Ducommun (NYSE: DCO) posts record Q1 2026 revenue and sharply higher profit
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Ducommun Incorporated reported a strong start to 2026 with record first-quarter revenue and sharply higher profitability. Net revenues for Q1 2026 reached $209.0 million, up about 9% from Q1 2025, driven by commercial aerospace and defense demand.
Gross margin improved to 26.9%, while net income jumped to $9.9 million, or $0.64 per diluted share, compared with $1.4 million, or $0.09 per share, a year earlier. Adjusted EBITDA rose to $35.4 million, or 16.9% of revenue. Both Electronic Systems and Structural Systems segments delivered higher revenue and operating income, and cash from operations increased to $11.2 million from $0.8 million.
Positive
- Exceptionally strong earnings leverage: Q1 2026 net income rose to $9.9 million from $1.4 million and Adjusted EBITDA increased 19% year-over-year to $35.4 million, with margins expanding meaningfully toward VISION 2027 targets.
Negative
- None.
Insights
Q1 2026 shows broad-based growth, margin expansion, and strong cash generation.
Ducommun delivered Q1 2026 net revenue of $209.0 million, up about 9% year-over-year, with commercial aerospace up 18% and continued gains in defense. Net income rose to $9.9 million, a more than sixfold increase, helped by higher gross profit and lower stock-based compensation.
Gross margin expanded to 26.9% and operating margin to 7.5%, while Adjusted EBITDA reached $35.4 million or 16.9% of revenue, moving toward the VISION 2027 goal of 18%. Both Electronic Systems and Structural Systems posted higher segment operating income.
Operating cash flow improved to $11.2 million from $0.8 million in the prior-year quarter, and capital expenditures were $2.6 million. Management notes potential commercial aerospace destocking headwinds later in 2026 but highlights favorable demand into 2027 and 2028, particularly across missile programs and key aircraft platforms.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net revenue: $209.0 million
Net income: $9.9 million
Diluted EPS: $0.64 per share
+5 more
8 metrics
Net revenue
$209.0 million
Q1 2026 net revenues vs $192.5 million in Q1 2025
Net income
$9.9 million
Q1 2026 net income vs $1.4 million in Q1 2025
Diluted EPS
$0.64 per share
Q1 2026 GAAP diluted earnings per share vs $0.09
Gross margin
26.9%
Q1 2026 gross profit as a percentage of revenue, up from 26.2%
Adjusted EBITDA
$35.4 million
Q1 2026 Adjusted EBITDA, 16.9% of revenue vs 15.4% in 2025
Electronic Systems revenue
$117.6 million
Q1 2026 segment net revenue vs $109.1 million in Q1 2025
Structural Systems revenue
$91.4 million
Q1 2026 segment net revenue vs $83.4 million in Q1 2025
Operating cash flow
$11.2 million
Net cash provided by operations in Q1 2026 vs $0.8 million
Key Terms
Adjusted EBITDA, gross margin, non-GAAP adjusted net income, remaining performance obligations, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA of $35.4 million (increase of 19% year-over-year), or 16.9% of revenue"
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.
gross margin financial
"Gross margin of 26.9%, year-over-year growth of 70 bps"
Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.
non-GAAP adjusted net income financial
"Non-GAAP adjusted net income of $11.7 million (increase of 232% year-over-year)"
A company’s non-GAAP adjusted net income is its reported profit after management removes certain expenses or gains that it considers one-time, nonrecurring, or not part of core operations (for example, restructuring costs or stock-based pay). Investors watch it as an attempt to show the company’s ongoing earning power — like looking at a cleaned-up weekly budget — but because companies choose what to exclude, it’s important to compare the underlying details rather than the headline number alone.
remaining performance obligations financial
"REMaining PERFORMANCE OBLIGATIONS BY REPORTING SEGMENT (Unaudited)"
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.
stock-based compensation expense financial
"lower stock-based compensation expense of $4.3 million"
Stock-based compensation expense is the value that a company records when it gives employees or executives shares or options to buy shares as part of their pay. It matters because it shows the true cost of paying employees this way, which can affect the company's profits and how investors see its financial health.
