Ducommun Inc
NYSE:DCO
Ducommun Inc
Ducommun, Inc. engages in the provision of engineering and manufacturing services to the aerospace, defence, industrial, and medical industries. The company is headquartered in Santa Ana, California and currently employs 2,480 full-time employees. The firm is a full-service solution-based provider, which offers value-added products and manufacturing solutions to its customers in its primary businesses of electronics, structures and integrated solutions. The firm operate through two segments. Electronic Systems segment has multiple product offerings in electronics manufacturing for diverse applications, such as complex cable assemblies and interconnect systems, printed circuit board assemblies, higher-level electronic, electromechanical, and mechanical components and assemblies, and lightning diversion systems. Structural Systems segment has three product offerings to support a global customer base, including commercial aircraft, military fixed-wing aircraft, and military and commercial rotary-wing aircraft.
Ducommun, Inc. engages in the provision of engineering and manufacturing services to the aerospace, defence, industrial, and medical industries. The company is headquartered in Santa Ana, California and currently employs 2,480 full-time employees. The firm is a full-service solution-based provider, which offers value-added products and manufacturing solutions to its customers in its primary businesses of electronics, structures and integrated solutions. The firm operate through two segments. Electronic Systems segment has multiple product offerings in electronics manufacturing for diverse applications, such as complex cable assemblies and interconnect systems, printed circuit board assemblies, higher-level electronic, electromechanical, and mechanical components and assemblies, and lightning diversion systems. Structural Systems segment has three product offerings to support a global customer base, including commercial aircraft, military fixed-wing aircraft, and military and commercial rotary-wing aircraft.
Record Revenue: Ducommun posted record Q3 revenue of $212.6 million, up 6% year-over-year despite headwinds in commercial aerospace.
Margins at Highs: Gross margin reached 26.6% and adjusted EBITDA margin hit a record 16.2%, both reflecting ongoing expansion.
Defense Strength: Defense business grew 13% with missile programs up 21%, offsetting a 10% decline in commercial aerospace.
Strong Orders: Bookings were $338 million with a book-to-bill of 1.6x, raising remaining performance obligations (RPO) to a new record of $1.03 billion.
Litigation Impact: Litigation settlement related to the Guaymas fire led to a GAAP net loss of $64.4 million ($4.30 per share), but adjusted EPS remained at $0.99, in line with last year.
Guidance Reaffirmed: Management reaffirmed mid-single-digit revenue growth for full year 2025 and expects low double-digit growth in Q4.
Engineered Products: Engineered products made up 23% of revenue year-to-date, advancing toward the Vision 2027 goal.
Facility Consolidation: Facility consolidation and cost actions are driving ongoing margin expansion and expected savings into 2026.
