Ducommun Incorporated Reports Third Quarter 2026 Results

Commercial aerospace revenue rose 28% year over year, while military and space revenue fell by $9.2 million.

Rhea-AI Summary

Ducommun (NYSE: DCO) reported third-quarter revenue of $227.0 million, with commercial aerospace growth offsetting lower military and space sales. Revenue increased 6% year over year for the quarter ended October 3, 2026. Gross margin rose to 28.9% from 27.5%. Net income was $13.9 million, or $0.89 per diluted share, versus a $60.8 million loss a year earlier, when litigation settlement and related costs were incurred.

Adjusted EBITDA, a non-GAAP earnings measure, reached $39.7 million, or 17.5% of revenue, versus $37.4 million and 17.4%. Remaining performance obligations reached $1.3 billion, with quarterly bookings of $354.3 million. Operating cash flow increased to $32.7 million from $18.1 million. Electronic Systems improved revenue and operating margin, while Structural Systems revenue grew but its operating margin declined. Ducommun targets annual revenue of $1.6–$1.7 billion under its VISION 2032 plan.

23 points · 0 major

PositiveiHow this balance works

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Rhea-AI Sentiment measures something else, the tone of the wording.

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0 major · 9 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointQ3 revenue of $227.0 million increased 6% from Q3 2025.
• Moderate pointQ3 net income of $13.9 million, or $0.89 per diluted share, reversed a $60.8 million prior-year loss.
• Moderate pointQ3 gross margin of 28.9% increased from 27.5% a year earlier.
• Moderate pointQ3 adjusted EBITDA of $39.7 million rose 6%; margin increased to 17.5% from 17.4%.
• Moderate pointRemaining performance obligations of $1.3 billion reached another all-time high.
• Moderate pointQuarterly bookings of $354.3 million represented 1.6 times revenue; defense bookings were 2.2 times defense revenue. 15% of market cap
• Moderate pointQ3 operating cash flow of $32.7 million increased from $18.1 million a year earlier.
• Moderate pointCommercial aerospace revenue increased 28% year over year, adding $21.1 million.
• Moderate pointElectronic Systems Q3 operating income of $28.7 million increased from $23.3 million; margin reached 22.2% versus 18.6%.
• Moderate pointLong-term debt excluding the current portion fell to $245.242 million from $298.790 million at December 31, 2025.
• Moderate point. Forward-looking: it has not happened yet and may not happen.VISION 2027 targets an 18% adjusted EBITDA margin by the end of 2027.
• Moderate point. Forward-looking: it has not happened yet and may not happen.VISION 2032 targets $1.6–$1.7 billion annual revenue and a 23% adjusted EBITDA margin.

11 minor points

• Minor pointQ3 operating income of $25.8 million reversed a $75.3 million prior-year operating loss.
• Minor pointIndustrial revenue increased $0.8 million year over year in Q3.
• Minor pointElectronic Systems Q3 revenue of $129.6 million increased from $125.3 million a year earlier.
• Minor pointStructural Systems Q3 revenue of $97.4 million increased from $89.2 million a year earlier.
• Minor pointQ3 corporate expenses of $14.9 million fell from $110.8 million, primarily as prior-year settlement costs did not recur.
• Minor pointNine-month revenue of $660.537 million increased from $607.706 million in the comparable 2025 period.
• Minor pointNine-month net income of $44.206 million reversed a $46.671 million loss; diluted EPS reached $2.84 versus negative $3.13.
• Minor pointNine-month gross margin of 28.0% increased from 26.7% in the comparable 2025 period.
• Minor pointNine-month operating income of $69.846 million reversed a $52.617 million operating loss.
• Minor point. Forward-looking: it has not happened yet and may not happen.VISION 2032 targets a 40% engineered-product mix and a 20% aftermarket mix.
• Minor point. Forward-looking: it has not happened yet and may not happen.Defense momentum is expected to continue in 2027, according to Ducommun.

Negative

• Moderate pointMilitary and space Q3 revenue fell $9.2 million year over year on lower selected program rates.
• Moderate pointQ3 SG&A expenses rose to $39.775 million from $34.009 million; revenue share increased to 17.5% from 15.8%.
• Moderate pointStructural Systems Q3 operating income fell to $11.9 million from $12.2 million; margin declined to 12.3% from 13.7%.
• Minor pointQ3 adjusted operating margin fell to 12.3% from 12.7%, despite adjusted operating income rising to $28.0 million.
• Minor pointQ3 pension plan settlement loss was $3.872 million, versus none in the prior-year quarter.

