olivLaw · US equity research
Ducommun Incorporated DCO
Aircraft Parts & Auxiliary Equipment, NEC · SIC 3728 · Vertical: Aircraft Parts & Auxiliary Equipment, NEC (SIC 3728)
Ducommun Incorporated designs and manufactures high-reliability components for aerospace, defense and industrial customers, organized in the Electronic Systems and Structural Systems segments. Net revenue reached 824.7 million USD in fiscal 2025, and in the second quarter of 2026 the company reported record revenue of 224.5 million USD with a record backlog of remaining performance obligations, as commercial aircraft production and missile programs ramp up.
At the close of 04 Nov 2026, Ducommun Incorporated (DCO) stock was 156.33 USD (−6.22% on the day), with market capitalisation 2.4 bn USD, beta 1.01, 52-week range 86.41–206.98 USD. Latest reported quarter (Q2 2026): revenue of 224.5 m USD (+11.8% YoY), net income of 20.4 m USD (+59.9% YoY), diluted EPS 1.31 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 39.7
- weak (30–45)
- Bollinger (20, 2)
- 157.13 – 174.45
- below the lower band · %B -0.05 · band width 10.4%
- SMA 50 / 200
- 168.77 / 154.11
- mixed trend
- MACD (12, 26, 9)
- -2.56 / -2.24
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −9.6% | −1.1% | −8.5 pp | — |
| 3 months | −18.5% | −0.5% | −18.0 pp | — |
| 6 months | +6.4% | +4.4% | +2.0 pp | — |
| Year to date | +64.3% | +12.3% | +52.0 pp | — |
| 1 year | +71.2% | +13.5% | +57.6 pp | −4.3% |
| 3 years | +222.3% | +76.4% | +145.9 pp | +45.2% |
| 5 years | +191.4% | +63.7% | +127.8 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 04 Jul 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 201.4 m | 197.2 m | 192.5 m | 200.8 m | 214.4 m | 217.1 m | 209.0 m | 224.5 m |
| Cost of revenue | 148.7 m | 150.8 m | 142.0 m | 147.8 m | 155.5 m | 157.9 m | 152.8 m | 161.6 m |
| Gross profit | 52.7 m | 46.4 m | 50.5 m | 53.0 m | 59.0 m | 59.2 m | 56.2 m | 62.9 m |
| SG&A | 35.3 m | 33.6 m | 45.1 m | 34.6 m | 34.0 m | 34.1 m | 40.5 m | 34.6 m |
| Operating income | 15.4 m | 10.9 m | 5.0 m | 17.7 m | -75.3 m | 16.9 m | 15.7 m | 28.3 m |
| Depreciation & amortisation | 8.5 m | 8.3 m | 8.6 m | 8.3 m | 8.3 m | 8.5 m | 8.2 m | 8.6 m |
| Pre-tax income | 11.6 m | 7.2 m | 1.7 m | 16.5 m | -78.2 m | 12.8 m | 11.7 m | 24.8 m |
| Income tax | 2.2 m | 662.0 k | 310.0 k | 3.7 m | -17.4 m | 3.5 m | 1.8 m | 4.4 m |
| Net income | 9.4 m | 6.6 m | 1.4 m | 12.8 m | -60.8 m | 9.3 m | 9.9 m | 20.4 m |
| Diluted EPS | 0.63 | 0.44 | 0.09 | 0.84 | -4.06 | 0.60 | 0.64 | 1.31 |
| Operating cash flow | 13.9 m ≈ | 18.4 m | 771.0 k | 22.4 m ≈ | 18.1 m ≈ | -74.7 m | 11.2 m | 33.5 m ≈ |
| Capex | 2.0 m ≈ | 3.8 m | 4.8 m | 4.3 m ≈ | 2.1 m ≈ | 4.1 m | 2.9 m | 3.6 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 629.3 m | 721.1 m | 628.9 m | 645.4 m | 712.5 m | 757.0 m | 786.4 m | 824.8 m |
| Revenue YoY | +12.7% | +14.6% | −12.8% | +2.6% | +10.4% | +6.2% | +3.9% | +4.9% |
