Ducommun Incorporated Reports Third Quarter 2026 Results

Record Revenue and Gross Margin; Remaining Performance Obligations at Another All-Time High with Defense Book-to-Bill at 2.2x* During the Quarter


COSTA MESA, Calif., Nov. 05, 2026 (GLOBE NEWSWIRE) -- Ducommun Incorporated (NYSE: DCO) (“Ducommun” or the “Company”) today reported results for its third quarter ended October 3, 2026.

Third Quarter 2026 Recap

  • Record Net revenue was $227.0 million, an increase of 6% over Q3 2025**
  • Record Gross margin of 28.9%, year-over-year growth of 140 bps
  • Net income of $13.9 million (compared to a net loss of $60.8 million in the prior year) or $0.89 per diluted share, and 6.1% of revenue
  • Non-GAAP adjusted net income of $18.8 million, or $1.21 per diluted share
  • Adjusted EBITDA of $39.7 million (increase of 6% year-over-year), or 17.5% of revenue, up 10 bps year-over-year
  • Remaining performance obligations (“RPO”) at another all-time high of $1.3 billion with strong bookings of $354.3 million during the quarter at a book-to-bill of 1.6x and defense bookings at 2.2x*

“Another excellent quarter for Ducommun in 2026. With record revenue and gross margins in Q3, we continued to make great progress towards accomplishing our VISION 2027 goals and positioning ourselves for our new VISION 2032 Plan which was communicated in September. Net revenue grew, led by the significant ramp in commercial aerospace, partially offset by temporary weakness in defense revenues due to timing of certain programs. Defense bookings were very strong during the quarter with a book-to-bill of 2.2x and we expect to see momentum continue in our defense business in 2027,” said Stephen G. Oswald, chairman, president and chief executive officer. “Significant growth across our commercial aerospace business highlighted by the single-aisle aircraft platforms, Boeing 737 MAX and the Airbus A320 drove the 28% year-over-year increase, wonderful news and now nearing a $100 million quarterly run rate. In Ducommun's defense business we saw continued growth in our missile franchise specifically the Tomahawk, MIR, and TOW missile platforms, along with growth on fixed-wing aircraft platforms notably the F-15, offset by temporal weakness due to timing of orders and production on ground vehicles, Blackhawk and Apache rotary-wing aircraft platforms, and select radar programs. The future is very bright for our defense business with record RPO and bookings this year setting the stage for strong multi-year growth.

“Gross margin expansion is an important story for DCO and its investors and was once again very strong in the quarter expanding 140 bps year-over-year to another all-time record of 28.9%. Adjusted EBITDA expanded by 10 bps year-over-year as well from 17.4% to 17.5% bringing us close to our VISION 2027 financial goal of 18% Adjusted EBITDA by the end of 2027 and setting the stage for our VISION 2032 target of 23%.

“As we are nearing the end of year four of VISION 2027, our record performance across revenue, gross margin, and RPO's positions us well towards meeting Ducommun's VISION 2027 targets. Looking ahead, we launched our VISION 2032 Plan at our Investor Day in New York City on September 17th, with an annual revenue target of $1.6 to $1.7 billion, engineered product mix of 40%, aftermarket mix of 20%, and Adjusted EBITDA margin of 23%. Our Q3 record performance along with all the excellent work under VISION 2027 for the past 4 years provides a solid foundation to achieve our VISION 2032 goals and continue to deliver for our shareholders!”

Third Quarter Results

Net revenue for the third quarter of 2026 was $227.0 million compared to $214.4 million for the third quarter of 2025. The year-over-year increase was primarily due to the following in the Company's key end-use markets:

  • $21.1 million higher revenue in the Company’s commercial aerospace end-use markets due to higher rates across large aircraft, business jets and rotary-wing aircraft platforms and other commercial aircraft electronics; partially offset by
  • $9.2 million lower revenue in the Company’s military and space end-use markets due to lower rates on selected ground vehicle, rotary-wing aircraft, and radar platforms, and other military and space electronics, partially offset by higher rates on selected missiles and fixed-wing aircraft platforms.

