Ducommun (NYSE:DCO) Releases Earnings Results, Beats Estimates By $0.14 EPS

Ducommun (NYSE:DCO) released its quarterly earnings data on Thursday. The aerospace company reported $1.05 earnings per share for the quarter, beating the consensus estimate of $0.91 by $0.14, FiscalAI reports. Ducommun had a positive return on equity of 8.41% and a negative net margin of 4.11%.The company had revenue of $215.80 million for the quarter, compared to the consensus estimate of $217.42 million. During the same quarter last year, the business posted $0.75 EPS. Ducommun’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 Trading Up 0.9%

NYSE:DCO opened at $123.51 on Friday. Ducommun has a 52 week low of $51.76 and a 52 week high of $128.17. The company has a debt-to-equity ratio of 0.33, a quick ratio of 1.46 and a current ratio of 2.04. The firm’s fifty day moving average is $112.38 and its 200-day moving average is $99.42. The firm has a market cap of $1.85 billion, a P/E ratio of -53.47 and a beta of 1.05.

Ducommun News Roundup

Here are the key news stories impacting Ducommun this week:

• Positive Sentiment: Truist raised its price target to $136 and initiated/maintained a Buy view, citing the company’s stronger defense positioning and growth outlook — this gives analysts-driven upside for the stock. Benzinga
• Positive Sentiment: Q4 results: Ducommun reported $1.05 EPS vs. $0.91 expected and revenue was up 9.4% year-over-year — earnings beat supports valuation and shows operating leverage versus last year. GlobeNewswire: Q4 Results
• Positive Sentiment: Analyst and press coverage frames Ducommun’s story as shifting toward larger defense deals and higher street targets, which is helping sentiment and multiple expansion potential. Yahoo Finance: How The Ducommun Story Is Shifting
• Neutral Sentiment: Company materials and calls are available (earnings presentation, transcript, slide deck) — useful for investors wanting detail on backlog, margins and defense program timing. Seeking Alpha: Q4 Presentation
• Negative Sentiment: Revenue narrowly missed consensus ($215.8M vs. $217.4M estimate); some headlines flagged the sales miss as a reason for intraday weakness despite the EPS beat. That mixed print explains part of the stock’s volatility. Yahoo Finance: Misses Q4 Sales Expectations
• Negative Sentiment: Short interest has risen (~19% month-over-month to ~393k shares, ~2.9% of float), increasing the risk of short-driven price swings and amplifying reaction to any mixed headlines. (Data entry summarizing short-interest change.)
• Negative Sentiment: Several outlets ran stories explaining why shares slid intraday following the report — highlighting the revenue miss and investor focus on margin/net items despite the EPS beat. Yahoo Finance: Why Shares Are Sliding

Insider Transactions at Ducommun

In related news, VP Jerry L. Redondo sold 2,000 shares of the business’s stock in a transaction on Wednesday, December 10th. The shares were sold at an average price of $92.86, for a total value of $185,720.00. Following the transaction, the vice president owned 65,269 shares in the company, valued at $6,060,879.34. The trade was a 2.97% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 8.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in DCO. State Street Corp lifted its stake in shares of Ducommun by 10.4% in the 4th quarter. State Street Corp now owns 670,966 shares of the aerospace company’s stock valued at $63,829,000 after purchasing an additional 63,070 shares during the period. Geode Capital Management LLC increased its holdings in Ducommun by 1.8% in the fourth quarter. Geode Capital Management LLC now owns 333,371 shares of the aerospace company’s stock worth $31,720,000 after purchasing an additional 5,899 shares in the last quarter. Alliancebernstein L.P. lifted its stake in Ducommun by 5.4% in the third quarter. Alliancebernstein L.P. now owns 319,470 shares of the aerospace company’s stock valued at $30,711,000 after buying an additional 16,501 shares during the period. Loomis Sayles & Co. L P acquired a new position in Ducommun in the fourth quarter valued at approximately $26,028,000. Finally, Charles Schwab Investment Management Inc. boosted its holdings in shares of Ducommun by 10.1% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 191,314 shares of the aerospace company’s stock worth $18,200,000 after buying an additional 17,495 shares in the last quarter. 92.15% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on DCO. Wall Street Zen cut Ducommun from a “strong-buy” rating to a “buy” rating in a report on Sunday, February 15th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Ducommun in a research report on Monday, December 29th. Royal Bank Of Canada boosted their target price on shares of Ducommun from $100.00 to $142.00 and gave the stock an “outperform” rating in a report on Friday, February 20th. B. Riley Financial restated a “buy” rating on shares of Ducommun in a research report on Wednesday, January 28th. Finally, The Goldman Sachs Group lifted their price target on shares of Ducommun from $117.00 to $132.00 and gave the stock a “buy” rating in a report on Tuesday, January 20th. Five investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $133.75.

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.