Core Viewpoint - Ducommun (DCO) reported quarterly earnings of $0.83 per share, exceeding the Zacks Consensus Estimate of $0.59 per share, and showing an increase from $0.70 per share a year ago, representing an earnings surprise of 40.68% [1][2] Financial Performance - The company achieved revenues of $194.11 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.74% and increasing from $190.85 million year-over-year [2] - Over the last four quarters, Ducommun has consistently surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance and Outlook - Ducommun shares have declined approximately 8% since the beginning of the year, compared to a 3.9% decline in the S&P 500 [3] - The company's current consensus EPS estimate for the upcoming quarter is $0.72 on revenues of $198.67 million, and for the current fiscal year, it is $3.28 on revenues of $820.35 million [7] Industry Context - The Aerospace - Defense Equipment industry, to which Ducommun belongs, is currently ranked in the top 12% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8]

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 information concerning the Company' ...

First Quarter 2025 Results [Overview and Highlights](index=1&type=section&id=First%20Quarter%202025%20Recap) Ducommun reported a strong start to 2025 with a **2% revenue increase to $194.1 million**, driven by defense strength offsetting commercial aerospace weakness, achieving record **26.6% gross margins** and **15.9% Adjusted EBITDA margins** Q1 2025 Financial Highlights vs. Q1 2024 | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | Change (in millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Revenue | $194.1 | $190.8 | +$3.3 | +2% | | Net Income | $10.5 | $6.8 | +$3.7 | +53% | | Diluted EPS | $0.69 | $0.46 | +$0.23 | +50% | | Gross Margin | 26.6% | 24.6% | +200 bps | - | | Adjusted EBITDA | $30.9 | $27.4 | +$3.5 | +13% | | Adjusted EBITDA Margin | 15.9% | 14.4% | +150 bps | - | - Revenue growth was driven by strength in the defense business, particularly in missiles, electronic warfare, military radar, and rotary-wing aircraft platforms, offsetting anticipated weakness from Boeing 737 MAX production rates and commercial in-flight entertainment products[5](index=5&type=chunk) - The company is making significant progress on its VISION 2027 plan, highlighted by achieving a new quarterly record for gross margins and the second-highest Adjusted EBITDA, keeping it on track for its **18% Adjusted EBITDA goal**[6](index=6&type=chunk)[8](index=8&type=chunk) - Ducommun expects minimal impact from tariffs as over **95% of its revenue** is generated from U.S. facilities, and it has limited supply chain exposure to China with plans to mitigate raw material tariff impacts[7](index=7&type=chunk) [Consolidated Financial Performance](index=1&type=section&id=Consolidated%20Financial%20Performance) Net revenue increased to **$194.1 million** from **$190.8 million** year-over-year, driven by military and space growth offsetting commercial aerospace and industrial declines, while net income surged **53% to $10.5 million** due to higher gross profit and improved cash flow from operations Revenue Change by End-Use Market (YoY) | End-Use Market | Revenue Change (YoY, in millions) | | :--- | :--- | | Military and Space | +$14.6 | | Commercial Aerospace | -$8.2 | | Industrial | -$3.1 | - Gross profit rose to **$51.6 million (26.6% of revenue)** from **$46.9 million (24.6% of revenue)** YoY, primarily due to a favorable product mix and higher manufacturing volume[12](index=12&type=chunk) - Operating income for Q1 2025 was **$16.6 million (8.5% of revenue)**, a **$4.0 million** increase from **$12.6 million (6.6% of revenue)** in Q1 2024, with Non-GAAP adjusted operating income at **$19.2 million (9.9% of revenue)**[13](index=13&type=chunk) - Net cash provided by operations was **$0.8 million**, an improvement from a **$1.6 million** use of cash in Q1 2024, mainly due to better working capital management and higher net income[15](index=15&type=chunk) [Business Segment Performance](index=3&type=section&id=Business%20Segment%20Information) Electronic Systems revenue grew slightly to **$109.7 million** with declining operating income, while Structural Systems revenue increased modestly to **$84.4 million** with operating income surging to **$10.4 million** due to higher volume and favorable product mix Segment Performance Summary (Q1 2025 vs Q1 2024) | Segment | Q1 2025 Revenue (in millions) | YoY Change | Q1 2025 Operating Income (in millions) | YoY Change | | :--- | :--- | :--- | :--- | :--- | | Electronic Systems | $109.7 | +2.1% | $18.1 | -4.9% | | Structural Systems | $84.4 | +1.3% | $10.4 | +262% | [Electronic Systems](index=3&type=section&id=Electronic%20Systems) Electronic Systems revenue grew **2.1% to $109.7 million** due to military and space gains offsetting commercial aerospace declines, but operating income decreased to **$18.1 million (16.5% margin)** due to lower volume and higher costs - Revenue growth was fueled by a **$12.3 million** increase in military and space sales, partially offset by a **$7.0 million** decrease in commercial aerospace revenue[18](index=18&type=chunk) - Operating income fell by **$0.8 million** year-over-year, with the operating margin contracting to **16.5%** from **17.6%**, primarily due to lower manufacturing volume and increased manufacturing costs[17](index=17&type=chunk) [Structural Systems](index=4&type=section&id=Structural%20Systems) Structural Systems revenue increased **1.3% to $84.4 million** due to military and space growth offsetting commercial aerospace declines, with operating income surging to **$10.4 million (12.3% margin)** driven by higher volume, favorable mix, and lower costs - Revenue drivers included a **$2.3 million** increase from military rotary-wing platforms, which was partially offset by a **$1.3 million** decline in commercial aerospace, including the Boeing 737 MAX[25](index=25&type=chunk) - Operating income surged by **$7.5 million** year-over-year, and the operating margin expanded significantly to **12.3%** from **3.4%**, due to higher volume, favorable mix, and lower manufacturing costs[19](index=19&type=chunk) [Backlog](index=12&type=section&id=NON-GAAP%20BACKLOG*%20BY%20REPORTING%20SEGMENT) Total company backlog stood at **$1,053.6 million** as of March 29, 2025, a slight decrease from year-end 2024, with Electronic Systems backlog increasing and Structural Systems backlog decreasing Backlog by Segment (in thousands) | Segment | March 29, 2025 (in thousands) | Dec 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Electronic Systems** | **$566,336** | **$555,966** | | Military and space | $451,366 | $459,546 | | Commercial aerospace | $92,165 | $76,291 | | **Structural Systems** | **$487,229** | **$504,853** | | Military and space | $168,335 | $165,239 | | Commercial aerospace | $318,894 | $339,614 | | **Total Ducommun** | **$1,053,565** | **$1,060,819** | - The company's remaining performance obligations under ASC 606 were **$986.0 million** as of March 29, 2025[47](index=47&type=chunk) Financial Statements and Reconciliations [Condensed Consolidated Balance Sheets](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 29, 2025, total assets were **$1,128.6 million**, total liabilities **$435.6 million**, and total shareholders' equity **$693.0 million**, reflecting slight asset growth and liability reduction from year-end 2024 Balance Sheet Summary (in thousands) | Account | March 29, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Total Current Assets | $578,537 | $568,081 | | Total Assets | $1,128,615 | $1,126,101 | | Total Current Liabilities | $173,372 | $175,474 | | Total Liabilities | $435,608 | $443,571 | | Total Shareholders' Equity | $693,007 | $682,530 | [Condensed Consolidated Statements of Income](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) For Q1 2025, Ducommun reported net revenues of **$194.1 million**, gross profit of **$51.6 million**, and net income of **$10.5 million ($0.69 diluted EPS)**, showing favorable growth compared to Q1 2024 Income Statement (in thousands, except per share amounts) | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Net Revenues | $194,114 | $190,847 | | Gross Profit | $51,597 | $46,943 | | Operating Income | $16,577 | $12,622 | | Net Income | $10,511 | $6,849 | | Diluted EPS | $0.69 | $0.46 | [GAAP to Non-GAAP Reconciliations](index=8&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliations) The company provides reconciliations for non-GAAP measures, with Q1 2025 Adjusted EBITDA at **$30.9 million**, Non-GAAP adjusted operating income at **$19.2 million**, and Non-GAAP adjusted net income at **$12.6 million ($0.83 diluted EPS)**, primarily excluding amortization, restructuring, and stock-based compensation GAAP Net Income to Adjusted EBITDA Reconciliation (Q1 2025, in thousands) | Line Item | Amount (in thousands) | | :--- | :--- | | GAAP net income | $10,511 | | Interest expense | $3,263 | | Income tax expense | $2,803 | | Depreciation | $4,277 | | Amortization | $4,307 | | Stock-based compensation expense | $5,347 | | Restructuring charges | $426 | | **Adjusted EBITDA** | **$30,934** | GAAP to Non-GAAP Operating Income Reconciliation (Q1 2025, in thousands) | Line Item | Amount (in thousands) | | :--- | :--- | | GAAP operating income | $16,577 | | Restructuring charges | $426 | | Inventory purchase accounting adjustments | $0 | | Amortization of acquisition-related intangible assets | $2,232 | | **Non-GAAP adjusted operating income** | **$19,235** | GAAP to Non-GAAP Net Income & EPS Reconciliation (Q1 2025) | Metric | GAAP (in thousands) | Non-GAAP Adjusted (in thousands) | | :--- | :--- | :--- | | Net Income | $10,511 | $12,637 | | Diluted EPS | $0.69 | $0.83 |