| Net income | 9.0 m | 32.5 m | 29.2 m | 135.5 m | 28.8 m | 15.9 m | 21.7 m | -37.4 m |
| Net income YoY | −55.0% | +259.3% | −10.1% | +364.6% | −78.8% | −44.7% | +36.1% | −272.3% |
| Diluted EPS | 0.77 | 2.75 | 2.45 | 11.06 | 2.33 | 1.14 | 1.44 | -2.50 |
| Diluted EPS YoY | −55.7% | +257.1% | −10.9% | +351.4% | −78.9% | −51.1% | +26.3% | −273.6% |
| net % | 1.4% | 4.5% | 4.6% | 21.0% | 4.0% | 2.1% | 2.8% | -4.5% |
| Free cash flow | 28.6 m | 32.7 m | 101.0 k | -17.4 m | 13.0 m | 11.5 m | 20.1 m | -48.6 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 45.3 m USD
- Financial debt
- 305.0 m USD
- Net debt
- 259.7 m USD
- Equity
- 661.5 m USD
- Total assets
- 1.2 bn USD
- Debt / equity
- 0.46x
- Current ratio
- 3.49x
- ROE
- -5.6%
- ROA
- -3.2%
- FCF margin
- -5.9%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 628.9 m | 645.4 m | 712.5 m | 757.0 m | 786.4 m | 824.8 m | SEC (XBRL)· 08 May 2026verified |
| Cost of revenue | 491.2 m | 503.0 m | 568.2 m | 593.8 m | 589.2 m | 603.2 m | SEC (XBRL)· 08 May 2026verified |
| Gross profit | 137.7 m | 142.5 m | 144.3 m | 163.2 m | 197.3 m | 221.6 m | SEC (XBRL)· 26 Feb 2026verified |
| SG&A | 89.8 m | 93.6 m | 98.4 m | 119.7 m | 148.6 m | 147.8 m | SEC (XBRL)· 08 May 2026verified |
| Operating income | 45.5 m | 48.9 m | 39.8 m | 28.9 m | 42.2 m | -35.7 m | SEC (XBRL)· 08 May 2026verified |
| Depreciation & amortisation | 28.9 m | 28.4 m | 31.4 m | 32.6 m | 33.4 m | 33.7 m | SEC (XBRL)· 26 Feb 2026verified |
| EBITDA | 74.4 m ≈ | 77.3 m ≈ | 71.2 m ≈ | 61.5 m ≈ | 75.7 m ≈ | -2.1 m ≈ | SEC (XBRL)· 08 May 2026derived |
| Pre-tax income | 32.0 m | 170.5 m | 33.3 m | 16.4 m | 26.9 m | -47.2 m | SEC (XBRL)· 08 May 2026verified |
| Income tax | 2.8 m | 34.9 m | 4.5 m | 451.0 k | 5.2 m | -9.9 m | SEC (XBRL)· 08 May 2026verified |
| Net income | 29.2 m | 135.5 m | 28.8 m | 15.9 m | 21.7 m | -37.4 m | SEC (XBRL)· 08 May 2026verified |
| Diluted EPS | 2.45 | 11.06 | 2.33 | 1.14 | 1.44 | -2.50 | SEC (XBRL)· 08 May 2026verified |
| Weighted average diluted shares | 11.9 m | 12.3 m | 12.4 m | 14.0 m | 15.0 m | 14.9 m | SEC (XBRL)· 26 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 56.5 m | 76.3 m | 46.2 m | 42.9 m | 37.1 m | 45.3 m | SEC (XBRL)· 26 Feb 2026verified |
| Receivables | 58.0 m | 72.3 m | 104.0 m | 104.7 m | 109.7 m | 124.4 m | SEC (XBRL)· 26 Feb 2026verified |
| Inventories | 129.2 m | 150.9 m | 171.2 m | 199.2 m | 197.0 m | 182.8 m | SEC (XBRL)· 26 Feb 2026verified |
| Current assets | 410.3 m | 492.6 m | 527.3 m | 549.6 m | 568.1 m | 626.0 m | SEC (XBRL)· 08 May 2026verified |
| Property, plant & equipment, net | 110.0 m | 102.4 m | 106.2 m | 111.4 m | 109.8 m | 107.2 m | SEC (XBRL)· 26 Feb 2026verified |
| Goodwill | 170.8 m | 203.7 m | 203.4 m | 244.6 m | 244.6 m | 244.6 m | SEC (XBRL)· 26 Feb 2026verified |
| Intangibles (excl. goodwill) | 124.7 m | 141.8 m | 127.2 m | 166.3 m | 149.6 m | 132.8 m | SEC (XBRL)· 26 Feb 2026verified |
| Total assets | 837.3 m | 978.7 m | 1.0 bn | 1.1 bn | 1.1 bn | 1.2 bn | SEC (XBRL)· 08 May 2026verified |
