Core Viewpoint - The market anticipates a year-over-year decline in Ducommun's earnings due to lower revenues, with a focus on how actual results will compare to these estimates [1][2]. Earnings Expectations - Ducommun is expected to report quarterly earnings of $0.59 per share, reflecting a year-over-year decrease of 15.7% [3]. - Revenues are projected to be $190.8 million, indicating no change from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.69% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Ducommun is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +23.73% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive reading is a strong predictor of an earnings beat, especially when combined with a favorable Zacks Rank [8]. - Ducommun currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat despite the positive Earnings ESP [11]. Historical Performance - In the last reported quarter, Ducommun exceeded the expected earnings of $0.70 per share by delivering $0.75, resulting in a surprise of +7.14% [12]. - The company has beaten consensus EPS estimates in all of the last four quarters [13]. Conclusion - While Ducommun may not appear to be a strong candidate for an earnings beat, investors should consider other influencing factors before making investment decisions [16].

Core Viewpoint - Ducommun Incorporated reaffirms its commitment to American manufacturing, with 95% of its revenue generated from U.S.-based operations, and expects minimal impact from recent tariffs due to its operational structure [1][2]. Company Overview - Ducommun Incorporated is a global supplier of innovative manufacturing solutions for the aerospace, defense, and industrial markets, specializing in complex products for commercial aircraft, military, and space programs [3]. Operational Insights - The company operates primarily in the U.S., with only one international facility in Guaymas, Mexico, which is compliant with the United States-Mexico-Canada Agreement [1]. - The strong domestic presence positions the company favorably under new U.S. trade policies, allowing it to maintain high standards of quality and on-time delivery [2].

Group 1 - Ducommun (NYSE: DCO) reported its fourth quarter and full-year earnings on February 27, missing EPS estimates but beating revenue expectations [1] - The stock prices declined following the earnings report, indicating market reaction to the mixed results [1] - The Aerospace Forum aims to identify investment opportunities in the aerospace, defense, and airline sectors, leveraging data analytics for informed analysis [1] Group 2 - The investing group provides direct access to data analytics monitors, enhancing the investment research process [1]

Ducommun (DCO) Q4 2024 Earnings Call February 27, 2025 09:10 PM ET Company Participants Suman Mookerji - Senior VP, CFO, Controller & TreasurerStephen Oswald - Chairman, President & CEOKen Herbert - Managing DirectorMike Crawford - SMD & Head of Discovery GroupJeremy Jason - Equity Research AssociateAlexandra Mandery - Equity Research Associate Operator Good day and thank you for standing by. Welcome to the Fourth Quarter twenty twenty four Ducommun Earnings Conference Call. At this time, all participants a ...

Financial Data and Key Metrics Changes - Q4 2024 revenue was $197.3 million, a 2.6% increase from $192.2 million in Q4 2023, marking the 15th consecutive quarter of year-over-year revenue growth [11][36] - GAAP diluted EPS increased to $0.45 per share in Q4 2024 from $0.34 per share in Q4 2023, while adjusted diluted EPS rose to $0.75 from $0.70 [22][40] - Adjusted EBITDA for Q4 2024 was $27 million, representing a year-over-year increase of 13.8% and an expansion of 180 basis points [20][21] Business Line Data and Key Metrics Changes - Military and space revenue grew 5% year-over-year to $109 million in Q4 2024, driven by missile programs [28][12] - Commercial aerospace revenue increased 4% year-over-year to $82 million, supported by growth in the A220 and S-92 platforms [31][16] - Structural Systems segment revenue rose to $90.3 million in Q4 2024 from $85.6 million in the prior year, while Electronic Systems segment revenue was $107 million, slightly up from $106.7 million [41][43] Market Data and Key Metrics Changes - The defense backlog increased by $98 million year-over-year to $625 million, with new orders contributing to this growth [23][24] - The commercial aerospace backlog decreased by $14 million sequentially, attributed to the Boeing strike [32][24] - Full year 2024 revenue for the company reached a record $786 million, with commercial aerospace growing 8% and military and space business growing 4% [24][25] Company Strategy and Development Direction - The Vision 2027 strategy aims to increase the revenue percentage of engineered products to over 25%, achieving 23% in 2024, up from 19% in 2023 [10][26] - The company is focusing on consolidating its manufacturing footprint and pursuing targeted acquisitions to enhance its market position [10][9] - The strategic offloading of non-core industrial businesses is intended to refocus resources on aerospace and defense sectors [25][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth in military and space sectors, particularly with new orders and defense spending trends [12][60] - The company anticipates mid-single-digit revenue growth for 2025, with a stronger second half expected as production rates recover [28][55] - Management highlighted the importance of strategic pricing initiatives and productivity improvements in driving margin expansion [20][21] Other Important Information - The company reported a strong consolidated backlog of $1.06 billion, reflecting resilience despite market headwinds [23][24] - Restructuring initiatives are expected to yield annual savings of $11 million to $13 million, with synergies ramping up in late 2025 and into 2026 [47][48] - Legal fees related to an unsolicited acquisition offer totaled $3.145 million year-to-date, but these expenses are not expected to continue in 2025 [108][109] Q&A Session Summary Question: Can you provide any color on expectations for defense and commercial markets? - Management indicated that the first half of 2025 may face destocking headwinds, particularly in the commercial aerospace sector, but expects improvement in the second half [58][61] Question: How does Ducommun sit amid potential defense budget reprioritization? - Management feels confident about their diversified product offerings and does not rely heavily on any single program, which mitigates risks from budget changes [79][80] Question: What are the plans for capacity in the IMC business as demand changes? - Management is looking for more space to accommodate high demand for Appleton products, despite anticipating a slowdown in ViaSat work [84][85] Question: Can you elaborate on the margin hit in Structural Systems? - Management noted that the margin decline was evenly split between unfavorable mix and one-time expenses, with expectations for recovery in Q1 [93][94] Question: What are the implications of legal fees for unsolicited acquisition offers? - Management clarified that these fees were necessary to protect shareholder interests and are not expected to recur in 2025 [108][109]

