Ducommun Sets New Revenue Record, Sees Strong Defense Growth and Optimistic Future

Ducommun Incorporated reported record Q2 revenue of $202.3mln, a 2.7% YoY increase, driven by a 16% growth in the defense segment. The company achieved a 26.6% gross margin and a record adjusted EBITDA of 16% of revenue. However, commercial aerospace revenue declined 10% YoY, and the industrial business segment experienced a 23% decline. The backlog decreased by $50mln YoY due to award timing. Despite these challenges, the company remains optimistic about its strategic initiatives and future prospects.

Ducommun Incorporated (NYSE: DCO) reported its second-quarter 2025 results, showcasing a robust performance with record quarterly revenue and margins. The company achieved a record net income increase of 63% year-over-year (YoY), reaching $12.6 million, or $0.82 per diluted share [1].

Key highlights from the Q2 2025 results include:
- Revenue Growth: Net revenue increased by 3% YoY to $202.3 million, driven by a 16% growth in the defense segment.
- Gross Margin: The company reported a gross margin of 26.6%, a 60 basis points (bps) increase YoY.
- Adjusted EBITDA: Adjusted EBITDA reached $32.4 million, or 16% of revenue, marking a record high and an 80 bps increase YoY.
- Operating Income: Operating income grew by $3.2 million YoY to $17.2 million, or 8.5% of revenue.

However, commercial aerospace revenue declined by 10% YoY, and the industrial business segment experienced a 23% decline. These declines were partially offset by the strong performance in the defense segment. The backlog decreased by $50 million YoY due to award timing.

Stephen G. Oswald, chairman, president, and chief executive officer, 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" [1].

Despite the challenges in commercial aerospace and industrial segments, Ducommun remains optimistic about its strategic initiatives and future prospects. The company continues to make progress in mitigating raw materials tariff exposures and expects greater revenue growth in the second half of 2025 as market demand increases.

A teleconference hosted by Stephen G. Oswald and Suman B. Mookerji, senior vice president and chief financial officer, will be held today, August 7, 2025, at 10:00 a.m. PT (1:00 p.m. ET) to review these financial results.

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