| Accounts payable | 64.0 m | 66.1 m | 90.1 m | 72.3 m | 75.8 m | 74.7 m | SEC (XBRL)· 26 Feb 2026verified |
| Short-term debt | 7.0 m | 7.0 m | 6.3 m | 7.8 m | 12.5 m | 5.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Long-term debt | 313.6 m | 280.7 m | 242.2 m | 258.2 m | 230.7 m | 300.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Current liabilities | 142.9 m | 162.6 m | 199.4 m | 183.7 m | 175.5 m | 179.2 m | SEC (XBRL)· 08 May 2026verified |
| Total liabilities | 508.0 m | 504.1 m | 495.5 m | 484.8 m | 446.2 m | 524.9 m | SEC (XBRL)· 08 May 2026verified |
| Equity | 329.3 m † | 474.6 m † | 526.0 m † | 636.1 m † | 680.1 m † | 661.5 m † | SEC (XBRL)· 08 May 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 12.6 m | -565.0 k | 32.7 m | 31.1 m | 34.2 m | -33.4 m | SEC (XBRL)· 26 Feb 2026verified |
| Capex | 12.5 m | 16.9 m | 19.7 m | 19.5 m | 14.1 m | 15.2 m | SEC (XBRL)· 26 Feb 2026verified |
| Free cash flow | 101.0 k ≈ | -17.4 m ≈ | 13.0 m ≈ | 11.5 m ≈ | 20.1 m ≈ | -48.6 m ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Investing cash flow | -5.5 m | 57.8 m | -19.2 m | -133.5 m | -13.9 m | -13.1 m | SEC (XBRL)· 26 Feb 2026verified |
| Financing cash flow | 9.7 m | -37.3 m | -43.5 m | 99.0 m | -26.0 m | 54.7 m | SEC (XBRL)· 26 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
- score weight coverage: 58.3% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 2.4 bn USD
Key indicators
Coverage and freshness
Score by group
58% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 7.34 – 24.06 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/EBITDA7.34 – 24.06 (Mid 15.03)4 companies used · median multiple 24.2x · quartiles 18.1x – 31.3xATRO, ESLT, KRMN, TDG
- Peers: P/Eunavailable · the base of the ratio is not positive
- Dividend discount (DDM)unavailable · input data missing
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 58.3% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | -1.3% | 17 (vs peers) | 18% |
| Net margin · Quality | -2.4% | 30 (vs peers) | 11% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | 5.0% | 42 (on a fixed band) | 14% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | 12.4x | 0 (on a fixed band) | 18% |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 3.4x | 100 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | 135.3x | 0 (on a fixed band) | 18% |
| FCF yield · Valuation | -1.0% | 0 (on a fixed band) | 14% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet29/100 · 2/3 factors with a value
- Growth· partial42/100 · 1/2 factors with a value
- Quality22/100 · 2/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation0/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
DUCOMMUN INCORPORATED (DCO). Latest full fiscal year: 2025; data up to 2026-07-04.
Figures computed from the financial statements: revenue 824.8 m USD in 2025; YoY growth 4.9%; net margin -2.4%; ROE -3.0%; net debt/EBITDA 12.4x.
