Ducommun Incorporated Reports Fourth Quarter 2025 Results
Rhea-AI Summary
Ducommun (NYSE: DCO) reported a strong Q4 2025 and record full-year results. Q4 net revenue was $215.8M (up 9.4% YoY) and full-year revenue reached $825M. Q4 gross margin was 27.7% (up 420 bps) and Adjusted EBITDA was $37.9M (17.5% of revenue).
Other highlights: non-GAAP adjusted net income of $16.2M ($1.05/share), record RPO $1,106M with a 1.3x book-to-bill, and continued margin progress toward VISION 2027 targets.
Positive
- Full-year revenue reached $825M (record)
- Q4 gross margin expanded to 27.7% (+420 bps YoY)
- Adjusted EBITDA of $37.9M (17.5% of revenue, +39% YoY)
- RPO at $1,106M with 1.3x book-to-bill
Negative
- Net cash used in operations of $74.7M in Q4 due to litigation and working capital
- Litigation settlement and related costs of $7.6M reduced GAAP earnings and increased CG&A
- CG&A rose to 10.4% of revenue in Q4, driven by litigation and stock-based compensation
News Market Reaction – DCO
On the day this news was published, DCO declined 3.45%, reflecting a moderate negative market reaction. Argus tracked a trough of -3.1% from its starting point during tracking. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $63M from the company's valuation, bringing the market cap to $1.77B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
DCO is up 0.77% on earnings while close peers are mixed: ATRO +1.55%, RDW +3.11% (scanner: -6.26% earlier), CDRE -1.02%, VVX -4.60%, EVEX -0.66%, indicating company‑specific drivers.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 06 | Quarterly earnings | Positive | -3.0% | Q3 2025 revenue and record margins; net loss from large litigation costs. |
| Aug 07 | Quarterly earnings | Positive | +0.5% | Q2 2025 revenue growth, record gross margin, higher net income and EBITDA. |
| May 06 | Quarterly earnings | Positive | +4.0% | Q1 2025 revenue growth, record gross margin, higher net income and EBITDA. |
| Feb 27 | Quarterly earnings | Positive | -6.4% | Q4 2024 revenue growth, record full‑year revenue and strong backlog. |
| Nov 07 | Quarterly earnings | Positive | +3.1% | Q3 2024 record revenue with sharply higher net income and margins. |
Earnings releases have generally highlighted improving margins and defense strength, but the average 1‑day move of -0.35% shows a mixed market response with both rallies and sell‑offs.
Recent earnings for DCO have consistently emphasized revenue growth and expanding gross margins, especially from defense and missile platforms. Q1–Q3 2025 showed record margins and rising adjusted EBITDA, though Q3 included a large litigation‑driven net loss. Earlier quarters in 2024 also delivered record revenues and backlog above $1.0B. Today’s Q4 2025 report extends this pattern with new records in revenue, margins, and remaining performance obligations, reinforcing the ongoing VISION 2027 margin expansion narrative.
Historical Comparison
In the past five earnings releases, DCO’s average 1‑day move was -0.35%. Today’s +0.77% reaction to another record revenue and margin report is modestly stronger than the typical response.
Across recent earnings, DCO has moved from strong revenue growth to repeated record gross margins and higher adjusted EBITDA, particularly in defense, supporting steady progress toward its VISION 2027 margin targets.
Market Pulse Summary
This announcement highlights record Q4 2025 revenue of $215.8 million, record full‑year revenue of $825 million, and margin expansion with gross margin at 27.7% and Adjusted EBITDA margin at 17.5%. A record RPO of $1,106.0 million and a 1.3x book‑to‑bill underscore strong demand, especially in defense and missile platforms. Investors may track future quarters for litigation‑related costs, cash‑flow consistency, and continued execution toward the VISION 2027 margin targets.
Key Terms
adjusted ebitda financial
non-gaap financial
remaining performance obligations financial
book-to-bill ratio financial
basis points financial
AI-generated analysis. Not financial advice.
Strong Finish to 2025; Record Full Year Revenue and Gross Margins
COSTA MESA, Calif., Feb. 26, 2026 (GLOBE NEWSWIRE) -- Ducommun Incorporated (NYSE: DCO) (“Ducommun” or the “Company”) today reported results for its fourth quarter and year ended December 31, 2025.
