What were the key takeaways from Ducommun’s earnings call?

What is Ducommun's latest dividend and current dividend yield?

What guidance did Ducommun's management provide for the next earnings period?

What does Ducommun do and what are its main business segments?

What is the market's earnings forecast for Ducommun next quarter?

What is Ducommun's gross profit margin?

What were the key takeaways from Ducommun's earnings call?

Did Ducommun beat or miss consensus estimates last quarter?

- **Revenue Record**: Q3 2025 revenue of $212.6 million (+6% YoY), driven by 13% defense growth and 21% missile expansion.
- **Strategic Progress**: 23% of revenue from engineered products, up from 15% in 2022, with 2026 savings of $11-13 million from facility consolidation.
- **Risk Management**: $150 million litigation settlement resolved, with minimal impact on adjusted results.
- **Defense Dominance**: Missile business up 27% YTD, radar franchise expanding with SPY-6 and TPY-2 programs.
- **Commercial Recovery**: 2026 optimism as Boeing increases MAX build rates, offsetting 2025 destocking headwinds.

**【CEO Summary Section】**
- **Record Revenue Growth**: Q3 2025 revenue reached $212.6 million, up 6% YoY, driven by 13% growth in defense business and 21% expansion in missile programs.
- **Defense Momentum**: Military rotorcraft (+17%), rotary-wing (+22%), and missile franchises (+21%) led growth. Apache tail rotor blade production ramped up in Coxsackie, NY.
- **Bookings Strength**: $338 million in new orders (1.6x book-to-bill), raising RPO to $1.03 billion, a new record.
- **Commercial Aerospace Challenges**: 10% Q3 decline due to destocking, but optimism for 2026 as Boeing increases 737 MAX build rates to 42/month.
- **Strategic Initiatives**: 23% of revenue from engineered products, on track for 25%+ by 2027. Facility consolidation savings expected to reach $11-13 million in 2026.

**【CFO Financial Commentary】**
- **Profitability Metrics**: Gross margin 26.6% (up 40bps YoY), adjusted EBITDA $34.4 million (+$2.5 million YoY). Adjusted EPS $0.99, in line with prior year.
- **Litigation Impact**: $150 million settlement for Guaymas fire (net $95 million cash payment), causing GAAP net loss of $4.30/share but no impact on adjusted results.
- **Liquidity**: $250.7 million available liquidity post-settlement, with revolver capacity fully restored. 2026 leverage expected at 2.3x.
- **Tariffs Mitigation**: <5% of spend from China, minimal impact on margins.

**【Q&A Highlights】**
- **Commercial Aerospace Outlook**: Destocking to persist in 2026, but 787 and MAX programs position DCO for recovery.
- **M&A Strategy**: Liquidity remains strong post-settlement; focused on engineered products and aftermarket acquisitions.
- **Cash Flow Conversion**: Free cash flow to adjusted net income improved to 73% YTD, targeting 100%.
- **Defense Pipeline**: Golden Dome program alignment with radar and missile franchises; SPY-6 radar and Tomahawk production ramping up.

Ducommun Incorporated(DCO)-20251106-2025 Q3 Earnings call transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

DCO

DCO fundamentals

You can ask Aime