In addition, revenue for the Company’s industrial end-use markets for the third quarter of 2026 increased $0.8 million compared to the third quarter of 2025 mainly due to timing of orders and production.

Net income for the third quarter of 2026 was $13.9 million, or 6.1% of revenue, or $0.89 per diluted share, compared to a net loss of $60.8 million, or 28.4% of revenue, or $4.06 per share, for the third quarter of 2025. This mainly reflects higher litigation settlement and related costs, net, of $99.7 million in the prior year period that did not reoccur in the current period and higher gross profit of $6.6 million, partially offset by higher income tax expense of $22.4 million, and higher selling, general and administrative (“SG&A”) expenses of $5.8 million, and higher pension plan settlement loss of $3.9 million.

Gross profit for the third quarter of 2026 was $65.6 million, or 28.9% of revenue, compared to gross profit of $59.0 million, or 27.5% of revenue, for the third quarter of 2025. The increase in gross profit as a percentage of net revenue year-over-year was primarily due to higher manufacturing volume along with stronger direct margins benefitting from facility consolidation synergy realization and strategic pricing, partially offset by unfavorable product mix.

Operating income for the third quarter of 2026 was $25.8 million, or 11.4% of revenue, compared to an operating loss of $75.3 million, or 35.1% of revenue, in the comparable period last year. The year-over-year increase of $101.1 million was primarily due to higher litigation settlement and related costs, net, of $99.7 million in the prior year period that did not reoccur in the current period and higher gross profit, partially offset by higher selling, general and administrative expenses. Non-GAAP adjusted operating income for the third quarter of 2026 was $28.0 million, or 12.3% of revenue, compared to $27.2 million, or 12.7% of revenue, in the comparable period last year.

Adjusted EBITDA for the third quarter of 2026 was $39.7 million, or 17.5% of revenue, compared to $37.4 million, or 17.4% of revenue, for the comparable period in 2025.

Interest expense for the third quarter of 2026 was $3.1 million compared to $2.9 million in the comparable period of 2025. The year-over-year increase was primarily due to a higher outstanding debt balance, partially offset by lower interest rates.

During the third quarter of 2026, the net cash provided by operations was $32.7 million compared to $18.1 million during the third quarter of 2025. The higher net cash provided by operations during the third quarter of 2026 was primarily due to higher net income, higher contract liabilities, and higher accrued and other liabilities, partially offset by higher contract assets and higher accounts receivable.

* See book-to-bill ratio calculation at the end of this earnings release

** As restated in the Company's Form 10-K/A filed with the Securities and Exchange Commission on May 8, 2026.

Business Segment Information

Electronic Systems

Electronic Systems segment net revenue for the quarter ended October 3, 2026 was $129.6 million, compared to $125.3 million for the third quarter of 2025. The year-over-year increase was primarily due to the following in the Company's key end-use markets:

  • $12.4 million higher revenue in the Company’s commercial aerospace end-use markets due to higher rates on large aircraft platforms and other commercial aerospace electronics; partially offset by
  • $8.9 million lower revenue within the Company’s military and space end-use markets due to lower rates on other military and space, selected radar and naval platforms, partially offset by higher rates on selected fixed-wing aircraft and missiles platforms.

In addition, revenue for the Company’s industrial end-use markets for the third quarter of 2026 increased $0.8 million compared to the third quarter of 2025 mainly due to timing of orders and production.

Electronic Systems segment operating income for the quarter ended October 3, 2026 was $28.7 million, or 22.2% of revenue, compared to $23.3 million, or 18.6% of revenue, for the comparable quarter in 2025. The year-over-year increase of $5.5 million was primarily due to higher manufacturing volume, partially offset by higher other manufacturing costs. Non-GAAP adjusted operating income for the third quarter of 2026 was $29.1 million, or 22.5% of revenue, compared to $23.7 million, or 18.9% of revenue, in the comparable period last year.