forward-looking statements regulatory
"This press release and any attachments include “forward-looking statements,” within the meaning of Section 27A"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
Earnings Snapshot
Revenue: $209.0 million
Q1 2026
Revenue
$209.0 million
+9% year-over-year
Net income
$9.9 million
+607% year-over-year
Adjusted EBITDA
$35.4 million
+19% year-over-year
GAAP diluted EPS
$0.64
up from $0.09
Non-GAAP diluted EPS
$0.75
up from $0.23
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________
FORM 8-K
____________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 12, 2026
____________________________
(Exact name of registrant as specified in its charter)
____________________________
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | |||||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||
Registrant’s telephone number, including area code (657 ) 335-3665
N/A
(Former name or former address, if changed since last report.)
____________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | ||||||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (240.12b-2 of this chapter).
| Emerging growth company | |||||||||||||||||
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the | ||||||||
| Exchange Act. | ¨ | |||||||
| Item 2.02 | Results of Operations and Financial Condition. | ||||
Ducommun Incorporated issued a press release on May 12, 2026 in the form attached hereto as Exhibit 99.1.
| Item 9.01 | Financial Statements and Exhibits. | ||||
| (d) Exhibits | |||||
| Exhibit No. | Exhibit Title or Description | |||||||
99.1 | Ducommun Incorporated press release issued on May 12, 2026. | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
DUCOMMUN INCORPORATED (Registrant) | |||||||||||
| Date: May 12, 2026 | By: | /s/ Suman B. Mookerji | |||||||||
| Suman B. Mookerji | |||||||||||
| Senior Vice President, Chief Financial Officer | |||||||||||
EXHIBIT 99.1
NEWS RELEASE
Ducommun Incorporated Reports
First Quarter 2026 Results
New Record for Q1 Revenue, Strong Gross Margins and Net Income
COSTA MESA, CALIFORNIA (May 12, 2026) – Ducommun Incorporated (NYSE: DCO) (“Ducommun” or the “Company”) today reported results for its first quarter ended April 4, 2026.
First Quarter 2026 Recap
•Net Revenue was $209.0 million, an increase of 9% over Q1 2025*
•Gross margin of 26.9%, year-over-year growth of 70 bps
•Net income of $9.9 million (increase of 607% year-over-year) or $0.64 per diluted share, and 4.7% of revenue, up 400 bps year-over-year
•Non-GAAP adjusted net income of $11.7 million (increase of 232% year-over-year), or $0.75 per diluted share
•Adjusted EBITDA of $35.4 million (increase of 19% year-over-year), or 16.9% of revenue, up 150 bps year-over-year
“An excellent quarter and strong start to 2026 for Ducommun. Our team continued to make great progress towards our VISION 2027 goals with another record for revenue during the first quarter along with strong gross margin and Adjusted EBITDA margins. Net revenue grew a very healthy 9%, led by strength in commercial aerospace which we have been waiting for, along with gains in our defense business,” said Stephen G. Oswald, chairman, president and chief executive officer. “Significant growth in single-aisle demand for Airbus A220, A320, and Boeing 737 MAX along with commercial rotorcraft resulted in 18% year-over-year growth in our commercial aerospace business which was a very nice rebound. Ducommun’s defense business saw growth yet again with our missile franchise specifically the Patriot missile platform being a highlight along with good growth on fixed-wing aircraft platforms including the F35 and the F-15.
“The Company continues to make solid progress as well with its margin expansion journey started back in 2023 with gross margins expanding 70 bps year-over-year to 26.9%. Adjusted EBITDA exceeded $30 million for the fourth consecutive quarter, expanding 150 bps year-over-year from 15.4% to 16.9% and keeping us on a good pace to meet the VISION 2027 financial goal of 18% Adjusted EBITDA and with seven quarters remaining, we have high confidence.