Fourth Quarter 2025 Recap
- Net revenue of
$215.8 million , an increase of9.4% over Q4 2024 - Gross margin of
27.7% showed year-over-year growth of 420 bps - Net income of
$7.4 million increased10% year-over-year, or$0.48 per diluted share, or3.4% of revenue - Non-GAAP adjusted net income for the quarter of
$16.2 million which increased43% year-over-year, or$1.05 per diluted share - Adjusted EBITDA of
$37.9 million (increase of39% year-over-year), or17.5% of revenue, up 370 bps year-over-year - Revenue Remaining Performance Obligations (“RPO”) at a new record of
$1.1 billion with book-to-bill ratio of 1.3x
“We continued to make excellent progress to close out year three of our five year VISION 2027 with gross margin and Adjusted EBITDA margins at record levels along with Engineered Products at
“Ducommun also continues to make strong progress in its margin expansion journey with quarterly gross margins expanding 420 bps year-over-year to
“The tariff environment has not had a material impact on our financial results thus far and with the recent Supreme Court decision, it further mitigates risk on this front. At this time, we do not expect tariffs to have any material impact on our financial outlook. Ducommun is largely a U.S. manufacturer with U.S. workers and our domestic facilities generate more than
“In summary, Q4 was another strong performance for our team and 2025 was another record year for the Company. With Boeing continuing to make significant progress on their production rate ramp and destocking headwinds easing through 2026, our commercial aerospace business is better positioned in the back half of this year and beyond. Growth in defense spending, particularly the significant ramp in missile production activity will be a boost for our military and space segment in 2026 and several years after that. These drivers accompanied by our continued work to expand margins positions us and the DCO shareholder very well going forward.”
Fourth Quarter Results
Net revenue for the fourth quarter of 2025 was
$14.7 million higher revenue within the Company’s military and space end-use markets due to higher rates on selected fixed-wing and rotary-wing aircraft platforms, a classified program, and missile platforms, partially offset by lower rates on electronic warfare platforms; and$0.5 million higher revenue within the Company’s commercial aerospace end-use markets due to growth in Airbus and higher revenues from in-flight entertainment, partially offset by lower revenues from Boeing on the 737 MAX.
In addition, revenue for the Company’s industrial end-use markets for the fourth quarter of 2025 increased
Remaining Performance Obligations as of December 31, 2025 reached a new record of
Net income for the fourth quarter of 2025 was
Gross profit for the fourth quarter of 2025 was
Operating income for the fourth quarter of 2025 was
Interest expense for the fourth quarter of 2025 was
Adjusted EBITDA for the fourth quarter of 2025 was
During the fourth quarter of 2025, the net cash used in operations was
Business Segment Information
Electronic Systems
Electronic Systems reported net revenue for the current quarter of
$9.4 million higher revenue within the Company’s military and space end-use markets due to higher rates on selected fixed-wing aircraft, a classified program, and missile platforms, partially offset by lower rates on electronic warfare platforms; partially offset by$0.1 million lower revenue within the Company’s commercial aerospace end-use markets due to lower rates on large commercial aircraft platforms, partially offset by higher revenues from in-flight entertainment.
In addition, revenue for the Company’s industrial end-use markets for the fourth quarter of 2025 increased
Electronic Systems operating income for the current year fourth quarter was
Structural Systems
Structural Systems reported net revenue for the current quarter of
$5.3 million higher revenue within the Company’s military and space end-use markets due to higher rates on selected rotary-wing aircraft and fixed-wing aircraft platforms; and$0.5 million higher revenue within the Company’s commercial aerospace end-use markets due to growth in Airbus, partially offset by lower revenues from Boeing on the 737 MAX.
Structural Systems operating income for the current-year fourth quarter was
Corporate General and Administrative (“CG&A”) Expense
CG&A expense for the fourth quarter of 2025 was
Conference Call
A teleconference hosted by Stephen G. Oswald, the Company’s chairman, president and chief executive officer, and Suman B. Mookerji, the Company’s senior vice president, chief financial officer will be held today, February 26, 2026, at 10:00 a.m. PT (1:00 p.m. ET) to review these financial results. To access the conference call, please pre-register using the following registration link:
https://register-conf.media-server.com/register/BIf51bd118478b4ed0a4f6689b03110c30
Registrants will receive a confirmation with dial-in details. Mr. Oswald and Mr. Mookerji will be speaking on behalf of the Company and anticipate the call (including Q&A) to last approximately 45 minutes. A live webcast of the event can be accessed using the link above. A replay of the webcast will be available on the Ducommun website at Ducommun.com.
Additional information regarding Ducommun's results can be found in the Q4 2025 Earnings Presentation available at Ducommun.com.
About Ducommun Incorporated
Ducommun Incorporated is a leading designer and manufacturer of and provider of manufacturing solutions for high-performance products often used in high-cost-of failure applications primarily in the aerospace and defense, industrial, medical, and other industries. Founded in 1849, the Company specializes in two core areas - Electronic Systems and Structural Systems - to produce complex products and components for commercial aircraft platforms, mission-critical military and space programs, and sophisticated industrial applications. For more information, visit Ducommun.com.
