Ducommun (NYSE:DCO) Announces Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Key Points

• Ducommun beat quarterly estimates: Earnings were $1.21 per share versus the $1.15 consensus, while revenue of $227.02 million topped forecasts and rose 6.8% year over year.
• The company reported a record 28.9% gross margin and $1.3 billion in remaining performance obligations; Q3 bookings reached $354 million, with a 1.6 book-to-bill ratio.
• Management narrowed its 2026 revenue outlook to $885 million–$890 million. Defense revenue fell 7% amid order and production timing, which management described as temporary, with growth expected to return in 2027.

Ducommun (NYSE:DCO - Get Free Report) posted its quarterly earnings results on Thursday. The aerospace company reported $1.21 earnings per share for the quarter, beating analysts' consensus estimates of $1.15 by $0.06, FiscalAI reports. The company had revenue of $227.02 million for the quarter, compared to analysts' expectations of $221.93 million. Ducommun had a return on equity of 9.66% and a net margin of 5.89%. Ducommun's quarterly revenue was up 6.8% on a year-over-year basis. During the same period last year, the firm earned $0.99 earnings per share.

Here are the key takeaways from Ducommun's conference call:

• Ducommun reported record Q3 revenue of $227 million, up 6% year over year, with commercial aerospace revenue growing 28%. The company narrowed its 2026 revenue outlook to $885 million–$890 million.
• Gross margin reached a record 28.9%, while adjusted EBITDA margin was 17.5%, bringing the company close to its VISION 2027 targets a year ahead of schedule. Engineered products increased to a record 24% of revenue.
• Bookings were strong: total Q3 bookings were $354 million, with a 1.6 book-to-bill ratio and record company remaining performance obligations of $1.3 billion. Defense book-to-bill was 2.2, and military and space RPO reached a record $868 million.
• Defense revenue declined 7% due to order and production timing, but management characterized the weakness as temporary and expects growth to return in 2027. Orders under seven-year missile framework agreements are anticipated to begin flowing to suppliers in late Q1 or Q2 2027, though timing remains uncertain.
• The company finalized a new two-year Airbus agreement for titanium components, with purchase orders received and double-digit price increases expected to take effect in January. Management expects commercial aerospace growth to continue, but said growth above 20% is unlikely to be a reasonable near-term assumption.

Ducommun Stock Performance

NYSE DCO traded up $2.21 during trading hours on Friday, hitting $134.71. The company had a trading volume of 245,294 shares, compared to its average volume of 175,256. The business has a 50 day moving average of $166.68 and a 200-day moving average of $154.07. The company has a market cap of $2.03 billion, a PE ratio of 32.28 and a beta of 1.11. Ducommun has a 1-year low of $84.76 and a 1-year high of $210.39. The company has a debt-to-equity ratio of 0.39, a quick ratio of 2.38 and a current ratio of 3.36.

Insider Activity at Ducommun

In other news, CEO Stephen Oswald sold 2,500 shares of the business's stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $203.95, for a total value of $509,875.00. Following the completion of the sale, the chief executive officer directly owned 383,864 shares of the company's stock, valued at approximately $78,289,062.80. The trade was a 0.65% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 5.00% of the company's stock.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the company. Citigroup reiterated a "buy" rating on shares of Ducommun in a report on Wednesday, August 12th. The Goldman Sachs Group restated a "buy" rating on shares of Ducommun in a research note on Monday, August 10th. B. Riley Financial decreased their target price on Ducommun from $222.00 to $203.00 and set a "buy" rating for the company in a research note on Friday. Weiss Ratings downgraded Ducommun from a "hold (c)" rating to a "hold (c-)" rating in a report on Friday, September 18th. Finally, Royal Bank Of Canada dropped their price target on shares of Ducommun from $180.00 to $155.00 and set a "sector perform" rating on the stock in a research note on Friday. Five investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, Ducommun has a consensus rating of "Moderate Buy" and a consensus target price of $196.67.

Ducommun News Summary

Here are the key news stories impacting Ducommun this week:

• Positive Sentiment: Q3 adjusted earnings of $1.21 per share topped the $1.15 consensus estimate, and revenue of $227.02 million exceeded forecasts and rose 6.8% year over year. The company also reported record revenue and gross margin, record remaining performance obligations, and a 2.2x defense book-to-bill ratio. Ducommun Q3 2026 results
• Neutral Sentiment: B. Riley cut its price target to $203 from $222 but maintained a Buy rating. Its revised target remains well above the cited share price, though the reduction suggests a more cautious outlook. Analyst price target updates
• Negative Sentiment: RBC lowered its target to $155 from $180 and kept a Sector Perform rating. Although the new target is still above the cited share price, the sizable cut may weigh on investor expectations. RBC price target update

Ducommun Company Profile

Ducommun Incorporated NYSE: DCO is a manufacturer of engineered components, assemblies and systems for the aerospace, defense and space industries. The company supplies products used in commercial aircraft, military platforms, launch vehicles, satellites and other mission-critical applications.

Its offerings include structural components and assemblies, precision-machined parts, composite structures, electronic and electromechanical systems, circuit-card assemblies, wire harnesses and other specialized products.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.