Structural Systems

Structural Systems segment net revenue for the quarter ended October 3, 2026 was $97.4 million, compared to $89.2 million for the third quarter of 2025. The year-over-year increase was primarily due to the following:

  • $8.6 million higher revenue within the Company’s commercial aerospace end-use markets due to higher rates on selected large aircraft, aero engines, business jets, and rotary-wing aircraft platforms; partially offset by
  • $0.4 million lower revenue within the Company’s military and space end-use markets due to lower rates on selected military rotary-wing aircraft and ground vehicle platforms, partially offset by higher rates on selected missiles platforms.

Structural Systems segment operating income for the quarter ended October 3, 2026 was $11.9 million, or 12.3% of revenue, compared to $12.2 million, or 13.7% of revenue, for the comparable quarter in 2025. The year-over-year decrease of $0.3 million was primarily due to unfavorable product mix, partially offset by higher manufacturing volume and stronger direct margins benefitting from facility consolidation synergy realization and strategic pricing. Non-GAAP adjusted operating income for the third quarter of 2026 was $13.8 million, or 14.2% of revenue, compared to $14.6 million, or 16.4% of revenue, in the comparable period last year.

Corporate General and Administrative (“CG&A”) Expenses

CG&A expenses for the third quarter of 2026 were $14.9 million, or 6.6% of total Company revenue, compared to $110.8 million, or 51.7% of total Company revenue, for the comparable quarter in the prior year. The year-over-year decrease in CG&A expenses was primarily due to litigation settlement and related costs, net, of $99.7 million in the prior year that did not reoccur in the current period, partially offset by higher compensation and benefits costs of $1.9 million, higher professional services fees of $1.1 million, and higher other CG&A expenses of $0.7 million.

Conference Call

A teleconference hosted by Stephen G. Oswald, the Company’s chairman, president and chief executive officer, and Suman B. Mookerji, the Company’s senior vice president, chief financial officer will be held today, November 5, 2026 at 10:00 a.m. PT (1:00 p.m. ET) to review these financial results. To access the conference call, please pre-register using the following registration link:

https://register-conf.media-server.com/register/BI975b7e85e6de4f68875bbc30c15b6491 

Registrants will receive a confirmation with dial-in details. Mr. Oswald and Mr. Mookerji will be speaking on behalf of the Company and anticipate the call (including Q&A) to last approximately 45 minutes. A live webcast of the event can be accessed using the link above. A replay of the webcast will be available on the Ducommun website at Ducommun.com.

Additional information regarding Ducommun's results can be found in the Q3 2026 Earnings Presentation available at Ducommun.com.

About Ducommun Incorporated

Ducommun Incorporated delivers value-added innovative manufacturing solutions to customers in the aerospace, defense and industrial markets. Founded in 1849, the Company specializes in two core areas - Electronic Systems and Structural Systems - to produce complex products and components for commercial aircraft platforms, mission-critical military and space programs, and sophisticated industrial applications. For more information, visit Ducommun.com.

