Loading...
Ducommun Q1 2025 Earnings Report
Ducommun reported an excellent start to 2025 with record quarterly gross margins and strong Adjusted EBITDA margins.
Key Takeaways
Ducommun Incorporated reported net revenue of $194.1 million for the first quarter of 2025, a 2% increase over Q1 2024. The company achieved a record gross margin of 26.6% and Adjusted EBITDA of $30.9 million, or 15.9% of revenue, driven by strong defense business performance.
Net revenue increased by 2% year-over-year to $194.1 million, primarily due to strength in the defense business.
Gross margin reached a new quarterly record of 26.6%, expanding 200 basis points year-over-year.
Adjusted EBITDA increased by 13% year-over-year to $30.9 million, representing 15.9% of revenue.
Net income grew by 53% year-over-year to $10.5 million, or $0.69 per diluted share.
Revenue by Segment
Forward Guidance
Ducommun is well-positioned for a strong year in 2025, continuing progress towards its VISION 2027 goals, with ongoing monitoring of the tariff environment and mitigation plans for raw materials tariff exposures.
Positive Outlook
- Well-positioned for another strong year towards VISION 2027 goals.
- Largely a U.S. manufacturer with over 95% of revenue from domestic facilities.
- Limited supply chain exposure to China.
- Plans in place to mitigate raw materials tariff exposures through duty exemptions or passing costs to customers.
- Continued progress towards VISION 2027 financial goal of 18% Adjusted EBITDA.
Challenges Ahead
- Anticipated weakness in commercial aerospace production rates.
- Destocking in commercial aerospace markets.
- Weaker demand on Boeing 737 MAX.
- Weaker demand for commercial in-flight entertainment products.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...