Ducommun (NYSE:DCO) Announces Earnings Results

Ducommun (NYSE:DCO) announced its earnings results on Thursday. The aerospace company reported $1.05 earnings per share for the quarter, beating analysts’ consensus estimates of $0.91 by $0.14, FiscalAI reports. Ducommun had a negative net margin of 4.29% and a positive return on equity of 7.70%. The business had revenue of $215.80 million during the quarter, compared to the consensus estimate of $217.42 million. During the same quarter last year, the firm earned $0.75 earnings per share. The business’s revenue for the quarter was up 9.4% on a year-over-year basis.

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

• Record Q4 revenue of $215.8M (+9.4% YoY), the 19th consecutive quarter of growth, with record remaining performance obligations of $1.1B and strong booking momentum (Q4 book-to-bill 1.3x; full‑year bookings >$915M).
• Margins strengthened materially — GAAP gross margin 27.7% and adjusted EBITDA 17.5% (adjusted EPS $1.05) — putting the company on track toward its VISION 2027 margin goals.
• Missiles and defense are clear growth drivers: missile revenue up ~20% in 2025, Q4 missile bookings >$130M with book-to-bill >4x, and management says ~30% spare factory capacity with only modest incremental CapEx needed to scale for anticipated DoD production ramps.
• Ducommun reached a settlement to resolve the 2020 Guaymas fire litigation requiring a $150M payment (insurers covered $56M), which generated $7.6M of Q4 charges and drove roughly $100M+ of cash litigation payments in 2025 that materially impacted operating cash flow this year.
• Restructuring and consolidation are complete, expected to deliver $11–13M of annual run‑rate savings by end of 2026, and the company upgraded liquidity (new $650M credit facility, ~$390M available) to fund M&A and support growth.

Ducommun Stock Performance

Shares of NYSE:DCO traded down $4.46 during midday trading on Thursday, reaching $122.31. 195,127 shares of the company’s stock traded hands, compared to its average volume of 155,508. The company has a debt-to-equity ratio of 0.33, a quick ratio of 1.46 and a current ratio of 2.04. Ducommun has a one year low of $51.76 and a one year high of $128.17. The company has a market cap of $1.83 billion, a price-to-earnings ratio of -52.27 and a beta of 1.05. The stock has a 50 day moving average of $111.80 and a 200 day moving average of $99.18.

Trending Headlines about Ducommun

Here are the key news stories impacting Ducommun this week:

• Positive Sentiment: Q4 EPS beat — Ducommun reported $1.05 per share vs. the consensus ~$0.91, improving from $0.75 a year earlier, which shows operating leverage on the bottom line. Zacks: Ducommun (DCO) Q4 Earnings Top Estimates
• Positive Sentiment: Year‑over‑year revenue growth — Revenue rose ~9.4% YoY, indicating continued top‑line expansion in aerospace and mission‑critical segments. GlobeNewswire: Ducommun Reports Fourth Quarter 2025 Results
• Neutral Sentiment: Analyst attention — The name recently hit a 1‑year high after an analyst upgrade earlier this month, showing there is upward analyst interest but also higher expectations to meet. AmericanBankingNews: Analyst Upgrade/1‑Year High
• Negative Sentiment: Revenue missed consensus — Q4 revenue was $215.8M versus analysts’ $217.4M estimate; the slight top‑line miss likely disappointed investors given the EPS beat. Yahoo Finance: Ducommun (NYSE:DCO) Misses Q4 CY2025 Sales Expectations
• Negative Sentiment: Profitability profile and margins — The company reported a negative net margin (~‑4.3%) despite positive ROE, highlighting that non‑operating items or one‑time costs may be weighing profitability; investors often penalize mixed margin signals. MarketBeat: Ducommun Financial Snapshot
• Negative Sentiment: Rising short interest — Short interest rose ~19% in February (to ~393k shares, ~2.9% of float), which can amplify downward moves on negative news and increase volatility. (February short‑interest data summarized in recent coverage.)
• Neutral Sentiment: Conference materials available — Management hosted an earnings call and provided a slide deck; investors should review the transcript/slide deck for any commentary on backlog, margin drivers and FY26 outlook that will determine near‑term guidance sensitivity. Seeking Alpha: Q4 2025 Earnings Call Transcript

Insiders Place Their Bets

In other Ducommun news, VP Jerry L. Redondo sold 2,000 shares of the business’s stock in a transaction dated Wednesday, December 10th. The stock was sold at an average price of $92.86, for a total value of $185,720.00. Following the completion of the transaction, the vice president owned 65,269 shares of the company’s stock, valued at approximately $6,060,879.34. The trade was a 2.97% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 8.90% of the company’s stock.

Institutional Trading of Ducommun

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

Analyst Upgrades and Downgrades

Several analysts recently weighed in on DCO shares. Weiss Ratings restated a “hold (c-)” rating on shares of Ducommun in a research note on Monday, December 29th. B. Riley Financial reissued a “buy” rating on shares of Ducommun in a report on Wednesday, January 28th. Zacks Research upgraded Ducommun from a “strong sell” rating to a “hold” rating in a report on Monday, December 8th. The Goldman Sachs Group lifted their price target on Ducommun from $117.00 to $132.00 and gave the stock a “buy” rating in a research report on Tuesday, January 20th. Finally, Royal Bank Of Canada increased their price objective on shares of Ducommun from $100.00 to $142.00 and gave the company an “outperform” rating in a research report on Friday, February 20th. Five analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $123.50.

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.