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

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

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.)