Ducommun Incorporated (DCO)

Ducommun reported record second-quarter 2026 net revenue of $224.5 million, up 12 percent from a year earlier 2.

Net income was $20.4 million, or $1.31 per diluted share, and gross margin, revenue minus the cost of making the products, reached a record 28.0 percent 2.

Chief executive Stephen G Oswald said growth on the Boeing 737 MAX and the Airbus A320 led commercial aerospace, while missile programs led the defense business 2.

In May 2026 the company said its 2024 and 2025 financial statements should no longer be relied upon, because stock pay for retirement-eligible staff had been recorded in the wrong periods 3.

It restated those years in an amended annual report, and management has identified a material weakness in its internal control over financial reporting 1.

Ducommun says it is the successor to a business founded in California in 1849 and reincorporated in Delaware in 1970 1.

In April 2023 it bought BLR Aerospace, a maker of aerodynamic systems for aircraft, for an initial price of $115.0 million, net of cash acquired 1.

A fire severely damaged its Guaymas plant in June 2020, and a neighboring factory's later lawsuit ended in a settlement agreed on 17 October 2025, with a payment of $150.0 million 1.

Revenue rose from $786.4 million in 2024 to $824.8 million in 2025, as restated 1.

Military and space sales were $60.0 million higher on missile, fixed-wing aircraft and radar work, while commercial aerospace sales were $24.6 million lower on less Boeing and in-flight entertainment business 1.

Boeing, one of its largest customers, had a labor strike from early August 2025 to mid-November 2025 1.

Gross margin rose to 26.9 percent from 25.1 percent after the wind down of its Monrovia plant finished 1.

Even so, 2025 ended with a net loss of $37.4 million, mainly because litigation settlement and related costs rose by $107.3 million 1.

On 24 November 2025 it refinanced its debt with a $200.0 million term loan that matures in November 2030 1.

Electronic Systems

Electronic Systems makes high-reliability electronics such as cable assemblies, circuit board assemblies and lightning diversion systems 1.

Its 2025 revenue was $462.7 million, up 7.3 percent, and its segment operating income was 17.8 percent of revenue 1.

Structural Systems

Structural Systems builds large contoured aluminum, titanium and Inconel aircraft parts, plus winglets, fuselage panels and wing spoilers 1.

Its 2025 revenue was $362.2 million, up 2.0 percent, with segment operating income at 12.8 percent of revenue 1.

Customers and end markets

Military and space made up 58.2 percent of 2025 revenue, commercial aerospace 37.4 percent and industrial 4.4 percent 1.

RTX supplied 17.9 percent of 2025 revenue and Boeing 13.3 percent, and the top ten customers together 60.7 percent 1.

The company says it competes worldwide with domestic and international firms, some with greater financial resources 1.

People and places

Stephen G Oswald is chairman, president and chief executive 2.

The company had 2,130 employees at 31 December 2025, and 282 of them are covered by a union agreement that expires in April 2028 1.

Headquarters are in Costa Mesa, California, with manufacturing across the United States and one location abroad 1.

Current problems

After the restatement the company recovered incentive pay, and the second quarter of 2026 includes a compensation clawback of $3.9 million that lowered selling and administrative costs 2.

The quarterly report says that included stock-based pay of $2.4 million and bonus pay of $1.5 million 5.

Groundwater contamination at its Adelanto and Monrovia, California sites led it to accrue $1.5 million at 31 December 2025 1.

The umbrella, in words

Ducommun operates through two segments, Electronic Systems and Structural Systems 1.

It owns 100 percent of BLR Aerospace, bought in April 2023 and included in Structural Systems 1.

The annual report counted 119 holders of record of its common stock 1.

BlackRock Portfolio Management LLC reported 5.3 percent in a Schedule 13G filed in October 2026, and State Street Corporation reported 6.3 percent in one filed in August 2026 67.

The company expects some continued destocking headwinds in the remaining quarters of 2026 and says those pressures have begun to ease gradually 2.

Its VISION 2027 financial goal is an adjusted EBITDA margin of 18 percent, a profit measure the company adjusts for items such as restructuring, and the second quarter of 2026 reached 17.1 percent 2.

Remaining performance obligations, orders with firm prices and delivery dates, were an all-time high of $1.2 billion 2.

At the end of 2025 the company anticipated recognizing an estimated 70 percent, or $774.0 million, of its obligations during 2026 1.

Oswald said on 6 August 2026 that the company is well positioned to benefit from the expected major ramp-up in missile production 2.

On 4 May 2026 the company named Mark A Caylor, a former Northrop Grumman executive, to its board, and said his experience will be critical to growth both organically and through acquisition 4.

No clue on file points to a new direction yet.