Ducommun (NYSE:DCO) Releases Earnings Results, Beats Estimates 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, beating analysts’ consensus estimates of $0.98 by $0.20, FiscalAI reports. Ducommun had a negative net margin of 3.10% and a positive return on equity of 9.31%. The firm had revenue of $224.49 million during the quarter, compared to the consensus estimate of $214.32 million. During the same period in the prior year, the firm earned $0.88 EPS. The company’s revenue was up 11.0% compared to the same quarter last year.

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 Price Performance

NYSE DCO traded down $5.03 during trading hours on Friday, hitting $196.43. The company had a trading volume of 301,363 shares, compared to its average volume of 301,722. Ducommun has a 52 week low of $84.76 and a 52 week high of $210.39. The firm has a 50 day simple moving average of $171.49 and a 200 day simple moving average of $144.97. The company has a debt-to-equity ratio of 0.44, a quick ratio of 2.59 and a current ratio of 3.67. The firm has a market capitalization of $2.96 billion, a price-to-earnings ratio of -105.04 and a beta of 1.04.

Ducommun News Roundup

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

In other news, VP Jerry L. Redondo sold 5,682 shares of the company’s stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $154.36, for a total transaction of $877,073.52. Following the sale, the vice president directly owned 62,034 shares in the company, valued at $9,575,568.24. This represents a 8.39% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, VP Laureen S. Gonzalez sold 589 shares of the firm’s stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $151.99, for a total transaction of $89,522.11. Following the completion of the transaction, the vice president owned 11,172 shares of the company’s stock, valued at $1,698,032.28. This trade represents a 5.01% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 7,883 shares of company stock worth $1,200,336 over the last ninety days. Company insiders own 5.00% of the company’s stock.

Institutional Trading of Ducommun

A number of large investors have recently modified their holdings of the business. AQR Capital Management LLC increased its position 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 purchasing an additional 10,574 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Ducommun by 4.1% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,050 shares of the aerospace company’s stock valued at $467,000 after purchasing an additional 319 shares during the last quarter. EverSource Wealth Advisors LLC grew its stake in Ducommun by 618.8% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 345 shares of the aerospace company’s stock worth $29,000 after buying an additional 297 shares in the last quarter. First Trust Advisors LP grew its stake in Ducommun by 10.0% in the 2nd 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 in the last quarter. Finally, Marshall Wace LLP increased 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 worth $5,912,000 after buying an additional 5,212 shares during the last quarter. Institutional investors own 92.15% of the company’s stock.

Analyst Ratings Changes

Several research firms recently commented on DCO. Citigroup upped their price objective on Ducommun from $167.00 to $216.00 and gave the company a “buy” rating in a research note on Wednesday, July 1st. B. Riley Financial reiterated a “buy” rating on shares of Ducommun in a research note on Friday. Royal Bank Of Canada lifted their target price on shares of Ducommun from $175.00 to $200.00 and gave the stock a “sector performer” rating in a research note on Friday. The Goldman Sachs Group upped their price target on shares of Ducommun from $134.00 to $151.00 and gave the company a “buy” rating in a research note on Monday, April 20th. Finally, Weiss Ratings downgraded shares of Ducommun from a “hold (c)” rating to a “hold (c-)” rating in a report on Tuesday. Four equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $180.80.

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.