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

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

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 Performance

DCO traded down $4.46 on Thursday, hitting $122.31. The company had a trading volume of 195,127 shares, compared to its average volume of 159,345. Ducommun has a 1-year low of $51.76 and a 1-year high of $128.17. The stock has a market cap of $1.83 billion, a price-to-earnings ratio of -52.27 and a beta of 1.05. The company has a debt-to-equity ratio of 0.33, a current ratio of 2.04 and a quick ratio of 1.46. The company’s fifty day moving average price is $111.80 and its 200 day moving average price is $99.18.

Ducommun News Roundup

Here are the key news stories impacting Ducommun this week:

• Positive Sentiment: Q4 EPS beat — Ducommun reported $1.05 per share vs. the consensus ~$0.91, improving from $0.75 a year earlier, which shows operating leverage on the bottom line. Zacks: Ducommun (DCO) Q4 Earnings Top Estimates
• Positive Sentiment: Year‑over‑year revenue growth — Revenue rose ~9.4% YoY, indicating continued top‑line expansion in aerospace and mission‑critical segments. GlobeNewswire: Ducommun Reports Fourth Quarter 2025 Results
• Neutral Sentiment: Analyst attention — The name recently hit a 1‑year high after an analyst upgrade earlier this month, showing there is upward analyst interest but also higher expectations to meet. AmericanBankingNews: Analyst Upgrade/1‑Year High
• Negative Sentiment: Revenue missed consensus — Q4 revenue was $215.8M versus analysts’ $217.4M estimate; the slight top‑line miss likely disappointed investors given the EPS beat. Yahoo Finance: Ducommun (NYSE:DCO) Misses Q4 CY2025 Sales Expectations
• Negative Sentiment: Profitability profile and margins — The company reported a negative net margin (~‑4.3%) despite positive ROE, highlighting that non‑operating items or one‑time costs may be weighing profitability; investors often penalize mixed margin signals. MarketBeat: Ducommun Financial Snapshot
• Negative Sentiment: Rising short interest — Short interest rose ~19% in February (to ~393k shares, ~2.9% of float), which can amplify downward moves on negative news and increase volatility. (February short‑interest data summarized in recent coverage.)
• Neutral Sentiment: Conference materials available — Management hosted an earnings call and provided a slide deck; investors should review the transcript/slide deck for any commentary on backlog, margin drivers and FY26 outlook that will determine near‑term guidance sensitivity. Seeking Alpha: Q4 2025 Earnings Call Transcript

Insider Transactions at Ducommun

In related news, VP Jerry L. Redondo sold 2,000 shares of the stock in a transaction that occurred on Wednesday, December 10th. The stock was 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 owned 65,269 shares in the company, valued at $6,060,879.34. This represents a 2.97% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 8.90% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in DCO. EverSource Wealth Advisors LLC grew its holdings in shares of Ducommun by 618.8% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 345 shares of the aerospace company’s stock worth $29,000 after purchasing an additional 297 shares in the last quarter. CIBC Private Wealth Group LLC acquired a new stake in Ducommun during the fourth quarter valued at approximately $95,000. CANADA LIFE ASSURANCE Co bought a new stake in shares of Ducommun in the 2nd quarter valued at approximately $145,000. Tower Research Capital LLC TRC raised its stake in Ducommun by 454.5% during the second quarter. Tower Research Capital LLC TRC now owns 2,096 shares of the aerospace company’s stock worth $173,000 after acquiring an additional 1,718 shares in the last quarter. Finally, Engineers Gate Manager LP acquired a new position in Ducommun in the fourth quarter valued at about $208,000. Institutional investors own 92.15% of the company’s stock.

Analyst Ratings Changes

A number of research analysts have issued reports on DCO shares. B. Riley Financial reissued a “buy” rating on shares of Ducommun in a research note on Wednesday, January 28th. Wall Street Zen cut Ducommun from a “strong-buy” rating to a “buy” rating in a report on Sunday, February 15th. Royal Bank Of Canada raised their price objective on shares of Ducommun from $100.00 to $142.00 and gave the company an “outperform” rating in a research report on Friday, February 20th. The Goldman Sachs Group raised their target price on shares of Ducommun from $117.00 to $132.00 and gave the stock a “buy” rating in a report on Tuesday, January 20th. Finally, Zacks Research upgraded Ducommun from a “strong sell” rating to a “hold” rating in a research report on Monday, December 8th. Five investment 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 stock presently has an average rating of “Moderate Buy” and an average target price of $123.50.

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.