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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.
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Q3 2025 earnings summary6 Nov, 2025

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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Frequently asked questions

Ducommun Incorporated is a provider of engineering and manufacturing services for the aerospace, defense, and industrial sectors. The company specializes in producing complex structural components, electronic systems, and high-performance materials used in commercial and military aircraft, space systems, and industrial equipment. Ducommun’s offerings include aerostructures, avionics, mission-critical assemblies, and precision machining services. The company supports customers with design, development, and production solutions tailored to demanding applications. The company is headquartered in Santa Ana, California, and its shares are listed on the NYSE.

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