Forward Looking Statements

This press release and any attachments include “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, in particular, expectations relating to the Company's VISION 2027 Strategy and its progress towards the financial goals stated therein, including but limited to Adjusted EBITDA, the continued strength and momentum in our defense business in 2027 and beyond, and expectations related to attaining the financial goals described in the Company's VISION 2032 Strategy, including but not limited to those relating to annual revenue targets, engineered product and aftermarket mix and Adjusted EBITDA margins. The Company generally uses the words “may,” “will,” “could,” “expect,” “anticipate,” “believe,” “estimate,” “plan,” “intend,” “continue” and similar expressions in this press release and any attachments to identify forward-looking statements. The Company bases these forward-looking statements on its current views with respect to future events and financial performance. Actual results could differ materially from those projected in the forward-looking statements. These forward-looking statements are subject to risks, uncertainties and assumptions, including, among other things: the cyclicality of our end-use markets, the level of U.S. government defense spending, our customers may experience changes in production rates or delays in the launch and certification of new products, timing of orders from our customers which are subject to cancellation, modification or rescheduling, our ability to obtain additional financing and service existing debt to fund capital expenditures and meet our working capital needs, legal and regulatory risks, including pending litigation matters generally and as well as any potential losses arising from third party subrogation claims related to the Guaymas performance center fire that may become material, the cost of expansion, consolidation and acquisitions, competition, economic and geopolitical developments – including supply chain issues, our ability to successfully implement restructuring, realignment and cost reduction activities that could adversely impact our ability to achieve our strategic objectives, international trade restrictions and our ability to obtain necessary U.S. government approvals for proposed sales to certain foreign customers, the impact of tariffs and elevated interest rates, risks associated with a prolonged partial or total U.S. federal government shutdown, the ability to attract and retain key personnel and avoid labor disruptions, the ability to adequately protect and enforce intellectual property rights, pandemics, disasters – natural or otherwise, and risk of cybersecurity attacks, and other risks and uncertainties, including those detailed from time to time in the Company’s periodic reports filed with the Securities and Exchange Commission. You should not put undue reliance on any forward-looking statements. You should understand that many important factors, including those discussed herein, could cause the Company’s results to differ materially from those expressed or suggested in any forward-looking statement. Except as required by law, the Company does not undertake any obligation to update or revise these forward-looking statements to reflect new information or events or circumstances that occur after the date of this news release, November 5, 2026, or to reflect the occurrence of unanticipated events or otherwise. Readers are advised to review the Company’s filings with the Securities and Exchange Commission (which are available from the SEC’s EDGAR database at www.sec.gov).

Note Regarding Non-GAAP Financial Information

This release contains non-GAAP financial measures, including Adjusted EBITDA (which excludes interest expense, net, income tax expense, depreciation, amortization, stock-based compensation expense, restructuring charges, gain on sale of property and other assets, compensation clawback, litigation settlement and related costs, net, and pension plan settlement loss), including as a percentage of revenue, non-GAAP operating income, including as a percentage of net revenues, non-GAAP net income, non-GAAP earnings per share, and non-GAAP book-to-bill ratio. In addition, certain other prior period amounts have been reclassified to conform to current year’s presentation.

The Company believes the presentation of these non-GAAP measures provide important supplemental information to management and investors regarding financial and business trends relating to its financial condition and results of operations. The Company’s management uses these non-GAAP financial measures along with the most directly comparable GAAP financial measures in evaluating the Company’s actual and forecasted operating performance, capital resources and cash flow. The non-GAAP financial information presented herein should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. The Company discloses different non-GAAP financial measures in order to provide greater transparency and to help the Company’s investors to more meaningfully evaluate and compare Ducommun’s results to its previously reported results. The non-GAAP financial measures that the Company uses may not be comparable to similarly titled financial measures used by other companies.

CONTACT:

Suman Mookerji, Senior Vice President, Chief Financial Officer, 657.335.3665

[Financial Tables Follow]

 
DUCOMMUN INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
     
  October 3,
2026
 December 31,
2025
Assets    
Current Assets    
Cash and cash equivalents $39,212 $45,289
Accounts receivable, net  163,158  124,442
Contract assets  275,737  249,845
Inventories  195,761  182,788
Production cost of contracts  6,886  7,178
Assets held for sale  5,690  —
Other current assets  20,063  16,442
Total Current Assets  706,507  625,984
Property and Equipment, Net  101,402  107,223
Operating Lease Right-of-Use Assets  53,999  40,077
Goodwill  244,600  244,600
Intangibles, Net  120,293  132,839
Deferred income taxes  4,358  15,500
Other Assets  23,148  20,192
Total Assets $1,254,307 $1,186,415
Liabilities and Shareholders’ Equity    
Current Liabilities    
Accounts payable $97,808 $74,653
Contract liabilities  81,591  40,694
Accrued and other liabilities  40,848  51,071
Operating lease liabilities  6,842  7,817
Current portion of long-term debt  5,000  5,000
Total Current Liabilities  232,089  179,235
Long-Term Debt, Less Current Portion  245,242  298,790
Non-Current Operating Lease Liabilities  49,775  34,223
Other Long-Term Liabilities  14,166  12,686
Total Liabilities  541,272  524,934
Commitments and Contingencies    
Shareholders’ Equity    
Common Stock  151  149
Additional Paid-In Capital  250,240  248,482
Retained Earnings  450,510  406,304
Accumulated Other Comprehensive Income  12,134  6,546
Total Shareholders’ Equity  713,035  661,481
Total Liabilities and Shareholders’ Equity $1,254,307 $1,186,415