Forward Looking Statements
This press release and any attachments include “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, in particular, any statements about the Company’s expectations relating to its progress towards the financial goals stated in its VISION 2027 strategy, expectations related to the ramp-up in missile production activity serving as a boost for the military and space segment of the Company's defense business in 2026 and beyond, expectations relating to the impact of the current tariff environment on the Company's financial outlook and the Company's progress in mitigating raw materials tariff exposures through duty exemptions or pass-throughs to customers, and expectations relating to the growth of the Company’s commercial aerospace business due to the expected rate ramps and easing of headwinds during the second half of 2026 and beyond. The Company generally uses the words “may,” “will,” “could,” “expect,” “anticipate,” “believe,” “estimate,” “plan,” “intend,” “continue” and similar expressions in this press release and any attachments to identify forward-looking statements. The Company bases these forward-looking statements on its current views with respect to future events and financial performance. Actual results could differ materially from those projected in the forward-looking statements. These forward-looking statements are subject to risks, uncertainties and assumptions, including, among other things: the cyclicality of our end-use markets, the level of U.S. government defense spending, our customers may experience changes in production rates or delays in the launch and certification of new products, timing of orders from our customers which are subject to cancellation, modification or rescheduling, our ability to obtain additional financing and service existing debt to fund capital expenditures and meet our working capital needs, legal and regulatory risks, including pending litigation matters generally and as well as any potential losses arising from third party subrogation claims related to the Guaymas performance center fire that may become material, the cost of expansion, consolidation and acquisitions, competition, economic and geopolitical developments – including supply chain issues, our ability to successfully implement restructuring, realignment and cost reduction activities that could adversely impact our ability to achieve our strategic objectives, international trade restrictions and our ability to obtain necessary U.S. government approvals for proposed sales to certain foreign customers, the impact of tariffs and elevated interest rates, risks associated with a prolonged partial or total U.S. federal government shutdown, the ability to attract and retain key personnel and avoid labor disruptions, the ability to adequately protect and enforce intellectual property rights, pandemics, disasters – natural or otherwise, and risk of cybersecurity attacks and other risks and uncertainties, including those detailed from time to time in the Company’s periodic reports filed with the Securities and Exchange Commission. You should not put undue reliance on any forward-looking statements. You should understand that many important factors, including those discussed herein, could cause the Company’s results to differ materially from those expressed or suggested in any forward-looking statement. Except as required by law, the Company does not undertake any obligation to update or revise these forward-looking statements to reflect new information or events or circumstances that occur after the date of this news release, February 26, 2026, or to reflect the occurrence of unanticipated events or otherwise. Readers are advised to review the Company’s filings with the Securities and Exchange Commission (which are available from the SEC’s EDGAR database at www.sec.gov).
Note Regarding Non-GAAP Financial Information
This release contains non-GAAP financial measures, including Adjusted EBITDA (which excludes interest expense, income tax expense (benefit), depreciation, amortization, stock-based compensation expense, restructuring charges, professional fees related to unsolicited non-binding acquisition offer, litigation settlement and related costs, net, loss extinguishment of debt, other debt refinancing costs, gain on sale of property and other assets, and inventory purchase accounting adjustments), including as a percentage of net revenues, non-GAAP operating income, including as a percentage of net revenues, non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP cash flow from operating activities, and backlog. In addition, certain other prior period amounts have been reclassified to conform to current year’s presentation.
The Company believes the presentation of these non-GAAP measures provide important supplemental information to management and investors regarding financial and business trends relating to its financial condition and results of operations. The Company’s management uses these non-GAAP financial measures along with the most directly comparable GAAP financial measures in evaluating the Company’s actual and forecasted operating performance, capital resources and cash flow. The non-GAAP financial information presented herein should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. The Company discloses different non-GAAP financial measures in order to provide greater transparency and to help the Company’s investors to more meaningfully evaluate and compare Ducommun’s results to its previously reported results. The non-GAAP financial measures that the Company uses may not be comparable to similarly titled financial measures used by other companies.
The Company defines backlog as customer placed purchase orders and long-term agreements (“LTAs”) with firm fixed price and expected delivery dates of 24 months or less. The majority of the LTAs do not meet the definition of a contract under ASC 606 and thus, the backlog amount disclosed herein may or may not be greater than the remaining performance obligations disclosed under ASC 606. Backlog is subject to delivery delays or program cancellations, which are beyond the Company’s control. Backlog is affected by timing differences in the placement of customer orders and tends to be concentrated in some of the Company’s programs.