“I also look at the Q1 results as a very healthy start to the fourth year of our VISION 2027 plan, especially in commercial aerospace. While we expect to see some destocking headwinds in the remaining quarters of 2026, the outlook is very promising, especially in 2027 and 2028. Ducommun’s strong missile franchise should also continue to gather momentum throughout the year as we are well positioned to benefit from the Department of War's long-term 7 year framework agreements for key missile programs with defense primes including RTX, our largest customer and Lockheed Martin.”
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First Quarter Results
Net revenue for the first quarter of 2026 was $209.0 million compared to $192.5 million for the first quarter of 2025. The year-over-year increase was primarily due to the following in the Company's key end-use markets:
•$12.5 million higher revenue in the Company’s commercial aerospace end-use markets due to higher rates on large aircraft and rotary-wing aircraft platforms; and
•$5.4 million higher revenue in the Company’s military and space end-use markets due to higher rates on selected fixed-wing aircraft and missiles platforms, partially offset by lower rates on electronic warfare, ground vehicle weapons, and radar platforms.
In addition, revenue for the Company’s industrial end-use markets for the first quarter of 2026 decreased $1.4 million compared to the first quarter of 2025 mainly due to timing of orders.
Net income for the first quarter of 2026 was $9.9 million, or 4.7% of revenue, or $0.64 per diluted share, compared to net income of $1.4 million, or 0.7% revenue, or $0.09 per diluted share, for the first quarter of 2025. This reflects higher gross profit of $5.8 million and lower stock-based compensation expense of $4.3 million, partially offset by higher income tax expense of $1.5 million.
Gross profit for the first quarter of 2026 was $56.2 million, or 26.9% of revenue, compared to gross profit of $50.5 million, or 26.2% of revenue, for the first quarter of 2025. The increase in gross profit as a percentage of net revenue year-over-year was primarily due to lower other manufacturing costs, favorable product mix, and higher manufacturing volume.
Operating income for the first quarter of 2026 was $15.7 million, or 7.5% of revenue, compared to operating income of $5.0 million, or 2.6% of revenue, in the comparable period last year. The year-over-year increase of $10.7 million was primarily due to higher gross profit and lower selling, general and administrative expenses. Non-GAAP adjusted operating income for the first quarter of 2026 was $18.0 million, or 8.6% of revenue, compared to $7.6 million, or 4.0% of revenue, in the comparable period last year.
Adjusted EBITDA for the first quarter of 2026 was $35.4 million, or 16.9% of revenue, compared to $29.7 million, or 15.4% of revenue, for the comparable period in 2025.
Interest expense for the first quarter of 2026 was $4.0 million compared to $3.3 million in the comparable period of 2025. The year-over-year increase was primarily due to a higher debt balance, partially offset by lower interest rates.
During the first quarter of 2026, the net cash provided by operations was $11.2 million compared to $0.8 million during the first quarter of 2025. The higher net cash provided by operations during the first quarter of 2026 was primarily due to higher net income and higher contract liabilities, partially offset by lower accrued and other liabilities.
* 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 April 4, 2026 was $117.6 million, compared to $109.1 million for the first quarter of 2025. The year-over-year increase was primarily due to the following in the Company's key end-use markets:
•$5.3 million higher revenue within the Company’s military and space end-use markets due to higher rates on selected fixed-wing aircraft and missile platforms, partially offset by lower rates on electronic warfare and radar platforms; and
•$4.6 million higher revenue in the Company’s commercial aerospace end-use markets due to higher rates on other commercial aerospace and large aircraft platforms.
In addition, revenue for the Company’s industrial end-use markets for the first quarter of 2026 decreased $1.4 million compared to the first quarter of 2025 mainly due timing of orders.
Electronic Systems segment operating income for the quarter ended April 4, 2026 was $22.9 million, or 19.5% of revenue, compared to $17.5 million, or 16.0% of revenue, for the comparable quarter in 2025. The year-over-year increase of $5.5 million was primarily due to favorable product mix, higher manufacturing volume, and lower other manufacturing costs. Non-GAAP adjusted operating income for the first quarter of 2026 was $23.3 million, or 19.8% of revenue, compared to $17.9 million, or 16.4% of revenue, in the comparable period last year.