 
DUCOMMUN INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars and shares in thousands, except per share amounts)
     
  Three Months Ended Nine Months Ended
  October 3,
2026
 September 27,
2025
 October 3,
2026
 September 27,
2025
Net Revenues $227,023  $214,422  $660,537  $607,706 
Cost of Sales  161,453   155,472   475,834   445,329 
Gross Profit  65,570   58,950   184,703   162,377 
Selling, General and Administrative Expenses  39,775   34,009   114,857   113,702 
Restructuring Charges  —   583   —   1,617 
Litigation Settlement and Related Costs, Net  —   99,675   —   99,675 
Operating Income (Loss)  25,795   (75,317)  69,846   (52,617)
Interest Expense, Net  (3,083)  (2,927)  (10,615)  (9,198)
Other Income  —   —   —   1,746 
Pension Plan Settlement Loss  (3,872)  —   (3,872)  — 
Income (Loss) Before Taxes  18,840   (78,244)  55,359   (60,069)
Income Tax Expense (Benefit)  4,949   (17,417)  11,153   (13,398)
Net Income (Loss) $13,891  $(60,827) $44,206  $(46,671)
Earnings (Loss) Per Share        
Basic earnings (loss) per share $0.92  $(4.06) $2.92  $(3.13)
Diluted earnings (loss) per share $0.89  $(4.06) $2.84  $(3.13)
Weighted-Average Number of Common Shares Outstanding        
Basic  15,156   14,978   15,117   14,925 
Diluted  15,559   14,978   15,581   14,925 
         
Gross Profit %  28.9 %  27.5 %  28.0 %  26.7 %
SG&A %  17.5 %  15.8 %  17.4 %  18.7 %
Operating Income (Loss) %  11.4 % (35.1) %  10.6 % (8.7) %
Net Income (Loss) %  6.1 % (28.4) %  6.7 % (7.7) %
Effective Tax Rate  26.3 %  22.3 %  20.1 %  22.3 %


 
DUCOMMUN INCORPORATED AND SUBSIDIARIES
GAAP TO NON-GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION
(Unaudited)
(Dollars in thousands)
     
  Three Months Ended Nine Months Ended
  October 3,
2026
 September 27,
2025
 October 3,
2026
 September 27,
2025
GAAP net income (loss) $13,891  $(60,827) $44,206  $(46,671)
Non-GAAP Adjustments:        
Interest expense, net  3,083   2,927   10,615   9,198 
Income tax expense (benefit)  4,949   (17,417)  11,153   (13,398)
Depreciation  4,068   4,037   12,280   12,305 
Amortization  4,273   4,301   12,853   12,890 
Stock-based compensation expense (1)  5,585   4,088   22,356   24,855 
Restructuring charges  —   583   —   1,617 
Gain on sale of property and other assets  —   —   —   (1,746)
Compensation clawback  —   —   (3,870)  — 
Litigation settlement and related costs, net  —   99,675   —   99,675 
Pension plan settlement loss  3,872   —   3,872   — 
Adjusted EBITDA $39,721  $37,367  $113,465  $98,725 
Net income (loss) as a % of net revenues  6.1 % (28.4) %  6.7 % (7.7) %
Adjusted EBITDA as a % of net revenues  17.5 %  17.4 %  17.2 %  16.2 %
                 

(1) The three and nine months ended October 3, 2026 included zero and $0.3 million, respectively, of stock-based compensation expense for awards with both performance and market conditions that will be settled in cash. The three and nine months ended September 27, 2025 included $0.2 million and $1.4 million, respectively, of stock-based compensation expense for awards with both performance and market conditions that will be settled in cash. The three and nine months ended October 3, 2026 included $0.1 million and $0.4 million, respectively, of stock-based compensation expense recorded as cost of sales. The three and nine months ended September 27, 2025 included $0.1 million and $0.3 million, respectively, of stock-based compensation expense recorded as cost of sales.

