Ducommun Incorporated (DCO) Q2 2025 Earnings Call Transcript
Revenue $202.3 million, a 2.7% increase year-over-year. The growth was driven by a 16% increase in military and space revenue, particularly in missile and radar systems, offset by a 10% decline in commercial aerospace revenue due to lower Boeing platform rates and destocking.
Gross Margin 26.6%, up 60 basis points year-over-year. The improvement was attributed to a growing engineered product portfolio, strategic pricing initiatives, restructuring actions, and productivity improvements.
Adjusted EBITDA $32.4 million, representing 16% of revenue, an increase of $2.4 million and 80 basis points year-over-year. This was driven by higher revenue and better leverage of fixed costs.
GAAP Diluted EPS $0.82 per share, up from $0.52 per share in Q2 2024. The increase was due to improved operating income and lower interest costs.
Adjusted Diluted EPS $0.88 per share, up from $0.83 per share in Q2 2024. The increase was driven by higher adjusted operating income and lower interest expense.
Defense Revenue $117 million, a 16% increase year-over-year. Growth was driven by missile programs (up 39%) and radar systems (up 46%).
Commercial Aerospace Revenue $78 million, a 10% decline year-over-year. The decline was due to lower Boeing platform rates and destocking.
Industrial Revenue $8 million, a 23% decline year-over-year. The decline was due to strategic pruning of noncore business.
Backlog $1.02 billion, a $50 million decrease year-over-year. The decline was due to timing of awards, with defense backlog flat at $593 million and commercial aerospace backlog down $47 million.
Operating Income $17.2 million, 8.5% of revenue, up from $13.9 million or 7.1% of revenue in Q2 2024. The increase was driven by higher revenue and improved margins.
Cash Flow from Operating Activities $22.4 million, up from $3.5 million in Q2 2024. The improvement was due to net income growth and better working capital management.
Trade with 70% Backtested Accuracy
Analyst Views on DCO
About DCO
About the author
Ducommun Announces Q4 2025 Financial Results Release Plan
- Earnings Release Schedule: Ducommun plans to release its Q4 2025 financial results on February 26, 2026, prior to market opening, demonstrating the company's commitment to transparency and investor communication.
- Executive Conference Call: Chairman and CEO Stephen G. Oswald, along with CFO Suman Mookerji, will host a conference call at 10:00 a.m. PT, with an anticipated duration of approximately 45 minutes for in-depth discussion of the financial results.
- Webcast and Replay Availability: The event will feature a live webcast accessible via pre-registration for dial-in details, with a replay available on Ducommun's website, ensuring that investors unable to attend live can still access critical information.
- Company Background: Founded in 1849, Ducommun specializes in providing value-added innovative manufacturing solutions in aerospace, defense, and industrial markets, highlighting its expertise in producing complex products and components for commercial aircraft and military space programs.
Ducommun Secures $450 Million Financing to Enhance Liquidity
- Enhanced Liquidity: Ducommun upsized its revolving credit line from $200 million to $450 million, ensuring over $300 million in available funds, significantly enhancing liquidity to support future acquisition opportunities.
- Lowered Cost of Capital: The new financing reduces spreads, resulting in immediate cost savings expected in 2026 and beyond, thereby improving the company's financial flexibility and operational capacity.
- Extended Maturity Profile: The new credit facility matures in November 2030, extending the maturity profile by over three years compared to the previous financing arrangement, providing the company with a longer financial planning horizon.
- Strategic Execution Support: This financing will provide crucial funding for Ducommun's growth in engineered products and aftermarket services under its VISION 2027 strategy, facilitating expansion in the aerospace and defense sectors.
Ducommun Incorporated Reveals Changes to Credit Facility
New Credit Facility: Ducommun Incorporated has entered into an amended credit facility consisting of a $450 million revolving line of credit and a $200 million term loan, set to mature in November 2030, replacing its existing facility.
Enhanced Liquidity and Cost Savings: The new financing increases liquidity by upsizing the revolving credit line and lowers the cost of capital, resulting in immediate savings starting in 2026.
Strategic Growth Support: The additional capital will support Ducommun's VISION 2027 strategy, enabling the company to pursue acquisition opportunities and expand its engineered products and aftermarket portfolio.
Forward-Looking Statements: The press release includes forward-looking statements regarding Ducommun's expectations and strategic goals, which are subject to various risks and uncertainties that could impact actual results.
Ducommun to Attend Goldman Sachs Industrials and Materials Conference
Company Announcement: Ducommun Incorporated announced that Suman Mookerji, the CFO, will participate in the Goldman Sachs Industrials and Materials Conference on December 3, 2025, with a general presentation at 10:50 a.m. Eastern.
Investor Engagement: One-on-one investor meetings are scheduled throughout the day, and institutional investors can contact Goldman Sachs to arrange these meetings.
Webcast Availability: A live webcast of the presentation will be accessible via a provided link, with a replay available on Ducommun's website afterward.
Company Overview: Ducommun, founded in 1849, specializes in innovative products and manufacturing solutions for aerospace, defense, and industrial markets, focusing on Electronic and Structural Systems.
Ducommun Incorporated to Hold Conference Call for Third Quarter Results
Financial Results Announcement: Ducommun Incorporated plans to release its 2025 third quarter financial results on November 6, 2025, before the stock market opens.
Conference Call Details: A conference call will be hosted by CEO Stephen G. Oswald and CFO Suman Mookerji at 10:00 a.m. PT (1:00 p.m. ET) on the same day to discuss the results, with a Q&A session expected to last about 45 minutes.
