Astronics vs. Hexcel: Which Aerospace Stock Is a Better Buy?

Increasing aircraft deliveries worldwide, fleet expansion by airlines and rising demand for maintenance, repair and overhaul (MRO) services are fueling growth across the aviation services sector. Continued recovery in global air travel and sustained defense modernization efforts are enhancing investor confidence in aerospace service providers such as Astronics Corporation ATRO and Hexcel Corporation HXL.

ATRO is a leading provider of advanced technologies to the global aerospace, defense and electronics industries. Hexcel develops, manufactures and distributes lightweight, high-performance structural materials for use in the Commercial Aerospace, Space & Defense and Industrial markets.
Ongoing technological advancements, heightened emphasis on aircraft efficiency and the gradual easing of supply-chain constraints are drawing growing attention to aviation support companies.

As an investment option, which stock, ATRO or HXL, is more attractive for long-term investors? Let’s take a closer look.

The Case for Astronics

Astronics is a niche supplier of advanced electrical power, connectivity, lighting and test systems for the global aerospace and defense industry. With exposure to both commercial aviation and military programs, the company is positioned to benefit from diverse and supportive end-market trends.

Growth is being driven by favorable conditions across both segments. Increasing global defense spending is sustaining demand for military aircraft, while the continued expansion of air travel is prompting airlines to invest in cabin upgrades, such as in-seat power and in-flight connectivity—key areas of Astronics’ expertise. These dynamics provide a strong foundation for ongoing revenue growth.

The company’s business model is supported by long product life cycles, high switching costs, and deep customer relationships, which together create durable competitive advantages and recurring revenue streams. As aerospace markets continue to recover, these factors underpin a favorable multi-year growth trajectory and potential for margin improvement.

Management remains focused on enhancing profitability through cost control, supply chain stabilization and disciplined capital allocation. Higher production volumes are expected to improve operating leverage, driving margin expansion and stronger free cash flow generation. The core aerospace segment continues to perform steadily, supported by a healthy backlog that provides visibility into future revenues. Astronics’ 2026 revenue guidance of $950–$990 million reflects continued strength in defense demand and airline retrofit activity.

However, near-term risks remain, including supply chain challenges such as raw material shortages, elevated input costs, labor constraints, and rising U.S. tariffs, which could disrupt production timelines.

Despite these headwinds, Astronics delivers a strong return on invested capital (ROIC) of 17.3%, well above the industry average of 5.9%, underscoring efficient capital deployment and solid operational performance.

The Case for Hexcel

Hexcel is well-positioned to benefit from the growing adoption of advanced composite materials in next-generation aircraft, as manufacturers increasingly replace traditional metals with lighter, stronger, and more fuel-efficient alternatives. This structural shift, combined with the company’s operational discipline, supports long-term growth as commercial aircraft production gradually recovers and global defense spending rises.

A significant portion of Hexcel’s revenues is tied to Airbus and Boeing, which together contribute over half of total sales. While this concentration presents dependency risk, its substantial order backlogs provide strong visibility into future demand. As production ramps up, higher volumes should enhance operating leverage and support margin expansion. Management expects approximately 8% revenue growth and around 25% EPS growth in 2026.

Hexcel’s vertically integrated manufacturing footprint across the United States and Europe ensures secure access to critical carbon fiber materials for defense applications, strengthening its strategic importance. The company maintains exposure to major defense platforms, including programs led by Lockheed Martin and Dassault Aviation, reinforcing its diversified growth profile across commercial and military aerospace.

Additionally, Hexcel has expanded its aerospace distribution network through partnerships with firms such as Composites One and Heatcon, improving supply chain responsiveness and innovation capabilities.

However, ongoing supply chain inefficiencies across the aerospace sector continue to delay production increases. Despite these near-term headwinds, rising global air traffic remains a key demand driver. Hexcel currently generates a modest return on invested capital (ROIC) of 5.1%, indicating room for improvement as volumes normalize.

Estimates for ATRO and HXL

The Zacks Consensus Estimate for ATRO’s 2026 and 2027 revenues implies a 11.5% and 7.1% year-over-year increase, respectively. EPS estimates for 2026 and 2027 imply 30.4% and 20% year-over-year increases, respectively. Earnings estimates for 2026 witnessed no movement, but those for 2027 have moved up 5 cents in the past 30 days.

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The Zacks Consensus Estimate for HXL’s 2026 and 2027 revenues implies a 9.3% and 16.5% respective year-over-year increase. EPS estimates for 2026 and 2027 imply 27.8% and 53.2% year-over-year increases, respectively. Earnings estimates for 2026 witnessed no movement, but those for 2027 have moved up 1 cent in the past 30 days.

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Price Performance of ATRO and HXL

ATRO shares have gained 14.9% year to date, while HXL shares have risen 4.3% in contrast to the industry’s decline of 3.9% in the same time frame.

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Are ATRO and HXL Shares Expensive?

ATRO is trading at a forward 12-month price-to-sales multiple of 2.26, higher than its median of 0.85X over the past three years. HXL’s forward 12-month price-to-sales multiple sits at 2.71, lower than its median of 2.73 over the past three years.

Both ATRO and HXL are trading lower than the industry average of 11X.

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Parting Thoughts

Astronics is poised to grow on its niche focus, proprietary technologies, and exposure to secular aerospace growth trends. Its solid growth prospects and its VGM Score of B instill confidence.

On the other hand, improving global air traffic, sales growth and a strong solvency position are expected to boost the long-term growth of HXL.
Astronics carries a Zacks Rank #2 (Buy) while Hexcel carries a Zacks Rank #3 (Hold). Price appreciation, valuation, VGM Score, growth estimates and analyst sentiments give ATRO an edge over HXL.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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