Ducommun Incorporated Reports Second Quarter 2026 Results
Rhea-AI Summary
Ducommun (NYSE:DCO) reported second quarter 2026 net revenue of $224.5 million, up 12% from Q2 2025, with record gross margin of 28.0%. Net income rose to $20.4 million (9.1% margin) or $1.31 per diluted share, versus $12.8 million or $0.84 a year earlier.
Adjusted net income was $18.4 million ($1.18 per diluted share) and adjusted EBITDA reached $38.4 million, or 17.1% of revenue, up from 15.8%. Remaining performance obligations hit a record $1.2 billion, with quarterly bookings of $309.7 million and a book‑to‑bill of 1.4x. Electronic Systems revenue grew to $131.4 million and Structural Systems to $93.1 million. Operating cash flow increased to $33.5 million, while long‑term debt (excluding current portion) declined to $271.4 million from $298.8 million at year‑end 2025.
Positive
- Net revenue up 12% year-over-year to $224.5 million in Q2 2026
- Net income up 60% year-over-year to $20.4 million, 9.1% margin
- Adjusted EBITDA up 21% to $38.4 million, margin 17.1% (+130 bps)
- Record RPO of $1.2 billion and Q2 bookings of $309.7 million, 1.4x book-to-bill
- Operating cash flow up to $33.5 million from $22.4 million year-over-year
- Long-term debt reduced to $271.4 million from $298.8 million at 2025 year-end
Negative
- Interest expense increased to $3.5 million from $3.0 million year-over-year
- Structural Systems military and space revenue down $2.1 million year-over-year
- Management outlook notes continued destocking headwinds expected for remaining quarters of 2026
News Explained
As of
Market reaction after 2Q26 earnings report: DCO +6.99%
Following this news, DCO has gained 6.99%, reflecting a notable positive market reaction. Our momentum scanner has triggered 19 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $205.13.
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Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 12 | Q1 earnings | Positive | +3.1% | Record Q1 revenue and margin expansion drove a positive 24-hour reaction. |
| Feb 26 | Q4 earnings | Positive | -3.5% | Record Q4 revenue, margin, and RPO accompanied a negative 24-hour reaction. |
| Nov 06 | Q3 earnings | Negative | -3.0% | Net loss and litigation-related costs accompanied a negative 24-hour reaction. |
| Aug 07 | Q2 earnings | Positive | +0.5% | Record gross margin and earnings growth accompanied a positive 24-hour reaction. |
| May 06 | Q1 earnings | Positive | +4.0% | Profit and adjusted EBITDA growth accompanied a positive 24-hour reaction. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings announcements produced positive 24-hour reactions in three of five tag-matched events, while two produced negative reactions.
Key Terms
remaining performance obligations financial
book-to-bill financial
adjusted ebitda financial
non-gaap adjusted net income financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Record Revenue and Gross Margin; Remaining Performance Obligations at All-Time High
COSTA MESA, Calif., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Ducommun Incorporated (NYSE: DCO) (“Ducommun” or the “Company”) today reported results for its second quarter ended July 4, 2026.
Second Quarter 2026 Recap
- Record Net Revenue was
$224.5 million , an increase of12% over Q2 2025* - Record Gross margin of
28.0% , year-over-year growth of 160 bps - Net income of
$20.4 million (increase of60% year-over-year) or$1.31 per diluted share, and9.1% of revenue, up 270 bps year-over-year - Non-GAAP adjusted net income of
$18.4 million (increase of35% year-over-year), or$1.18 per diluted share - Adjusted EBITDA of
$38.4 million (increase of21% year-over-year), or17.1% of revenue, up 130 bps year-over-year - Remaining performance obligations (“RPO”) at an all-time high of
$1.2 billion with strong bookings of$309.7 million during the quarter at a book-to-bill of 1.4x
“An outstanding second quarter and first half of 2026 for Ducommun. I could not be happier. Our team continued to make great progress towards our VISION 2027 goals with another record for revenue and gross margin during the second quarter. Net revenue grew by double digits at
“Margin expansion was very strong in the quarter expanding 160 bps year-over-year to an all-time record
“Halfway through year four, our strong performance across revenue, gross margin, and Adjusted EBITDA margins along with our record level of Remaining Performance Obligations positions us well towards meeting our VISION 2027 targets. While we expect to see some continued destocking headwinds in the remaining quarters of 2026, we have begun to see those pressures ease gradually. Ducommun’s missile franchise also continues to gain strength both in revenue and orders, and we are well positioned to benefit from the expected major ramp-up in missile production.”