Access Information: Participants must pre-register for the conference call to receive dial-in details, and a live webcast will also be available.
Company Overview: Ducommun Incorporated, founded in 1849, specializes in manufacturing solutions for aerospace, defense, and industrial markets, focusing on Electronic and Structural Systems.
Gabelli Funds to Hold 31st Annual Aerospace & Defense Symposium at The Harvard Club in New York City on Thursday, September 4, 2025
Aerospace & Defense Symposium: Gabelli Funds, LLC is hosting its annual Aerospace & Defense Symposium on September 4, 2025, at The Harvard Club in New York City, featuring top executives from over ten companies discussing industry trends such as demand outlook, defense spending, and M&A potential.
Event Agenda: The symposium will include presentations and one-on-one meetings with executives from various companies, including Astronics Corporation, Textron Inc., and Moog Inc., among others, with a full agenda starting at 7:45 AM.
Ducommun Announces Q4 2025 Financial Results Release Plan
- Earnings Release Schedule: Ducommun plans to release its Q4 2025 financial results on February 26, 2026, prior to market opening, demonstrating the company's commitment to transparency and investor communication.
- Executive Conference Call: Chairman and CEO Stephen G. Oswald, along with CFO Suman Mookerji, will host a conference call at 10:00 a.m. PT, with an anticipated duration of approximately 45 minutes for in-depth discussion of the financial results.
- Webcast and Replay Availability: The event will feature a live webcast accessible via pre-registration for dial-in details, with a replay available on Ducommun's website, ensuring that investors unable to attend live can still access critical information.
- Company Background: Founded in 1849, Ducommun specializes in providing value-added innovative manufacturing solutions in aerospace, defense, and industrial markets, highlighting its expertise in producing complex products and components for commercial aircraft and military space programs.
Ducommun Secures $450 Million Financing to Enhance Liquidity
- Enhanced Liquidity: Ducommun upsized its revolving credit line from $200 million to $450 million, ensuring over $300 million in available funds, significantly enhancing liquidity to support future acquisition opportunities.
- Lowered Cost of Capital: The new financing reduces spreads, resulting in immediate cost savings expected in 2026 and beyond, thereby improving the company's financial flexibility and operational capacity.
- Extended Maturity Profile: The new credit facility matures in November 2030, extending the maturity profile by over three years compared to the previous financing arrangement, providing the company with a longer financial planning horizon.
- Strategic Execution Support: This financing will provide crucial funding for Ducommun's growth in engineered products and aftermarket services under its VISION 2027 strategy, facilitating expansion in the aerospace and defense sectors.
Ducommun Incorporated Reveals Changes to Credit Facility
New Credit Facility: Ducommun Incorporated has entered into an amended credit facility consisting of a $450 million revolving line of credit and a $200 million term loan, set to mature in November 2030, replacing its existing facility.
Enhanced Liquidity and Cost Savings: The new financing increases liquidity by upsizing the revolving credit line and lowers the cost of capital, resulting in immediate savings starting in 2026.
Strategic Growth Support: The additional capital will support Ducommun's VISION 2027 strategy, enabling the company to pursue acquisition opportunities and expand its engineered products and aftermarket portfolio.
Forward-Looking Statements: The press release includes forward-looking statements regarding Ducommun's expectations and strategic goals, which are subject to various risks and uncertainties that could impact actual results.
Ducommun to Attend Goldman Sachs Industrials and Materials Conference
Company Announcement: Ducommun Incorporated announced that Suman Mookerji, the CFO, will participate in the Goldman Sachs Industrials and Materials Conference on December 3, 2025, with a general presentation at 10:50 a.m. Eastern.
Investor Engagement: One-on-one investor meetings are scheduled throughout the day, and institutional investors can contact Goldman Sachs to arrange these meetings.
Webcast Availability: A live webcast of the presentation will be accessible via a provided link, with a replay available on Ducommun's website afterward.
Company Overview: Ducommun, founded in 1849, specializes in innovative products and manufacturing solutions for aerospace, defense, and industrial markets, focusing on Electronic and Structural Systems.
Ducommun Incorporated to Hold Conference Call for Third Quarter Results
Financial Results Announcement: Ducommun Incorporated plans to release its 2025 third quarter financial results on November 6, 2025, before the stock market opens.
Conference Call Details: A conference call will be hosted by CEO Stephen G. Oswald and CFO Suman Mookerji at 10:00 a.m. PT (1:00 p.m. ET) on the same day to discuss the results, with a Q&A session expected to last about 45 minutes.
Access Information: Participants must pre-register for the conference call to receive dial-in details, and a live webcast will also be available.
Company Overview: Ducommun Incorporated, founded in 1849, specializes in manufacturing solutions for aerospace, defense, and industrial markets, focusing on Electronic and Structural Systems.
Gabelli Funds to Hold 31st Annual Aerospace & Defense Symposium at The Harvard Club in New York City on Thursday, September 4, 2025
Aerospace & Defense Symposium: Gabelli Funds, LLC is hosting its annual Aerospace & Defense Symposium on September 4, 2025, at The Harvard Club in New York City, featuring top executives from over ten companies discussing industry trends such as demand outlook, defense spending, and M&A potential.
Event Agenda: The symposium will include presentations and one-on-one meetings with executives from various companies, including Astronics Corporation, Textron Inc., and Moog Inc., among others, with a full agenda starting at 7:45 AM.
