Choosing between an established materials leader and an aggressive space explorer requires balancing steady aerospace demand against high-growth potential. Both Hexcel (NYSE:HXL) and Rocket Lab USA (NASDAQ:RKLB) offer unique exposure to flight technology.
Hexcel provides specialized materials that make aircraft lighter and more fuel-efficient, serving as a critical supplier to the global aviation supply chain. Rocket Lab focuses on frequent satellite launches and space systems, aiming to become a vertically integrated provider of space infrastructure for government and commercial clients.
The case for Hexcel
Among industrial stocks, Hexcel is a primary provider of carbon fiber reinforcements and composite structures used in commercial and defense aircraft. Major customers include Airbus and The Boeing Company, which accounted for roughly 39% and 13% of net sales in 2025 respectively. Customer concentration like this adds a layer of risk to the business, though it is balanced by partnerships with Lockheed Martin and General Electric.
In FY 2025, revenue reached nearly $1.9 billion, representing a slight decrease of roughly 0.5% compared to the prior year. The company reported net income of approximately $109.4 million for the period, resulting in a net margin of close to 5.8%. This performance followed a similar revenue result in 2024, showing how the company is managing its output during a period of shifting aircraft production rates.
As of its December 2025 balance sheet, the company maintained a debt-to-equity ratio of nearly 0.8x, which measures total debt against shareholder equity. The current ratio, a measure of a company’s ability to pay its short-term debts with short-term assets, stood at approximately 2.3x. Hexcel also generated roughly $307.2 million in free cash flow, representing the cash remaining after paying for capital expenditures.
The case for Rocket Lab USA
Rocket Lab designs and manufactures the Electron orbital launch vehicle while concurrently developing the larger Neutron rocket to compete in the medium-lift market. Its business serves government agencies like NASA along with commercial firms such as BlackSky Technology and Planet Labs PBC. The company is also in the process of acquiring Iridium Communications for approximately $8 billion to integrate satellite constellations and subscription revenue into its platform.
During FY 2025, revenue reached nearly $601.8 million, showing a strong growth rate of roughly 38.0% year over year. Despite the top-line expansion, the company reported a net loss of approximately $198.2 million, translating to a negative net margin of nearly 32.9%. This loss is largely due to the high costs associated with developing new launch technologies and scaling its space systems division.
Based on the December 2025 balance sheet, the company reported a debt-to-equity ratio of approximately 0.1x. Its current ratio reached nearly 4.1x, indicating a high level of liquidity available to meet immediate financial obligations. However, the company reported negative free cash flow of approximately $321.8 million for the year, as it continues to invest heavily in its flight hardware and infrastructure.
Risk profile comparison
Hexcel faces risks stemming from the cyclical nature of the commercial aerospace industry and potential production delays at its largest customers. Significant revenue depends on the production rates of Airbus and Boeing, meaning any operational or supply chain disruptions at those firms directly impact Hexcel. Additionally, the company must manage its reliance on limited sources for raw materials while maintaining its focus on core carbon fiber operations after recent facility closures.
Rocket Lab carries risks related to its massive $8 billion acquisition of Iridium Communications, which could create challenges for operational integration and corporate leverage. The company has a history of net losses and must successfully develop the Neutron launch vehicle to achieve long-term profitability. Furthermore, the business is subject to inherent aerospace hazards like launch failures and relies heavily on funding cycles from the U.S. government for its ongoing contracts.
Valuation comparison
Hexcel offers a traditional valuation based on its current profitability, while Rocket Lab does not currently have a defined forward P/E ratio because the company is not yet expected to be profitable over the next 12 months
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?
I’d go with Rocket Lab. Hexcel is a well-run, profitable business with a durable position inside the aerospace supply chain. Its composite materials are baked into aircraft like the Boeing 787 and Airbus A350, and switching suppliers is essentially unthinkable once a plane is certified. That stickiness is valuable. But Hexcel’s growth is tied closely to Boeing and Airbus production rates, which creates a ceiling on how fast the business can move.
Rocket Lab is operating on a different trajectory entirely. Revenue grew more than 60% last year and the company just posted its first $200 million quarter. Its backlog has climbed past $2 billion dollars. It signed more launch contracts in one quarter than it did in all of the prior year. And the Neutron rocket program adds another potential growth engine that Hexcel simply has no equivalent of.
Rocket Lab is still unprofitable and the stock is volatile. But for a long-term investor comfortable with some turbulence, the growth opportunity here is in a different league than what Hexcel can offer.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again
In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. If you’d invested $5,000 then, you’d be sitting on $2,529,759 today.*
Now, for the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. It’s a key player in the $1.8 trillion space race, and with the stock recently sitting 20% off its highs, the window to get in early is closing fast.
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*Stock Advisor returns as of July 6, 2026
Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing, GE Aerospace, and Rocket Lab. The Motley Fool recommends Hexcel and Lockheed Martin. The Motley Fool has a disclosure policy.
Hexcel vs. Rocket Lab USA: Which Aerospace Stock Is a Better Buy in 2026? was originally published by The Motley Fool