CONTACT:
Suman Mookerji, Senior Vice President, Chief Financial Officer, 657.335.3665
[Financial Tables Follow]
| DUCOMMUN INCORPORATED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars In thousands) | ||||||
| December 31, 2025 | December 31, 2024 | |||||
| Assets | ||||||
| Current Assets | ||||||
| Cash and cash equivalents | $ | 45,289 | $ | 37,139 | ||
| Accounts receivable, net | 124,442 | 109,716 | ||||
| Contract assets | 249,845 | 200,584 | ||||
| Inventories | 182,788 | 196,881 | ||||
| Production cost of contracts | 7,178 | 6,802 | ||||
| Other current assets | 16,435 | 16,959 | ||||
| Total Current Assets | 625,977 | 568,081 | ||||
| Property and Equipment, Net | 107,223 | 109,812 | ||||
| Operating Lease Right-of-Use Assets | 40,077 | 28,611 | ||||
| Goodwill | 244,600 | 244,600 | ||||
| Intangibles, Net | 132,839 | 149,591 | ||||
| Deferred Income Taxes | 15,317 | 2,239 | ||||
| Other Assets | 20,192 | 23,167 | ||||
| Total Assets | $ | 1,186,225 | $ | 1,126,101 | ||
| Liabilities and Shareholders’ Equity | ||||||
| Current Liabilities | ||||||
| Accounts payable | $ | 74,653 | $ | 75,784 | ||
| Contract liabilities | 40,694 | 34,445 | ||||
| Accrued and other liabilities | 50,934 | 44,214 | ||||
| Operating lease liabilities | 7,817 | 8,531 | ||||
| Current portion of long-term debt | 5,000 | 12,500 | ||||
| Total Current Liabilities | 179,098 | 175,474 | ||||
| Long-Term Debt, Less Current Portion | 298,790 | 229,830 | ||||
| Non-Current Operating Lease Liabilities | 34,223 | 21,284 | ||||
| Other Long-Term Liabilities | 12,004 | 16,983 | ||||
| Total Liabilities | 524,115 | 443,571 | ||||
| Commitments and Contingencies | ||||||
| Shareholders’ Equity | ||||||
| Common stock | 149 | 148 | ||||
| Additional paid-in capital | 235,878 | 217,523 | ||||
| Retained earnings | 419,537 | 453,475 | ||||
| Accumulated other comprehensive income | 6,546 | 11,384 | ||||
| Total Shareholders’ Equity | 662,110 | 682,530 | ||||
| Total Liabilities and Shareholders’ Equity | $ | 1,186,225 | $ | 1,126,101 | ||
| DUCOMMUN INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Quarterly Information Unaudited) (Dollars in thousands, except per share amounts) | ||||||||||||||||
| Three Months Ended | Years Ended | |||||||||||||||
| December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | |||||||||||||
| Net Revenues | $ | 215,798 | $ | 197,292 | $ | 824,730 | $ | 786,551 | ||||||||
| Cost of Sales | 155,993 | 150,885 | 603,115 | 589,286 | ||||||||||||
| Gross Profit | 59,805 | 46,407 | 221,615 | 197,265 | ||||||||||||
| Selling, General and Administrative Expenses | 37,557 | 34,112 | 144,377 | 138,610 | ||||||||||||
| Restructuring Charges | 620 | 1,896 | 2,237 | 6,444 | ||||||||||||
| Litigation Settlement and Related Costs, Net | 7,630 | — | 107,305 | — | ||||||||||||
| Operating Income (Loss) | 13,998 | 10,399 | (32,304 | ) | 52,211 | |||||||||||
| Interest Expense | (3,478 | ) | (3,617 | ) | (12,676 | ) | (15,304 | ) | ||||||||
| Loss on Extinguishment of Debt | (581 | ) | — | (581 | ) | — | ||||||||||
| Other Income, Net | — | — | 1,746 | — | ||||||||||||
| Income (Loss) Before Taxes | 9,939 | 6,782 | (43,815 | ) | 36,907 | |||||||||||
| Income Tax Expense (Benefit) | 2,495 | 8 | (9,877 | ) | 5,412 | |||||||||||
| Net Income (Loss) | $ | 7,444 | $ | 6,774 | $ | (33,938 | ) | $ | 31,495 | |||||||
| Earnings (Loss) Per Share | ||||||||||||||||
| Basic earnings (loss) per share | $ | 0.50 | $ | 0.46 | $ | (2.27 | ) | $ | 2.13 | |||||||
| Diluted earnings (loss) per share | $ | 0.48 | $ | 0.45 | $ | (2.27 | ) | $ | 2.10 | |||||||
| Weighted-Average Number of Common Shares Outstanding | ||||||||||||||||
| Basic | 14,989 | 14,820 | 14,942 | 14,774 | ||||||||||||
| Diluted | 15,416 | 15,098 | 14,942 | 15,013 | ||||||||||||
| Gross Profit % | 27.7 | % | 23.5 | % | 26.9 | % | 25.1 | % | ||||||||
| SG&A % | 17.4 | % | 17.3 | % | 17.5 | % | 17.7 | % | ||||||||
| Operating Income (Loss) % | 6.5 | % | 5.3 | % | (3.9)% | 6.6 | % | |||||||||
| Net Income (Loss) % | 3.4 | % | 3.4 | % | (4.1)% | 4.0 | % | |||||||||
| Effective Tax Rate | 25.1 | % | 0.1 | % | 14.7 | % | ||||||||||