Investor Presentation Q4 2024 Disclosures Forward-Looking Statements: This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be preceded by, followed by or include the words "believes," "expects," "anticipates," "intends," "plans," "estimates" or similar expressions. These statements are based on the beliefs and assumptions of the Company's management. Generally, forward-looking statements include infor ...

Ducommun (DCO) came out with quarterly earnings of $0.75 per share, beating the Zacks Consensus Estimate of $0.70 per share. This compares to earnings of $0.70 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.14%. A quarter ago, it was expected that this aerospace industry supplier would post earnings of $0.65 per share when it actually produced earnings of $0.99, delivering a surprise of 52.31%.Over the last four quarters, t ...

Financial Performance - Net revenues for 2024 were $786.6 million, an increase of 3.7% from $757.0 million in 2023[166][168]. - Net income for 2024 was $31.5 million, or $2.10 per diluted share, compared to $15.9 million, or $1.14 per diluted share in 2023[166][181]. - Adjusted EBITDA for 2024 was $116.6 million, representing 14.8% of net revenues[166]. - Gross profit margin increased to 25.1% in 2024 from 21.6% in 2023, driven by a higher mix of engineered products and strategic pricing actions[172]. - Total net revenues for 2024 increased by 3.9% to $786.6 million compared to $757.0 million in 2023[183]. - Adjusted EBITDA for 2024 was $116.6 million, reflecting a 14.8% increase from $101.5 million in 2023[193]. - Net income for 2024 was $31.5 million, an increase from $15.9 million in 2023, while Adjusted EBITDA rose to $116.6 million from $101.5 million[199]. - Adjusted EBITDA as a percentage of net revenues improved to 14.8% in 2024 from 13.4% in 2023[199]. Revenue Sources - Revenues from military and space markets increased by $16.1 million, while commercial aerospace revenues rose by $23.8 million in 2024[169]. - Revenues from military and space end-use markets increased by $14.0 million, while commercial aerospace revenues rose by $26.2 million[191]. - The company reported a decrease of $10.4 million in revenues from industrial end-use markets due to pruning non-core business[186]. - Electronic Systems segment net revenues rose by 0.3% to $431.4 million, while Structural Systems segment revenues increased by 8.7% to $355.2 million[183]. - The top ten customers accounted for 59.7% of net revenues in 2024, with Boeing contributing 8.2%[170][171]. Expenses and Charges - SG&A expenses rose by $18.9 million in 2024, primarily due to increased professional services fees and higher compensation costs[173]. - Restructuring charges decreased by $7.2 million in 2024, reflecting the winding down of a restructuring plan initiated in April 2022[174]. - Corporate General and Administrative expenses increased by $9.8 million, primarily due to higher professional services fees and stock-based compensation[190]. Tax and Interest - The effective tax rate for 2024 was 14.7%, up from 2.8% in 2023, primarily due to higher pre-tax income[176]. - Interest expense decreased by $5.5 million in 2024, attributed to interest rate swaps and a lower debt balance[175]. - The weighted-average interest rate on debt decreased to 7.25% in 2024 from 7.53% in 2023[205]. Cash Flow and Debt - Cash and cash equivalents decreased to $37.1 million in 2024 from $42.9 million in 2023, while total debt reduced to $243.2 million from $266.0 million[205]. - Net cash provided by operating activities increased to $34.2 million in 2024 from $31.1 million in 2023, driven by higher net income and improved accounts payable[216]. - Net cash used in investing activities significantly decreased to $13.9 million in 2024 from $133.5 million in 2023, primarily due to the absence of acquisitions[217]. - Net cash used in financing activities during 2024 was $26.0 million, a decrease from net cash provided of $99.0 million in 2023, primarily due to $85.1 million net proceeds from common stock issuance and $23.8 million net borrowings in the prior year that did not reoccur[218]. - The company had borrowings of $243.2 million under its 2022 Credit Facilities as of December 31, 2024[248]. Capital Expenditures and Future Outlook - Capital expenditures totaled $14.4 million in 2024, down from $19.1 million in 2023[183]. - The company expects to spend $23.0 million to $25.0 million on capital expenditures in 2025 to support growth in existing programs and new contract awards[213]. Backlog and Future Contracts - Total backlog increased to $1,060.8 million in 2024, with military and space backlog rising to $624.8 million, while commercial aerospace backlog decreased to $415.9 million[202]. Goodwill and Asset Valuation - Goodwill for Electronic Systems and Structural Systems was evaluated at $117.4 million and $127.2 million, respectively, with fair values exceeding carrying values, indicating no impairment[241]. - The company engages valuation specialists to assist in determining the fair value of assets acquired and liabilities assumed in business combinations[235]. Revenue Recognition and Contract Estimates - The company recognizes revenue under ASC 606, utilizing a five-step model, with the majority of performance obligations satisfied over time[224]. - Contract estimates are based on various assumptions, including labor productivity and material costs, and adjustments are recognized under the cumulative catch-up method[229]. - Provisions for estimated losses on contracts are recorded when identified, requiring estimates of future revenue and costs[231]. - Acquired other intangible assets are amortized over estimated economic lives ranging from 2 to 23 years, generally using the straight-line method[242]. - The company assesses inventory carrying value and reduces it to net realizable value based on customer orders and internal demand forecasts[244]. Interest Rate Impact - A hypothetical 10% increase or decrease in the interest rate would have an immaterial impact on the company's financial condition and results of operations[251].

