Industrial Supplier Stock

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Industrial Supplier Stock

Which Industrial Supplier Stock Is Better?

Textron and Hexcel are two big names in the aerospace sector. For those looking for a good industrial supplier stock, it can get tough to choose one from these two. To help you choose the right stock, let's take a closer look at Textron and Hexcel.

Hexcel

Hexcel manufactures composite materials such as resin systems and carbon fiber. It makes these materials for big-name customers like Boeing, Airbus, and so on. Around 13% of the net sales in 2025 came from Boeing. Airbus was responsible for around 39% of the sales.

So, one key risk with Hexcel is the customer concentration. Other than that, the revenue in FY 2025 was $1.9 billion. That's a decline of around $10 million when we look at the numbers from last year.

Also, the net margin during the same period was 5.8%. It is way lower than the net margin of 6.9% from the previous year.

As mentioned above, the biggest risk with Hexcel is the customer concentration. Any production delays at these companies will have an impact on the orders. Other risks include supply chain volatility and failure of the ongoing operational restructuring.

Textron

Textron has a diverse portfolio and is more of a multi-industry manufacturer. It deals in defense, aviation, and the industrial sector.

A big part of the revenue comes from US government contracts. The company also recently integrated the electric aviation activities into many of its existing divisions.

In FY 2025, Textron's revenue was $14.8 billion, with an 8% increase from last year. The net income for the year was around $921 million. If we talk about net margin, it was nearly 6.2%. Back in 2024, the net margin was only 6%, which shows it is improving over time.

One key risk with Textron is that it relies a lot on the US government defense spending. This means the revenue could be impacted because of funding delays or changes in the federal budget.

Which Stock Is Better?

There's no doubt that both Textron and Hexcel are great industrial supplier stocks. But if you really have to choose, then go for Textron stock. It is cheaper than Hexcel in terms of forward P/S and P/E ratios.

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