Ducommun(NYSE) DCO

Ducommun Incorporated makes complex parts for airplanes and defense. The company builds components for systems that require high precision. Its products support commercial jets and space exploration programs.

What’s Inside the Factory?

• Electronic Systems: Connectivity solutions like cable assemblies, circuit boards, and electromechanical sub-assemblies; accounts for 58.5% of net revenues in the three months ended July 4, 2026.
• Structural Systems: Large contoured metal and composite parts like wing spoilers, fuselage panels, and engine components; accounts for 41.5% of net revenues in the three months ended July 4, 2026.
• Custom Engineering: Specialized design and testing for aerospace systems, lightning diversion, and motion control applications.

Building for the Future

• Finalized a $150 million settlement in Oct. 2025 to resolve litigation related to a fire at its performance center in Mexico.
• Completed a debt refinancing in Nov. 2025 by securing a $200 million term loan and a $450 million revolving credit facility.
• Finished a multiyear facility consolidation program at the end of 2025 to improve manufacturing efficiency.
• Reestablished structural systems production in a new leased facility in Guaymas, Mexico, to replace capacity lost after a 2020 fire.

A Vital Link in Aviation

Ducommun specializes in manufacturing parts for high-cost-of-failure applications where reliability and precision are the primary requirements. The company maintains significant customer concentration, with its top 10 customers accounting for 59.4% of net revenues in the second quarter of 2026.

A Look at the Numbers

• Net revenues rose to $224.5 million in the three months ended July 4, 2026, an 11.8% increase year over year.
• Adjusted EBITDA reached $38.4 million in the three months ended July 4, 2026, up from $31.6 million in the prior-year period.
• Net income reached $20.4 million in the second quarter of 2026, compared to $12.8 million in the second quarter of 2025.
• Total debt stood at $277.5 million as of July 4, 2026, compared to $305 million on Dec. 31, 2025.
• Remaining performance obligations totaled $1.16 billion as of July 4, 2026.

Bottom Line

Ducommun has evolved from a general manufacturer into a specialized provider of integrated electronic and structural systems for the global aerospace market. Its long-term contracts and focus on complex, mission-critical components support its position as a key supplier for major aviation platforms.