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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 bookings of $338 million and record remaining performance obligations of $1.03 billion.
Adjusted EBITDA margin hit a record 16.2% of revenue ($34.4 million), with gross margin at 26.6%, both up 40 basis points year-over-year.
GAAP net loss of $64.4 million ($4.30/share) was driven by a $99.7 million litigation settlement; adjusted net income was $15.2 million ($0.99/share), flat to slightly up year-over-year.
Defense and missile franchise revenue grew strongly, offsetting commercial aerospace declines due to destocking at Boeing and Spirit AeroSystems.
Financial highlights
Gross margin improved to 26.6% in Q3 2025, up from 26.2% in Q3 2024, driven by lower manufacturing costs and restructuring.
Adjusted EBITDA was $34.4 million (16.2% margin), up from $31.9 million (15.8%) in Q3 2024.
Adjusted operating income was $22.4 million (10.6% margin), up from $21.1 million (10.5%) in Q3 2024.
Interest expense declined to $2.9 million from $3.8 million year-over-year due to lower rates and debt balance.
Cash and cash equivalents were $50.9 million as of September 27, 2025.
Outlook and guidance
Reaffirmed mid-single-digit revenue growth for full-year 2025 and low double-digit growth for Q4.
70% of $1.03 billion in remaining performance obligations expected to be recognized as revenue in the next 12 months.
Margins expected to remain stable in 2025, with further expansion in 2026 from facility consolidation and engineered product mix.
Defense expected to remain strong, while commercial aerospace faces continued destocking headwinds into 2026.
Capital expenditures for 2025 projected at $18–20 million, focused on supporting new contract awards.
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