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 ...

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 ...