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

Ducommun (NYSE:DCO) issued its earnings results on Thursday. The aerospace company reported $1.18 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.98 by $0.20, FiscalAI reports. Ducommun had a negative net margin of 3.10% and a positive return on equity of 9.31%. The business had revenue of $224.49 million for the quarter, compared to analyst estimates of $214.32 million. During the same quarter in the prior year, the business posted $0.88 EPS. The company’s revenue for the quarter was up 11.0% on a year-over-year basis.

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 Stock Performance

DCO traded down $5.03 on Friday, hitting $196.43. 301,363 shares of the company’s stock were exchanged, compared to its average volume of 301,722. The company has a current ratio of 3.67, a quick ratio of 2.59 and a debt-to-equity ratio of 0.44. The stock has a fifty day moving average of $171.49 and a two-hundred day moving average of $144.97. Ducommun has a twelve month low of $84.76 and a twelve month high of $210.39. The firm has a market cap of $2.96 billion, a PE ratio of -105.04 and a beta of 1.04.

Insider Buying and Selling at Ducommun

In other Ducommun news, VP Rajiv A. Tata sold 1,612 shares of Ducommun stock in a transaction that occurred 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 in the company, valued at $4,809,795. The trade was a 4.63% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Laureen S. Gonzalez sold 589 shares of the company’s stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $151.99, for a total value of $89,522.11. Following the transaction, the vice president directly owned 11,172 shares of the company’s stock, valued at $1,698,032.28. This trade represents a 5.01% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 7,883 shares of company stock worth $1,200,336 over the last ninety days. Company insiders own 5.00% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the stock. EverSource Wealth Advisors LLC lifted its stake in Ducommun by 618.8% in the second quarter. EverSource Wealth Advisors LLC now owns 345 shares of the aerospace company’s stock valued at $29,000 after buying an additional 297 shares during the last quarter. CIBC Private Wealth Group LLC bought a new position in shares of Ducommun during the fourth quarter worth about $95,000. CANADA LIFE ASSURANCE Co acquired a new stake in shares of Ducommun in the 2nd quarter worth about $145,000. Tower Research Capital LLC TRC increased its holdings in shares of Ducommun by 454.5% in the 2nd quarter. Tower Research Capital LLC TRC now owns 2,096 shares of the aerospace company’s stock worth $173,000 after acquiring an additional 1,718 shares during the period. Finally, Engineers Gate Manager LP bought a new stake in Ducommun in the 4th quarter valued at about $208,000. 92.15% of the stock is currently owned by institutional investors.

Ducommun News Roundup

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.

Wall Street Analyst Weigh In

DCO has been the subject of several research analyst reports. Truist Financial boosted their price objective on Ducommun from $136.00 to $150.00 and gave the company a “buy” rating in a report on Tuesday, May 26th. B. Riley Financial reaffirmed a “buy” rating on shares of Ducommun in a report on Friday. The Goldman Sachs Group lifted their target price on Ducommun from $134.00 to $151.00 and gave the stock a “buy” rating in a research report on Monday, April 20th. Weiss Ratings downgraded Ducommun from a “hold (c)” rating to a “hold (c-)” rating in a report on Tuesday. Finally, Citigroup upped their price target on Ducommun from $167.00 to $216.00 and gave the company a “buy” rating in a research report on Wednesday, July 1st. Four analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, Ducommun has an average rating of “Moderate Buy” and an average price target of $180.80.

Ducommun Company Profile

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.