Second Quarter Results
Net revenue for the second quarter of 2026 was
$12.0 million higher revenue in the Company’s commercial aerospace end-use markets due to higher rates on large aircraft platforms; and$7.9 million higher revenue in the Company’s military and space end-use markets due to higher rates on several missiles and fixed-wing aircraft platforms, partially offset by lower rates on a classified program, selected radar, rotary-wing aircraft, and naval platforms.
In addition, revenue for the Company’s industrial end-use markets for the second quarter of 2026 increased
Net income for the second quarter of 2026 was
Gross profit for the second quarter of 2026 was
Operating income for the second quarter of 2026 was
Adjusted EBITDA for the second quarter of 2026 was
Interest expense for the second quarter of 2026 was
During the second quarter of 2026, the net cash provided by operations was
* As restated in the Company's Form 10-K/A filed with the Securities and Exchange Commission on May 8, 2026.
Business Segment Information
Electronic Systems
Electronic Systems segment net revenue for the quarter ended July 4, 2026 was
$10.0 million higher revenue within the Company’s military and space end-use markets due to higher rates on several missiles and fixed-wing aircraft platforms, partially offset by lower rates on a classified program, radar, and naval platforms; and$7.9 million higher revenue in the Company’s commercial aerospace end-use markets due to higher rates on large aircraft and other commercial aerospace platforms.
In addition, revenue for the Company’s industrial end-use markets for the second quarter of 2026 increased
Electronic Systems segment operating income for the quarter ended July 4, 2026 was
Structural Systems
Structural Systems segment net revenue for the quarter ended July 4, 2026 was
$4.1 million higher revenue within the Company’s commercial aerospace end-use markets due to higher rates on large aircraft platforms; partially offset by$2.1 million lower revenue within the Company’s military and space end-use markets due to lower rates on selected military rotary-wing aircraft platforms, partially offset by higher rates on selected missiles platforms.
Structural Systems segment operating income for the quarter ended July 4, 2026 was
Corporate General and Administrative (“CG&A”) Expenses
CG&A expenses for the second quarter of 2026 were
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, August 6, 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/BId79a3549545545bbb662a173a75704e4
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 Q2 2026 Earnings Presentation available at Ducommun.com.
About Ducommun Incorporated
Ducommun Incorporated delivers value-added innovative manufacturing solutions to customers in the aerospace, defense and industrial markets. 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, expectations relating to the Company's VISION 2027 Strategy and its progress towards the financial goals stated therein, including but not limited to those relating to Adjusted EBITDA, potential destocking headwinds related to the Company's commercial aerospace business through the remainder of 2026, our expectations relating to the ability to continue the strong momentum from the Company's first quarter and our expectations related to the expected ramp up in missile production. 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, August 6, 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, net, income tax expense, depreciation, amortization, stock-based compensation expense, restructuring charges, gain on sale of property and other assets, and compensation clawback), including as a percentage of revenue, non-GAAP operating income, including as a percentage of net revenues, non-GAAP net income, non-GAAP earnings per share, and non-GAAP book-to-bill ratio. 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.
