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

Ducommun (NYSE:DCO) posted its quarterly earnings data on Thursday. The aerospace company reported $1.18 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.98 by $0.20, FiscalAI reports. The firm had revenue of $224.49 million during the quarter, compared to analysts’ expectations of $214.32 million. Ducommun had a positive return on equity of 9.31% and a negative net margin of 3.10%.The company’s revenue for the quarter was up 11.0% compared to the same quarter last year. During the same period in the prior year, the business 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 Trading Down 2.5%

Shares of Ducommun stock traded down $5.03 during trading on Friday, reaching $196.43. 301,363 shares of the stock were exchanged, compared to its average volume of 301,722. The company has a quick ratio of 2.59, a current ratio of 3.67 and a debt-to-equity ratio of 0.44. The stock’s fifty day moving average is $171.49 and its 200 day moving average is $144.97. The firm has a market cap of $2.96 billion, a price-to-earnings ratio of -105.04 and a beta of 1.04. Ducommun has a 1 year low of $84.76 and a 1 year high of $210.39.

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.

Insider Activity at Ducommun

In other Ducommun news, VP Jerry L. Redondo sold 5,682 shares of the company’s stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $154.36, for a total transaction of $877,073.52. Following the completion of the transaction, the vice president owned 62,034 shares of the company’s stock, valued at $9,575,568.24. This represents a 8.39% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, 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 sale, the vice president owned 33,171 shares in the company, valued at approximately $4,809,795. This represents a 4.63% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 7,883 shares of company stock worth $1,200,336 in the last 90 days. Company insiders own 5.00% of the company’s stock.

Institutional Investors Weigh In On Ducommun

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

Analysts Set New Price Targets

A number of brokerages have commented on DCO. The Goldman Sachs Group increased their price target on shares of Ducommun from $134.00 to $151.00 and gave the company a “buy” rating in a research report on Monday, April 20th. Royal Bank Of Canada upped their price objective on shares of Ducommun from $175.00 to $200.00 and gave the company a “sector performer” rating in a research note on Friday. Truist Financial increased their target price on shares of Ducommun from $136.00 to $150.00 and gave the company a “buy” rating in a report on Tuesday, May 26th. Wall Street Zen raised shares of Ducommun from a “hold” rating to a “buy” rating in a research note on Saturday. Finally, B. Riley Financial restated a “buy” rating on shares of Ducommun in a research report on Friday. Four analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, Ducommun presently has an average rating of “Moderate Buy” and a consensus 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.