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what it is
Ducommun makes aircraft structures, electronics, and engineered parts for aerospace, defense, and industrial customers.
how it gets paid
Last year Ducommun made $825M in revenue. electronic and electromechanical assemblies was the main engine at $300M, or 36% of sales.
why it's growing
Revenue grew 4.9% last year. Revenue rose 186% vs. prior year in the latest quarter.
what just happened
The quarter showed $609M in revenue, but Ducommun still posted a $2.77 EPS loss, so scale did not turn into profit.
At a glance
B+ balance sheet — decent shape, but not bulletproof
30/100 earnings predictability — expect surprises
4.3% return on capital — nothing to write home about
$2.10 fy2024 eps est
$787M fy2024 rev est
xvary composite: 55/100 — below average
What they do
Ducommun makes aircraft structures, electronics, and engineered parts for aerospace, defense, and industrial customers.
Ducommun wins by sitting deep inside programs you do not casually swap out. It serves aerospace, defense, and industrial customers with 2,180 employees and products that run from prototype work to full assemblies. That embedded role creates switching costs (hard to replace a qualified supplier) — so what: your customer would rather keep production moving than retrain a new vendor.
How they make money
$825M
annual revenue · their business grew +4.9% last year
electronic and electromechanical assemblies
$300M
engineered products and test systems
$120M
commercial aircraft structures
$170M
military fixed-wing structures
$130M
rotary-wing and specialty structures
$105M
The products that matter
electronic assemblies and components
Electronic Systems
$412M · roughly half of revenue
this segment generated about $412M in 2025 revenue. it matters because those electronics stay tied to long aerospace and defense programs, which helps revenue visibility but also ties you to contract execution.
scale segment
structural assemblies and parts
Aerostructures
$413M · roughly half of revenue
this segment generated about $413M in 2025 revenue. your results here move with aircraft build schedules, so production timing matters almost as much as demand.
cycle-sensitive
Key numbers
54.8x
forward p/e
Forward P/E → price versus next year's earnings → so what: at $115.02 against a $2.10 EPS estimate, you are paying 54.8 times expected profit for a company still fixing execution.
3.9%
operating margin
Operating margin → profit left after running the business → so what: Ducommun is losing 3.9 cents on every sales dollar before interest and taxes.
4.3%
return on capital
Return on capital → profit earned on the money tied up in the business → so what: 4.3% is weak for a manufacturer that needs heavy program execution.
$251M
long-term debt
Long-term debt → borrowed money due over years → so what: $251M is 12% of capital, which is fine until margins stay negative for too long.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 65 / 100
- long-term debt $251M (12% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for DCO right now.
source: institutional data · return history unavailable
What just happened
missed estimates
The quarter showed $609M in revenue, but Ducommun still posted a $2.77 EPS loss, so scale did not turn into profit.
Revenue rose 186% vs. prior year in the latest quarter, according to the SEC-verified figure provided. Gross margin was 26.6%, which tells you the real problem sits below gross profit.
$609M
revenue
-$2.77
eps
26.6%
gross margin
the number that mattered
The number that mattered was the $2.77 EPS loss, because a manufacturer can post revenue growth and still destroy value if operating costs outrun gross profit.
source: company earnings report, 2026
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What could go wrong
your #1 risk is concentration in a small set of aerospace and defense programs.
high
program concentration
You own a supplier business, not a diversified end-market giant. Revenue is tied to a limited set of large aerospace and defense programs. If one major platform slows or a contract gets lost, the hit shows up fast.
impact: with annual revenue of $824.7M and only two segments contributing about $412M and $413M, there is no third engine to absorb a real miss.
med
valuation compression
A 55x trailing P/E leaves you exposed to a basic market verdict: good company, wrong price. That risk gets sharper when return on capital is 4.3% and earnings predictability is only 30/100.
impact: the stock does not need a disaster to fall. It only needs the market to decide this supplier should trade more like an industrial and less like a premium compounder.
med
program volatility is not theoretical
A key contract was terminated on May 9, 2024. Long-cycle aerospace work looks sticky until it is not. That is your reminder that certifications and long platform lives do not equal guaranteed revenue.
impact: one program change can undo a lot of careful margin work, especially in a business still proving it can convert better operations into better returns on capital.
low
insider selling after the rally
The S.V.P. and CFO sold 7,791 shares at $131.90 in March 2026. One sale does not break the thesis. It also does not tell you management sees obvious cheapness after a big run.
impact: sentiment matters more when the multiple is already rich and outside holders are deciding whether good news has mostly been priced in.
A company doing $824.7M in annual revenue with a 26.9% gross margin can handle normal turbulence. A program stumble and a multiple reset landing together would be a different problem.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
margin has to keep doing the heavy lifting
Gross margin improved to 26.9% from 25.1%. If that stalls while the stock still trades around 55x trailing earnings, your premium multiple loses its best defense.
risk
concentration sits inside both segments
The business looks balanced because each segment is about half of revenue. You are still exposed to the same aerospace and defense spending machine underneath both of them.
ownership
Gabelli Group cut its stake to 4.0%
That does not prove the thesis is broken. It does tell you one experienced holder took some money off the table after a 49% run in 2025.
calendar
VISION 2027 needs operating proof next
The strategy got board attention in late 2024. From here, you want evidence in margins, contract quality, and steadier earnings. Plans do not hold a 55x multiple. Results do.
Analyst rankings
earnings predictability
30 / 100
in human-speak: analysts do not see this as a smooth, autopilot earnings story.
risk rank
3
That places it around the middle of the pack on safety. Not a bunker stock. Not chaos either.
price stability
65 / 100
The chart behaved better than many small caps, but the $52–$140 range still tells you this name can move.
source: institutional data
Institutional activity
institutional ownership data for DCO is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$115
current price
n/a
target midpoint · n/a from current
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