4 minor points

• Minor pointQ3 net interest expense increased to $3.083 million from $2.927 million a year earlier.
• Minor pointQ3 income tax expense was $4.949 million, versus a $17.417 million prior-year tax benefit.
• Minor pointCash and equivalents fell to $39.212 million from $45.289 million at December 31, 2025.
• Minor pointNine-month net interest expense rose to $10.615 million from $9.198 million in the comparable 2025 period.

News Explained

At October 3, 2026, Ducommun reported cash of $39,212 thousand; the current portion of long-term debt was $5,000 thousand at both October 3, 2026 and December 31, 2025, while long-term debt, less the current portion, was $245,242 thousand.

Key Figures

Net revenue: $227.0 million; +6% year over year Gross margin: 28.9%; +140 bps year over year Net income: $13.9 million, versus a net loss of $60.8 million +5 more

Net revenue

$227.0 million; +6% year over year

Third quarter 2026

Gross margin

28.9%; +140 bps year over year

Third quarter 2026; record

Net income

$13.9 million, versus a net loss of $60.8 million

Third quarter 2026 versus third quarter 2025

Diluted EPS

$0.89

Third quarter 2026

Adjusted EBITDA

$39.7 million; 17.5% of revenue

Third quarter 2026

Remaining performance obligations

$1.3 billion

Another all-time high

Quarterly bookings

$354.3 million

Third quarter 2026

Defense book-to-bill

2.2x

Third quarter 2026

Previous Earnings Reports

2 past events · Latest: Aug 06

Same Type 2 events

1. Aug 06

   Q2 earnings report

   24h Move

   +5.1%

   Revenue rose 12%, gross margin reached 28.0%, and net income increased to $20.4 million.

2. Nov 06

   Q3 earnings report

   24h Move

   -3.0%

   Reported a $64.4 million net loss, largely reflecting $99.7 million litigation settlement costs.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

book-to-bill, remaining performance obligations, adjusted EBITDA, non-GAAP

4 terms

book-to-bill financial

"at a book-to-bill of 1.6x and defense bookings at 2.2x"

The book-to-bill ratio compares new orders a company has received (bookings) to the products or services it has invoiced or shipped (billings) over the same period. It matters to investors because a ratio above 1 means demand is outpacing fulfillment and the company may grow revenue or build backlog, while a ratio below 1 suggests slowing demand and possible future revenue weakness — think of it as new customer orders versus what the company actually sold.

remaining performance obligations financial

"Remaining performance obligations (“RPO”) at another all-time high"

Remaining performance obligations are the work a company still needs to complete for its customers, like finishing a service or delivering a product. It’s important because it shows how much future income the company has coming in from current agreements, giving a clearer picture of its ongoing business.

adjusted EBITDA financial

"Adjusted EBITDA for the third quarter of 2026 was $39.7 million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-GAAP financial

"Non-GAAP adjusted net income of $18.8 million"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

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Record Revenue and Gross Margin; Remaining Performance Obligations at Another All-Time High with Defense Book-to-Bill at 2.2x* During the Quarter

COSTA MESA, Calif., Nov. 05, 2026 (GLOBE NEWSWIRE) -- Ducommun Incorporated (NYSE: DCO) (“Ducommun” or the “Company”) today reported results for its third quarter ended October 3, 2026.

Third Quarter 2026 Recap

• Record Net revenue was $227.0 million, an increase of 6% over Q3 2025**
• Record Gross margin of 28.9%, year-over-year growth of 140 bps
• Net income of $13.9 million (compared to a net loss of $60.8 million in the prior year) or $0.89 per diluted share, and 6.1% of revenue
• Non-GAAP adjusted net income of $18.8 million, or $1.21 per diluted share
• Adjusted EBITDA of $39.7 million (increase of 6% year-over-year), or 17.5% of revenue, up 10 bps year-over-year
• Remaining performance obligations (“RPO”) at another all-time high of $1.3 billion with strong bookings of $354.3 million during the quarter at a book-to-bill of 1.6x and defense bookings at 2.2x*

