Ducommun (NYSE:DCO) Releases Quarterly Earnings Results, Beats Expectations By $0.06 EPS

Ducommun (NYSE:DCO) posted its earnings results on Thursday. The aerospace company reported $1.21 earnings per share for the quarter, beating analysts’ consensus estimates of $1.15 by $0.06, FiscalAI reports. Ducommun had a return on equity of 9.66% and a net margin of 5.89%. The company had revenue of $227.02 million for the quarter, compared to analyst estimates of $221.93 million. During the same quarter last year, the company earned $0.99 earnings per share. The company’s revenue for the quarter was up 6.8% on a year-over-year basis.

Here are the key takeaways from Ducommun’s conference call:

• Ducommun reported record Q3 revenue of $227 million, up 6% year over year, with commercial aerospace revenue growing 28%. The company narrowed its 2026 revenue outlook to $885 million–$890 million.
• Gross margin reached a record 28.9%, while adjusted EBITDA margin was 17.5%, bringing the company close to its VISION 2027 targets a year ahead of schedule. Engineered products increased to a record 24% of revenue.
• Bookings were strong: total Q3 bookings were $354 million, with a 1.6 book-to-bill ratio and record company remaining performance obligations of $1.3 billion. Defense book-to-bill was 2.2, and military and space RPO reached a record $868 million.
• Defense revenue declined 7% due to order and production timing, but management characterized the weakness as temporary and expects growth to return in 2027. Orders under seven-year missile framework agreements are anticipated to begin flowing to suppliers in late Q1 or Q2 2027, though timing remains uncertain.
• The company finalized a new two-year Airbus agreement for titanium components, with purchase orders received and double-digit price increases expected to take effect in January. Management expects commercial aerospace growth to continue, but said growth above 20% is unlikely to be a reasonable near-term assumption.

Ducommun Stock Performance

Shares of NYSE DCO traded up $2.21 during midday trading on Friday, reaching $134.71. The company’s stock had a trading volume of 245,294 shares, compared to its average volume of 175,256. Ducommun has a 12-month low of $84.76 and a 12-month high of $210.39. The firm has a 50 day moving average price of $166.68 and a 200-day moving average price of $154.07. The stock has a market capitalization of $2.03 billion, a P/E ratio of 32.28 and a beta of 1.11. The company has a debt-to-equity ratio of 0.39, a current ratio of 3.36 and a quick ratio of 2.38.

Analyst Ratings Changes

Several equities research analysts recently issued reports on the company. Royal Bank Of Canada decreased their price target on Ducommun from $180.00 to $155.00 and set a “sector perform” rating for the company in a report on Friday. Weiss Ratings cut Ducommun from a “hold (c)” rating to a “hold (c-)” rating in a research note on Friday, September 18th. Zacks Research cut Ducommun from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 12th. B. Riley Financial cut their price objective on shares of Ducommun from $222.00 to $203.00 and set a “buy” rating on the stock in a report on Friday. Finally, The Goldman Sachs Group reiterated a “buy” rating on shares of Ducommun in a research note on Monday, August 10th. Five 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, Ducommun presently has a consensus rating of “Moderate Buy” and a consensus price target of $196.67.

Insider Activity

In related news, CEO Stephen Oswald sold 5,766 shares of the stock in a transaction that occurred on Wednesday, August 12th. The stock was sold at an average price of $201.15, for a total transaction of $1,159,830.90. Following the completion of the sale, the chief executive officer directly owned 385,875 shares of the company’s stock, valued at approximately $77,618,756.25. This trade represents a 1.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 5.00% of the stock is currently owned by corporate insiders.

Key Headlines Impacting Ducommun

Here are the key news stories impacting Ducommun this week:

• Positive Sentiment: Q3 adjusted earnings of $1.21 per share topped the $1.15 consensus estimate, and revenue of $227.02 million exceeded forecasts and rose 6.8% year over year. The company also reported record revenue and gross margin, record remaining performance obligations, and a 2.2x defense book-to-bill ratio. Ducommun Q3 2026 results
• Neutral Sentiment: B. Riley cut its price target to $203 from $222 but maintained a Buy rating. Its revised target remains well above the cited share price, though the reduction suggests a more cautious outlook. Analyst price target updates
• Negative Sentiment: RBC lowered its target to $155 from $180 and kept a Sector Perform rating. Although the new target is still above the cited share price, the sizable cut may weigh on investor expectations. RBC price target update

Ducommun Company Profile

Ducommun Incorporated (NYSE: DCO) is a manufacturer of engineered components, assemblies and systems for the aerospace, defense and space industries. The company supplies products used in commercial aircraft, military platforms, launch vehicles, satellites and other mission-critical applications.

Its offerings include structural components and assemblies, precision-machined parts, composite structures, electronic and electromechanical systems, circuit-card assemblies, wire harnesses and other specialized products.