The estimated value range is 7.34–24.06 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 15.03 USD, the price of 156.33 USD leaves a potential of -90.4% (value / price − 1) and a margin of safety of -940.0% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 58.3% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Current ratio: 3.4x
What contradicts it
- ROIC: -1.3%
- Net margin: -2.4%
- Net debt / EBITDA: 12.4x
- EV/EBITDA: 135.3x
- FCF yield: -1.0%
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): FCF conversion, EPS CAGR 3Y, Interest coverage, P/E (TTM), Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Aircraft Parts & Auxiliary Equipment, NEC (SIC 3728) · same industry (4-digit SIC) · compared with 10 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| TDGTransDigm Group Incorporated | 67.3 bn | 34.1 | — | 21.3% | +11.2% | −11% / +26% |
| ESLTElbit Systems Ltd | 32.7 bn | 61.8 | 14.4% | 6.7% | +16.3% | +50% / +248% |
| LOARLoar Holdings Inc. | 6.5 bn | 0.5 | 5.8% | 11.6% | +23.2% | +2% / unavailable |
| KRMNKarman Holdings Inc. | 4.5 bn | 118.5 | 9.5% | 6.3% | +36.6% | −49% / unavailable |
| DCODucommun Incorporated | 2.4 bn | — | -3.0% | -2.4% | +4.9% | +71% / +222% |
| ATROAstronics Corporation | 1.9 bn | 30.4 | 33.7% | 8.4% | +8.4% | +32% / +385% |
| PKEPark Aerospace Corp. | 544.8 m | 34.4 | 11.1% | 18.4% | +18.2% | +28% / +64% |
| CVUCpi Aerostructures, Inc. | 64.0 m | 17.0 | 14.4% | 5.1% | −14.6% | +72% / +104% |
| AIRIAir Industries Group | 12.5 m | — | -10.6% | -3.8% | −13.0% | −14% / −11% |
| PRZOParaZero Technologies Ltd. | 9.8 m | 1.6 | -380.5% | -517.1% | +12.3% | −66% / −34% |
| EHEHang Holdings Limited | — | — | -27.8% | -66.0% | −4.4% | −71% / −77% |
1- and 3-year price returns: for DCO from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Ducommun Incorporated designs and manufactures high-reliability components for aerospace, defense and industrial customers, organized in the Electronic Systems and Structural Systems segments. Net revenue reached 824.7 million USD in fiscal 2025, and in the second quarter of 2026 the company reported record revenue of 224.5 million USD with a record backlog of remaining performance obligations, as commercial aircraft production and missile programs ramp up 13.
SWOT
Strengths
- A strong position in aerospace and defense, with long relationships with major manufacturers and engineering capacity that supports complex products 1.
- A record backlog and a rising gross margin, which point to improved operational execution 3.
- Two complementary segments, Electronic Systems and Structural Systems, which reduce dependence on a single product line 1.
Weaknesses
- High concentration on a few large customers, with a significant share of revenue coming from the top ten 1.
- Significant debt and variable-rate borrowing costs, which make profits sensitive to changes in interest rates 1.
- A net loss in fiscal 2025, influenced by litigation and a settlement charge related to the Guaymas fire 1.
Opportunities
- Growth in missile production and military programs could open new orders for the defense segment 3.
- A recovery in commercial aircraft production rates could increase volume for structural and electronic components 13.
- Acquisitions and a shift toward higher value-added assemblies could support the VISION 2027 objectives 13.
Threats
- Dependence on government budgets and funding interruptions can delay orders and payments 1.
- Tariffs and changes in trade policy could reduce margins if they cannot be passed on to customers 12.
- Quality or oversight problems at major aviation customers could affect order volumes, as seen with Boeing 12.
Risks
- Dependence on commercial aviationhigh
A significant part of revenue depends on aircraft manufacturers' production rates, which are influenced by demand and by airline financing.
- Customer concentrationhigh
A small number of customers generate a major share of revenue, so losing one could have a significant effect on results.
- Debt and interest ratesmedium
Debt carrying variable interest makes cash flows sensitive to rate increases, and credit covenants limit flexibility.
- Government funding interruptionsmedium
Gaps in federal funding could delay payments and work on defense contracts, with effects on operations.
- Tariffs and trade rulesmedium
Tariff policies could raise import costs and affect estimates in the financial statements if costs cannot be passed on or exempted.
Investment thesis
What would need to be true (bull case)
- Record revenue and gross margin in the second quarter of 2026, with a backlog that has grown considerably, which could support growth in the coming years 3.
- Exposure to missile programs, which could benefit from a major production increase if Congress approves the proposed budgets 13.
- Positioning in complex, higher value-added assemblies could help the company improve margins over the longer term 13.
What would break the thesis
- Dependence on commercial aviation and on a few large customers makes results vulnerable to production or oversight problems at those customers 12.
- The net loss in fiscal 2025 and litigation-related charges show that results can be hit by unexpected events, and debt remains significant 1.
- Tariff and budget uncertainty could reduce profitability or delay orders if these conditions persist 12.
What to watch
- Trend of the Adjusted EBITDA margin against the VISION 2027 targetQ3 2026
- Order pace and book-to-bill ratio in the missile businessQ3 2026
- Effect of tariffs on costs and marginsnext 10-Q
- Production rates at Boeing and Airbus and their ramp-up schedule2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Ducommun presents itself as a full-service provider of value-added manufacturing solutions for products where the cost of failure is high, mainly in aerospace and defense, but also in industrial and medical markets 1. The company operates through two reportable segments, Electronic Systems and Structural Systems, and traces its origins to a business founded in California in 1849 and reincorporated in Delaware in 1970 1. Growth has also been supported by acquisitions, such as BLR Aerospace, bought in April 2023 for an initial purchase price of 115.0 million USD, net of cash acquired, and integrated into Structural Systems 1.