“Another excellent quarter for Ducommun in 2026. With record revenue and gross margins in Q3, we continued to make great progress towards accomplishing our VISION 2027 goals and positioning ourselves for our new VISION 2032 Plan which was communicated in September. Net revenue grew, led by the significant ramp in commercial aerospace, partially offset by temporary weakness in defense revenues due to timing of certain programs. Defense bookings were very strong during the quarter with a book-to-bill of 2.2x and we expect to see momentum continue in our defense business in 2027,” said Stephen G. Oswald, chairman, president and chief executive officer. “Significant growth across our commercial aerospace business highlighted by the single-aisle aircraft platforms, Boeing 737 MAX and the Airbus A320 drove the 28% year-over-year increase, wonderful news and now nearing a $100 million quarterly run rate. In Ducommun's defense business we saw continued growth in our missile franchise specifically the Tomahawk, MIR, and TOW missile platforms, along with growth on fixed-wing aircraft platforms notably the F-15, offset by temporal weakness due to timing of orders and production on ground vehicles, Blackhawk and Apache rotary-wing aircraft platforms, and select radar programs. The future is very bright for our defense business with record RPO and bookings this year setting the stage for strong multi-year growth.

“Gross margin expansion is an important story for DCO and its investors and was once again very strong in the quarter expanding 140 bps year-over-year to another all-time record of 28.9%. Adjusted EBITDA expanded by 10 bps year-over-year as well from 17.4% to 17.5% bringing us close to our VISION 2027 financial goal of 18% Adjusted EBITDA by the end of 2027 and setting the stage for our VISION 2032 target of 23%.

“As we are nearing the end of year four of VISION 2027, our record performance across revenue, gross margin, and RPO's positions us well towards meeting Ducommun's VISION 2027 targets. Looking ahead, we launched our VISION 2032 Plan at our Investor Day in New York City on September 17^th, with an annual revenue target of $1.6 to $1.7 billion, engineered product mix of 40%, aftermarket mix of 20%, and Adjusted EBITDA margin of 23%. Our Q3 record performance along with all the excellent work under VISION 2027 for the past 4 years provides a solid foundation to achieve our VISION 2032 goals and continue to deliver for our shareholders!”

Third Quarter Results

Net revenue for the third quarter of 2026 was $227.0 million compared to $214.4 million for the third quarter of 2025. The year-over-year increase was primarily due to the following in the Company's key end-use markets:

• $21.1 million higher revenue in the Company’s commercial aerospace end-use markets due to higher rates across large aircraft, business jets and rotary-wing aircraft platforms and other commercial aircraft electronics; partially offset by
• $9.2 million lower revenue in the Company’s military and space end-use markets due to lower rates on selected ground vehicle, rotary-wing aircraft, and radar platforms, and other military and space electronics, partially offset by higher rates on selected missiles and fixed-wing aircraft platforms.

In addition, revenue for the Company’s industrial end-use markets for the third quarter of 2026 increased $0.8 million compared to the third quarter of 2025 mainly due to timing of orders and production.

Net income for the third quarter of 2026 was $13.9 million, or 6.1% of revenue, or $0.89 per diluted share, compared to a net loss of $60.8 million, or 28.4% of revenue, or $4.06 per share, for the third quarter of 2025. This mainly reflects higher litigation settlement and related costs, net, of $99.7 million in the prior year period that did not reoccur in the current period and higher gross profit of $6.6 million, partially offset by higher income tax expense of $22.4 million, and higher selling, general and administrative (“SG&A”) expenses of $5.8 million, and higher pension plan settlement loss of $3.9 million.

Gross profit for the third quarter of 2026 was $65.6 million, or 28.9% of revenue, compared to gross profit of $59.0 million, or 27.5% of revenue, for the third quarter of 2025. The increase in gross profit as a percentage of net revenue year-over-year was primarily due to higher manufacturing volume along with stronger direct margins benefitting from facility consolidation synergy realization and strategic pricing, partially offset by unfavorable product mix.

Operating income for the third quarter of 2026 was $25.8 million, or 11.4% of revenue, compared to an operating loss of $75.3 million, or 35.1% of revenue, in the comparable period last year. The year-over-year increase of $101.1 million was primarily due to higher litigation settlement and related costs, net, of $99.7 million in the prior year period that did not reoccur in the current period and higher gross profit, partially offset by higher selling, general and administrative expenses. Non-GAAP adjusted operating income for the third quarter of 2026 was $28.0 million, or 12.3% of revenue, compared to $27.2 million, or 12.7% of revenue, in the comparable period last year.

Adjusted EBITDA for the third quarter of 2026 was $39.7 million, or 17.5% of revenue, compared to $37.4 million, or 17.4% of revenue, for the comparable period in 2025.