CONTACT:
Suman Mookerji, Senior Vice President, Chief Financial Officer, 657.335.3665
[Financial Tables Follow]
| DUCOMMUN INCORPORATED AND SUBSIDIARIES | |||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
| (Unaudited) | |||||
| (Dollars in thousands) | |||||
| July 4, 2026 | December 31, 2025 | ||||
| Assets | |||||
| Current Assets | |||||
| Cash and cash equivalents | $ | 39,804 | $ | 45,289 | |
| Accounts receivable, net | 146,918 | 124,442 | |||
| Contract assets | 259,666 | 249,845 | |||
| Inventories | 191,714 | 182,788 | |||
| Production cost of contracts | 6,246 | 7,178 | |||
| Other current assets | 17,095 | 16,442 | |||
| Total Current Assets | 661,443 | 625,984 | |||
| Property and Equipment, Net | 105,595 | 107,223 | |||
| Operating Lease Right-of-Use Assets | 56,064 | 40,077 | |||
| Goodwill | 244,600 | 244,600 | |||
| Intangibles, Net | 124,475 | 132,839 | |||
| Deferred income taxes | 10,085 | 15,500 | |||
| Other Assets | 22,292 | 20,192 | |||
| Total Assets | $ | 1,224,554 | $ | 1,186,415 | |
| Liabilities and Shareholders’ Equity | |||||
| Current Liabilities | |||||
| Accounts payable | $ | 95,575 | $ | 74,653 | |
| Contract liabilities | 56,401 | 40,694 | |||
| Accrued and other liabilities | 33,282 | 51,071 | |||
| Operating lease liabilities | 6,718 | 7,817 | |||
| Current portion of long-term debt | 5,000 | 5,000 | |||
| Total Current Liabilities | 196,976 | 179,235 | |||
| Long-Term Debt, Less Current Portion | 271,425 | 298,790 | |||
| Non-Current Operating Lease Liabilities | 51,651 | 34,223 | |||
| Other Long-Term Liabilities | 14,064 | 12,686 | |||
| Total Liabilities | 534,116 | 524,934 | |||
| Commitments and Contingencies | |||||
| Shareholders’ Equity | |||||
| Common Stock | 151 | 149 | |||
| Additional Paid-In Capital | 245,823 | 248,482 | |||
| Retained Earnings | 436,619 | 406,304 | |||
| Accumulated Other Comprehensive Income | 7,845 | 6,546 | |||
| Total Shareholders’ Equity | 690,438 | 661,481 | |||
| Total Liabilities and Shareholders’ Equity | $ | 1,224,554 | $ | 1,186,415 | |
| DUCOMMUN INCORPORATED AND SUBSIDIARIES | |||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
| (Unaudited) | |||||||||||||||
| (Dollars and shares in thousands, except per share amounts) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| July 4, 2026 | June 28, 2025 | July 4, 2026 | June 28, 2025 | ||||||||||||
| Net Revenues | $ | 224,492 | $ | 200,803 | $ | 433,514 | $ | 393,284 | |||||||
| Cost of Sales | 161,592 | 147,827 | 314,381 | 289,857 | |||||||||||
| Gross Profit | 62,900 | 52,976 | 119,133 | 103,427 | |||||||||||
| Selling, General and Administrative Expenses | 34,569 | 34,643 | 75,082 | 79,693 | |||||||||||
| Restructuring Charges | — | 608 | — | 1,034 | |||||||||||
| Operating Income | 28,331 | 17,725 | 44,051 | 22,700 | |||||||||||
| Interest Expense, Net | (3,522 | ) | (3,008 | ) | (7,532 | ) | (6,271 | ) | |||||||
| Other Income | — | 1,746 | — | 1,746 | |||||||||||
| Income Before Taxes | 24,809 | 16,463 | 36,519 | 18,175 | |||||||||||
| Income Tax Expense | 4,410 | 3,709 | 6,204 | 4,019 | |||||||||||
| Net Income | $ | 20,399 | $ | 12,754 | $ | 30,315 | $ | 14,156 | |||||||
| Earnings Per Share | |||||||||||||||
