Ducommun reported record revenue and gross margin for the third quarter of 2026, with growth in commercial aerospace offsetting a temporary dip in defense revenue. The company also ended the quarter with record remaining performance obligations and particularly strong defense bookings, which it said support expectations for continued momentum in that business in 2027.
Key details
- Revenue reached a quarterly record of $227.0 million, up 6% from the third quarter of 2025.
- Gross margin was a record 28.9%, an increase of 1.4 percentage points year over year.
- Net income was $13.9 million, or 89 cents per diluted share, compared with a $60.8 million net loss a year earlier. Adjusted net income was $18.8 million, or $1.21 per diluted share.
- Adjusted EBITDA was $39.7 million, up 6% year over year and equal to 17.5% of revenue. The adjusted EBITDA margin improved by 0.1 percentage point.
- Commercial aerospace revenue grew 28% year over year, driven by the Boeing 737 MAX and Airbus A320 single-aisle aircraft programs. Ducommun said the business was nearing a quarterly revenue run rate of $100 million.
- Defense revenue was temporarily weaker, which the company attributed to the timing of orders and production. It cited softness in ground vehicles, Blackhawk and Apache helicopters, and selected radar programs, while reporting growth in Tomahawk, MIR and TOW missile programs and on the F-15.
- Bookings totaled $354.3 million, equal to a company-wide book-to-bill ratio of 1.6 times—meaning bookings exceeded revenue for the quarter. Defense bookings were 2.2 times defense revenue.
- Remaining performance obligations reached a record $1.3 billion, indicating a larger base of work scheduled for future delivery.
- CEO Stephen Oswald said the results advanced the company’s VISION 2027 goals and positioned it for its VISION 2032 plan, which was communicated in September.
What the results indicate
The quarter combined strong commercial aerospace growth with a timing-related slowdown in parts of the defense business. Defense bookings substantially exceeded defense revenue, while the record obligations base points to significant scheduled work ahead. Ducommun said it expects defense momentum to continue in 2027.