The strong defense segment momentum, particularly in missile production with RTX and Lockheed, combined with improving commercial aerospace conditions, suggests sustained growth potential. The company's margin expansion trajectory toward its 18% Adjusted EBITDA target by 2027 is on track, making it a compelling play on defense spending increases.
Price Chart
Executive Summary
Ducommun reported strong Q4 2025 results with revenue up 9.4% YoY to $215.8 million and non-GAAP adjusted net income up 43% to $1.05 per share, driven by defense segment growth and margin expansion. Full-year revenue reached a record $825 million. The company expects continued strength in missile production and commercial aerospace recovery in 2026.
Key Financial Metrics
Key Facts
- Q4 2025 revenue was $215.8 million, up 9.4% YoY from $197.3 million
- Non-GAAP adjusted net income was $16.2 million ($1.05 per share), up 43% YoY
- Gross margin expanded 420 bps YoY to 27.7%, a quarterly record
- Adjusted EBITDA was $37.9 million (17.5% of revenue), up 39% YoY
- Full-year 2025 revenue reached $825 million, a company record
- Remaining Performance Obligations (RPO) hit a record $1.106 billion with book-to-bill of 1.3x
- Defense business growth driven by missile platforms, fixed-wing, and rotorcraft aircraft
Financial Impact
Revenue increased by $18.5 million YoY in Q4, with adjusted net income increasing by $4.8 million. Full-year revenue grew by $38.2 million to a record $825 million.
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Electronic Systems | $119.6M | +11.8% |
| Structural Systems | $96.2M | +6.5% |
Risk Factors
- High litigation settlement costs of $7.6 million in Q4 impacted GAAP net income
- Commercial aerospace segment still faces headwinds from Boeing 737 MAX
- Future performance is contingent on the ramp-up of missile production and resolution of Boeing's production issues
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-011949 |
| Document: dco-20260226.htm | 0001628280-26-011949 |
| Document: 0001628280-26-011949-index-headers.html | 0001628280-26-011949 |
| Document: 0001628280-26-011949-index.html | 0001628280-26-011949 |
| Document: 0001628280-26-011949.txt | 0001628280-26-011949 |
| CONTEXT: Previous Earnings (2026-02-26) | 0001628280-26-011949 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 27, 2026 8w ago | Press Release | $183.93 | awaiting T+60 | — | $163.52 (−11.10%) |
Aug 15, 2026 10w ago | Institutional Cluster | $205.23 | awaiting T+60 | — | $163.52 (−20.32%) |
Jul 23, 2026 13w ago | Press Release | $175.51 $170.59 | ▼ −2.80% | ▼ −7.36% | $163.52 (−6.83%) |
Jun 11, 2026 19w ago | Institutional Cluster | $165.00 $168.32 | ▲ +2.01% | ▼ −2.38% | $163.52 (−0.90%) |
May 22, 2026 22w ago | Insider Cluster | $150.03 $200.16 | ▼ −33.41% | ▼ −30.69% | $163.52 (−8.99%) |
May 22, 2026 22w ago | Insider Cluster | $150.03 $200.16 | ▼ −33.41% | ▼ −30.69% | $163.52 (−8.99%) |
May 20, 2026 22w ago | Insider Cluster | $142.92 $205.23 | ▼ −43.60% | ▼ −39.30% | $163.52 (−14.41%) |
May 12, 2026 23w ago | Press Release | $145.03 $201.46 | ▲ +38.91% | ▲ +34.53% | $163.52 (+12.75%) |
May 8, 2026 24w ago | 10-K/A | $137.23 $191.86 | ▼ −39.81% | ▼ −34.97% | $163.52 (−19.16%) |
May 4, 2026 25w ago | 8-K | $142.56 $183.43 | ▲ +28.67% | ▲ +25.93% | $163.52 (+14.70%) |
US Market Status
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