Interest expense for the third quarter of 2026 was $3.1 million compared to $2.9 million in the comparable period of 2025. The year-over-year increase was primarily due to a higher outstanding debt balance, partially offset by lower interest rates.

During the third quarter of 2026, the net cash provided by operations was $32.7 million compared to $18.1 million during the third quarter of 2025. The higher net cash provided by operations during the third quarter of 2026 was primarily due to higher net income, higher contract liabilities, and higher accrued and other liabilities, partially offset by higher contract assets and higher accounts receivable.

* See book-to-bill ratio calculation at the end of this earnings release

** 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 October 3, 2026 was $129.6 million, compared to $125.3 million for the third quarter of 2025. The year-over-year increase was primarily due to the following in the Company's key end-use markets:

• $12.4 million higher revenue in the Company’s commercial aerospace end-use markets due to higher rates on large aircraft platforms and other commercial aerospace electronics; partially offset by
• $8.9 million lower revenue within the Company’s military and space end-use markets due to lower rates on other military and space, selected radar and naval platforms, partially offset by higher rates on selected fixed-wing aircraft and missiles platforms.

In addition, revenue for the Company’s industrial end-use markets for the third quarter of 2026 increased $0.8 million compared to the third quarter of 2025 mainly due to timing of orders and production.

Electronic Systems segment operating income for the quarter ended October 3, 2026 was $28.7 million, or 22.2% of revenue, compared to $23.3 million, or 18.6% of revenue, for the comparable quarter in 2025. The year-over-year increase of $5.5 million was primarily due to higher manufacturing volume, partially offset by higher other manufacturing costs. Non-GAAP adjusted operating income for the third quarter of 2026 was $29.1 million, or 22.5% of revenue, compared to $23.7 million, or 18.9% of revenue, in the comparable period last year.

Structural Systems

Structural Systems segment net revenue for the quarter ended October 3, 2026 was $97.4 million, compared to $89.2 million for the third quarter of 2025. The year-over-year increase was primarily due to the following:

• $8.6 million higher revenue within the Company’s commercial aerospace end-use markets due to higher rates on selected large aircraft, aero engines, business jets, and rotary-wing aircraft platforms; partially offset by
• $0.4 million lower revenue within the Company’s military and space end-use markets due to lower rates on selected military rotary-wing aircraft and ground vehicle platforms, partially offset by higher rates on selected missiles platforms.

Structural Systems segment operating income for the quarter ended October 3, 2026 was $11.9 million, or 12.3% of revenue, compared to $12.2 million, or 13.7% of revenue, for the comparable quarter in 2025. The year-over-year decrease of $0.3 million was primarily due to unfavorable product mix, partially offset by higher manufacturing volume and stronger direct margins benefitting from facility consolidation synergy realization and strategic pricing. Non-GAAP adjusted operating income for the third quarter of 2026 was $13.8 million, or 14.2% of revenue, compared to $14.6 million, or 16.4% of revenue, in the comparable period last year.

Corporate General and Administrative (“CG&A”) Expenses

CG&A expenses for the third quarter of 2026 were $14.9 million, or 6.6% of total Company revenue, compared to $110.8 million, or 51.7% of total Company revenue, for the comparable quarter in the prior year. The year-over-year decrease in CG&A expenses was primarily due to litigation settlement and related costs, net, of $99.7 million in the prior year that did not reoccur in the current period, partially offset by higher compensation and benefits costs of $1.9 million, higher professional services fees of $1.1 million, and higher other CG&A expenses of $0.7 million.

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, November 5, 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/BI975b7e85e6de4f68875bbc30c15b6491 

