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 Q4 revenue of $215.8 million, up 9.4% year-over-year, marking its 19th consecutive quarter of year-over-year growth and a new quarterly record.
Margin Expansion: Gross margin reached a record 27.7% (up from 23.5%), while adjusted EBITDA margin hit 17.5% in Q4, both benefiting from positive product mix and operational improvements.
Defense Strength: Military and Space revenue grew 13% in Q4 and 14% for the full year, with missiles business up 20% in 2025 and strong future growth expected from new Department of Defense contracts.
Commercial Aerospace Recovery: The Commercial Aerospace segment returned to growth this quarter (up 1%), despite ongoing destocking at key customers, with a recovery expected in the second half of 2026.
Outlook: Management expects mid- to high single-digit revenue growth in 2026, led by continued defense strength and a ramp-up in commercial aerospace later in the year.
Cost Savings: Facility consolidation is complete, with $11–13 million in annual savings targeted by end of 2026, about half already realized.
Guidance Affirmed: 2027 targets for EBITDA margin (18%) and engineered product revenue mix remain in place, with a strategy refresh planned at the September investor conference.
Healthy Backlog: Remaining Performance Obligations (backlog) hit a record $1.1 billion, with a Q4 book-to-bill ratio of 1.3x.
