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Ducommun (DCO) investor relations material
Ducommun Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved record Q3 2025 revenue of $212.6 million, up 6% year-over-year, driven by strong defense and industrial markets despite commercial aerospace headwinds.
Book-to-bill ratio reached 1.6x, with record remaining performance obligations of $1.03 billion.
Gross margin improved to 26.6%, and adjusted EBITDA margin reached a record 16.2% of revenue.
GAAP net loss of $64.4 million was primarily due to a $99.7 million litigation settlement; adjusted net income was $15.2 million ($0.99/share), flat to slightly up year-over-year.
Defense business grew strongly, offsetting commercial aerospace declines, with positive outlook as Boeing and Airbus ramp up production.
Financial highlights
Bookings totaled $338 million, up 58% year-over-year, with RPO at $1.03 billion.
Adjusted EBITDA was $34.4 million (16.2% of revenue), up from $31.9 million (15.8%) in Q3 2024.
Adjusted operating income margin was 10.6%, slightly above prior year.
Cash flow from operations improved to $18.1 million, up from $13.9 million last year.
Net loss margin was (30.3)% in Q3 2025, compared to 5.0% net income margin in Q3 2024.
Outlook and guidance
Reaffirmed mid-single-digit revenue growth for full year 2025 and low double-digit growth expected in Q4.
Defense business expected to remain strong, while commercial aerospace faces continued destocking headwinds into 2026.
70% of $1.03 billion in RPO expected to convert to revenue within 12 months.
Engineered products revenue mix targeted to exceed 25% by 2027.
Capital expenditures for 2025 projected at $18–20 million, focused on new contract awards.
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