Ducommun Q2 Earnings: Revenue Up 3%, Adjusted EPS Beats Consensus

Ducommun reported Q2 adjusted EPS of 88c, beating consensus estimates of 82c. Revenue reached $202.3M, exceeding the consensus of $199.57M. The company's defense business saw strong demand, while commercial aerospace OEM demand weakened. Ducommun's chairman, president, and CEO, Stephen Oswald, expressed confidence in Boeing's performance, citing a sign of better days ahead.

Ducommun Incorporated (NYSE: DCO) has released its second-quarter 2025 financial results, showcasing robust growth and improved margins. The company reported a net revenue of $202.3 million, an increase of 3% over the same period last year, exceeding the consensus estimate of $199.57 million [1].

The company's adjusted EPS for the quarter was 88 cents, surpassing the consensus estimate of 82 cents. This strong performance was driven by a 60 basis point increase in gross margin to 26.6%, and an 8% year-over-year increase in adjusted EBITDA to $32.4 million [1].

Ducommun's defense business saw significant growth, with strong demand across various missile programs, radar, and military rotary-wing aircraft platforms. However, commercial aerospace OEM demand remained weak, particularly from Boeing. Despite this, Stephen G. Oswald, chairman, president, and CEO, expressed confidence in Boeing's performance, noting that the recent improvements in 2025 are a sign of better days ahead [1].

The company's margin expansion journey continued, with gross margins expanding 60 basis points year-over-year to 26.6%, and adjusted EBITDA margins increasing 80 basis points year-over-year to 16.0% [1]. These improvements are part of Ducommun's VISION 2027 goals, aiming to achieve an 18% Adjusted EBITDA margin by the end of 2027.

Ducommun's chairman, president, and CEO, Stephen G. Oswald, stated, "Another excellent quarter for Ducommun as we continue to make solid progress towards our VISION 2027 goals with both gross margin and Adjusted EBITDA margin and dollars at record levels. Net revenue grew 3% to $202.3 million as anticipated, led by strength in our defense business which offset the continued headwinds in commercial aerospace OEM demand" [1].

The company's net cash provided by operations was $22.4 million during the second quarter of 2025, up from $3.5 million in the same period last year, primarily due to higher net income and accounts payable [1].

Ducommun will host a conference call to discuss these financial results on August 7, 2025, at 10:00 a.m. PT (1:00 p.m. ET) [1].

References:
[1] https://investors.ducommun.com/news-releases/news-release-details/ducommun-incorporated-reports-second-quarter-2025-results