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Dec 31, 2025
Ducommun Q4 2025 Earnings Report
Ducommun Q4 2025 Earnings Report
Key Takeaways
Ducommun reported a strong finish to 2025 with record quarterly revenue of $215.8 million and record gross margins. Growth was primarily driven by the military and space segment, particularly in missile platforms, while commercial aerospace saw mixed results due to Boeing 737 MAX headwinds. Despite a GAAP net income increase, operating cash flow was significantly impacted by a one-time litigation settlement.
Net revenue reached a quarterly record of $215.8 million, up 9.4% year-over-year.
Gross margin expanded significantly by 420 basis points to a record 27.7%.
Remaining Performance Obligations (RPO) hit a new record of $1.1 billion with a strong book-to-bill ratio of 1.3x.
Adjusted EBITDA grew 39% year-over-year to $37.9 million, representing 17.5% of revenue.
Revenue by Segment
Forward Guidance
Ducommun expects continued strength in its missile franchise and a recovery in commercial aerospace in the latter half of 2026.
Positive Outlook
- Missile production activity expected to ramp up significantly in 2026.
- Long-term agreements in place with major customers RTX and Lockheed.
- Commercial aerospace positioned for growth in the back half of 2026 as destocking headwinds ease.
- Progress toward VISION 2027 goal of 18% Adjusted EBITDA margin.
- Tariff environment not expected to have a material impact on financial outlook.
Challenges Ahead
- Ongoing lower revenues from Boeing on the 737 MAX platform.
- Lower rates on electronic warfare platforms impacting military revenue.
- Significant one-time litigation settlement costs impacting cash flow.
- Higher compensation and benefits costs increasing SG&A.
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
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