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 Q3 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 limited to Adjusted EBITDA, the continued strength and momentum in our defense business in 2027 and beyond, and expectations related to attaining the financial goals described in the Company's VISION 2032 Strategy, including but not limited to those relating to annual revenue targets, engineered product and aftermarket mix and Adjusted EBITDA margins. 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, November 5, 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, compensation clawback, litigation settlement and related costs, net, and pension plan settlement loss), 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)
		October 3, 2026			December 31, 2025
Assets
Current Assets
Cash and cash equivalents		$	39,212		$	45,289
Accounts receivable, net			163,158			124,442
Contract assets			275,737			249,845
Inventories			195,761			182,788
Production cost of contracts			6,886			7,178
Assets held for sale			5,690			—
Other current assets			20,063			16,442
Total Current Assets			706,507			625,984
Property and Equipment, Net			101,402			107,223
Operating Lease Right-of-Use Assets			53,999			40,077
Goodwill			244,600			244,600
Intangibles, Net			120,293			132,839
Deferred income taxes			4,358			15,500
Other Assets			23,148			20,192
Total Assets		$	1,254,307		$	1,186,415
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable		$	97,808		$	74,653
Contract liabilities			81,591			40,694
Accrued and other liabilities			40,848			51,071
Operating lease liabilities			6,842			7,817
Current portion of long-term debt			5,000			5,000
Total Current Liabilities			232,089			179,235
Long-Term Debt, Less Current Portion			245,242			298,790
Non-Current Operating Lease Liabilities			49,775			34,223
Other Long-Term Liabilities			14,166			12,686
Total Liabilities			541,272			524,934
Commitments and Contingencies
Shareholders’ Equity
Common Stock			151			149
Additional Paid-In Capital			250,240			248,482
Retained Earnings			450,510			406,304
Accumulated Other Comprehensive Income			12,134			6,546
Total Shareholders’ Equity			713,035			661,481
Total Liabilities and Shareholders’ Equity		$	1,254,307		$	1,186,415

DUCOMMUN INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars and shares in thousands, except per share amounts)
		Three Months Ended								Nine Months Ended
		October 3, 2026				September 27, 2025				October 3, 2026				September 27, 2025
Net Revenues		$	227,023			$	214,422			$	660,537			$	607,706
Cost of Sales			161,453				155,472				475,834				445,329
Gross Profit			65,570				58,950				184,703				162,377
Selling, General and Administrative Expenses			39,775				34,009				114,857				113,702
Restructuring Charges			—				583				—				1,617
Litigation Settlement and Related Costs, Net			—				99,675				—				99,675
Operating Income (Loss)			25,795				(75,317	)			69,846				(52,617	)
Interest Expense, Net			(3,083	)			(2,927	)			(10,615	)			(9,198	)
Other Income			—				—				—				1,746
Pension Plan Settlement Loss			(3,872	)			—				(3,872	)			—
Income (Loss) Before Taxes			18,840				(78,244	)			55,359				(60,069	)
Income Tax Expense (Benefit)			4,949				(17,417	)			11,153				(13,398	)
Net Income (Loss)		$	13,891			$	(60,827	)		$	44,206			$	(46,671	)
Earnings (Loss) Per Share
Basic earnings (loss) per share		$	0.92			$	(4.06	)		$	2.92			$	(3.13	)
Diluted earnings (loss) per share		$	0.89			$	(4.06	)		$	2.84			$	(3.13	)
Weighted-Average Number of Common Shares Outstanding
Basic			15,156				14,978				15,117				14,925
Diluted			15,559				14,978				15,581				14,925
Gross Profit %			28.9	%			27.5	%			28.0	%			26.7	%
SG&A %			17.5	%			15.8	%			17.4	%			18.7	%
Operating Income (Loss) %			11.4	%		(35.1) %					10.6	%		(8.7) %
Net Income (Loss) %			6.1	%		(28.4) %					6.7	%		(7.7) %
Effective Tax Rate			26.3	%			22.3	%			20.1	%			22.3	%

DUCOMMUN INCORPORATED AND SUBSIDIARIES GAAP TO NON-GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION (Unaudited) (Dollars in thousands)
		Three Months Ended								Nine Months Ended
		October 3, 2026				September 27, 2025				October 3, 2026				September 27, 2025
GAAP net income (loss)		$	13,891			$	(60,827	)		$	44,206			$	(46,671	)
Non-GAAP Adjustments:
Interest expense, net			3,083				2,927				10,615				9,198
Income tax expense (benefit)			4,949				(17,417	)			11,153				(13,398	)
Depreciation			4,068				4,037				12,280				12,305
Amortization			4,273				4,301				12,853				12,890
Stock-based compensation expense (1)			5,585				4,088				22,356				24,855
Restructuring charges			—				583				—				1,617
Gain on sale of property and other assets			—				—				—				(1,746	)
Compensation clawback			—				—				(3,870	)			—
Litigation settlement and related costs, net			—				99,675				—				99,675
Pension plan settlement loss			3,872				—				3,872				—
Adjusted EBITDA		$	39,721			$	37,367			$	113,465			$	98,725
Net income (loss) as a % of net revenues			6.1	%		(28.4) %					6.7	%		(7.7) %
Adjusted EBITDA as a % of net revenues			17.5	%			17.4	%			17.2	%			16.2	%