2
Structural Systems
Structural Systems segment net revenue for the quarter ended April 4, 2026 was $91.4 million, compared to $83.4 million for the first quarter of 2025. The year-over-year increase was primarily due to the following:
•$7.9 million higher revenue within the Company’s commercial aerospace end-use markets due to higher rates on large aircraft and rotary-wing aircraft platforms; and
•$0.1 million higher revenue within the Company’s military and space end-use markets due to higher rates on selected missile platforms, partially offset by lower rates on selected rotary-wing aircraft platforms.
Structural Systems segment operating income for the quarter ended April 4, 2026 was $10.4 million, or 11.4% of revenue, compared to $9.9 million, or 11.9% of revenue, for the comparable quarter in 2025. The year-over-year increase of $0.5 million was primarily due to lower other manufacturing costs, partially offset by unfavorable product mix. Non-GAAP adjusted operating income for the first quarter of 2026 was $12.3 million, or 13.4% of revenue, compared to $12.1 million, or 14.5% of revenue, in the comparable period last year.
Corporate General and Administrative (“CG&A”) Expenses
CG&A expenses for the first quarter of 2026 were $17.6 million, or 8.4% of total Company revenue, compared to $22.4 million, or 11.6% 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 lower stock-based compensation expense of $4.2 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, May 12, 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/BIbeade6204d8e441398e3b1d1ede413a8
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 Q1 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, potential destocking headwinds related to the Company's commercial aerospace business and outlook for the remaining quarters of 2026 and through 2028, and expectations related to the U.S. Department of War's long-term framework agreements for key missile programs with defense primes. 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
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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, May 12, 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, depreciation, amortization, stock-based compensation expense, and restructuring charges), including as a percentage of revenue, non-GAAP operating income, including as a percentage of net revenues, non-GAAP net income, and non-GAAP earnings per share. 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]
4
DUCOMMUN INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
| April 4, 2026 | December 31, 2025 | |||||||||||||
| Assets | ||||||||||||||
| Current Assets | ||||||||||||||
| Cash and cash equivalents | $ | 39,103 | $ | 45,289 | ||||||||||
| Accounts receivable, net | 137,027 | 124,442 | ||||||||||||
| Contract assets | 249,229 | 249,845 | ||||||||||||
| Inventories | 186,269 | 182,788 | ||||||||||||
| Production cost of contracts | 5,914 | 7,178 | ||||||||||||
| Other current assets | 16,314 | 16,442 | ||||||||||||
| Total Current Assets | 633,856 | 625,984 | ||||||||||||
| Property and Equipment, Net | 105,755 | 107,223 | ||||||||||||
| Operating Lease Right-of-Use Assets | 37,888 | 40,077 | ||||||||||||
| Goodwill | 244,600 | 244,600 | ||||||||||||
| Intangibles, Net | 128,656 | 132,839 | ||||||||||||
| Deferred income taxes | 14,180 | 15,500 | ||||||||||||
| Other Assets | 20,398 | 20,192 | ||||||||||||
| Total Assets | $ | 1,185,333 | $ | 1,186,415 | ||||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||||
| Current Liabilities | ||||||||||||||
| Accounts payable | $ | 79,961 | $ | 74,653 | ||||||||||
