Ducommun (NYSE:DCO) Releases Earnings Results, Beats Estimates By $0.20 EPS

Ducommun (NYSE:DCO) posted its quarterly earnings results on Thursday. The aerospace company reported $1.18 EPS for the quarter, beating the consensus estimate of $0.98 by $0.20, FiscalAI reports. Ducommun had a positive return on equity of 9.31% and a negative net margin of 3.10%.The business had revenue of $224.49 million during the quarter, compared to analysts’ expectations of $214.32 million. During the same period last year, the firm earned $0.88 EPS. The company’s quarterly revenue was up 11.0% compared to the same quarter last year.

Here are the key takeaways from Ducommun’s conference call:

• Record second-quarter performance: Revenue rose 12% year over year to $224.5 million, while adjusted EBITDA increased to $38.4 million, or 17.1% of sales. Adjusted EPS was $1.18 versus $0.90 a year ago.
• Defense and missile momentum accelerated. Missile revenue grew 68% in the quarter, supported by programs including PAC-3, SM-6, AMRAAM, Tomahawk and Naval Strike Missile; management expects significantly higher production on several programs over the next few years.
• Backlog and commercial aerospace trends were strong. Remaining performance obligations reached a record $1.16 billion, with a 1.4x quarterly book-to-bill, while commercial aerospace revenue grew 16% on higher Boeing and Airbus production plus a multiyear 737 MAX retrofit opportunity.
• Management reiterated full-year 2026 revenue guidance of mid- to high-single-digit growth, but expects low- to mid-single-digit growth in the third and fourth quarters because some production was pulled forward into the first half. Commercial aerospace destocking is expected to persist through year-end, although it is gradually easing.
• Margin expansion and strategic options remain key catalysts. Gross margin improved to 28%, facility-consolidation savings are largely realized, liquidity stood at $410 million, and management signaled continued M&A activity and additional strategic details at its September Investor Day.

Ducommun Price Performance

NYSE DCO traded down $5.03 during trading hours on Friday, reaching $196.43. The company’s stock had a trading volume of 301,363 shares, compared to its average volume of 301,722. The company has a debt-to-equity ratio of 0.44, a quick ratio of 2.59 and a current ratio of 3.67. The company’s 50-day moving average is $171.49 and its two-hundred day moving average is $144.97. Ducommun has a fifty-two week low of $84.76 and a fifty-two week high of $210.39. The stock has a market cap of $2.96 billion, a PE ratio of -105.04 and a beta of 1.04.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on the company. Truist Financial increased their price objective on Ducommun from $136.00 to $150.00 and gave the stock a “buy” rating in a research report on Tuesday, May 26th. Weiss Ratings cut shares of Ducommun from a “hold (c)” rating to a “hold (c-)” rating in a research note on Tuesday. Royal Bank Of Canada increased their price target on shares of Ducommun from $175.00 to $200.00 and gave the company a “sector performer” rating in a report on Friday. Citigroup raised their price objective on shares of Ducommun from $167.00 to $216.00 and gave the company a “buy” rating in a research note on Wednesday, July 1st. Finally, Wall Street Zen raised shares of Ducommun from a “hold” rating to a “buy” rating in a report on Saturday. Four investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $180.80.

Ducommun News Summary

Here are the key news stories impacting Ducommun this week:

• Positive Sentiment: Second-quarter adjusted earnings were $1.18 per share, exceeding the $0.98 consensus estimate and rising from $0.88 a year earlier. Revenue increased 11% year over year to $224.49 million, also ahead of expectations. Ducommun Q2 earnings report
• Positive Sentiment: Management highlighted record revenue and gross margin, while remaining performance obligations reached an all-time high. The backlog provides greater visibility into future aerospace and defense sales. Ducommun second-quarter results
• Positive Sentiment: Growth in engineered products and strong missile-related demand were identified as key drivers of the quarterly outperformance, supporting the company’s exposure to defense and aerospace programs. DCO Q2 deep dive
• Neutral Sentiment: Royal Bank of Canada raised its price target from $175 to $200 but maintained a “sector performer” rating. The new target represents only about 1.8% potential upside based on the reference price, suggesting analysts see fairly limited near-term appreciation. RBC Ducommun price target update
• Negative Sentiment: Despite the earnings beat, Ducommun continues to report a negative net margin, and its elevated valuation—reflected in a price-to-earnings ratio below zero—could make the stock sensitive to profit-taking after its substantial run toward the 12-month high.

Insiders Place Their Bets

In other Ducommun news, VP Laureen S. Gonzalez sold 589 shares of the firm’s stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $151.99, for a total transaction of $89,522.11. Following the completion of the transaction, the vice president owned 11,172 shares of the company’s stock, valued at approximately $1,698,032.28. This trade represents a 5.01% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, VP Rajiv A. Tata sold 1,612 shares of the business’s stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $145.00, for a total value of $233,740.00. Following the completion of the transaction, the vice president directly owned 33,171 shares of the company’s stock, valued at approximately $4,809,795. This trade represents a 4.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 7,883 shares of company stock worth $1,200,336. Insiders own 5.00% of the company’s stock.

Institutional Trading of Ducommun

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. State Street Corp raised its position in shares of Ducommun by 10.4% in the fourth quarter. State Street Corp now owns 670,966 shares of the aerospace company’s stock valued at $63,829,000 after buying an additional 63,070 shares during the last quarter. Geode Capital Management LLC boosted its position in Ducommun by 1.8% during the fourth quarter. Geode Capital Management LLC now owns 333,371 shares of the aerospace company’s stock worth $31,720,000 after acquiring an additional 5,899 shares during the last quarter. Alliancebernstein L.P. grew its stake in Ducommun by 5.4% in the 3rd quarter. Alliancebernstein L.P. now owns 319,470 shares of the aerospace company’s stock worth $30,711,000 after acquiring an additional 16,501 shares during the period. Loomis Sayles & Co. L P acquired a new position in Ducommun in the 4th quarter valued at $26,028,000. Finally, Charles Schwab Investment Management Inc. raised its holdings in Ducommun by 10.1% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 191,314 shares of the aerospace company’s stock valued at $18,200,000 after acquiring an additional 17,495 shares during the last quarter. Hedge funds and other institutional investors own 92.15% of the company’s stock.

About Ducommun

Ducommun Incorporated, through its Electronics and Structures segments, provides engineered products and integrated systems for the global aerospace, defense and space markets. The Electronics segment focuses on high-reliability electronic assemblies, cable and wire harnesses, connector systems and harsh environment electronics for flight-critical applications. In the Structures segment, Ducommun manufactures complex metallic and composite components such as flight control surfaces, skin panels, heat exchangers and other aerostructures for commercial and military platforms.

Founded in 1849 in California as a hardware and stagecoach parts supplier, Ducommun expanded into aerospace manufacturing during World War II and has since grown its capabilities through targeted acquisitions and organic investments.