EXHIBIT 99.1 NEWS RELEASE Ducommun Incorporated Reports Fourth Quarter 2024 Results Solid Finish to 2024; Record Full Year Revenue and Gross Margins SANTA ANA, CALIFORNIA (February 27, 2025) – Ducommun Incorporated (NYSE: DCO) ("Ducommun" or the "Company") today reported results for its fourth quarter and year ended December 31, 2024. Fourth Quarter 2024 Recap "We made excellent progress in our VISION 2027 commitments in 2024 with the bright spots being earnings, EBITDA margins and reaching 23% of revenue f ...

Core Insights - Ducommun Incorporated achieved record revenue of approximately $787 million for the full year 2024, marking a 4% increase from 2023, with quarterly revenue reaching approximately $197 million in Q4 2024, a 2.6% increase year-over-year [3][5][9] - The company reported a gross margin of 25.1% for the full year, up 350 basis points from the previous year, and 23.5% for Q4, an increase of 180 basis points year-over-year [3][9][7] - Ducommun's net income for Q4 2024 was $6.8 million, or $0.45 per diluted share, reflecting a 33% increase compared to $5.1 million, or $0.34 per diluted share, in Q4 2023 [6][9][31] Financial Performance - The company’s net revenue for Q4 2024 was $197.3 million, compared to $192.2 million in Q4 2023, driven by growth in military and space markets [5][10] - Gross profit for Q4 2024 was $46.4 million, representing 23.5% of revenue, up from $41.7 million or 21.7% in Q4 2023 [7][31] - Operating income for Q4 2024 was $10.4 million, or 5.3% of revenue, compared to $8.9 million, or 4.6% of revenue, in the same period last year [8][31] Business Segments - Electronic Systems segment reported net revenue of $107 million in Q4 2024, essentially flat compared to $106.7 million in Q4 2023, while Structural Systems segment revenue increased to $90.3 million from $85.6 million [14][16] - Operating income for Electronic Systems in Q4 2024 was $19 million, or 17.7% of revenue, compared to $9.8 million, or 9.2% of revenue, in Q4 2023 [15] - Structural Systems operating income decreased to $3.2 million, or 3.6% of revenue, from $6.6 million, or 7.7% of revenue, in the prior year due to unfavorable product mix and higher restructuring charges [16] Backlog and Future Outlook - Ducommun ended 2024 with a strong backlog exceeding $1.0 billion, with military and space backlog increasing by nearly $100 million to $625 million from 2023 [4][13] - The company is optimistic about growth in 2025, anticipating stability and production growth from Boeing and expected growth at Airbus, which would positively impact its commercial aerospace business [4][3]