| Contract liabilities | 52,473 | 40,694 | ||||||||||||
| Accrued and other liabilities | 28,112 | 51,071 | ||||||||||||
| Operating lease liabilities | 7,005 | 7,817 | ||||||||||||
| Current portion of long-term debt | 5,000 | 5,000 | ||||||||||||
| Total Current Liabilities | 172,551 | 179,235 | ||||||||||||
| Long-Term Debt, Less Current Portion | 297,608 | 298,790 | ||||||||||||
| Non-Current Operating Lease Liabilities | 33,091 | 34,223 | ||||||||||||
| Other Long-Term Liabilities | 12,287 | 12,686 | ||||||||||||
| Total Liabilities | 515,537 | 524,934 | ||||||||||||
| Commitments and Contingencies | ||||||||||||||
| Shareholders’ Equity | ||||||||||||||
| Common Stock | 151 | 149 | ||||||||||||
| Additional Paid-In Capital | 246,378 | 248,482 | ||||||||||||
| Retained Earnings | 416,220 | 406,304 | ||||||||||||
| Accumulated Other Comprehensive Income | 7,047 | 6,546 | ||||||||||||
| Total Shareholders’ Equity | 669,796 | 661,481 | ||||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 1,185,333 | $ | 1,186,415 | ||||||||||
5
DUCOMMUN INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per share amounts)
| Three Months Ended | ||||||||||||||
| April 4, 2026 | March 29, 2025 | |||||||||||||
| Net Revenues | $ | 209,022 | $ | 192,481 | ||||||||||
| Cost of Sales | 152,789 | 142,030 | ||||||||||||
| Gross Profit | 56,233 | 50,451 | ||||||||||||
| Selling, General and Administrative Expenses | 40,513 | 45,050 | ||||||||||||
| Restructuring Charges | — | 426 | ||||||||||||
| Operating Income | 15,720 | 4,975 | ||||||||||||
| Interest Expense | (4,010) | (3,263) | ||||||||||||
| Income Before Taxes | 11,710 | 1,712 | ||||||||||||
| Income Tax Expense | 1,794 | 310 | ||||||||||||
| Net Income | $ | 9,916 | $ | 1,402 | ||||||||||
| Earnings Per Share | ||||||||||||||
| Basic earnings per share | $ | 0.66 | $ | 0.09 | ||||||||||
| Diluted earnings per share | $ | 0.64 | $ | 0.09 | ||||||||||
| Weighted-Average Number of Common Shares Outstanding | ||||||||||||||
| Basic | 15,044 | 14,856 | ||||||||||||
| Diluted | 15,599 | 15,177 | ||||||||||||
| Gross Profit % | 26.9 | % | 26.2 | % | ||||||||||
| SG&A % | 19.4 | % | 23.4 | % | ||||||||||
| Operating Income % | 7.5 | % | 2.6 | % | ||||||||||
| Net Income % | 4.7 | % | 0.7 | % | ||||||||||
| Effective Tax Rate | 15.3 | % | 18.1 | % | ||||||||||
6
DUCOMMUN INCORPORATED AND SUBSIDIARIES
GAAP TO NON-GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION
(Unaudited)
(Dollars in thousands)
| Three Months Ended | ||||||||||||||
| April 4, 2026 | March 29, 2025 | |||||||||||||
| GAAP net income | $ | 9,916 | $ | 1,402 | ||||||||||
| Non-GAAP Adjustments: | ||||||||||||||
| Interest expense | 4,010 | 3,263 | ||||||||||||
| Income tax expense | 1,794 | 310 | ||||||||||||
| Depreciation | 3,943 | 4,277 | ||||||||||||
| Amortization | 4,295 | 4,307 | ||||||||||||
Stock-based compensation expense (1) | 11,419 | 15,734 | ||||||||||||
| Restructuring charges | — | 426 | ||||||||||||
| Adjusted EBITDA | $ | 35,377 | $ | 29,719 | ||||||||||
| Net income as a % of net revenues | 4.7 | % | 0.7 | % | ||||||||||
| Adjusted EBITDA as a % of net revenues | 16.9 | % | 15.4 | % | ||||||||||
(1) The three months ended April 4, 2026 and March 29, 2025 included $0.3 million and $0.6 million, respectively, of stock-based compensation expense for awards with both performance and market conditions that will be settled in cash. The three months ended April 4, 2026 and March 29, 2025 included $0.1 million and less than $0.1 million, respectively, of stock-based compensation expense recorded as cost of sales.