| DUCOMMUN INCORPORATED AND SUBSIDIARIES GAAP TO NON-GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION (Unaudited) (Dollars in thousands) | ||||||||||||||||
| Three Months Ended | Years Ended | |||||||||||||||
| December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | |||||||||||||
| GAAP net income (loss) | $ | 7,444 | $ | 6,774 | $ | (33,938 | ) | $ | 31,495 | |||||||
| Non-GAAP Adjustments: | ||||||||||||||||
| Interest expense | 3,478 | 3,617 | 12,676 | 15,304 | ||||||||||||
| Income tax expense (benefit) | 2,495 | 8 | (9,877 | ) | 5,412 | |||||||||||
| Depreciation | 4,053 | 3,989 | 16,358 | 16,328 | ||||||||||||
| Amortization | 4,409 | 4,320 | 17,299 | 17,110 | ||||||||||||
| Stock-based compensation expense(1)(2) | 7,009 | 5,083 | 24,520 | 17,836 | ||||||||||||
| Restructuring charges(3) | 620 | 2,251 | 2,237 | 7,656 | ||||||||||||
| Professional fees related to unsolicited non-binding acquisition offer | — | 738 | — | 3,145 | ||||||||||||
| Litigation settlement and related costs, net | 7,630 | — | 107,305 | — | ||||||||||||
| Loss on extinguishment of debt | 581 | — | 581 | — | ||||||||||||
| Other debt refinancing costs | 152 | — | 152 | — | ||||||||||||
| Gain on sale of property and other assets | — | — | (1,746 | ) | — | |||||||||||
| Inventory purchase accounting adjustments | — | 524 | — | 2,269 | ||||||||||||
| Adjusted EBITDA | $ | 37,871 | $ | 27,304 | $ | 135,567 | $ | 116,555 | ||||||||
| Net income (loss) as a % of net revenues | 3.4 | % | 3.4 | % | (4.1) % | 4.0 | % | |||||||||
| Adjusted EBITDA as a % of net revenues | 17.5 | % | 13.8 | % | 16.4 | % | 14.8 | % | ||||||||
(1) The three and twelve months ended December 31, 2025 included
(2) The three and twelve months ended December 31, 2025 included
(3) The three and twelve months ended December 31, 2024 included
| DUCOMMUN INCORPORATED AND SUBSIDIARIES BUSINESS SEGMENT PERFORMANCE (Unaudited) (Dollars in thousands) | ||||||||||||||||||||||||||||||||||
| Three Months Ended | Years Ended | |||||||||||||||||||||||||||||||||
| % Change | December 31, 2025 | December 31, 2024 | % of Net Revenues 2025 | % of Net Revenues 2024 | % Change | December 31, 2025 | December 31, 2024 | % of Net Revenues 2025 | % of Net Revenues 2024 | |||||||||||||||||||||||||
| Net Revenues | ||||||||||||||||||||||||||||||||||
| Electronic Systems | 11.8 | % | $ | 119,626 | $ | 106,972 | 55.4 | % | 54.2 | % | 7.3 | % | $ | 462,682 | $ | 431,363 | 56.1 | % | 54.8 | % | ||||||||||||||
| Structural Systems | 6.5 | % | 96,172 | 90,320 | 44.6 | % | 45.8 | % | 1.9 | % | 362,048 | 355,188 | 43.9 | % | 45.2 | % | ||||||||||||||||||
| Total Net Revenues | 9.4 | % | $ | 215,798 | $ | 197,292 | 100.0 | % | 100.0 | % | 4.9 | % | $ | 824,730 | $ | 786,551 | 100.0 | % | 100.0 | % | ||||||||||||||
| Segment Operating Income | ||||||||||||||||||||||||||||||||||
| Electronic Systems | $ | 21,962 | $ | 18,981 | 18.4 | % | 17.7 | % | $ | 82,174 | $ | 73,666 | 17.8 | % | 17.1 | % | ||||||||||||||||||
| Structural Systems | 14,573 | 3,248 | 15.2 | % | 3.6 | % | 46,417 | 24,964 | 12.8 | % | 7.0 | % | ||||||||||||||||||||||
| 36,535 | 22,229 | 128,591 | 98,630 | |||||||||||||||||||||||||||||||
| Corporate General and Administrative Expenses(1) | (22,537 | ) | (11,830 | ) | (10.4) % | (6.0) % | (160,895 | ) | (46,419 | ) | (19.5) % | (5.9) % | ||||||||||||||||||||||
| Total Operating Income (Loss) | $ | 13,998 | $ | 10,399 | 6.5 | % | 5.3 | % | $ | (32,304 | ) | $ | 52,211 | (3.9) % | 6.6 | % | ||||||||||||||||||
| Adjusted EBITDA | ||||||||||||||||||||||||||||||||||
| Electronic Systems | ||||||||||||||||||||||||||||||||||
| Operating Income | $ | 21,962 | $ | 18,981 | $ | 82,174 | $ | 73,666 | ||||||||||||||||||||||||||
| Depreciation and Amortization | 3,608 | 3,586 | 14,302 | 14,455 | ||||||||||||||||||||||||||||||
| Stock-Based Compensation Expense | 111 | 110 | 405 | 351 | ||||||||||||||||||||||||||||||
| Restructuring (Credits) Charges | (101 | ) | (385 | ) | 141 | 177 | ||||||||||||||||||||||||||||
| 25,580 | 22,292 | 21.4 | % | 20.8 | % | 97,022 | 88,649 | 21.0 | % | 20.6 | % | |||||||||||||||||||||||
| Structural Systems | ||||||||||||||||||||||||||||||||||
| Operating Income | 14,573 | 3,248 | 46,417 | 24,964 | ||||||||||||||||||||||||||||||