Excellent Start to 2025; Record Quarterly Gross Margins COSTA MESA, Calif., May 06, 2025 (GLOBE NEWSWIRE) -- Ducommun Incorporated (NYSE: DCO) ("Ducommun" or the "Company") today reported results for its first quarter ended March 29, 2025. First Quarter 2025 Recap "An excellent start to 2025 for Ducommun as we continue to make good progress towards our VISION 2027 goals with record gross margins during the quarter along with strong Adjusted EBITDA margins. Net revenue grew 2% to $194.1 million driven by str ...

Company Overview - Ducommun Incorporated is a provider of value-added innovative products and manufacturing solutions in the aerospace, defense, and industrial markets, established in 1849 [2] - The company specializes in two core areas: Electronic Systems and Structural Systems, producing complex products and components for commercial aircraft, military and space programs, and industrial applications [2] Upcoming Events - Stephen G. Oswald, the chairman, president, and CEO of Ducommun, will participate in the 2025 Truist Securities Industrials & Services Conference on May 8, 2025 [1] - One-on-one investor meetings are scheduled throughout the day, and institutional investors can contact Truist to arrange these meetings [1]

Core Insights - Ducommun Incorporated has appointed Clay Bringhurst as the vice president of its engineered products business, while he will continue to lead BLR Aerospace [1][2] - The promotion aligns with Ducommun's VISION 2027 Strategy, focusing on enhancing its engineered products business as a priority for future growth [3] Company Overview - Ducommun Incorporated is a global supplier of innovative solutions for the aerospace and defense industry, founded in 1849, specializing in complex products and components for commercial aircraft, military, and space programs [4] Leadership Background - Clay Bringhurst joined Ducommun in 2019 through the acquisition of Nobles Worldwide and has held various leadership roles, including president of Nobles and BLR Aerospace [3] - Prior to joining Ducommun, Bringhurst was senior director of strategy and business development at Northrop Grumman and served as a Captain in the U.S. Marine Corps [3]

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 ...