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Jun 28, 2025
Ducommun Q2 2025 Earnings Report
Ducommun reported strong second quarter 2025 results with revenue topping $200 million, record gross margin, and a significant increase in net income.
Key Takeaways
Ducommun delivered an excellent second quarter, with net revenue growing 3% year-over-year to $202.3 million, driven by robust demand in the defense business. The company achieved record gross margin of 26.6% and Adjusted EBITDA margin of 16.0%, leading to a 63% increase in net income to $12.6 million.
Net revenue increased by 3% year-over-year to $202.3 million, primarily due to strong performance in military and space end-use markets.
Gross margin reached a record 26.6%, expanding 60 basis points year-over-year, reflecting improved manufacturing efficiency and lower restructuring charges.
Net income surged by 63% year-over-year to $12.6 million, with diluted EPS of $0.82, significantly higher than the previous year.
Adjusted EBITDA grew by 8% year-over-year to $32.4 million, with the Adjusted EBITDA margin improving to 16.0%.
Revenue by Segment
Forward Guidance
Ducommun is optimistic about greater revenue growth in the second half of 2025 as market demand increases and continues to make solid progress towards its VISION 2027 goals, including an 18% Adjusted EBITDA target.
Positive Outlook
- Anticipated greater revenue growth year-over-year in the second half of 2025 due to increasing market demand.
- Continued solid progress towards VISION 2027 goals, including an 18% Adjusted EBITDA target.
- Increasing confidence in Boeing's performance for better days ahead in both single aisle and wide-body aircraft.
- No material impact expected from the current tariff environment on the financial outlook, as over 95% of revenue is from U.S. manufacturing.
- Progress in mitigating raw materials tariff exposures through duty exemptions on military products or passing costs to customers.
Challenges Ahead
- Continued headwinds in commercial aerospace OEM demand, particularly from Boeing.
- Lower revenues from Boeing in the commercial aerospace end-use markets.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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