |
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1,544.8 |
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317.2 |
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(73.0 |
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1,789.0 |
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Cost of sales |
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1,165.1 |
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261.1 |
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(70.4 |
) |
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1,355.8 |
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Gross margin |
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379.7 |
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56.1 |
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(2.6 |
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433.2 |
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Selling, general and administrative expenses |
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95.5 |
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19.0 |
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49.3 |
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163.8 |
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Research and technology expenses |
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45.1 |
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4.1 |
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3.5 |
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52.7 |
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Other operating expense |
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1.2 |
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0.2 |
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— |
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1.4 |
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Operating income (loss) |
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$ |
237.9 |
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$ |
32.8 |
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$ |
(55.4 |
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$ |
215.3 |
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(In millions) |
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Composite
Materials |
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Engineered
Products |
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Corporate &
Other |
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Total |
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Depreciation and amortization |
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2025 |
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$ |
109.4 |
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$ |
12.9 |
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$ |
— |
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$ |
122.3 |
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2024 |
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109.1 |
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14.9 |
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— |
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124.0 |
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2023 |
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110.4 |
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14.4 |
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— |
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124.8 |
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Equity in earnings (losses) from affiliated companies |
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2025 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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2024 |
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— |
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— |
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— |
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— |
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2023 |
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— |
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8.1 |
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— |
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8.1 |
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Segment assets |
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2025 |
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$ |
2,066.7 |
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$ |
596.2 |
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$ |
41.1 |
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$ |
2,704.0 |
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2024 |
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2,147.6 |
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541.4 |
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36.6 |
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2,725.6 |
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2023 |
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2,309.3 |
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543.1 |
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66.1 |
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2,918.5 |
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Investments in affiliated companies |
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2025 |
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$ |
— |
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$ |
— |
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$ |
5.0 |
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$ |
5.0 |
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2024 |
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— |
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— |
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5.0 |
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5.0 |
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2023 |
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— |
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— |
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5.0 |
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5.0 |
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Accrual basis additions to property, plant and equipment |
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2025 |
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$ |
75.1 |
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$ |
6.1 |
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$ |
— |
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$ |
81.2 |
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2024 |
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67.1 |
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14.0 |
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— |
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81.1 |
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2023 |
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70.9 |
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50.7 |
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— |
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121.6 |
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Stock-based compensation |
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2025 |
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$ |
5.3 |
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$ |
1.3 |
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$ |
7.8 |
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$ |
14.4 |
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2024 |
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6.1 |
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1.5 |
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14.6 |
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22.2 |
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2023 |
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6.2 |
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1.7 |
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13.0 |
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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) |
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2025 |
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2024 |
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2023 |
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Net Sales by Geography (a): |
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United States |
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$ |
997.5 |
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$ |
955.8 |
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$ |
888.2 |
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International |
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France |
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331.3 |
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340.8 |
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320.4 |
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Spain |
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209.5 |
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199.4 |
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183.2 |
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Germany |
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135.0 |
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149.2 |
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153.6 |
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United Kingdom |
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162.2 |
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167.8 |
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150.4 |
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Austria |
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27.0 |
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38.1 |
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56.1 |
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Other |
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31.4 |
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51.9 |
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37.1 |
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Total international |
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896.4 |
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947.2 |
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900.8 |
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Total consolidated net sales |
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$ |
1,893.9 |
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$ |
1,903.0 |
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$ |
1,789.0 |
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Net Sales to External Customers (b): |
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United States |
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$ |
813.8 |
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$ |
779.9 |
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$ |
737.5 |
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International |
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Germany |
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129.5 |
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|
141 |
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141.2 |
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France |
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170.5 |
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170.1 |
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174.7 |
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Spain |
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136.2 |
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147.7 |
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138.1 |
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United Kingdom |
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68.6 |
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66.7 |
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65.3 |
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Other |
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575.3 |
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597.6 |
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532.2 |
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Total international |
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1,080.1 |
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1,123.1 |
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1,051.5 |
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Total consolidated net sales |
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$ |
1,893.9 |
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$ |
1,903.0 |
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$ |
1,789.0 |
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Long-lived Assets (c): |
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United States |
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$ |
1,342.1 |
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$ |
1,363.8 |
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$ |
1,410.3 |
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International |
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France |
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323.7 |
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|
294.8 |
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322.7 |
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United Kingdom |
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106.0 |
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99.8 |
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|
107.2 |
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Spain |
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45.5 |
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42.4 |
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45.5 |
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Other |
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59.7 |
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58.2 |
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|
73.6 |
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Total international |
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534.9 |
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495.2 |
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|
549.0 |
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Total consolidated long-lived assets |
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$ |
1,877.0 |
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$ |
1,859.0 |
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$ |
1,959.3 |
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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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