 
DUCOMMUN INCORPORATED AND SUBSIDIARIES
BUSINESS SEGMENT PERFORMANCE
(Unaudited)
(Dollars in thousands)
     
  Three Months Ended Nine Months Ended
  %
Change
 October 3,
2026
 September 27,
2025
 %
of Net  Revenues
2026
 %
of Net  Revenues
2025
 %
Change
 October 3,
2026
 September 27,
2025
 %
of Net  Revenues
2026
 %
of Net  Revenues
2025
Net Revenues                    
Electronic Systems 3.5 % $129,612  $125,269  57.1 % 58.4 % 10.1 % $378,638  $344,038  57.3 % 56.6 %
Structural Systems 9.3 %  97,411   89,153  42.9 % 41.6 % 6.9 %  281,899   263,668  42.7 % 43.4 %
Total Net Revenues 5.9 % $227,023  $214,422  100.0 % 100.0 % 8.7 % $660,537  $607,706  100.0 % 100.0 %
Segment Operating Income                    
Electronic Systems   $28,746  $23,286  22.2 % 18.6 %   $77,146  $61,194  20.4 % 17.8 %
Structural Systems    11,944   12,215  12.3 % 13.7 %    35,143   31,429  12.5 % 11.9 %
     40,690   35,501         112,289   92,623     
Corporate General and Administrative Expenses (1)    (14,895)  (110,818) (6.6) % (51.7) %    (42,443)  (145,240) (6.4) % (23.9) %
Total Operating Income (Loss)   $25,795  $(75,317) 11.4 % (35.1) %   $69,846  $(52,617) 10.6 % (8.7) %
Adjusted EBITDA                    
Electronic Systems                    
Operating Income   $28,746  $23,286        $77,146  $61,194     
Depreciation and Amortization    3,578   3,553         10,788   10,694     
Stock-Based Compensation Expense (2)    117   71         325   294     
Restructuring Charges    —   71         —   242     
     32,441   26,981  25.0 % 21.5 %    88,259   72,424  23.3 % 21.1 %
Structural Systems                    
Operating Income    11,944   12,215         35,143   31,429     
Depreciation and Amortization    4,648   4,670         14,038   14,182     
Stock-Based Compensation Expense (3)    82   60         253   381     
Restructuring Charges    —   512         —   1,375     
     16,674   17,457  17.1 % 19.6 %    49,434   47,367  17.5 % 18.0 %
Corporate General and Administrative Expenses (1)                    
Operating loss    (14,895)  (110,818)        (42,443)  (145,240)    
Depreciation and Amortization    115   115         307   319     
Stock-Based Compensation Expense (4)    5,386   3,957         21,778   24,180     
Compensation Clawback    —   —         (3,870)  —     
Litigation Settlement and Related Costs, Net    —   99,675         —   99,675     
     (9,394)  (7,071)        (24,228)  (21,066)    
Adjusted EBITDA   $39,721  $37,367  17.5 % 17.4 %   $113,465  $98,725  17.2 % 16.2 %
Capital Expenditures                    
Electronic Systems   $3,663  $1,216        $6,725  $4,264     
Structural Systems    1,670   1,029         4,681   6,272     
Corporate Administration    268   109         510   122     
Total Capital Expenditures   $5,601  $2,354        $11,916  $10,658     


(1) Includes costs not allocated to either the Electronic Systems or Structural Systems operating segments.

(2) The three and nine months ended October 3, 2026 included $0.1 million and $0.2 million, respectively, of stock-based compensation expense recorded as cost of sales. The three and nine months ended September 27, 2025 each included $0.1 million of stock-based compensation expense recorded as cost of sales.

(3) The three and nine months ended October 3, 2026 included $0.1 million and $0.2 million, respectively, of stock-based compensation expense recorded as cost of sales. The three and nine months ended September 27, 2025 included less than $0.1 million and $0.2 million, respectively, of stock-based compensation expense recorded as cost of sales.

