Hexcel vs. Textron: Which Key Industrial Supplier Stock Is a Better Buy in 2026?

Hexcel (NYSE:HXL) and Textron (NYSE:TXT) are two distinct players in the aerospace sector. Deciding which stock to buy requires balancing specialized material expertise against a broad multi-industry manufacturing portfolio.

Hexcel leads in lightweight composite materials essential for modern aircraft efficiency. Textron builds the aircraft itself, as well as specialized vehicles and defense technologies. Both companies are navigating a recovery in global travel and shifting defense priorities, making them common targets for investors in the aerospace industry today.

The case for Hexcel

Hexcel develops and manufactures advanced composite materials like carbon fiber and resin systems for those following industrial stocks. Major customers include Airbus and The Boeing Company (NYSE:BA), which accounted for approximately 39% and 13% of 2025 net sales, respectively. Customer concentration like this adds a layer of risk to the business.

In FY 2025, revenue reached nearly $1.9 billion, a slight decline of approximately $10 million from the prior year. The company reported net income of roughly $109.4 million, resulting in a net margin of close to 5.8%. This margin, which measures profit kept for every dollar earned, was lower than the nearly 6.9% reported in the previous year.

On its December 2025 balance sheet, the debt-to-equity ratio was approximately 0.8x, measuring total debt against shareholder equity. Free cash flow for the year slid about $46 million $157.2 million. Free cash flow is calculated as operating cash minus capital expenditures and shows the cash available after maintaining assets.

The case for Textron

Textron operates as a multi-industry manufacturer with a diverse portfolio spanning aviation, defense, and industrial segments. A critical portion of revenue is tied to U.S. government contracts, specifically its Bell subsidiary and its MV-75 assault aircraft program. To improve leverage, the company recently realigned its segments to integrate electric aviation activities into existing divisions.

During FY 2025, revenue grew by roughly 8.0% to nearly $14.8 billion. This growth helped drive a net income $921 million for the year. The net margin was roughly 6.2%, reflecting a consistent performance compared to the nearly 6.0% reported in 2024.

As of its January 2026 balance sheet, the debt-to-equity ratio was roughly 0.5x, showing a lower level of debt relative to equity than its peer. Free cash flow reached $944 million during the 2025 fiscal year. This cash generation provides flexibility for research, acquisitions, or returning capital to shareholders.

Risk profile comparison

Hexcel faces significant risks from its high customer concentration with Airbus and Boeing, as production delays at these firms directly impact orders. The company is also vulnerable to supply chain volatility and potential failure to achieve planned savings from recent operational restructuring. Furthermore, evolving cybersecurity threats pose a constant risk to its proprietary technology and global production systems.

Textron relies heavily on U.S. government defense spending, making it sensitive to federal budget shifts and funding delays for programs like the MV-75. The demand for business jets remains highly cyclical and often declines during periods of economic weakness. Finally, supply chain inefficiencies or labor shortages can delay production, while rigorous procurement regulations carry risks of financial penalties.

Valuation comparison

Textron appears to be the more value-oriented choice, trading at a significant discount to Hexcel across both its Forward P/E and P/S ratio.

Sector benchmark uses the SPDR XLI sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

Hexcel is a key supplier to the world’s two largest passenger airplane makers, Airbus and Boeing, so its future is closely linked to the state of the airline industry. The fact that both claim record backlog for new equipment is a plus, coming after a pandemic-induced slump in aircraft orders. But that rebound has taken longer than expected. However, airlines are highly sensitive to jet fuel prices, so the Iran war and its effect on prices will likely spur more orders for Hexcel’s core customers. For 2026, Hexcel sales are expected to grow to nearly $2.1 billion, representing nearly 10% growth.

The larger and more diverse Textron is far less dependent on any one industry, although defense spending, golf cart demand, and fuel tanks for passenger automobiles are three notable sectors that it sells strongly into. Textrons’ 2026 sales are expected to grow more slowly than Hexcel’s, at about 5%. However, it is just beginning to plan deliveries of the MV-75, and it plans a big increase in U.S. defense spending in the coming years, which should help longer-term growth.

Though it is slower-growing in fiscal 2026. Textron is significantly cheaper than Hexcel in forward P/E and P/S ratios. Both are good companies with strong stocks, but Textron gets the nod given it is value-priced by the market compared to Hexcel.

Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing. The Motley Fool recommends Hexcel and Textron. The Motley Fool has a disclosure policy.