7
DUCOMMUN INCORPORATED AND SUBSIDIARIES
BUSINESS SEGMENT PERFORMANCE
(Unaudited)
(Dollars in thousands)
| Three Months Ended | ||||||||||||||||||||||||||||||||
| % Change | April 4, 2026 | March 29, 2025 | % of Net Revenues 2026 | % of Net Revenues 2025 | ||||||||||||||||||||||||||||
| Net Revenues | ||||||||||||||||||||||||||||||||
| Electronic Systems | 7.8 | % | $ | 117,590 | $ | 109,065 | 56.3 | % | 56.7 | % | ||||||||||||||||||||||
| Structural Systems | 9.6 | % | 91,432 | 83,416 | 43.7 | % | 43.3 | % | ||||||||||||||||||||||||
| Total Net Revenues | 8.6 | % | $ | 209,022 | $ | 192,481 | 100.0 | % | 100.0 | % | ||||||||||||||||||||||
| Segment Operating Income | ||||||||||||||||||||||||||||||||
| Electronic Systems | $ | 22,924 | $ | 17,450 | 19.5 | % | 16.0 | % | ||||||||||||||||||||||||
| Structural Systems | 10,438 | 9,919 | 11.4 | % | 11.9 | % | ||||||||||||||||||||||||||
| 33,362 | 27,369 | |||||||||||||||||||||||||||||||
Corporate General and Administrative Expenses (1) | (17,642) | (22,394) | (8.4) | % | (11.6) | % | ||||||||||||||||||||||||||
| Total Operating Income | $ | 15,720 | $ | 4,975 | 7.5 | % | 2.6 | % | ||||||||||||||||||||||||
| Adjusted EBITDA | ||||||||||||||||||||||||||||||||
| Electronic Systems | ||||||||||||||||||||||||||||||||
Operating Income | $ | 22,924 | $ | 17,450 | ||||||||||||||||||||||||||||
| Depreciation and Amortization | 3,584 | 3,566 | ||||||||||||||||||||||||||||||
Stock-Based Compensation Expense (2) | 102 | 77 | ||||||||||||||||||||||||||||||
| Restructuring Charges | — | 90 | ||||||||||||||||||||||||||||||
| 26,610 | 21,183 | 22.6 | % | 19.4 | % | |||||||||||||||||||||||||||
| Structural Systems | ||||||||||||||||||||||||||||||||
Operating Income | 10,438 | 9,919 | ||||||||||||||||||||||||||||||
| Depreciation and Amortization | 4,559 | 4,916 | ||||||||||||||||||||||||||||||
Stock-Based Compensation Expense (3) | 82 | 179 | ||||||||||||||||||||||||||||||
| Restructuring Charges | — | 336 | ||||||||||||||||||||||||||||||
| 15,079 | 15,350 | 16.5 | % | 18.4 | % | |||||||||||||||||||||||||||
Corporate General and Administrative Expenses (1) | ||||||||||||||||||||||||||||||||
Operating loss | (17,642) | (22,394) | ||||||||||||||||||||||||||||||
| Depreciation and Amortization | 95 | 102 | ||||||||||||||||||||||||||||||
Stock-Based Compensation Expense (4) | 11,235 | 15,478 | ||||||||||||||||||||||||||||||
| (6,312) | (6,814) | |||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 35,377 | $ | 29,719 | 16.9 | % | 15.4 | % | ||||||||||||||||||||||||
| Capital Expenditures | ||||||||||||||||||||||||||||||||
| Electronic Systems | $ | 886 | $ | 2,265 | ||||||||||||||||||||||||||||
| Structural Systems | 1,475 | 2,114 | ||||||||||||||||||||||||||||||
| Corporate Administration | 219 | 13 | ||||||||||||||||||||||||||||||
| Total Capital Expenditures | $ | 2,580 | $ | 4,392 | ||||||||||||||||||||||||||||
(1)Includes costs not allocated to either the Electronic Systems or Structural Systems operating segments.