| Basic earnings per share | $ | 1.35 | $ | 0.85 | $ | 2.01 | $ | 0.95 | |||||||
| Diluted earnings per share | $ | 1.31 | $ | 0.84 | $ | 1.95 | $ | 0.93 | |||||||
| Weighted-Average Number of Common Shares Outstanding | |||||||||||||||
| Basic | 15,136 | 14,938 | 15,089 | 14,898 | |||||||||||
| Diluted | 15,555 | 15,216 | 15,581 | 15,196 | |||||||||||
| Gross Profit % | 28.0 | % | 26.4 | % | 27.5 | % | 26.3 | % | |||||||
| SG&A % | 15.4 | % | 17.3 | % | 17.3 | % | 20.3 | % | |||||||
| Operating Income % | 12.6 | % | 8.8 | % | 10.2 | % | 5.8 | % | |||||||
| Net Income % | 9.1 | % | 6.4 | % | 7.0 | % | 3.6 | % | |||||||
| Effective Tax Rate | 17.8 | % | 22.5 | % | 17.0 | % | 22.1 | % | |||||||
| DUCOMMUN INCORPORATED AND SUBSIDIARIES | |||||||||||||||
| GAAP TO NON-GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION | |||||||||||||||
| (Unaudited) | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| July 4, 2026 | June 28, 2025 | July 4, 2026 | June 28, 2025 | ||||||||||||
| GAAP net income | $ | 20,399 | $ | 12,754 | $ | 30,315 | $ | 14,156 | |||||||
| Non-GAAP Adjustments: | |||||||||||||||
| Interest expense, net | 3,522 | 3,008 | 7,532 | 6,271 | |||||||||||
| Income tax expense | 4,410 | 3,709 | 6,204 | 4,019 | |||||||||||
| Depreciation | 4,269 | 3,991 | 8,212 | 8,268 | |||||||||||
| Amortization | 4,285 | 4,282 | 8,580 | 8,589 | |||||||||||
| Stock-based compensation expense(1) | 5,352 | 5,033 | 16,771 | 20,767 | |||||||||||
| Restructuring charges | — | 608 | — | 1,034 | |||||||||||
| Gain on sale of property and other assets | — | (1,746 | ) | — | (1,746 | ) | |||||||||
| Compensation clawback | (3,870 | ) | — | (3,870 | ) | — | |||||||||
| Adjusted EBITDA | $ | 38,367 | $ | 31,639 | $ | 73,744 | $ | 61,358 | |||||||
| Net income as a % of net revenues | 9.1 | % | 6.4 | % | 7.0 | % | 3.6 | % | |||||||
| Adjusted EBITDA as a % of net revenues | 17.1 | % | 15.8 | % | 17.0 | % | 15.6 | % | |||||||
| (1) | The three and six months ended July 4, 2026 and included zero and |
| DUCOMMUN INCORPORATED AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
| BUSINESS SEGMENT PERFORMANCE | |||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||
| % Change | July 4, 2026 | June 28, 2025 | % of Net Revenues 2026 | % of Net Revenues 2025 | % Change | July 4, 2026 | June 28, 2025 | % of Net Revenues 2026 | % of Net Revenues 2025 | ||||||||||||||||||||||||
| Net Revenues | |||||||||||||||||||||||||||||||||
| Electronic Systems | 19.8 | % | $ | 131,436 | $ | 109,704 | 58.5 | % | 54.6 | % | 13.8 | % | $ | 249,026 | $ | 218,769 | 57.4 | % | 55.6 | % | |||||||||||||
| Structural Systems | 2.1 | % | 93,056 | 91,099 | 41.5 | % | 45.4 | % | 5.7 | % | 184,488 | 174,515 | 42.6 | % | 44.4 | % | |||||||||||||||||
| Total Net Revenues | 11.8 | % | $ | 224,492 | $ | 200,803 | 100.0 | % | 100.0 | % | 10.2 | % | $ | 433,514 | $ | 393,284 | 100.0 | % | 100.0 | % | |||||||||||||
| Segment Operating Income | |||||||||||||||||||||||||||||||||
| Electronic Systems | $ | 25,476 | $ | 20,458 | 19.4 | % | 18.6 | % | $ | 48,400 | $ | 37,908 | 19.4 | % | 17.3 | % | |||||||||||||||||
| Structural Systems | 12,761 | 9,295 | 13.7 | % | 10.2 | % | 23,199 | 19,214 | 12.6 | % | 11.0 | % | |||||||||||||||||||||
