| Metric | Value ($ M) | Q2 FY26 | Q3 FY25 |
|---|---|---|---|
| Revenue | 224.49 | 7.4% | 5.6% |
| Total Income | 224.49 | 7.4% | 5.6% |
| Expenditure | 196.16 | 1.5% | 33.0% |
| PBT | 24.81 | 111.9% | 129.9% |
| Net Profit | 20.40 | 105.7% | 131.7% |
| OPM | 12.62% | 5.10pp | 50.28pp |
| NPM | 9.09% | 4.34pp | 39.41pp |
| EPS | 1.35 | 104.5% | 131.4% |
Ducommun Reports Q3 2026 Results: Record Revenue and Gross Margin
05 Nov 2026 · 5 Nov, 4:46 pm
Summary
Ducommun Incorporated reported strong third quarter 2026 results, highlighted by record net revenue of $227.0 million, up 6% year-over-year, and a record gross margin of 28.9%. The company returned to profitability with a net income of $13.9 million, a substantial improvement from the prior year's net loss. Management expressed optimism about the company's progress towards its VISION 2027 and VISION 2032 goals, citing strong performance in commercial aerospace and robust defense bookings as key drivers for future growth.
Key Highlights
- 1
Ducommun Incorporated reported record net revenue of $227.0 million for the third quarter of 2026, an increase of 6% over Q3 2025.
- 2
The company achieved a record gross margin of 28.9% in Q3 2026, representing a year-over-year growth of 140 basis points.
- 3
Net income for Q3 2026 was $13.9 million, or $0.89 per diluted share, a significant improvement from a net loss of $60.8 million in the prior year.
- 4
Adjusted EBITDA for the third quarter of 2026 was $39.7 million, an increase of 6% year-over-year, reaching 17.5% of revenue.
- 5
Remaining performance obligations reached an all-time high of $1.3 billion, with strong bookings of $354.3 million during the quarter.
- 6
Defense bookings were particularly strong at a book-to-bill ratio of 2.2x during the quarter.
Management Comments
Stephen G. Oswald
Another excellent quarter for Ducommun in 2026. With record revenue and gross margins in Q3, we continued to make great progress towards accomplishing our VISION 2027 goals and positioning ourselves for our new VISION 2032 Plan which was communicated in September. Net revenue grew, led by the significant ramp in commercial aerospace, partially offset by temporary weakness in defense revenues due to timing of certain programs. Defense bookings were very strong during the quarter with a book-to-bill of 2.2x and we expect to see momentum continue in our defense business in 2027. Significant growth across our commercial aerospace business highlighted by the single-aisle aircraft platforms, Boeing 737 MAX and the Airbus A320 drove the 28% year-over-year increase, wonderful news and now nearing a $100 million quarterly run rate. In Ducommun's defense business we saw continued growth in our missile franchise specifically the Tomahawk, MIR, and TOW missile platforms, along with growth on fixed-wing aircraft platforms notably the F-15, offset by temporal weakness due to timing of orders and production on ground vehicles, Blackhawk and Apache rotary-wing aircraft platforms, and select radar programs. The future is very bright for our defense business with record RPO and bookings this year setting the stage for strong multi-year growth. Gross margin expansion is an important story for DCO and its investors and was once again very strong in the quarter expanding 140 bps year-over-year to another all-time record of 28.9%. Adjusted EBITDA expanded by 10 bps year-over-year as well from 17.4% to 17.5% bringing us close to our VISION 2027 financial goal of 18% Adjusted EBITDA by the end of 2027 and setting the stage for our VISION 2032 target of 23%. As we are nearing the end of year four of VISION 2027, our record performance across revenue, gross margin, and RPO's positions us well towards meeting Ducommun's VISION 2027 targets. Looking ahead, we launched our VISION 2032 Plan at our Investor Day in New York City on September 17th, with an annual revenue target of $1.6 to $1.7 billion, engineered product mix of 40%, aftermarket mix of 20%, and Adjusted EBITDA margin of 23%. Our Q3 record performance along with all the excellent work under VISION 2027 for the past 4 years provides a solid foundation to achieve our VISION 2032 goals and continue to deliver for our shareholders!
Informational and educational content only. Not investment advice.