| Metric | Value ($ M) | Q2 FY25 |
|---|---|---|
| Revenue | 209.02 | 3.3% |
| Total Income | 209.02 | 3.3% |
| Expenditure | 193.30 | 4.4% |
| PBT | 11.71 | 26.4% |
| Net Profit | 9.92 | 21.0% |
| OPM | 7.52% | 0.97pp |
| NPM | 4.74% | 1.46pp |
| EPS | 0.66 | 21.4% |
Ducommun Reports Q2 2026 Results: Record Revenue and Gross Margin
06 Aug 2026 · 6 Aug, 3:46 pm
Summary
Ducommun Incorporated announced strong second quarter 2026 results, highlighted by record net revenue of $224.5 million, a 12% increase year-over-year, and a record gross margin of 28.0%. Net income surged 60% to $20.4 million, or $1.31 per diluted share, while Adjusted EBITDA grew 21% to $38.4 million. The company also reported an all-time high in remaining performance obligations of $1.2 billion, driven by robust bookings. Management expressed satisfaction with the performance, noting progress towards VISION 2027 goals and anticipating continued strength in the missile franchise despite some expected destocking headwinds.
Key Highlights
- 1
Ducommun Incorporated reported record net revenue of $224.5 million for the second quarter of 2026, an increase of 12% over Q2 2025.
- 2
The company achieved a record gross margin of 28.0% in Q2 2026, representing a year-over-year growth of 160 basis points.
- 3
Net income for the second quarter of 2026 was $20.4 million, a 60% increase year-over-year, translating to $1.31 per diluted share.
- 4
Adjusted EBITDA for Q2 2026 was $38.4 million, up 21% year-over-year, reaching 17.1% of revenue.
- 5
Remaining performance obligations reached an all-time high of $1.2 billion, supported by strong bookings of $309.7 million in the quarter with a book-to-bill ratio of 1.4x.
Management Comments
Stephen G. Oswald
An outstanding second quarter and first half of 2026 for Ducommun. I could not be happier. Our team continued to make great progress towards our VISION 2027 goals with another record for revenue and gross margin during the second quarter. Net revenue grew by double digits at 12%, led by the continued ramp in commercial aerospace, along with solid gains in our defense business. Significant growth on single-aisle aircraft including the Boeing 737 MAX and the Airbus A320 drove 16% year-over-year increase as our commercial aerospace business ramps up and DCO continues to build upon the strong momentum from the first quarter. Ducommun’s defense business saw significant growth once again across our missile franchise and particularly on the PAC-3 and SM-6 missile platforms, along with growth on fixed-wing aircraft platforms notably the F-15, partially offset by temporal weakness on radar, space and naval programs. The 1.4x book-to-bill was also an impressive performance in the quarter and dramatically better than Q2 2025. Margin expansion was very strong in the quarter expanding 160 bps year-over-year to an all-time record 28.0%. Adjusted EBITDA expanded by 130 bps year-over-year from 15.8% to 17.1% and DCO is in excellent shape working towards the VISION 2027 financial goal of 18% Adjusted EBITDA. Halfway through year four, our strong performance across revenue, gross margin, and Adjusted EBITDA margins along with our record level of Remaining Performance Obligations positions us well towards meeting our VISION 2027 targets. While we expect to see some continued destocking headwinds in the remaining quarters of 2026, we have begun to see those pressures ease gradually. Ducommun’s missile franchise also continues to gain strength both in revenue and orders, and we are well positioned to benefit from the expected major ramp-up in missile production.
Informational and educational content only. Not investment advice.