Ducommun (NYSE:DCO – Get Free Report) released its quarterly earnings results on Thursday. The aerospace company reported $1.21 EPS for the quarter, beating the consensus estimate of $1.15 by $0.06, FiscalAI reports. The firm had revenue of $227.02 million during the quarter, compared to the consensus estimate of $221.93 million. Ducommun had a net margin of 5.89% and a return on equity of 9.66%. Ducommun’s revenue for the quarter was up 6.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.99 EPS.
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. 245,294 shares of the stock were exchanged, compared to its average volume of 175,256. The company has a market cap of $2.03 billion, a price-to-earnings ratio of 32.28 and a beta of 1.11. Ducommun has a 12-month low of $84.76 and a 12-month high of $210.39. The stock has a 50-day moving average of $166.68 and a 200 day moving average of $154.07. The company has a quick ratio of 2.38, a current ratio of 3.36 and a debt-to-equity ratio of 0.39.
Key Stories Impacting Ducommun
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
Wall Street Analysts Forecast Growth
Several brokerages have issued reports on DCO. Truist Financial raised their price objective on shares of Ducommun from $150.00 to $209.00 and gave the stock a “buy” rating in a research report on Thursday, August 13th. Guggenheim began coverage on shares of Ducommun in a report on Friday, October 9th. They issued a “buy” rating and a $246.00 target price for the company. B. Riley Financial decreased their target price on shares of Ducommun from $222.00 to $203.00 and set a “buy” rating for the company in a research note on Friday. The Goldman Sachs Group reissued a “buy” rating on shares of Ducommun in a report on Monday, August 10th. Finally, Citigroup restated a “buy” rating on shares of Ducommun in a research report on Wednesday, August 12th. Five equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $196.67.
Insider Buying and Selling
In other Ducommun news, CEO Stephen Oswald sold 2,500 shares of Ducommun stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $203.95, for a total value of $509,875.00. Following the sale, the chief executive officer 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 5.00% of the stock is currently owned by insiders.
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.
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