Ducommun Incorporated ( (DCO) ) has released its Q3 earnings. Here is a breakdown of the information Ducommun Incorporated presented to its investors.
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Ducommun Incorporated is a company that provides innovative manufacturing solutions in the aerospace, defense, and industrial markets, specializing in electronic and structural systems for complex products and components. In its third quarter of 2025, Ducommun Incorporated reported record quarterly revenue of $212.6 million, marking a 6% increase compared to the same period last year, along with a gross margin of 26.6%. Despite these achievements, the company faced a net loss of $64.4 million due to significant litigation settlement costs, although its non-GAAP adjusted net income showed a modest increase to $15.2 million.
The company’s defense sector showed robust growth, particularly in missile and military aircraft platforms, which helped offset challenges in the commercial aerospace market. The commercial aerospace sector experienced a decline due to ongoing destocking issues, although the FAA’s decision to allow increased production rates for Boeing’s 737 MAX is seen as a positive development. Ducommun’s adjusted EBITDA also rose by 8% year-over-year, reaching $34.4 million, and the company achieved a strong book-to-bill ratio of 1.6 times, setting a new record for remaining performance obligations.
Ducommun’s financial performance was impacted by a substantial increase in corporate general and administrative expenses, primarily due to litigation settlement costs. However, the company reported improvements in its electronic and structural systems segments, with both segments seeing increased revenue and operating income. The company also managed to reduce its interest expenses due to lower interest rates and a reduced debt balance.
Looking ahead, Ducommun remains optimistic about its future, expecting continued revenue growth in both defense and commercial aerospace sectors. The company is committed to achieving its VISION 2027 goals, focusing on margin expansion and leveraging its strong market position to drive further growth in the coming quarters.