| 38,237 | 29,753 | 71,599 | 57,122 | ||||||||||||||||||||||||||||||
| Corporate General and Administrative Expenses(1) | (9,906 | ) | (12,028 | ) | (4.4 | )% | (6.0 | )% | (27,548 | ) | (34,422 | ) | (6.4 | )% | (8.8 | )% | |||||||||||||||||
| Total Operating Income | $ | 28,331 | $ | 17,725 | 12.6 | % | 8.8 | % | $ | 44,051 | $ | 22,700 | 10.2 | % | 5.8 | % | |||||||||||||||||
| Adjusted EBITDA | |||||||||||||||||||||||||||||||||
| Electronic Systems | |||||||||||||||||||||||||||||||||
| Operating Income | $ | 25,476 | $ | 20,458 | $ | 48,400 | $ | 37,908 | |||||||||||||||||||||||||
| Depreciation and Amortization | 3,626 | 3,575 | 7,210 | 7,141 | |||||||||||||||||||||||||||||
| Stock-Based Compensation Expense(2) | 106 | 146 | 208 | 223 | |||||||||||||||||||||||||||||
| Restructuring Charges | — | 81 | — | 171 | |||||||||||||||||||||||||||||
| 29,208 | 24,260 | 22.2 | % | 22.1 | % | 55,818 | 45,443 | 22.4 | % | 20.8 | % | ||||||||||||||||||||||
| Structural Systems | |||||||||||||||||||||||||||||||||
| Operating Income | 12,761 | 9,295 | 23,199 | 19,214 | |||||||||||||||||||||||||||||
| Depreciation and Amortization | 4,831 | 4,596 | 9,390 | 9,512 | |||||||||||||||||||||||||||||
| Stock-Based Compensation Expense(3) | 89 | 143 | 171 | 322 | |||||||||||||||||||||||||||||
| Restructuring Charges | — | 527 | — | 863 | |||||||||||||||||||||||||||||
| 17,681 | 14,561 | 19.0 | % | 16.0 | % | 32,760 | 29,911 | 17.8 | % | 17.1 | % | ||||||||||||||||||||||
| Corporate General and Administrative Expenses(1) | |||||||||||||||||||||||||||||||||
| Operating loss | (9,906 | ) | (12,028 | ) | (27,548 | ) | (34,422 | ) | |||||||||||||||||||||||||
| Depreciation and Amortization | 97 | 102 | 192 | 204 | |||||||||||||||||||||||||||||
| Stock-Based Compensation Expense(4) | 5,157 | 4,744 | 16,392 | 20,222 | |||||||||||||||||||||||||||||
| Compensation Clawback | (3,870 | ) | — | (3,870 | ) | — | |||||||||||||||||||||||||||
| (8,522 | ) | (7,182 | ) | (14,834 | ) | (13,996 | ) | ||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 38,367 | $ | 31,639 | 17.1 | % | 15.8 | % | $ | 73,744 | $ | 61,358 | 17.0 | % | 15.6 | % | |||||||||||||||||
| Capital Expenditures | |||||||||||||||||||||||||||||||||
| Electronic Systems | $ | 2,176 | $ | 783 | $ | 3,062 | $ | 3,048 | |||||||||||||||||||||||||
| Structural Systems | 1,536 | 3,129 | 3,011 | 5,243 | |||||||||||||||||||||||||||||
| Corporate Administration | 23 | — | 242 | 13 | |||||||||||||||||||||||||||||
| Total Capital Expenditures | $ | 3,735 | $ | 3,912 | $ | 6,315 | $ | 8,304 | |||||||||||||||||||||||||
| (1) | Includes costs not allocated to either the Electronic Systems or Structural Systems operating segments. |
| (2) | The three and six months ended July 4, 2026 included |
| (3) | The three and six months ended July 4, 2026 included less than |
| (4) | The three and six months ended July 4, 2026 included zero and |
| DUCOMMUN INCORPORATED AND SUBSIDIARIES | |||||||||||||||||||||||||||
| GAAP TO NON-GAAP OPERATING INCOME RECONCILIATION | |||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
| GAAP To Non-GAAP Operating Income | July 4, 2026 | June 28, 2025 | % of Net Revenues 2026 | % of Net Revenues 2025 | July 4, 2026 | June 28, 2025 | % of Net Revenues 2026 | % of Net Revenues 2025 | |||||||||||||||||||
