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]

Core Viewpoint - Ducommun (DCO) is positioned to continue its earnings-beat streak, particularly in the aerospace and defense equipment industry, with a notable average surprise of 42.03% over the past two quarters [1][3]. Earnings Performance - In the most recent quarter, Ducommun reported earnings of $0.99 per share, exceeding the expected $0.65 per share, resulting in a surprise of 52.31% [2]. - For the previous quarter, the company reported $0.83 per share against an expectation of $0.63 per share, leading to a surprise of 31.75% [2]. Earnings Estimates and Predictions - Estimates for Ducommun have been trending higher due to its history of earnings surprises, with a current Earnings ESP of +23.74%, indicating increased analyst optimism regarding its near-term earnings potential [3][6]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a strong likelihood of another earnings beat [6]. Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better achieve a positive surprise nearly 70% of the time, implying a high probability of beating consensus estimates [4]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [5].

Group 1 - Ducommun Incorporated and The Ducommun Foundation donated $100,000 to support relief efforts for individuals and families affected by recent wildfires in the Los Angeles area [1][2] - The funding will assist the American Red Cross, Los Angeles Fire Department Foundation, United Way LA, and Los Angeles Regional Foodbank in providing food, shelter, and essential supplies to those impacted by the fires [2] - Ducommun specializes in engineered products and niche manufacturing services for the aerospace and defense industry, focusing on electronic and structural systems [3] Group 2 - The American Red Cross' California Wildfire Relief Fund aims to provide food and shelter to displaced individuals and facilitate family reunification [2] - Support for the Los Angeles Fire Department Foundation will help supply vital equipment and resources necessary for saving lives and protecting communities [2] - The United Way of LA's Wildfire Response Fund addresses ongoing needs for individuals affected by the fires, while donations to the LA Regional Foodbank will provide food and other necessities [2]

Core Insights - Ducommun Incorporated has received a significant award from Bayern-Chemie for the supply of electronic cable assemblies for the Patriot GEM-T rocket motors, marking its first order with this new customer [1][2] - The company's backlog remains over $1 billion, indicating strong future revenue potential and benefits for shareholders [2] Company Overview - Ducommun Incorporated specializes in providing innovative manufacturing solutions in the aerospace, defense, and industrial markets, focusing on Electronic Systems and Structural Systems [4] - Founded in 1849, the company produces complex products and components for commercial aircraft, military, and space programs [4] Customer Profile - Bayern-Chemie GmbH, a subsidiary of MBDA, is recognized for its expertise in guided missile and space propulsion technology, with over 60 years of experience in developing advanced propulsion systems [3]

Core Viewpoint - Ducommun Incorporated will participate in the Goldman Sachs Industrials and Materials Conference on December 4, 2024, with a presentation by CEO Stephen G. Oswald and scheduled one-on-one investor meetings [1]. Company Information - Ducommun Incorporated specializes in providing value-added innovative products and manufacturing solutions primarily for the aerospace, defense, and industrial markets [3]. - The company was founded in 1849 and focuses on two core areas: Electronic Systems and Structural Systems, producing complex products and components for commercial aircraft, military and space programs, and industrial applications [3].

Core Insights - The aerospace industry presents numerous investment opportunities, with many companies achieving market-outperforming returns and some stocks even doubling in value [1] - The Aerospace Forum aims to identify investment opportunities within the aerospace, defense, and airline sectors, leveraging data-informed analysis to provide context on industry developments [1] Investment Analysis - The analyst has a beneficial long position in shares of Boeing (BA) and Airbus (EADSF), indicating confidence in these companies' future performance [1] - The analysis is driven by a background in aerospace engineering, which enhances the understanding of the industry's complexities and growth prospects [1] Data Analytics - The Aerospace Forum offers access to evoX Data Analytics, an in-house developed platform that supports investment research and decision-making [1] - Direct access to data analytics monitors is provided to enhance the investment analysis process [1]

Core Insights - The investment approach focuses on fundamental analysis of stocks, emphasizing companies with a strong competitive moat, consistent growth in free cash flow, and robust financial performance [1] - The philosophy is rooted in long-term investing, avoiding short-term trading tactics and options, which is believed to unlock value over time [1] - The aim is to provide insightful, actionable advice by uncovering undervalued stocks poised for growth and identifying overvalued stocks to be cautious of [1] Company and Industry Analysis - The analyst has a background in business and economics, which supports their investment analysis and strategies [1] - The contribution to Seeking Alpha is seen as a way to engage with a community that values deep analytical insights into the market [1] - The article reflects a commitment to refining investment strategies in the evolving investment landscape [1]

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $201.4 million, a 2.6% increase from $196.3 million in Q3 2023, marking the first time revenue exceeded $200 million [10][26] - Gross profit was $52.7 million, representing a gross margin of 26.2%, up from 22.7% in the prior year [15][27] - Adjusted EBITDA reached $31.9 million, expanding to 15.8%, which is 90 basis points above the prior year [18][30] - GAAP diluted EPS was $0.67, compared to $0.22 in Q3 2023, while adjusted diluted EPS was $0.99, up from $0.70 [18][31] - Consolidated backlog was $1.044 billion, decreasing $24 million sequentially but increasing over $85 million year-over-year [19] Business Line Data and Key Metrics Changes - Military and space revenues grew to $111 million, a 6% increase year-over-year, driven by radar and electronic warfare programs [10][22] - Commercial aerospace revenue increased by 3% year-over-year to $85 million, with significant growth in the A220 and A320 programs [12][24] - Structural Systems segment revenue was $86 million, slightly up from $85.5 million, while Electronic Systems segment revenue rose to $115.4 million from $110.7 million [32][34] Market Data and Key Metrics Changes - Defense backlog increased by $97 million year-over-year to $592 million, with new orders for various platforms [20][23] - Commercial aerospace backlog decreased sequentially by $20 million but was up $8 million year-over-year, indicating resilience despite market challenges [21][24] Company Strategy and Development Direction - The company is executing its Vision 2027 strategy, focusing on increasing revenue from engineered products and aftermarket content, consolidating facilities, and pursuing targeted acquisitions [9][10] - The strategy aims for 18% EBITDA margins and 25% or more of revenues from engineered products and aftermarket by 2027 [41][66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth in military and space sectors and anticipated recovery in commercial aerospace, particularly with Boeing [11][22] - The company is well-positioned for recovery in 2025 and 2026, especially for the MAX and 787 programs [21][22] - Management highlighted the importance of strategic pricing initiatives and productivity improvements in driving margin expansion [15][41] Other Important Information - The company closed its Monrovia facility and reduced operations at Berryville, leading to cost savings that are expected to increase as production ramps up in Guaymas, Mexico [16][38] - The restructuring program is expected to generate annual savings of $11 million to $13 million upon completion [38] Q&A Session Summary Question: What is the company doing new for Northrop Grumman? - The company is involved in airborne surveillance and electronics, with significant orders from Northrop Grumman, indicating a strong partnership [43][44] Question: What is the current status of the 787 program? - The company expects a double-digit increase in content per aircraft due to a share shift from a competitor, with more details to be provided in the next call [45] Question: How much more work can the company take on without ramping up CapEx? - The company believes it has sufficient capacity in its structures business without significant capital investments, maintaining a CapEx outlook of around $20 million [50][51] Question: What is the current environment for M&A activity? - The company is actively looking for acquisition opportunities and has seen increased activity in recent months, with a focus on making the right selections [53][54] Question: What is the outlook for revenue guidance and margins in Q4? - The company anticipates a sequential decline in revenue due to the Boeing strike and program movements but expects margins to remain stable [57][60]