Ducommun Incorporated (DCO) Reports Record Quarterly Revenue in Q3, Reaffirms Full-Year Guidance

Ducommun Incorporated (NYSE:DCO) is among the 8 Best Small-Cap Defense Stocks to Buy Right Now. On November 6, the company reported its third-quarter fiscal 2025 financial results.

Net revenue was reported at $212.6 million, a new quarterly record and up 6% year-over-year, attributed to a strong show by the company’s defense business. This was the third successive quarter of double-digit growth for the segment, driven primarily by its missile franchise.

Gross margin stood at 26.6%, improving by 40 bps from last year. Adjusted EBITDA was posted at $34.4 million, increasing 40 bps year-over-year, and marking the third back-to-back quarter of exceeding the $30 million figure. This represented 16.2% of revenue, putting the company on track to achieve its financial goal of 18% adjusted EBITDA by 2027.

Ducommun Incorporated (NYSE:DCO) reported a net loss of $64.4 million, compared to net income of $10.1 million in the prior year’s quarter. This was the result of a litigation settlement and associated costs. However, adjusted net income stood at $15.2 million, or $0.99 per diluted share, surpassing estimates by four cents.

Chairman, President, and CEO Stephen G. Oswald highlighted weakness in commercial aerospace and described ongoing destocking as a major headwind. However, he welcomed the Federal Aviation Administration (FAA)’s decision to approve an increase in Boeing’s monthly 737 production cap, which could help in reducing inventory in the system.

The company reaffirmed its full-year 2025 guidance and brushed aside concerns that tariffs could impact financial results, since about 95% of its revenue is generated domestically in the United States.

The stock has had an impressive run in 2025, gaining 43.53% year-to-date, as of the close on November 14.

Ducommun Incorporated (NYSE:DCO) provides manufacturing solutions to customers in the global aerospace, defense, military, space, and industrial markets.

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