Ducommun (DUM) Q2 2026 Earnings Report

The call presented a largely positive operational and financial picture: record revenue, strong bookings and backlog growth, significant margin expansion, notable missile and commercial aerospace recoveries, meaningful cash generation and realized cost synergies. The company also flagged temporary and manageable headwinds — ongoing destocking effects, some subsegment softness (radar/space/naval/business jet), revenue pull-forward dynamics, and execution risks around supply chain, hiring, and realizing share of prime defense awards. Overall, the positive metrics, sizable backlog/RPO growth, margin trajectory and preparedness for defense program ramps outweigh the transitory and execution-related lowlights.

Management reiterated full‑year 2026 revenue guidance of mid‑to‑high single‑digit growth, cautioned that some destocking headwinds may persist through year‑end, and said Q3 and Q4 should show low‑to‑mid single‑digit growth as H1 pull‑forward production unwinds; they also reaffirmed VISION 2027 targets including 18% adjusted EBITDA in 2027 (Q2 adjusted EBITDA was 17.1% or $38.4M, up $6.7M YoY). Q2 metrics cited to support the guidance included revenue of ~$224–225M (+12% YoY), gross profit $62.9M or 28% (+160 bps YoY), adjusted operating income $26.7M or 11.9%, GAAP net income $20.4M / GAAP EPS $1.31 (adjusted net income $18.4M / adjusted EPS $1.18), record remaining performance obligations of $1.16B (+$250M YoY) with a 1.4x quarterly book‑to‑bill (1.3x LTM), $310M bookings in Q2 and $1.1B booked over the past 12 months, missile revenues +68% in Q2 (29% LTM), commercial aerospace +16% Q2, facility consolidation run‑rate savings of ~$13M largely realized, available liquidity $410M, Q2 cash from operations $33.5M (YTD cash flow $44.8M) and YTD free cash flow $38.3M (127% conversion).