(1) The three and nine months ended October 3, 2026 included zero and $0.3 million, respectively, of stock-based compensation expense for awards with both performance and market conditions that will be settled in cash. The three and nine months ended September 27, 2025 included $0.2 million and $1.4 million, respectively, of stock-based compensation expense for awards with both performance and market conditions that will be settled in cash. The three and nine months ended October 3, 2026 included $0.1 million and $0.4 million, respectively, of stock-based compensation expense recorded as cost of sales. The three and nine months ended September 27, 2025 included $0.1 million and $0.3 million, respectively, of stock-based compensation expense recorded as cost of sales.

DUCOMMUN INCORPORATED AND SUBSIDIARIES BUSINESS SEGMENT PERFORMANCE (Unaudited) (Dollars in thousands)
		Three Months Ended																	Nine Months Ended
		% Change			October 3, 2026				September 27, 2025				% of Net  Revenues 2026			% of Net  Revenues 2025			% Change			October 3, 2026				September 27, 2025				% of Net  Revenues 2026			% of Net  Revenues 2025
Net Revenues
Electronic Systems		3.5	%		$	129,612			$	125,269			57.1	%		58.4	%		10.1	%		$	378,638			$	344,038			57.3	%		56.6	%
Structural Systems		9.3	%			97,411				89,153			42.9	%		41.6	%		6.9	%			281,899				263,668			42.7	%		43.4	%
Total Net Revenues		5.9	%		$	227,023			$	214,422			100.0	%		100.0	%		8.7	%		$	660,537			$	607,706			100.0	%		100.0	%
Segment Operating Income
Electronic Systems					$	28,746			$	23,286			22.2	%		18.6	%					$	77,146			$	61,194			20.4	%		17.8	%
Structural Systems						11,944				12,215			12.3	%		13.7	%						35,143				31,429			12.5	%		11.9	%
						40,690				35,501													112,289				92,623
Corporate General and Administrative Expenses (1)						(14,895	)			(110,818	)		(6.6) %			(51.7) %							(42,443	)			(145,240	)		(6.4) %			(23.9) %
Total Operating Income (Loss)					$	25,795			$	(75,317	)		11.4	%		(35.1) %						$	69,846			$	(52,617	)		10.6	%		(8.7) %
Adjusted EBITDA
Electronic Systems
Operating Income					$	28,746			$	23,286												$	77,146			$	61,194
Depreciation and Amortization						3,578				3,553													10,788				10,694
Stock-Based Compensation Expense (2)						117				71													325				294
Restructuring Charges						—				71													—				242
						32,441				26,981			25.0	%		21.5	%						88,259				72,424			23.3	%		21.1	%
Structural Systems
Operating Income						11,944				12,215													35,143				31,429
Depreciation and Amortization						4,648				4,670													14,038				14,182
Stock-Based Compensation Expense (3)						82				60													253				381
Restructuring Charges						—				512													—				1,375
						16,674				17,457			17.1	%		19.6	%						49,434				47,367			17.5	%		18.0	%
Corporate General and Administrative Expenses (1)
Operating loss						(14,895	)			(110,818	)												(42,443	)			(145,240	)
Depreciation and Amortization						115				115													307				319
Stock-Based Compensation Expense (4)						5,386				3,957													21,778				24,180
Compensation Clawback						—				—													(3,870	)			—
Litigation Settlement and Related Costs, Net						—				99,675													—				99,675
						(9,394	)			(7,071	)												(24,228	)			(21,066	)
Adjusted EBITDA					$	39,721			$	37,367			17.5	%		17.4	%					$	113,465			$	98,725			17.2	%		16.2	%
Capital Expenditures
Electronic Systems					$	3,663			$	1,216												$	6,725			$	4,264
Structural Systems						1,670				1,029													4,681				6,272
Corporate Administration						268				109													510				122
Total Capital Expenditures					$	5,601			$	2,354												$	11,916			$	10,658

(1) Includes costs not allocated to either the Electronic Systems or Structural Systems operating segments.

(2) The three and nine months ended October 3, 2026 included $0.1 million and $0.2 million, respectively, of stock-based compensation expense recorded as cost of sales. The three and nine months ended September 27, 2025 each included $0.1 million of stock-based compensation expense recorded as cost of sales.