(2)The three months ended April 4, 2026 and March 29, 2025 each included less than $0.1 million of stock-based compensation expense recorded as cost of sales.
(3)The three months ended April 4, 2026 and March 29, 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 months ended April 4, 2026 and March 29, 2025 included $0.3 million and $0.6 million, respectively, of stock-based compensation expense for awards with both performance and market conditions that will be settled in cash.
8
DUCOMMUN INCORPORATED AND SUBSIDIARIES
GAAP TO NON-GAAP OPERATING INCOME RECONCILIATION
(Unaudited)
(Dollars in thousands)
| Three Months Ended | ||||||||||||||||||||||||||
| GAAP To Non-GAAP Operating Income | April 4, 2026 | March 29, 2025 | % of Net Revenues 2026 | % of Net Revenues 2025 | ||||||||||||||||||||||
GAAP operating income | $ | 15,720 | $ | 4,975 | ||||||||||||||||||||||
| GAAP operating income - Electronic Systems | $ | 22,924 | $ | 17,450 | ||||||||||||||||||||||
| Adjustments to GAAP operating income - Electronic Systems: | ||||||||||||||||||||||||||
| Restructuring charges | — | 90 | ||||||||||||||||||||||||
| Amortization of acquisition-related intangible assets | 373 | 373 | ||||||||||||||||||||||||
| Total adjustments to GAAP operating income - Electronic Systems | 373 | 463 | ||||||||||||||||||||||||
| Non-GAAP adjusted operating income - Electronic Systems | 23,297 | 17,913 | 19.8 | % | 16.4 | % | ||||||||||||||||||||
| GAAP operating income - Structural Systems | 10,438 | 9,919 | ||||||||||||||||||||||||
| Adjustments to GAAP operating income - Structural Systems: | ||||||||||||||||||||||||||
| Restructuring charges | — | 336 | ||||||||||||||||||||||||
| Amortization of acquisition-related intangible assets | 1,859 | 1,859 | ||||||||||||||||||||||||
| Total adjustments to GAAP operating income - Structural Systems | 1,859 | 2,195 | ||||||||||||||||||||||||
| Non-GAAP adjusted operating income - Structural Systems | 12,297 | 12,114 | 13.4 | % | 14.5 | % | ||||||||||||||||||||
GAAP operating loss - Corporate | (17,642) | (22,394) | ||||||||||||||||||||||||
Adjustments to GAAP Operating Income - Corporate | ||||||||||||||||||||||||||
| Total adjustments to GAAP Operating Income - Corporate | — | — | ||||||||||||||||||||||||
Non-GAAP adjusted operating loss - Corporate | (17,642) | (22,394) | ||||||||||||||||||||||||
Total non-GAAP adjustments to GAAP operating income | 2,232 | 2,658 | ||||||||||||||||||||||||
Non-GAAP adjusted operating income | $ | 17,952 | $ | 7,633 | 8.6 | % | 4.0 | % | ||||||||||||||||||
9
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 | ||||||||||||||
| GAAP To Non-GAAP Net Income | April 4, 2026 | March 29, 2025 | ||||||||||||
| GAAP net income | $ | 9,916 | $ | 1,402 | ||||||||||
| Adjustments to GAAP net income: | ||||||||||||||
| Restructuring charges | — | 426 | ||||||||||||
| Amortization of acquisition-related intangible assets | 2,232 | 2,232 | ||||||||||||
| Total adjustments to GAAP net income before provision for income taxes | 2,232 | 2,658 | ||||||||||||
Income tax effect on non-GAAP adjustments (1) | (446) | (532) | ||||||||||||
| Non-GAAP adjusted net income | $ | 11,702 | $ | 3,528 | ||||||||||
| Three Months Ended | ||||||||||||||
| GAAP Earnings Per Share To Non-GAAP Earnings Per Share | April 4, 2026 | March 29, 2025 | ||||||||||||
| GAAP diluted (loss) earnings per share (“EPS”) | $ | 0.64 | $ | 0.09 | ||||||||||
| Adjustments to GAAP diluted EPS: | ||||||||||||||
| Restructuring charges | — | 0.03 | ||||||||||||
| Amortization of acquisition-related intangible assets | 0.14 | 0.15 | ||||||||||||
| Total adjustments to GAAP diluted EPS before provision for income taxes | 0.14 | 0.18 | ||||||||||||
Income tax effect on non-GAAP adjustments (1) | (0.03) | (0.04) | ||||||||||||
| Non-GAAP adjusted diluted EPS | $ | 0.75 | $ | 0.23 | ||||||||||
| GAAP weighted-average shares - basic | 15,044 | 14,856 | ||||||||||||
| GAAP weighted-average shares - diluted | 15,599 | 15,177 | ||||||||||||
(1) Effective tax rate of 20.0% used for both 2026 and 2025 adjustments.
