DUCOMMUN INC /DE/ (DCO) Company Report

Ducommun's current management, in place since 2017, has driven substantial growth, with market capitalization increasing 4x and EBITDA rising 125% over the last eight years. The company reported last twelve months (LTM) revenue of just over $800 million and LTM EBITDA margins of 15.5%, tracking at 16% in the last three quarters.
The company's Vision 2027 plan, communicated in December 2022, targets growing revenues from $700 million in 2022 to nearly $1 billion by 2027 and expanding EBITDA margins from 13% in 2022 to 18% by 2027. Ducommun is currently tracking at 16% EBITDA margin, demonstrating strong progress towards its margin goal.
A key strategic focus is the growth of engineered products, which has increased from 9% of the portfolio in 2017 to 23% of current revenues, with a target of more than 25% by 2027. This strategy, combined with $11 million to $13 million in expected cost synergies from facility consolidation, is central to margin expansion.
Ducommun reported a record high backlog of $1.03 billion and record Q3 bookings with a 1.6 book-to-bill ratio. The defense business has shown double-digit growth in the last three quarters, offsetting commercial aerospace weakness, which is expected to recover after destocking through the second half of next year.

1 day ago

Transcript

Ducommun discusses financial performance, Vision 2027, and growth strategies at Goldman Sachs conference

DCO

M&A

Guidance Update

Revenue Acceleration/Inflection

Ducommun reported over $800 million in LTM revenue and 15.5% LTM EBITDA margins, with 16% in the last three quarters, and a record high backlog of $1.03 billion as of Q3 2025.
The company is progressing towards its Vision 2027 goals, aiming for $1 billion in revenue and 18% EBITDA margins by 2027, driven by a strategic shift to engineered products.
Engineered products now represent 23% of revenues, up from 9% in 2017, with a target of over 25% by 2027, supported by both organic growth and M&A.
Ducommun expects $11-$13 million in synergies from facility consolidations, with $7-$9 million anticipated in 2026, contributing to margin expansion.
The company anticipates strong growth from its double-digit growing defense business and an expected inflection point in commercial aerospace growth after destocking, potentially leading to double-digit top-line growth.

1 day ago

Transcript

Ducommun CFO Discusses Strong Performance and Vision 2027 at Goldman Sachs Conference

DCO

Revenue Acceleration/Inflection

M&A

Guidance Update

Ducommun's CFO, Suman Mookerji, reported strong financial performance, with the company's market cap growing 4X and EBITDA increasing 125% over the last eight years.
The company achieved over $800 million in LTM revenue and LTM EBITDA margins of 15.5%, tracking at 16% in the last three quarters, alongside a record backlog of $1.03 billion.
Under its Vision 2027 plan, Ducommun aims to grow revenues to ~$1 billion and expand EBITDA margins to 18% by 2027, driven by increasing engineered products to >25% of revenues (currently 23%).
The company anticipates $11 million-$13 million in synergies from manufacturing footprint consolidation, with $7 million-$9 million expected in 2026. Ducommun's defense business has seen double-digit growth in the last three quarters, and strong overall growth is expected post-commercial aerospace destocking.
M&A remains a key strategy to further expand engineered products, with the company actively pursuing acquisition opportunities.

1 day ago

Transcript

Ducommun Amends Credit Facility

DCO

Debt Issuance

New Projects/Investments

Ducommun Incorporated entered into an amended credit facility effective November 24, 2025, replacing its previous debt structure.
The new facility consists of a $450 million revolving line of credit and a $200 million term loan, maturing in November 2030.
This amendment enhances liquidity by upsizing the revolving credit line from $200 million to $450 million, lowers the cost of capital, and extends the maturity profile by over three years.
The proceeds will be used to fully repay the existing facility, pay related transaction fees, and fund working capital and other general corporate purposes, including potential acquisition opportunities.

3 days ago

8-K

Ducommun Announces Q3 2025 Results

DCO

Earnings

Guidance Update

Legal Proceedings

Ducommun reported record quarterly revenue of $212.6 million in Q3 2025, marking a 6% increase year-over-year, with Adjusted EBITDA at 16.2% of revenue, up 40 basis points year-over-year.
The company achieved excellent bookings of $338 million in Q3 2025, resulting in a book-to-bill ratio of 1.6x and Remaining Performance Obligations (RPO) of $1,031 million.
A GAAP Net Loss of $64.4 million was recorded for Q3 2025, primarily due to $99.7 million in litigation settlement and related costs.
Ducommun reiterated its 2025 full-year revenue outlook for mid-single digit growth and remains on-track to meet its VISION 2027 targets of $950 - $1,000 million in revenue and an 18% Adjusted EBITDA Margin.
The company continued its restructuring plan, ceasing all production at Monrovia, CA and Berryville, AR, and anticipates annualized run-rate savings of $11 million to $13 million.

