Ducommun Delivers Record Q2 Revenue and Margins as Backlog Reaches All-Time High
DCO has more than doubled off its 52-week low of $84.76.
Summary
Record Q2 2026 results put Ducommun's Vision 2027 targets firmly within reach, as revenue hit $224.5M, gross margin reached 28.0%, and backlog climbed to an all-time high of $1.2B.
Key Events · Earnings and Guidance · DCO
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Record Revenue and Margins
Revenue reached $224.5M in Q2, a 12% increase year-over-year, while gross margin set a record at 28.0%, up 160 basis points. Net income surged 60% to $20.4M, or $1.31 per diluted share.
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Backlog at All-Time High
Remaining performance obligations climbed to $1.2B from $1.1B at year-end, supported by $309.7M in bookings and a 1.4x book-to-bill ratio.
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Adjusted EBITDA Nears Vision 2027 Target
Adjusted EBITDA of $38.4M, representing a 17.1% margin, expanded 130 basis points year-over-year and is now approaching the 18% goal. Even excluding a $3.9M compensation clawback, the underlying margin remained strong.
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Commercial Aerospace and Defense Drive Growth
Commercial aerospace revenue rose 16% on higher 737 MAX and A320 rates, while defense growth was driven by PAC-3 and SM-6 missile programs, partially offset by softness in radar and naval.
Analysis · DCO · Manufacturing
Ducommun just posted its strongest quarter ever, with revenue, gross margin, and remaining performance obligations all hitting new highs. A 12% revenue gain was fueled by commercial aerospace and defense missile programs, while margins expanded sharply on higher volume and savings from facility consolidation. A $3.9 million compensation clawback flattered SG&A, but even without it, adjusted EBITDA margin reached 17.1% — closing in on the company's 18% Vision 2027 target. The $1.2 billion backlog and 1.4x book-to-bill point to sustained momentum, though management still expects some destocking headwinds in the second half. This report materially raises the bar for Ducommun's earnings power and de-risks the Vision 2027 goals.
At the time of this filing, DCO was trading at $191.72 on NYSE in the Manufacturing sector, with a market capitalization of approximately $2.9B. The 52-week trading range was $84.76 to $196.80. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.