Cost Inflation Challenge

Cost inflation remains a challenge, with elevated energy and raw‑material prices; Hexcel has implemented hedging strategies and a “Next Generation” initiative aimed at pricing, continuous improvement and digitization to offset pressures. Management expects lower second‑half 2026 margins due to seasonal slowdowns, increased hiring, and costs from restarting an idle carbon‑fiber line. Leverage sits at 2.3× net debt to adjusted EBITDA, with a target of 1.5–2.0× for the year.