Ducommun (DCO) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $209M, up 8.6–9% year-over-year, driven by strong commercial aerospace and military/space demand.

• Net income was $9.9M (4.7% of revenue), with adjusted EPS at $0.75 and diluted EPS at $0.64.

• Adjusted EBITDA was $35.4M (16.9% margin), up from $29.7M (15.4%) year-over-year.

• Gross margin improved to 26.9%, up 70bps year-over-year, due to favorable product mix and higher manufacturing volume.

• Bookings remained strong with a last twelve months (LTM) book-to-bill ratio of 1.1x and remaining performance obligations (RPO) at $1,074M.

Financial highlights

• Adjusted operating income grew 135% year-over-year to $18M; GAAP operating income up 216% to $16M.

• Gross profit increased by $5.8M year-over-year, with cost of sales at 73.1% of revenues.

• SG&A expenses decreased by $4.5M, mainly due to lower stock-based compensation.

• Interest expense rose to $4.0M due to higher debt balances, partially offset by lower rates.

• Net cash from operations was $11.2M, up from $0.8M year-over-year.

Outlook and guidance

• Full-year 2026 revenue growth expected in the mid to high single digits, with 70% of $1.07B RPO to be recognized in the next 12 months.

• Management expects some destocking headwinds in 2026 but remains optimistic for 2027–2028.

• On track to meet Vision 2027 targets: $950M–$1,000M revenue and 18% adjusted EBITDA margin.

• Capital expenditures for 2026 projected at $20–24M, focused on supporting new contract awards.