(4) The three and nine months ended October 3, 2026 included zero and $0.3 million, respectively, of stock-based compensation expense for awards with both performance and market conditions that will be settled in cash. The three and nine months ended September 27, 2025 included $0.2 million and $1.4 million, respectively, of stock-based compensation expense for awards with both performance and market conditions that will be settled in cash.

 
DUCOMMUN INCORPORATED AND SUBSIDIARIES
GAAP TO NON-GAAP OPERATING INCOME (LOSS) RECONCILIATION
(Unaudited)
(Dollars in thousands)
     
  Three Months Ended Nine Months Ended
GAAP To Non-GAAP Operating Income (Loss) October 3,
2026
 September 27,
2025
 %
of Net  Revenues
2026
 %
of Net  Revenues
2025
 October 3,
2026
 September 27,
2025
 %
of Net  Revenues
2026
 %
of Net  Revenues
2025
GAAP operating income (loss) $25,795  $(75,317)     $69,846  $(52,617)    
                 
GAAP operating income - Electronic Systems $28,746  $23,286      $77,146  $61,194     
Adjustments to GAAP operating income - Electronic Systems:                
Restructuring charges  —   71       —   242     
Amortization of acquisition-related intangible assets  373   373       1,120   1,120     
Total adjustments to GAAP operating income - Electronic Systems  373   444       1,120   1,362     
Non-GAAP adjusted operating income - Electronic Systems  29,119   23,730  22.5 % 18.9 %  78,266   62,556  20.7 % 18.2 %
                 
GAAP operating income - Structural Systems  11,944   12,215       35,143   31,429     
Adjustments to GAAP operating income - Structural Systems:                
Restructuring charges  —   512       —   1,375     
Amortization of acquisition-related intangible assets  1,859   1,859       5,578   5,578     
Total adjustments to GAAP operating income - Structural Systems  1,859   2,371       5,578   6,953     
Non-GAAP adjusted operating income - Structural Systems  13,803   14,586  14.2 % 16.4 %  40,721   38,382  14.4 % 14.6 %
                 
GAAP operating loss - Corporate  (14,895)  (110,818)      (42,443)  (145,240)    
Adjustments to GAAP Operating Loss - Corporate                
Compensation clawback  —   —       (3,870)  —     
Litigation settlement and related costs, net  —   99,675       —   99,675     
Total adjustments to GAAP Operating Loss - Corporate  —   99,675       (3,870)  99,675     
Non-GAAP adjusted operating loss - Corporate  (14,895)  (11,143)      (46,313)  (45,565)    
Total non-GAAP adjustments to GAAP operating income (loss)  2,232   102,490       2,828   107,990     
Non-GAAP adjusted operating income $28,027  $27,173  12.3 % 12.7 % $72,674  $55,373  11.0 % 9.1 %


     
DUCOMMUN INCORPORATED AND SUBSIDIARIES
GAAP TO NON-GAAP NET INCOME (LOSS) AND EARNINGS (LOSS) PER SHARE RECONCILIATION
(Unaudited)
(Dollars and shares in thousands, except per share amounts)
     
  Three Months Ended Nine Months Ended
GAAP To Non-GAAP Net Income (Loss) October 3,
2026
 September 27,
2025
 October 3,
2026
 September 27,
2025
GAAP net income (loss) $13,891  $(60,827) $44,206  $(46,671)
Adjustments to GAAP net income (loss):        
Restructuring charges  —   583   —   1,617 
Gain on sale of property and other assets  —   —   —   (1,746)
Litigation settlement and related costs, net  —   99,675   —   99,675 
Compensation clawback  —   —   (3,870)  — 
Pension plan settlement loss  3,872   —   3,872   — 
Amortization of acquisition-related intangible assets  2,232   2,232   6,698   6,698 
Total adjustments to GAAP net income (loss) before provision for income taxes  6,104   102,490   6,700   106,244 
Income tax effect on non-GAAP adjustments (1)(2)  (1,221)  (22,890)  (2,156)  (23,641)
Non-GAAP adjusted net income $18,774  $18,773  $48,750  $35,932 


