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

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

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 Up 0.2%

DCO stock traded up $0.22 during trading on Friday, reaching $122.62. The stock had a trading volume of 62,058 shares, compared to its average volume of 156,774. The company has a quick ratio of 1.46, a current ratio of 2.04 and a debt-to-equity ratio of 0.33. The company’s 50 day moving average is $111.80 and its two-hundred day moving average is $99.18. Ducommun has a one year low of $51.76 and a one year high of $128.17. The company has a market capitalization of $1.83 billion, a price-to-earnings ratio of -52.37 and a beta of 1.05.

Key Headlines Impacting Ducommun

Here are the key news stories impacting Ducommun this week:

• Positive Sentiment: Q4 earnings outperformed expectations — EPS $1.05 vs. consensus $0.91 and up from $0.75 year-ago; revenue grew ~9.4% YoY, showing underlying sales strength. Zacks: Ducommun Q4 Earnings Top Estimates
• Positive Sentiment: Management emphasized growing defense content and recent defense contract wins that are shifting the company’s growth mix — analysts are raising targets on the stronger defense outlook. How The Ducommun (DCO) Story Is Shifting With Defense Deals And Higher Street Targets
• Positive Sentiment: Earnings call and presentation highlighted record quarterly revenue and strategic investments to capture aerospace/defense opportunities, which supports medium-term growth expectations. Earnings Presentation
• Neutral Sentiment: The company filed its full Q4 press release, slide deck and call transcript (useful for modeling backlog and segment dynamics). Press Release
• Neutral Sentiment: Short interest rose ~19% in February to ~2.9% of the float, which can amplify share moves in either direction. (Data point reported pre-earnings.)
• Negative Sentiment: Revenue missed Street expectations modestly — reported $215.8M vs. $217.4M expected — and the company still shows a negative net margin, which raised near-term execution concerns for some investors. Misses Q4 Sales Expectations
• Negative Sentiment: Market reaction included intraday selling and commentary pointing to the revenue miss and margin/cash-flow questions as reasons for the pullback. Why Ducommun Shares Are Sliding

Insider Activity

In other Ducommun news, VP Jerry L. Redondo sold 2,000 shares of Ducommun stock in a transaction that occurred on Wednesday, December 10th. The shares were sold at an average price of $92.86, for a total transaction of $185,720.00. Following the completion of the sale, the vice president directly 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 sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 8.90% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the business. AQR Capital Management LLC grew its stake in shares of Ducommun by 14.5% in the first quarter. AQR Capital Management LLC now owns 83,479 shares of the aerospace company’s stock worth $4,844,000 after acquiring an additional 10,574 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Ducommun by 4.1% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,050 shares of the aerospace company’s stock worth $467,000 after buying an additional 319 shares in the last quarter. EverSource Wealth Advisors LLC lifted its position in Ducommun by 618.8% during the second 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 during the last quarter. First Trust Advisors LP lifted its stake in shares of Ducommun by 10.0% during the second quarter. First Trust Advisors LP now owns 5,809 shares of the aerospace company’s stock worth $480,000 after buying an additional 528 shares during the period. Finally, Marshall Wace LLP lifted its holdings in shares of Ducommun by 7.9% in the 2nd quarter. Marshall Wace LLP now owns 71,545 shares of the aerospace company’s stock valued at $5,912,000 after buying an additional 5,212 shares during the period. 92.15% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the stock. Wall Street Zen lowered shares of Ducommun from a “strong-buy” rating to a “buy” rating in a report on Sunday, February 15th. Truist Financial raised their price objective on Ducommun from $124.00 to $136.00 and gave the company a “buy” rating in a research note on Friday. Zacks Research upgraded Ducommun from a “strong sell” rating to a “hold” rating in a research note on Monday, December 8th. The Goldman Sachs Group raised 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, Weiss Ratings reiterated a “hold (c-)” rating on shares of Ducommun in a report on Monday, December 29th. Five research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target 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.