| GAAP operating income | $ | 28,331 | $ | 17,725 | $ | 44,051 | $ | 22,700 | |||||||||||||||||||
| GAAP operating income - Electronic Systems | $ | 25,476 | $ | 20,458 | $ | 48,400 | $ | 37,908 | |||||||||||||||||||
| Adjustments to GAAP operating income - Electronic Systems: | |||||||||||||||||||||||||||
| Restructuring charges | — | 81 | — | 171 | |||||||||||||||||||||||
| Amortization of acquisition-related intangible assets | 374 | 374 | 747 | 747 | |||||||||||||||||||||||
| Total adjustments to GAAP operating income - Electronic Systems | 374 | 455 | 747 | 918 | |||||||||||||||||||||||
| Non-GAAP adjusted operating income - Electronic Systems | 25,850 | 20,913 | 19.7 | % | 19.1 | % | 49,147 | 38,826 | 19.7 | % | 17.7 | % | |||||||||||||||
| GAAP operating income - Structural Systems | 12,761 | 9,295 | 23,199 | 19,214 | |||||||||||||||||||||||
| Adjustments to GAAP operating income - Structural Systems: | |||||||||||||||||||||||||||
| Restructuring charges | — | 527 | — | 863 | |||||||||||||||||||||||
| Amortization of acquisition-related intangible assets | 1,860 | 1,860 | 3,719 | 3,719 | |||||||||||||||||||||||
| Total adjustments to GAAP operating income - Structural Systems | 1,860 | 2,387 | 3,719 | 4,582 | |||||||||||||||||||||||
| Non-GAAP adjusted operating income - Structural Systems | 14,621 | 11,682 | 15.7 | % | 12.8 | % | 26,918 | 23,796 | 14.6 | % | 13.6 | % | |||||||||||||||
| GAAP operating loss - Corporate | (9,906 | ) | (12,028 | ) | (27,548 | ) | (34,422 | ) | |||||||||||||||||||
| Adjustments to GAAP Operating Income - Corporate | |||||||||||||||||||||||||||
| Compensation clawback | (3,870 | ) | — | (3,870 | ) | — | |||||||||||||||||||||
| Total adjustments to GAAP Operating Income - Corporate | (3,870 | ) | — | (3,870 | ) | — | |||||||||||||||||||||
| Non-GAAP adjusted operating loss - Corporate | (13,776 | ) | (12,028 | ) | (31,418 | ) | (34,422 | ) | |||||||||||||||||||
| Total non-GAAP adjustments to GAAP operating income | (1,636 | ) | 2,842 | 596 | 5,500 | ||||||||||||||||||||||
| Non-GAAP adjusted operating income | $ | 26,695 | $ | 20,567 | 11.9 | % | 10.2 | % | $ | 44,647 | $ | 28,200 | 10.3 | % | 7.2 | % | |||||||||||
| DUCOMMUN INCORPORATED AND SUBSIDIARIES | |||||||||||||||
| GAAP TO NON-GAAP NET INCOME AND EARNINGS PER SHARE RECONCILIATION | |||||||||||||||
| (Unaudited) | |||||||||||||||
| (Dollars and shares in thousands, except per share amounts) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| GAAP To Non-GAAP Net Income | July 4, 2026 | June 28, 2025 | July 4, 2026 | June 28, 2025 | |||||||||||
| GAAP net income | $ | 20,399 | $ | 12,754 | $ | 30,315 | $ | 14,156 | |||||||
| Adjustments to GAAP net income: | |||||||||||||||
| Restructuring charges | — | 608 | — | 1,034 | |||||||||||
| Gain on sale of property and other assets | — | (1,746 | ) | — | (1,746 | ) | |||||||||
| Compensation clawback | (3,870 | ) | — | (3,870 | ) | — | |||||||||
| Amortization of acquisition-related intangible assets | 2,234 | 2,234 | 4,466 | 4,466 | |||||||||||
| Total adjustments to GAAP net income before provision for income taxes | (1,636 | ) | 1,096 | 596 | 3,754 | ||||||||||