(3) The three and nine months ended October 3, 2026 included $0.1 million and $0.2 million, respectively, of stock-based compensation expense recorded as cost of sales. The three and nine months ended September 27, 2025 included less than $0.1 million and $0.2 million, respectively, of stock-based compensation expense recorded as cost of sales.

(4) The three and nine months ended October 3, 2026 included zero and $0.3 million, respectively, of stock-based compensation expense for awards with both performance and market conditions that will be settled in cash. The three and nine months ended September 27, 2025 included $0.2 million and $1.4 million, respectively, of stock-based compensation expense for awards with both performance and market conditions that will be settled in cash.

DUCOMMUN INCORPORATED AND SUBSIDIARIES GAAP TO NON-GAAP OPERATING INCOME (LOSS) RECONCILIATION (Unaudited) (Dollars in thousands)
		Three Months Ended														Nine Months Ended
GAAP To Non-GAAP Operating Income (Loss)		October 3, 2026				September 27, 2025				% of Net  Revenues 2026			% of Net  Revenues 2025			October 3, 2026				September 27, 2025				% of Net  Revenues 2026			% of Net  Revenues 2025
GAAP operating income (loss)		$	25,795			$	(75,317	)								$	69,846			$	(52,617	)
GAAP operating income - Electronic Systems		$	28,746			$	23,286									$	77,146			$	61,194
Adjustments to GAAP operating income - Electronic Systems:
Restructuring charges			—				71										—				242
Amortization of acquisition-related intangible assets			373				373										1,120				1,120
Total adjustments to GAAP operating income - Electronic Systems			373				444										1,120				1,362
Non-GAAP adjusted operating income - Electronic Systems			29,119				23,730			22.5	%		18.9	%			78,266				62,556			20.7	%		18.2	%
GAAP operating income - Structural Systems			11,944				12,215										35,143				31,429
Adjustments to GAAP operating income - Structural Systems:
Restructuring charges			—				512										—				1,375
Amortization of acquisition-related intangible assets			1,859				1,859										5,578				5,578
Total adjustments to GAAP operating income - Structural Systems			1,859				2,371										5,578				6,953
Non-GAAP adjusted operating income - Structural Systems			13,803				14,586			14.2	%		16.4	%			40,721				38,382			14.4	%		14.6	%
GAAP operating loss - Corporate			(14,895	)			(110,818	)									(42,443	)			(145,240	)
Adjustments to GAAP Operating Loss - Corporate
Compensation clawback			—				—										(3,870	)			—
Litigation settlement and related costs, net			—				99,675										—				99,675
Total adjustments to GAAP Operating Loss - Corporate			—				99,675										(3,870	)			99,675
Non-GAAP adjusted operating loss - Corporate			(14,895	)			(11,143	)									(46,313	)			(45,565	)
Total non-GAAP adjustments to GAAP operating income (loss)			2,232				102,490										2,828				107,990
Non-GAAP adjusted operating income		$	28,027			$	27,173			12.3	%		12.7	%		$	72,674			$	55,373			11.0	%		9.1	%

DUCOMMUN INCORPORATED AND SUBSIDIARIES GAAP TO NON-GAAP NET INCOME (LOSS) AND EARNINGS (LOSS) PER SHARE RECONCILIATION (Unaudited) (Dollars and shares in thousands, except per share amounts)
		Three Months Ended								Nine Months Ended
GAAP To Non-GAAP Net Income (Loss)		October 3, 2026				September 27, 2025				October 3, 2026				September 27, 2025
GAAP net income (loss)		$	13,891			$	(60,827	)		$	44,206			$	(46,671	)
Adjustments to GAAP net income (loss):
Restructuring charges			—				583				—				1,617
Gain on sale of property and other assets			—				—				—				(1,746	)
Litigation settlement and related costs, net			—				99,675				—				99,675
Compensation clawback			—				—				(3,870	)			—
Pension plan settlement loss			3,872				—				3,872				—
Amortization of acquisition-related intangible assets			2,232				2,232				6,698				6,698
Total adjustments to GAAP net income (loss) before provision for income taxes			6,104				102,490				6,700				106,244
Income tax effect on non-GAAP adjustments (1)(2)			(1,221	)			(22,890	)			(2,156	)			(23,641	)
Non-GAAP adjusted net income		$	18,774			$	18,773			$	48,750			$	35,932