| Depreciation and Amortization | 4,751 | 4,638 | 18,933 | 18,696 | ||||||||||||||||||||||||||||||
| Stock-Based Compensation Expense | 96 | 114 | 477 | 375 | ||||||||||||||||||||||||||||||
| Restructuring Charges | 721 | 2,636 | 2,096 | 7,479 | ||||||||||||||||||||||||||||||
| Inventory Purchase Accounting Adjustments | — | 524 | — | 2,269 | ||||||||||||||||||||||||||||||
| 20,141 | 11,160 | 20.9 | % | 12.4 | % | 67,923 | 53,783 | 18.8 | % | 15.1 | % | |||||||||||||||||||||||
| Corporate General and Administrative Expenses (1) | ||||||||||||||||||||||||||||||||||
| Operating loss | (22,537 | ) | (11,830 | ) | (160,895 | ) | (46,419 | ) | ||||||||||||||||||||||||||
| Depreciation and Amortization | 103 | 85 | 422 | 287 | ||||||||||||||||||||||||||||||
| Stock-Based Compensation Expense | 6,802 | 4,859 | 23,638 | 17,110 | ||||||||||||||||||||||||||||||
| Other Debt Refinancing Costs | 152 | — | 152 | — | ||||||||||||||||||||||||||||||
| Professional Fees related to Unsolicited Non-Binding Acquisition Offer | — | 738 | — | 3,145 | ||||||||||||||||||||||||||||||
| Litigation Settlement and Related Costs, Net | 7,630 | — | 107,305 | — | ||||||||||||||||||||||||||||||
| (7,850 | ) | (6,148 | ) | (29,378 | ) | (25,877 | ) | |||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 37,871 | $ | 27,304 | 17.5 | % | 13.8 | % | $ | 135,567 | $ | 116,555 | 16.4 | % | 14.8 | % | ||||||||||||||||||
| Capital Expenditures | ||||||||||||||||||||||||||||||||||
| Electronic Systems | $ | 1,712 | $ | 1,958 | $ | 5,976 | $ | 4,908 | ||||||||||||||||||||||||||
| Structural Systems | 2,243 | 2,109 | 8,515 | 6,281 | ||||||||||||||||||||||||||||||
| Corporate Administration | 44 | 196 | 166 | 3,220 | ||||||||||||||||||||||||||||||
| Total Capital Expenditures | $ | 3,999 | $ | 4,263 | $ | 14,657 | $ | 14,409 | ||||||||||||||||||||||||||
(1) Includes costs not allocated to either the Electronic Systems or Structural Systems operating segments.
| DUCOMMUN INCORPORATED AND SUBSIDIARIES GAAP TO NON-GAAP OPERATING INCOME (LOSS) RECONCILIATION (Unaudited) (Dollars in thousands) | ||||||||||||||||||||||||||||
| Three Months Ended | Years Ended | |||||||||||||||||||||||||||
| GAAP To Non-GAAP Operating Income | December 31, 2025 | December 31, 2024 | % of Net Revenues 2025 | % of Net Revenues 2024 | December 31, 2025 | December 31, 2024 | % of Net Revenues 2025 | % of Net Revenues 2024 | ||||||||||||||||||||
| GAAP Operating income (loss) | $ | 13,998 | $ | 10,399 | $ | (32,304 | ) | $ | 52,211 | |||||||||||||||||||
| GAAP Operating income - Electronic Systems | $ | 21,962 | $ | 18,981 | $ | 82,174 | $ | 73,666 | ||||||||||||||||||||
| Adjustments to GAAP operating income - Electronic Systems: | ||||||||||||||||||||||||||||
| Restructuring (credits) charges | (101 | ) | (385 | ) | 141 | 177 | ||||||||||||||||||||||
| Amortization of acquisition-related intangible assets | 373 | 373 | 1,493 | 1,493 | ||||||||||||||||||||||||
| Total adjustments to GAAP operating income - Electronic Systems | 272 | (12 | ) | 1,634 | 1,670 | |||||||||||||||||||||||
| Non-GAAP adjusted operating income - Electronic Systems | 22,234 | 18,969 | 18.6 | % | 17.7 | % | 83,808 | 75,336 | 18.1 | % | 17.5 | % | ||||||||||||||||
| GAAP Operating income - Structural Systems | 14,573 | 3,248 | 46,417 | 24,964 | ||||||||||||||||||||||||
| Adjustments to GAAP operating income - Structural Systems: | ||||||||||||||||||||||||||||
| Restructuring charges | 721 | 2,636 | 2,096 | 7,479 | ||||||||||||||||||||||||
| Inventory purchase accounting adjustments | — | 524 | — | 2,269 | ||||||||||||||||||||||||
| Amortization of acquisition-related intangible assets | 1,859 | 1,859 | 7,437 | 7,437 | ||||||||||||||||||||||||
| Total adjustments to GAAP operating income - Structural Systems | 2,580 | 5,019 | 9,533 | 17,185 | ||||||||||||||||||||||||
| Non-GAAP adjusted operating income - Structural Systems | 17,153 | 8,267 | 17.8 | % | 9.2 | % | 55,950 | 42,149 | 15.5 | % | 11.9 | % | ||||||||||||||||
| GAAP Operating loss - Corporate | (22,537 | ) | (11,830 | ) | (160,895 | ) | (46,419 | ) | ||||||||||||||||||||
| Adjustments to GAAP operating loss - Corporate: | ||||||||||||||||||||||||||||
| Professional fees related to unsolicited non-binding acquisition offer | — | 738 | — | 3,145 | ||||||||||||||||||||||||
