DCO
Ducommun Incorporated93.44
+0.55+0.59%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Ample capacity, M&A pipeline active
Q&A added color without contradictions, spotlighting Ducommun's 30%+ factory headroom for missile ramps—no growth CapEx needed, with Joplin poised to double to $200M revenue. Management normalized Q4's 17.5% EBITDA to a 16.5% 2026 baseline, expecting H2 lift from restructuring synergies ($6M-$7M more ramping). Missiles comprise 25% of defense; hypersonics via electronics interconnects newly noted. Active M&A pipeline looks competitive yet promising for Vision 2027's $75M tuck-in goal. Destocking queries reaffirmed H1 drag, H2 recovery. Factories have 30% headroom now. Investors watch capacity absorption, M&A closes.
Key Stats
Market Cap
1.40BP/E (TTM)
-Basic EPS (TTM)
-2.32Dividend Yield
0%Recent Filings
8-K
Record 2025 revenue, margins
Ducommun capped 2025 with record full-year revenue of $825M and gross margins at 26.9%, driven by 9.4% Q4 growth to $215.8M on military/space strength. Adjusted EBITDA hit 17.5% of revenue, up 370 bps, yet Q4 cash flow swung negative from $7.6M litigation hit. RPO soared to $1.1B. Margins keep climbing.
10-K
FY2025 results
Ducommun posted FY2025 net revenues of $824.7M, up 4.9% y/y, with military/space surging $60M to 58% of sales on missile and radar ramps while commercial aerospace dipped $25M to 37% from Boeing weakness. Q4 bore the brunt of a $107M Guaymas fire litigation hit—net of insurance—driving net loss of $33.9M or $2.27/share versus $31.5M profit last year; underlying Adjusted EBITDA climbed to $135.6M or 16.4%. Backlog hit $1.2B, up 13%, signaling momentum. Debt stands at $305M post-refinancing, revolver with $345M available. Q4 accelerated military growth. U.S. government shutdowns risk payment delays.
8-K
Settles fire claim for $4M
Ducommun settled a subrogation claim from a June 2020 fire at its Guaymas, Mexico performance center, agreeing to pay $4.0 million for full release of claims. The deal, reached via December 9, 2025 mediation, ends the Arizona arbitration. Expense hits Q4 2025; payment due within 20 days from cash. No liability admitted. One claim may linger, but it's time-barred.
8-K
Ducommun refinances $650M facility
Ducommun closed a $650M amended credit facility on Nov 24, 2025, with $200M term loan fully drawn and $120M revolver borrowed to repay prior debt. Yet terms eased sharply: SOFR+1.50% initial rate, leverage covenant to 4.75x (stepping to 5.25x for buys), maturity to 2030. New lenders joined; covenants tightened on payouts.
10-Q
Q3 FY2025 results
Ducommun posted Q3 revenues of $212.6M, up 5.5% y/y from $201.4M, with gross margins edging to 26.6% from 26.2% on military/space strength. Yet Q3 operating loss hit $80.1M versus $15.3M income, slammed by $99.7M litigation settlement costs net of insurance tied to the Guaymas fire. Cash climbed to $50.9M, operations generated $41.3M YTD FCF (derived), while total debt fell to $228.1M at 6.11% with $199.8M revolver availability. Segments hummed: Electronic Systems up 6.6% to $123.1M, Structural steady. EPS reconciles at -$4.30 on 14,978K shares; anti-dilution noted. Litigation settled post-quarter. Customer pricing pressures linger.
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