		Three Months Ended								Nine Months Ended
GAAP Earnings (Loss) Per Share To Non-GAAP Earnings (Loss) Per Share		October 3, 2026				September 27, 2025				October 3, 2026				September 27, 2025
GAAP diluted earnings (loss) per share (“EPS”)		$	0.89			$	(4.06	)		$	2.84			$	(3.13	)
Adjustments to GAAP diluted EPS:
Restructuring charges			—				0.04				—				0.10
Gain on sale of property and other assets			—				—				—				(0.11	)
Litigation settlement and related costs, net			—				6.49				—				6.53
Compensation clawback			—				—				(0.25	)			—
Pension plan settlement loss			0.25				—				0.25				—
Amortization of acquisition-related intangible assets			0.14				0.14				0.43				0.44
Total adjustments to GAAP diluted EPS before provision for income taxes			0.39				6.67				0.43				6.96
Income tax effect on non-GAAP adjustments (1)(2)			(0.07	)			(1.49	)			(0.14	)			(1.55	)
Non-GAAP adjusted diluted EPS (3)		$	1.21			$	1.22			$	3.13			$	2.35
GAAP weighted-average shares - basic			15,156				14,978				15,117				14,925
GAAP weighted-average shares - diluted			15,559				14,978				15,581				14,925
Non-GAAP weighted-average shares - diluted (4)			15,559				15,361				15,581				15,267

(1) Effective tax rate of 20.0% used for both 2026 and 2025 adjustments, except for litigation settlement and related costs, net which utilized the incremental tax rate of 22.4%.

(2) Compensation clawback tax deductible portion is $0.2 million for the nine months ended October 3, 2026.

(3) Non-GAAP adjusted diluted EPS will not foot for the three and nine months ended September 27, 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.

(4) In periods of GAAP net loss, non-GAAP weighted-average shares differs from GAAP diluted weighted-average shares due to the non-GAAP net income reported.

DUCOMMUN INCORPORATED AND SUBSIDIARIES REMAINING PERFORMANCE OBLIGATIONS BY REPORTING SEGMENT (Unaudited) (Dollars in thousands)
		October 3, 2026			December 31, 2025
Consolidated Ducommun
Military and space		$	867,595		$	692,719
Commercial aerospace			404,484			402,174
Industrial			14,104			11,147
Total		$	1,286,183		$	1,106,040
Electronic Systems
Military and space		$	634,040		$	492,244
Commercial aerospace			74,536			49,535
Industrial			14,104			11,147
Total		$	722,680		$	552,926
Structural Systems
Military and space		$	233,555		$	200,475
Commercial aerospace			329,948			352,639
Total		$	563,503		$	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)
Consolidated Ducommun		Three Months Ended October 3, 2026								Three Months Ended September 27, 2025
		Bookings, Net (1)			Revenue			Non-GAAP Book-to-Bill		Bookings, Net (1)			Revenue			Non-GAAP Book-to-Bill
Military and Space		$	263,461		$	118,609		2.2		$	195,242		$	127,837		1.5
Commercial			81,749			97,200		0.8			135,044			76,135		1.8
Industrial			9,070			11,214		0.8			9,366			10,450		0.9
Totals		$	354,280		$	227,023		1.6		$	339,652		$	214,422		1.6

(1) Bookings, net is period ending remaining performance obligations (“RPO”) plus revenue recognized in the period less prior period ending RPO.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Ducommun's third-quarter 2026 revenue and earnings?

Ducommun reported $227.0 million in revenue and $13.9 million in net income, or $0.89 per diluted share, for the quarter ended October 3, 2026. Revenue increased 6% year over year, while earnings recovered from a $60.8 million net loss in Q3 2025.

How large were Ducommun's remaining performance obligations and bookings in Q3 2026?

Ducommun's remaining performance obligations reached $1.3 billion, and quarterly bookings totaled $354.3 million. The overall book-to-bill ratio, which compares bookings with revenue, was 1.6 times; the defense ratio was 2.2 times.

What financial and business-mix targets does Ducommun's VISION 2032 plan include?

Ducommun targets $1.6–$1.7 billion in annual revenue and a 23% adjusted EBITDA margin under VISION 2032. The plan also targets an engineered-product mix of 40% and an aftermarket mix of 20%. These are company targets, not achieved results.

Why did Ducommun's Structural Systems operating margin decline in Q3 2026?

Structural Systems' operating margin declined primarily because of unfavorable product mix. Higher manufacturing volume and better direct margins from facility-consolidation savings and pricing partly offset that pressure. Segment operating margin fell to 12.3% from 13.7% a year earlier.