| Other debt refinancing costs | 152 | — | 152 | — | ||||||||||||||||||||||||
| Litigation settlement and related costs, net | 7,630 | — | 107,305 | — | ||||||||||||||||||||||||
| Total adjustments to GAAP operating loss - Corporate | 7,782 | 738 | 107,457 | 3,145 | ||||||||||||||||||||||||
| Non-GAAP adjusted operating loss - Corporate | (14,755 | ) | (11,092 | ) | (53,438 | ) | (43,274 | ) | ||||||||||||||||||||
| Total non-GAAP adjustments to GAAP operating income | 10,634 | 5,745 | 118,624 | 22,000 | ||||||||||||||||||||||||
| Non-GAAP adjusted operating income | $ | 24,632 | $ | 16,144 | 11.4 | % | 8.2 | % | $ | 86,320 | $ | 74,211 | 10.5 | % | 9.4 | % | ||||||||||||
| DUCOMMUN INCORPORATED AND SUBSIDIARIES GAAP TO NON-GAAP NET INCOME AND EARNINGS PER SHARE RECONCILIATION (Unaudited) (Dollars in thousands, except per share amounts) | ||||||||||||||||
| Three Months Ended | Years Ended | |||||||||||||||
| GAAP To Non-GAAP Net Income | December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | ||||||||||||
| GAAP net income (loss) | $ | 7,444 | $ | 6,774 | $ | (33,938 | ) | $ | 31,495 | |||||||
| Adjustments to GAAP net income (loss): | ||||||||||||||||
| Restructuring charges | 620 | 2,251 | 2,237 | 7,656 | ||||||||||||
| Litigation settlement and related costs, net | 7,630 | — | 107,305 | — | ||||||||||||
| Gain on sale of property and other assets | — | — | (1,746 | ) | — | |||||||||||
| Professional fees related to unsolicited non-binding acquisition offer | — | 738 | — | 3,145 | ||||||||||||
| Inventory purchase accounting adjustments | — | 524 | — | 2,269 | ||||||||||||
| Amortization of acquisition-related intangible assets | 2,232 | 2,232 | 8,930 | 8,930 | ||||||||||||
| Loss on extinguishment of debt | 581 | — | 581 | — | ||||||||||||
| Other debt refinancing costs | 152 | — | 152 | — | ||||||||||||
| Total adjustments to GAAP net income before provision for income taxes | 11,215 | 5,745 | 117,459 | 22,000 | ||||||||||||
| Income tax effect on non-GAAP adjustments(1) | $ | (2,426 | ) | $ | (1,149 | ) | $ | (26,067 | ) | $ | (4,400 | ) | ||||
| Non-GAAP adjusted net income | $ | 16,233 | $ | 11,370 | $ | 57,454 | $ | 49,095 | ||||||||
| Three Months Ended | Years Ended | |||||||||||||||
| GAAP Earnings (Loss) Per Share To Non-GAAP Earnings Per Share | December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | ||||||||||||
| GAAP Diluted Earnings (Loss) Per Share (“EPS”) | $ | 0.48 | $ | 0.45 | $ | (2.27 | ) | $ | 2.10 | |||||||
| Adjustments to GAAP diluted EPS: | ||||||||||||||||
| Restructuring charges | 0.04 | 0.15 | 0.15 | 0.51 | ||||||||||||
| Litigation settlement and related costs, net | 0.49 | — | 7.01 | — | ||||||||||||
| Gain on sale of property and other assets | — | — | (0.11 | ) | — | |||||||||||
| Professional fees related to unsolicited non-binding acquisition offer | — | 0.05 | — | 0.21 | ||||||||||||
| Inventory purchase accounting adjustments | — | 0.03 | — | 0.15 | ||||||||||||
| Amortization of acquisition-related intangible assets | 0.14 | 0.15 | 0.58 | 0.59 | ||||||||||||
| Loss on extinguishment of debt | 0.04 | — | 0.04 | — | ||||||||||||
| Other debt refinancing costs | 0.01 | — | 0.01 | $ | — | |||||||||||
| Total adjustments to GAAP diluted EPS before provision for income taxes | 0.72 | 0.38 | 7.68 | 1.46 | ||||||||||||
| Income tax effect on non-GAAP adjustments(1) | $ | (0.15 | ) | $ | (0.08 | ) | $ | (1.70 | ) | $ | (0.29 | ) | ||||
| Non-GAAP adjusted diluted EPS(2) | $ | 1.05 | $ | 0.75 | $ | 3.75 | $ | 3.27 | ||||||||
| GAAP weighted-average shares - basic | 14,989 | 14,820 | 14,942 | 14,774 | ||||||||||||
| GAAP weighted-average shares - diluted | 15,416 | 15,098 | 14,942 | 15,013 | ||||||||||||
| Non-GAAP weighted-average shares - diluted(3) | 15,416 | 15,098 | 15,315 | 15,013 | ||||||||||||
(1) Includes effective tax rate of
(2) Non-GAAP adjusted diluted EPS will not foot for the twelve months ended December 31, 2025 as the GAAP net loss per share was calculated using the GAAP weighted-average shares - basic but the adjustments to GAAP diluted EPS and Non-GAAP adjusted diluted EPS were calculated using the Non-GAAP weighted-average shares - diluted.