10
DUCOMMUN INCORPORATED AND SUBSIDIARIES
REMAINING PERFORMANCE OBLIGATIONS BY REPORTING SEGMENT
(Unaudited)
(Dollars in thousands)
| April 4, 2026 | December 31, 2025 | |||||||||||||
| Consolidated Ducommun | ||||||||||||||
| Military and space | $ | 678,812 | $ | 692,719 | ||||||||||
| Commercial aerospace | 381,912 | 402,174 | ||||||||||||
| Industrial | 13,006 | 11,147 | ||||||||||||
| Total | $ | 1,073,730 | $ | 1,106,040 | ||||||||||
| Electronic Systems | ||||||||||||||
| Military and space | $ | 496,316 | $ | 492,244 | ||||||||||
| Commercial aerospace | 56,542 | 49,535 | ||||||||||||
| Industrial | 13,006 | 11,147 | ||||||||||||
| Total | $ | 565,864 | $ | 552,926 | ||||||||||
| Structural Systems | ||||||||||||||
| Military and space | $ | 182,496 | $ | 200,475 | ||||||||||
| Commercial aerospace | 325,370 | 352,639 | ||||||||||||
| Total | $ | 507,866 | $ | 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.
11
FAQ
How did Ducommun (DCO) perform financially in Q1 2026?
Ducommun posted solid Q1 2026 growth with net revenues of $209.0 million, up about 9% year-over-year. Net income increased to $9.9 million from $1.4 million, reflecting better margins and lower stock-based compensation, and diluted EPS reached $0.64 compared with $0.09 a year earlier.
What were Ducommun (DCO) profit margins in the first quarter of 2026?
Gross margin for Q1 2026 was 26.9%, up from 26.2% a year earlier. Operating margin improved to 7.5% of revenue versus 2.6%, and net income margin rose to 4.7% from 0.7%, showing stronger profitability on higher sales volumes and lower costs.
How did Ducommun’s Adjusted EBITDA and non-GAAP earnings trend in Q1 2026?
Adjusted EBITDA reached $35.4 million in Q1 2026, or 16.9% of revenue, up from $29.7 million and 15.4%. Non-GAAP adjusted net income was $11.7 million, versus $3.5 million last year, with non-GAAP diluted EPS of $0.75 compared with $0.23.
Which Ducommun business segments drove Q1 2026 revenue growth?
Both segments contributed to growth. Electronic Systems revenue was $117.6 million, up from $109.1 million, while Structural Systems revenue rose to $91.4 million from $83.4 million, supported by higher rates on commercial and military aircraft and missile platforms.
What was Ducommun (DCO) operating cash flow and capital spending in Q1 2026?
Net cash provided by operations in Q1 2026 was $11.2 million, significantly higher than $0.8 million a year earlier. Capital expenditures totaled $2.6 million, down from $4.4 million, as the company continued investing selectively in its facilities and capabilities.
How does Ducommun describe demand trends in commercial aerospace and defense?
Management highlights strong commercial aerospace demand, including single-aisle aircraft and rotorcraft, and continued growth in defense, especially missile programs and fixed-wing platforms such as Patriot, F-35, and F-15, while noting potential destocking headwinds later in 2026.