Ducommun (DCO) Investor presentation summary

Company overview and history

• Founded in 1849, evolved from a watch business to a major aerospace and defense supplier.

• Expanded into engineered products through acquisitions in the 2000s and sharpened focus on aerospace and defense since 2017.

• Operates as a Tier 1 supplier of complex electronics and structural systems for commercial aerospace, defense, and space markets.

• Key customers include major OEMs and defense primes such as Boeing, Airbus, Lockheed Martin, and Northrop Grumman.

Financial performance and profile

• LTM Q3 2024 revenue reached $781M with an adjusted EBITDA margin of 14.3%.

• Backlog at Q3 2024 stands at $1.044B, indicating strong future demand.

• Market capitalization as of September 2024 is $961.8M, with enterprise value at $1.2B.

• Net revenues grew 42% and adjusted EBITDA more than doubled from FY 2016 to LTM Q3 2024.

Business segments and product offerings

• Electronic Systems segment (57% of 2023 revenue) delivers ruggedized electronic and electromechanical products.

• Structural Systems segment (43% of 2023 revenue) provides engineered aerostructure components and assemblies.

• Products include circuit cards, lightning protection, titanium hot forming, composite nacelle components, and ammunition handling systems.