The company stresses that nearly all revenue comes from aerospace and defense markets, which makes it sensitive to commercial aviation cycles and to US government defense budgets 1. Its main customers are Boeing and RTX, and its top ten customers make up a major share of sales, creating commercial concentration 1. In 2025 the company refinanced its debt through new credit facilities, a 200.0 million USD term loan and a 450.0 million USD revolving credit facility, both maturing in 2030 1.
In fiscal 2025 the company posted a net loss of 33.9 million USD, influenced by a litigation settlement charge tied to the Guaymas fire, for which a payment of 150.0 million USD was agreed 1. Results for the second quarter of 2026, however, show a clear recovery, with record revenue and gross margin, and management says it is working toward its VISION 2027 goals 3.
Segments
Electronic Systems
This segment designs and manufactures high-reliability electronic and electromechanical products, such as cable assemblies, printed circuit board assemblies, lightning diversion systems and radar enclosures, mainly for military and commercial aircraft and space programs 1. In fiscal 2025 it generated 462.7 million USD of revenue, of which 75.9% came from military and space 1. In the second quarter of 2026 revenue rose to 131.4 million USD, supported by missiles and fixed-wing aircraft platforms 3.
Market context
The commercial aerospace market is highly cyclical and depends on global air traffic, fuel and maintenance costs and the production rates of Boeing and Airbus, which are expected to improve gradually 1. The defense market depends on government budgets, which face legislative uncertainty, but a proposed military budget of 1.5 trillion USD for fiscal 2027 points upward if Congress approves it 1. Industrial markets are a small part of the business, and the company intends to prune them selectively 1.
Demand for missiles appears to be strengthening, and management says the company could benefit from an expected major ramp-up in missile production 3. On the other side, tariffs and budget delays could affect margins and delivery timing if these conditions persist 12.
Trends
- Recovery of commercial aircraft productiontailwind
Rising production rates for single-aisle and wide-body aircraft could lift orders for Ducommun components, provided Boeing and Airbus keep their ramp-up schedules 123.
- Expansion of missile programstailwind
Higher missile revenue and an expected major increase in production could strengthen the defense segment if order momentum holds 3.
- Tariffs and trade uncertaintyheadwind
Tariffs imposed by the US government and their frequent changes could reduce profitability if the company cannot pass costs to customers or use available exemptions 12.
- Budget uncertainty in defensemixed
Government funding interruptions and budget limits could delay orders and payments, although full-year funding through September 2026 was secured, with the exception of the Department of Homeland Security 12.
Competitive position
Ducommun competes with Tier One, Tier Two and Tier Three suppliers in the aerospace supply chain, as well as with suppliers of electronic and structural components 1. The company differentiates itself through more complex assemblies and engineering capabilities, which allow it to move up the value chain 1.
Pricing pressure and other industry competitors may limit the ability to keep large customers, and the loss of a major customer would have a significant effect on results 1. The company says it cannot ensure that it will retain all of its existing customers 1.
- Tier One suppliers
Suppliers that manufacture aircraft sections and purchase assemblies, competing directly with Ducommun in structural work 1.
- Tier Two suppliers
Suppliers of more complex, higher value-added parts that may also take on design and supply chain risk 1.
- Tier Three suppliers
Suppliers of components and detailed parts, competing with Ducommun in less complex product areas 1.
- Suppliers of high-reliability defense electronics
Companies offering high-reliability systems similar to the Electronic Systems segment, mainly for military programs 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
- Ducommun (DCO) Benefits as Defense Spending and Commercial Aerospace ReboundYahoo Finance — News · 03 Sept 2026 · EN
SEC filings
- Quarterly report06 Aug 2026
- Current report06 Aug 2026Results of operations · Financial statements and exhibits
- Quarterly report12 May 2026
- Current report12 May 2026Results of operations · Financial statements and exhibits
- Current report04 May 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Current report01 May 2026Non-reliance on financial statements
- Current report30 Apr 2026Shareholder vote · Financial statements and exhibits
- Proxy statement13 Mar 2026
- Annual report26 Feb 2026
- Current report26 Feb 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Ducommun Incorporated · 26 Feb 2026
- [2] Form 10-Q, quarter ended 2026-07-04 · SEC / Ducommun Incorporated · 06 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Ducommun Incorporated · 06 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.