Nov 6, 2025, 6:00 PM

Presentation

Ducommun Reports Record Q3 2025 Revenue and Adjusted EBITDA, Driven by Defense Growth Amidst Litigation Settlement

DCO

Earnings

Legal Proceedings

Guidance Update

Ducommun (DCO) reported record quarterly revenue of $212.6 million in Q3 2025, a 6% increase year-over-year, marking the 18th consecutive quarter of growth.
The company achieved record gross margins of 26.6% and record adjusted EBITDA of $34.4 million, or 16.2% of revenue, in Q3 2025.
Defense business revenue grew 13% year-over-year, with the missile franchise up 21%, while commercial aerospace revenue declined 10% due to destocking.
Ducommun reported a GAAP net loss of $64.4 million, or $4.30 per share, in Q3 2025, primarily due to a $99.7 million charge for a litigation settlement related to the Guam fire. Adjusted diluted EPS was $0.99 per share, consistent with the prior year.
Remaining performance obligations (RPO) reached a new record of $1.03 billion, and the company achieved a book-to-bill ratio of 1.6 times in the quarter.

Nov 6, 2025, 6:00 PM

Transcript

Ducommun Incorporated Reports Q3 2025 Results

DCO

Earnings

Legal Proceedings

Guidance Update

Ducommun Incorporated reported record quarterly net revenue of $212.6 million for the third quarter ended September 27, 2025, an increase of 6% over Q3 2024, primarily driven by $14.2 million higher revenue in military and space end-use markets.
The company recorded a net loss of $64.4 million, or $4.30 per share, for Q3 2025, largely due to $99.7 million in litigation settlement and related costs, net.
Excluding these items, non-GAAP adjusted net income increased 2% year-over-year to $15.2 million, or $0.99 per diluted share, and Adjusted EBITDA grew 8% year-over-year to $34.4 million, representing 16.2% of revenue.
Gross margin expanded 40 basis points year-over-year to 26.6%, and the Book to Bill ratio was 1.6 times, establishing a new record for remaining performance obligations of $1,135.7 million as of September 27, 2025.

Nov 6, 2025, 11:09 AM

8-K

Ducommun Incorporated Reports Third Quarter 2025 Results

DCO

Earnings

Legal Proceedings

Revenue Acceleration/Inflection

Ducommun Incorporated reported net revenue of $212.6 million for the third quarter ended September 27, 2025, marking a 6% increase over Q3 2024.
The company posted a net loss of $64.4 million, or $4.30 per share, for Q3 2025, primarily due to $99.7 million in litigation settlement and related costs. In contrast, Q3 2024 saw a net income of $10.1 million, or $0.67 per diluted share.
Adjusted EBITDA grew 8% year-over-year to $34.4 million, representing 16.2% of revenue, an increase of 40 basis points from Q3 2024.
Gross margin for Q3 2025 was 26.6%, an increase of 40 basis points year-over-year.
The company achieved a strong Book to Bill ratio of 1.6 times, setting a new record for remaining performance obligations.

Nov 6, 2025, 11:00 AM

Press Release

Ducommun Inc. CEO Discusses Strategic Growth and 2027 Vision at Jefferies Conference

DCO

Guidance Update

Revenue Acceleration/Inflection

M&A

Ducommun's CEO, Stephen Oswald, highlighted the company's significant growth under his leadership since 2017, with the stock increasing from $25-$26 to around $90. The company aims for 18% EBITDA margins by 2027, up from 13% post-COVID and 16.5% currently.
The company is strategically shifting its revenue mix, with engineered products and aftermarket now accounting for 23% of revenue, up from 9% in 2017, targeting 25% and eventually higher. This strategy is supported by acquisitions of companies with engineered products and aftermarket potential.
Ducommun's defense business, which constitutes almost 60% of revenue, is experiencing strong growth, particularly in missiles, with a 39% year-over-year increase in Q2. While commercial aerospace faces destocking challenges, the company anticipates improvement by mid-2026 and expects low double-digit revenue growth in Q4.
Operationally, Ducommun maintains a niche contract manufacturing approach focusing on complex, high-value products and has over 95% of its manufacturing in the U.S., limiting tariff exposure.

Sep 3, 2025, 8:44 PM

Ducommun Inc. Reports Q2 2025 Results and Reaffirms Outlook

DCO

Earnings

Guidance Update

Revenue Acceleration/Inflection

Ducommun reported Q2 2025 revenue of $202.3 million, an increase of 3% year-over-year, with Net Income rising 63% to $12.6 million and Adjusted EBITDA reaching an all-time high of $32.4 million.
The company reiterated its Mid-Single Digit revenue growth outlook for full year 2025, with growth expected to accelerate in Q3 and Q4.
Ducommun remains on track to meet its VISION 2027 targets of $950 - $1,000 million in revenue and an 18% Adjusted EBITDA Margin.
The Electronic Systems segment saw an 8.7% increase in revenue driven by strong growth in defense applications, while the Structural Systems segment experienced a 3.7% decrease due to commercial aerospace weakness.
Progress was made on the restructuring plan, with $0.6 million in charges recorded in Q2 2025 and an estimated $11 million to $13 million in annualized run-rate savings expected.

Aug 7, 2025, 5:00 PM

Presentation

Earnings Transcripts

Quarterly earnings call transcripts for DUCOMMUN INC /DE/.

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