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

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

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 Down 2.5%

DCO stock traded down $5.03 during midday trading on Friday, hitting $196.43. The company’s stock had a trading volume of 301,363 shares, compared to its average volume of 301,722. The firm’s 50-day moving average is $171.49 and its 200-day moving average is $144.97. The company has a current ratio of 3.67, a quick ratio of 2.59 and a debt-to-equity ratio of 0.44. Ducommun has a 12 month low of $84.76 and a 12 month high of $210.39. The company has a market cap of $2.96 billion, a PE ratio of -105.04 and a beta of 1.04.

Insider Transactions at Ducommun

In other Ducommun news, VP Laureen S. Gonzalez sold 589 shares of the business’s stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $151.99, for a total value 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. The trade was a 5.01% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Jerry L. Redondo sold 5,682 shares of the company’s stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $154.36, for a total transaction of $877,073.52. Following the transaction, the vice president owned 62,034 shares in the company, valued at $9,575,568.24. This represents a 8.39% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 7,883 shares of company stock worth $1,200,336 over the last quarter. 5.00% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

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

Analysts Set New Price Targets

A number of brokerages recently issued reports on DCO. Weiss Ratings cut shares of Ducommun from a “hold (c)” rating to a “hold (c-)” rating in a research report on Tuesday. B. Riley Financial restated a “buy” rating on shares of Ducommun in a report on Friday. Citigroup raised their target price 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. Wall Street Zen upgraded shares of Ducommun from a “hold” rating to a “buy” rating in a report on Saturday. Finally, Truist Financial boosted their price target on Ducommun from $136.00 to $150.00 and gave the stock a “buy” rating in a research report on Tuesday, May 26th. Four research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, Ducommun has a consensus rating of “Moderate Buy” and an average target price of $180.80.

Trending Headlines about Ducommun

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.

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.