Ducommun(US:DCO)2025-11-06 11:09Financial Performance - Net revenue for Q3 2025 reached $212.6 million, a 6% increase compared to $201.4 million in Q3 2024[8] - Adjusted EBITDA for Q3 2025 was $34.4 million, representing 16.2% of revenue, an increase of 8% year-over-year[12] - The company reported a net loss of $64.4 million, or $4.30 per share, which is 30.3% of revenue, primarily due to higher litigation costs[9] - Net revenues for the three months ended September 27, 2025, were $212,558 thousand, an increase of 5.7% compared to $201,412 thousand for the same period in 2024[33] - The company reported a net loss of $64,446 thousand for the three months ended September 27, 2025, compared to a net income of $10,148 thousand for the same period in 2024[33] - Adjusted EBITDA for the three months ended September 27, 2025, was $34,354 thousand, which is 16.2% of net revenues, compared to 15.8% in the prior year[35] - The company reported a total operating loss of $(80,050) million for the three months ended September 27, 2025, compared to an operating income of $15,266 million for the same period in 2024[38] - Non-GAAP adjusted net income for the nine months ended September 27, 2025, was $41,221 thousand compared to $37,725 thousand for the same period in 2024[44] Segment Performance - Electronic Systems segment net revenue increased to $123.1 million, up from $115.4 million in Q3 2024, driven by military and space markets[14] - Structural Systems segment net revenue rose to $89.5 million, compared to $86.0 million in the same quarter last year, with operating income increasing to $11.9 million[18] - Electronic Systems segment revenues rose by 6.6% to $123,082 million, while Structural Systems segment revenues increased by 4.0% to $89,476 million for the three months ended September 27, 2025[38] - Segment operating income for Electronic Systems increased by 17.1% to $21,098 million, while Structural Systems segment operating income rose by 13.3% to $11,927 million for the three months ended September 27, 2025[38] - Non-GAAP adjusted operating income for Electronic Systems was $21,542 thousand, representing a 17.5% margin for the three months ended September 27, 2025, compared to 16.8% in 2024[42] - Non-GAAP adjusted operating income for Structural Systems was $14,298 thousand, with a margin of 16.0% for the three months ended September 27, 2025[42] Expenses and Costs - Corporate General and Administrative expenses surged to $113.1 million, or 53.2% of total revenue, due to litigation-related costs[19] - The company incurred litigation settlement and related costs of $99,675 thousand for the three months ended September 27, 2025[38] - The effective tax benefit rate for the three months ended September 27, 2025, was (22.3)%, compared to 11.3% for the same period in 2024[33] - The company incurred restructuring charges of $583 thousand for the three months ended September 27, 2025, down from $1,924 thousand in the same period of 2024[33] - Stock-based compensation expense for the three months ended September 27, 2025, included $0.1 million recorded as cost of sales, consistent with the same period in 2024[39] Backlog and Future Outlook - The Book to Bill ratio was strong at 1.6 times, establishing a new record for remaining performance obligations[4] - The company anticipates continued revenue growth in defense and commercial aerospace markets for the remainder of 2025[7] - Total backlog as of September 27, 2025, was $1,135,741 thousand, an increase from $1,060,819 thousand as of December 31, 2024[47] - The company's backlog consists of customer placed purchase orders and long-term agreements with expected delivery dates of 24 months or less, although specific backlog figures were not disclosed[28] Assets and Liabilities - Total assets increased to $1,248,570 thousand as of September 27, 2025, from $1,126,101 thousand as of December 31, 2024[31] - Current liabilities rose to $334,254 thousand as of September 27, 2025, compared to $175,474 thousand as of December 31, 2024[31] - Cash and cash equivalents increased to $50,918 thousand as of September 27, 2025, compared to $37,139 thousand as of December 31, 2024[31] Capital Expenditures - Total capital expenditures for the nine months ended September 27, 2025, amounted to $10,658 million, compared to $10,146 million for the same period in 2024[38]