Ducommun Q2 revenue beats on commercial aerospace demand
Ducommun Q2 revenue beats on commercial aerospace demand
Overview
U.S. aerospace and defense maker's Q2 revenue grew 12%, beating analyst expectations
Adjusted EPS for Q2 rose to $1.18, driven by higher gross profit
Company cites growth in commercial aerospace and defense segments as key drivers for results
Outlook
Company expects continued destocking headwinds in remaining quarters of 2026, but pressures easing
Ducommun anticipates benefiting from expected major ramp-up in missile production
Company says it is on track toward VISION 2027 targets, including 18% Adjusted EBITDA margin
Result Drivers
COMMERCIAL AEROSPACE DEMAND - Higher rates on large aircraft platforms, including Boeing 737 MAX and Airbus A320, drove revenue growth in commercial aerospace
DEFENSE SEGMENT GAINS - Increased revenue from missile platforms (PAC-3, SM-6) and fixed-wing aircraft, partly offset by lower rates on radar, space, and naval programs
MARGIN EXPANSION - Gross margin rose due to higher manufacturing volume and facility consolidation savings, partly offset by unfavorable product mix
Company press release: ID:nGNX8P4lBG
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $224.50 mln | $214.36 mln (5 Analysts) |
Q2 Adjusted Net Income |
| $18.40 mln |
|
Q2 Net Income |
| $20.40 mln |
|
Q2 Adjusted EBITDA |
| $38.40 mln |
|
Q2 Adjusted Operating Income |
| $26.70 mln |
|
Q2 Operating Income |
| $28.30 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy"
Wall Street's median 12-month price target for Ducommun Incorporated is $176.00, about 8.2% below its August 5 closing price of $191.72
The stock recently traded at 41 times the next 12-month earnings vs. a P/E of 31 three months ago
Reuters Recommended Reads
Aug 5 - Curtiss-Wright Q2 EPS beats estimates as margins expand
Aug 5 - Newly spun-off Honeywell Aerospace cuts 2026 forecast on supply-chain woes
Aug 4 - TransDigm lifts 2026 forecast on robust aftermarket aircraft parts demand
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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