(3) In periods of GAAP net loss, non-GAAP weighted-average shares differs from GAAP weighted-average shares due to the non-GAAP net income reported.
| DUCOMMUN INCORPORATED AND SUBSIDIARIES GAAP TO NON-GAAP CORPORATE GENERAL AND ADMINISTRATIVE EXPENSE TO ADJUSTED CORPORATE GENERAL AND ADMINISTRATIVE EXPENSE RECONCILIATION (Unaudited) (Dollars in thousands) | ||||||||||||||
| Three Months Ended | Years Ended | |||||||||||||
| December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | |||||||||||
| GAAP Corporate general and administrative expenses | $ | 22,537 | $ | 11,830 | $ | 160,895 | $ | 46,419 | ||||||
| Non-GAAP Adjustments: | ||||||||||||||
| Litigation settlement and related costs, net | (7,630 | ) | — | (107,305 | ) | — | ||||||||
| Non-GAAP adjusted corporate general and administrative expenses | $ | 14,907 | $ | 11,830 | $ | 53,590 | $ | 46,419 | ||||||
| DUCOMMUN INCORPORATED AND SUBSIDIARIES GAAP TO NON-GAAP CASH FLOW FROM OPERATING ACTIVITIES TO ADJUSTED CASH FLOW FROM OPERATING ACTIVITIES RECONCILIATION (Unaudited) (Dollars in thousands) | ||||||||||||||
| Three Months Ended | Years Ended | |||||||||||||
| December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | |||||||||||
| GAAP net cash (used in) provided by operating activities | $ | (74,687 | ) | $ | 18,424 | $ | (33,405 | ) | $ | 34,180 | ||||
| Non-GAAP Adjustments: | ||||||||||||||
| Litigation settlement and related costs, net | 101,212 | — | 103,220 | — | ||||||||||
| Non-GAAP adjusted net cash provided by operating activities | $ | 26,525 | $ | 18,424 | $ | 69,815 | $ | 34,180 | ||||||
| DUCOMMUN INCORPORATED AND SUBSIDIARIES NON-GAAP BACKLOG* BY REPORTING SEGMENT (Unaudited) (Dollars in thousands) | ||||||
| (In thousands) | ||||||
| December 31, 2025 | December 31, 2024 | |||||
| Consolidated Ducommun | ||||||
| Military and space | $ | 706,546 | $ | 624,785 | ||
| Commercial aerospace | 477,641 | 415,905 | ||||
| Industrial | 18,762 | 20,129 | ||||
| Total | $ | 1,202,949 | $ | 1,060,819 | ||
| Electronic Systems | ||||||
| Military and space | $ | 517,727 | $ | 459,546 | ||
| Commercial aerospace | 90,031 | 76,291 | ||||
| Industrial | 18,762 | 20,129 | ||||
| Total | $ | 626,520 | $ | 555,966 | ||
| Structural Systems | ||||||
| Military and space | $ | 188,819 | $ | 165,239 | ||
| Commercial aerospace | 387,610 | 339,614 | ||||
| Total | $ | 576,429 | $ | 504,853 | ||
* Under ASC 606, the Company defines performance obligations as customer placed purchase orders with firm fixed price and firm delivery dates. The remaining performance obligations (“RPO”) disclosed under ASC 606 as of December 31, 2025 were
Beginning January 1, 2026, Ducommun will no longer disclose backlog information but instead, will be disclosing only RPO as the Company believes it will be more useful to investors in assessing future revenue of the Company.
| DUCOMMUN INCORPORATED AND SUBSIDIARIES NON-GAAP BOOK-TO-BILL RATIO CALCULATION - SUPPLEMENTAL DATA (Unaudited) (Dollars in thousands) | ||||||||||||
| Three Months Ended | Years Ended | |||||||||||
| December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | |||||||||
| Non-GAAP Bookings, net | $ | 290,617 | $ | 252,798 | $ | 918,145 | $ | 972,457 | ||||
| GAAP Net revenues | 215,798 | 197,292 | 824,730 | 786,551 | ||||||||
| Non-GAAP book-to-bill ratio | 1.3 | 1.3 | 1.1 | 1.2 | ||||||||
FAQ
What were Ducommun (DCO) Q4 2025 revenues and how did they change year-over-year?
How did Ducommun's (DCO) margins perform in Q4 2025 and full-year 2025?
What is Ducommun's (DCO) Adjusted EBITDA and non-GAAP earnings for Q4 2025?
What is Ducommun's (DCO) Remaining Performance Obligations and book-to-bill as of Dec 31, 2025?
Why did Ducommun (DCO) report negative operating cash flow in Q4 2025?
