Ducommun Q4 revenue misses estimates; expects no impact on financial outlook from tariffs

Ducommun Incorporated

26/02/2026 11:25

Overview

U.S. aerospace and defense firm's Q4 revenue rose 9.4% yr/yr but missed analyst expectations

Adjusted net income for Q4 increased 43% yr/yr

Company achieved record gross margins and adjusted EBITDA margins

Outlook

Ducommun expects missile franchise strength in 2026 due to long-term agreements

Company anticipates easing destocking headwinds in commercial aerospace by late 2026

Tariffs not expected to impact Ducommun's financial outlook materially

Result Drivers

MILITARY AND SPACE GROWTH - Revenue increase driven by higher rates on missile platforms, fixed-wing, and rotary-wing aircraft

PRODUCT MIX - Favorable product mix contributed to record gross margin of 27.7% and adjusted EBITDA margin of 17.5%

STRONG BOOKINGS - Record remaining performance obligations of $1.1 bln with a book-to-bill ratio of 1.3x, driven by missile component orders

Company press release: ID:nGNX1MxyFK

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
$215.80 mln
$221.005 mln (5 Analysts)
Q4 Adjusted Net Income
$16.20 mln
Q4 Net Income
$7.40 mln
Q4 Adjusted EBITDA
$37.90 mln
Q4 Adjusted Operating Income
$24.60 mln
Q4 Operating Income
$14 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "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 Inc is $127.00, about 0.2% above its February 25 closing price of $126.77

The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 22 three months ago

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.)