| Income tax effect on non-GAAP adjustments(1)(2) | (405 | ) | (219 | ) | (851 | ) | (751 | ) | |||||||
| Non-GAAP adjusted net income | $ | 18,358 | $ | 13,631 | $ | 30,060 | $ | 17,159 | |||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| GAAP Earnings Per Share To Non-GAAP Earnings Per Share | July 4, 2026 | June 28, 2025 | July 4, 2026 | June 28, 2025 | |||||||||||
| GAAP diluted earnings per share (“EPS”) | $ | 1.31 | $ | 0.84 | $ | 1.95 | $ | 0.93 | |||||||
| Adjustments to GAAP diluted EPS: | |||||||||||||||
| Restructuring charges | — | 0.04 | — | 0.07 | |||||||||||
| Gain on sale of property and other assets | — | (0.12 | ) | — | (0.11 | ) | |||||||||
| Compensation clawback | (0.25 | ) | — | (0.25 | ) | — | |||||||||
| Amortization of acquisition-related intangible assets | 0.15 | 0.15 | 0.29 | 0.29 | |||||||||||
| Total adjustments to GAAP diluted EPS before provision for income taxes | (0.10 | ) | 0.07 | 0.04 | 0.25 | ||||||||||
| Income tax effect on non-GAAP adjustments(1)(2) | (0.03 | ) | (0.01 | ) | (0.06 | ) | (0.05 | ) | |||||||
| Non-GAAP adjusted diluted EPS | $ | 1.18 | $ | 0.90 | $ | 1.93 | $ | 1.13 | |||||||
| GAAP weighted-average shares - basic | 15,136 | 14,938 | 15,089 | 14,898 | |||||||||||
| GAAP weighted-average shares - diluted | 15,555 | 15,216 | 15,581 | 15,196 | |||||||||||
| (1) | Effective tax rate of |
| (2) | Compensation clawback tax deductible portion is |
| DUCOMMUN INCORPORATED AND SUBSIDIARIES | |||||
| REMAINING PERFORMANCE OBLIGATIONS BY REPORTING SEGMENT | |||||
| (Unaudited) | |||||
| (Dollars in thousands) | |||||
| July 4, 2026 | December 31, 2025 | ||||
| Consolidated Ducommun | |||||
| Military and space | $ | 722,743 | $ | 692,719 | |
| Commercial aerospace | 419,934 | 402,174 | |||
| Industrial | 16,248 | 11,147 | |||
| Total | $ | 1,158,925 | $ | 1,106,040 | |
| Electronic Systems | |||||
| Military and space | $ | 516,743 | $ | 492,244 | |
| Commercial aerospace | 69,147 | 49,535 | |||
| Industrial | 16,248 | 11,147 | |||
| Total | $ | 602,138 | $ | 552,926 | |
| Structural Systems | |||||
| Military and space | $ | 206,000 | $ | 200,475 | |
| Commercial aerospace | 350,787 | 352,639 | |||
| Total | $ | 556,787 | $ | 553,114 | |
Under generally accepted accounting principles in the United States Accounting Standards Codification 606, the Company defines performance obligations as customer placed purchase orders (“PO”) with firm fixed price and firm delivery dates. The unrecognized revenue on POs are the remaining performance obligations.
| DUCOMMUN INCORPORATED AND SUBSIDIARIES | |||||||||||
| NON-GAAP BOOK-TO-BILL RATIO CALCULATION - SUPPLEMENTAL DATA | |||||||||||
| (Unaudited) | |||||||||||
| (Dollars in thousands) | |||||||||||
| Three Months Ended | Six Months Ended | ||||||||||
| July 4, 2026 | June 28, 2025 | July 4, 2026 | June 28, 2025 | ||||||||
| Bookings, net (1) | $ | 309,687 | $ | 118,805 | $ | 486,399 | $ | 286,540 | |||
| Net revenues | $ | 224,492 | $ | 200,803 | $ | 433,514 | $ | 393,284 | |||
| Non-GAAP book-to-bill ratio | 1.4 | 0.6 | 1.1 | 0.7 | |||||||
| (1) | Bookings, net is period ending remaining performance obligations (“RPO”) plus revenue recognized in the period less prior period ending RPO. |
