Ducommun IncorporatedDCO
Scheduled
Ducommun Incorporated 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
PeriodQ2 2026
Key takeaways
- Ducommun reported Q2 2026 revenues of $224.5 million, a 12% increase year over year, marking the 21st consecutive quarter of year-over-year revenue growth and the fifth consecutive quarter exceeding $200 million in revenue.
- Commercial aerospace revenues grew 16% year over year, driven by higher production and deliveries on single-aisle platforms including the 737 Max and A320, as well as aftermarket retrofit work on the 737 Max.
- Military and space revenues increased 7% year over year, with strong growth in the missile portfolio and fixed-wing aircraft, partially offset by temporary declines in radar, naval, and space platforms.
- The missile business grew 68% in Q2 and 29% over the past 12 months, with key programs including Pac-3, SM-3, SM-6, Tomahawk, and Naval Strike Missile.
- Gross margin improved to 28% in Q2 2026 from 26.4% in Q2 2025, driven by synergies from facility consolidation, higher manufacturing volume, strategic pricing initiatives, and productivity improvements.
- Adjusted operating income margin increased to 11.9% from 10.2% in the prior year quarter, supported by growth in both operating segments.
- Adjusted EBITDA margin improved to 17.1% in Q2 2026, up from 13% in 2022, on track to meet the Vision 2027 goal of 18%.
- GAAP diluted EPS was $1.31 in Q2 2026 compared to $0.84 in Q2 2025; adjusted diluted EPS was $1.18 versus $0.90 in the prior year quarter.
- Remaining performance obligations reached a record $1.116 billion, up over $250 million year over year, with a book-to-bill ratio of 1.4 times for the quarter and 1.3 times over the last 12 months.
- Structural Systems segment revenue was $93 million, up slightly from $91 million, with operating margin improving to 15.7% excluding restructuring charges.
- Electronic Systems segment revenue grew 20% to $131 million, with operating margin increasing to 19.7% excluding restructuring charges.
- Cash flow from operating activities was $33.5 million in Q2 2026, up from $22.4 million in Q2 2025; year-to-date free cash flow was $38.3 million, representing 127% free cash flow conversion against adjusted net income.
- The company has $410 million in available liquidity from revolver capacity and cash on hand.
- Interest expense increased to $3.5 million from $3 million year over year, primarily due to higher debt balances offset by lower interest rates from a new credit agreement and an interest rate hedge.
STOCKNOW INSIGHTS
Continue with outlook and guidance.
Log in to unlock executive comments and Q&A highlights.
Log in for the full summaryStockNow uses AI to translate and summarize earnings calls. Accuracy and completeness are not guaranteed.
Keep exploring