  Three Months Ended Nine Months Ended
GAAP Earnings (Loss) Per Share To Non-GAAP Earnings (Loss) Per Share October 3,
2026
 September 27,
2025
 October 3,
2026
 September 27,
2025
GAAP diluted earnings (loss) per share (“EPS”) $0.89  $(4.06) $2.84  $(3.13)
Adjustments to GAAP diluted EPS:        
Restructuring charges  —   0.04   —   0.10 
Gain on sale of property and other assets  —   —   —   (0.11)
Litigation settlement and related costs, net  —   6.49   —   6.53 
Compensation clawback  —   —   (0.25)  — 
Pension plan settlement loss  0.25   —   0.25   — 
Amortization of acquisition-related intangible assets  0.14   0.14   0.43   0.44 
Total adjustments to GAAP diluted EPS before provision for income taxes  0.39   6.67   0.43   6.96 
Income tax effect on non-GAAP adjustments (1)(2)  (0.07)  (1.49)  (0.14)  (1.55)
Non-GAAP adjusted diluted EPS (3) $1.21  $1.22  $3.13  $2.35 
         
GAAP weighted-average shares - basic  15,156   14,978   15,117   14,925 
GAAP weighted-average shares - diluted  15,559   14,978   15,581   14,925 
Non-GAAP weighted-average shares - diluted (4)  15,559   15,361   15,581   15,267 


(1) Effective tax rate of 20.0% used for both 2026 and 2025 adjustments, except for litigation settlement and related costs, net which utilized the incremental tax rate of 22.4%.

(2) Compensation clawback tax deductible portion is $0.2 million for the nine months ended October 3, 2026.

(3) Non-GAAP adjusted diluted EPS will not foot for the three and nine months ended September 27, 2025 as the GAAP net loss per share was calculated using the GAAP weighted-average shares - basic but the adjustments to GAAP diluted EPS and Non-GAAP adjusted diluted EPS were calculated using the Non-GAAP weighted-average shares - diluted.

(4) In periods of GAAP net loss, non-GAAP weighted-average shares differs from GAAP diluted weighted-average shares due to the non-GAAP net income reported.

     
DUCOMMUN INCORPORATED AND SUBSIDIARIES
REMAINING PERFORMANCE OBLIGATIONS BY REPORTING SEGMENT
(Unaudited)
(Dollars in thousands)
     
  October 3,
2026
 December 31,
2025
Consolidated Ducommun    
Military and space $867,595 $692,719
Commercial aerospace  404,484  402,174
Industrial  14,104  11,147
Total $1,286,183 $1,106,040
Electronic Systems    
Military and space $634,040 $492,244
Commercial aerospace  74,536  49,535
Industrial  14,104  11,147
Total $722,680 $552,926
Structural Systems    
Military and space $233,555 $200,475
Commercial aerospace  329,948  352,639
Total $563,503 $553,114


Under generally accepted accounting principles in the United States Accounting Standards Codification 606, the Company defines performance obligations as customer placed purchase orders (“PO”) with firm fixed price and firm delivery dates. The unrecognized revenue on POs are the remaining performance obligations.

 
DUCOMMUN INCORPORATED AND SUBSIDIARIES
NON-GAAP BOOK-TO-BILL RATIO CALCULATION - SUPPLEMENTAL DATA
(Unaudited)
(Dollars in thousands)
     
Consolidated Ducommun Three Months Ended October 3, 2026 Three Months Ended September 27, 2025
  Bookings,
Net (1)
 Revenue Non-GAAP
Book-to-Bill
 Bookings,
Net (1)
 Revenue Non-GAAP
Book-to-Bill
Military and Space $ 263,461  $ 118,609   2.2  $ 195,242  $ 127,837   1.5 
Commercial   81,749    97,200   0.8    135,044    76,135   1.8 
Industrial   9,070    11,214   0.8    9,366    10,450   0.9 
Totals $ 354,280  $ 227,023   1.6  $ 339,652  $ 214,422   1.6 


(1) Bookings, net is period ending remaining performance obligations (“RPO”) plus revenue recognized in the period less prior period ending RPO.


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