Ducommun Reaches $4 Million Settlement Agreement

In a regulatory filing, the company stated, "On January 7, 2026, Ducommun Incorporated entered into a binding confidential settlement agreement to resolve a previously disclosed subrogation claim for damages allegedly incurred from a June 2020 fire at our performance center in Guaymas, Mexico. The subrogation claim was asserted by the insurer of the entity that provides the labor and facilities for the Performance Center for amounts it had previously paid to Williams International Co. The subrogation claim was pending in an arbitration proceeding in Arizona, and the parties were able to resolve the dispute following a mediation held on December 9, 2025. The Settlement Agreement provides for, among other things, the final dismissal of the Subrogation Action and a release of all claims against the company, with prejudice, in exchange for the company issuing a payment to the insurer of $4.0 million. The Settlement Agreement also includes a mutual release of all past, present and future claims arising from the Fire at the Performance Center. In settling the case, the company is not admitting any liability, and entry into the Settlement Agreement does not constitute an admission of liability or fault or an admission regarding the accuracy of any allegation made by the insurer in the Subrogation Action. The company expects to record the settlement amount as an expense for the quarter ending December 31, 2025 and to pay such settlement from cash on hand within twenty days of the date of the Settlement Agreement. The company believes that there are no remaining subrogation or other claims relating to the Fire at this time other than a claim that may be asserted by an insurer of Williams International Co. based in Mexico for payments issued to its insured for damages allegedly incurred from the Fire, which the company believes to be time-barred."