Ducommun Incorporated Reports Third Quarter 2026 Results
Q3 record revenue $227.0M (+6% y/y), gross margin 28.9%, EPS $0.89 GAAP, $1.21 adjusted; defense bookings 2.2x book-to-bill, RPO $1.3B.
What this release says
Ducommun reported record third-quarter net revenue of $227.0 million and a record gross margin of 28.9%, with net income of $13.9 million, or $0.89 per diluted share, compared with a large loss a year earlier that was driven by litigation costs. Commercial aerospace growth offset weaker defense revenue from program timing, while defense bookings were strong at a 2.2x book-to-bill. For shareholders, the quarter shows margin gains and a larger backlog, though the defense slowdown and the company's long-term targets depend on future execution.
Key figures
- Net revenue
- $227.0 million
- Gross margin
- 28.9%
- Net income
- $13.9 million
- Diluted EPS
- $0.89
- Remaining performance obligations
- $1.3 billion
- Adjusted EBITDA
- $39.7 million
Positive for shareholders
- Net revenue and gross margin both reached company records for the quarter.
- Commercial aerospace revenue rose 28% year over year, led by the Boeing 737 MAX and Airbus A320 programs.
- Defense bookings were strong, with a book-to-bill of 2.2x, and management expects momentum to continue in 2027.
- Adjusted EBITDA margin rose to 17.5%, close to the company's 18% goal for the end of 2027.
Negative for shareholders
- Defense revenue was temporarily weaker due to the timing of certain programs, including ground vehicles, rotary-wing aircraft and select radar programs.
- Structural Systems operating income fell slightly year over year on unfavorable product mix.
- Income tax expense rose by $22.4 million, and SG&A expenses rose by $5.8 million.
Written by Quantisnow AI from this release. Not financial advice.
Key terms
- Book-to-bill:
- The ratio of new orders received to revenue recognized in a period; a value above 1 means orders exceeded sales.
- Remaining performance obligations (RPO):
- The total value of contracted work the company has yet to deliver, which signals future revenue.
- Non-GAAP adjusted net income:
- A profit measure the company calculates by excluding certain items from standard accounting results.
- Adjusted EBITDA:
- Earnings before interest, taxes, depreciation and amortization, adjusted for certain items the company chooses to exclude.
FAQ
How did Ducommun's third-quarter 2026 net income compare with last year?
Net income was $13.9 million in Q3 2026, versus a net loss of $60.8 million in Q3 2025, which mainly reflected $99.7 million of litigation settlement and related costs that did not recur.
What drove Ducommun's revenue growth this quarter?
Revenue growth was led by a significant ramp in commercial aerospace, particularly the Boeing 737 MAX and Airbus A320 platforms, partially offset by temporary defense weakness.
What is Ducommun's backlog according to the release?
Remaining performance obligations reached $1.3 billion, with bookings of $354.3 million during the quarter at a book-to-bill of 1.6x.
Historical context for DCO
Across the 28 sessions after earlier DCO headlines, the stock closed higher 18 times and lower 10 times, with a median move of 1.6% in either direction. This shows timing only: many things move a stock in a session, and these figures do not show that any headline caused a move.
| Session | Earlier headline | DCO | SPY |
|---|---|---|---|
| Nov 3, 2026 | Ducommun to Participate in RBC Global Industrials Conference | +1.9% | +0.3% |
| Oct 26, 2026 | Ducommun to Participate in Baird’s Global Industrial Conference | +4.0% | +0.7% |
| Oct 22, 2026 | Ducommun Incorporated Announces Third Quarter Conference Call | -5.1% | -1.2% |
| Oct 9, 2026 | Guggenheim initiated coverage on Ducommun with a new price target | +1.3% | +0.6% |
| Sep 24, 2026 | Ducommun’s CEO Sets the Stage for Continued Success, Unveiling the VISION 2032 Game Plan at Investor Day | +1.2% | -0.1% |
| Sep 3, 2026 | Ducommun to Participate in Gabelli Aerospace & Defense Symposium | +0.6% | +1.0% |
Keep researching DCO
- DCO earnings historyPast Ducommun Incorporated earnings releases, newest first.
- What is Earnings per share?A company's net income available to common shareholders divided by its weighted average shares outstanding, reported as basic and diluted figures.
- How to read an earnings reportAn earnings report is a company's quarterly results release, usually filed under 8-K Item 2.02. Learn how to read revenue, EPS, margins, guidance and the 10-Q.
- Earnings calendarWho reports this week, and the results as they come out.
- DCO financial statementsRevenue, profit, cash flow and balance sheet from Ducommun Incorporated's SEC filings.
- DCO insider tradesEvery buy and sale reported by Ducommun Incorporated officers, directors and large holders.
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