Ducommun, Inc. (DCO)
NYSEIndustrialsAerospace & DefenseSnapshot 2026-09-04
$168.32+1.08%
Close 2026-09-04 · 1-day change
NYSEIndustrialsAerospace & DefenseSnapshot 2026-09-04
QuarterlyIQ Insights · DCO
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within industrials on a research-validated quality screen. As of 2026-09-04.
The screen ranks DCO against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Industrials names rated neutral grew net income 51% of the time over the next year (vs 60% for the rest of the cohort, n=9249).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Continue driving revenue and gross margin growth to meet VISION 2027 financial goals, including 18% Adjusted EBITDA target.
Stated as a priority in 3 of last 3 quarters. Revenue grew from $192.5 million in 2025-Q1 to $224.5 million in 2026-Q2 (+12% YoY in latest quarter). Gross margin expanded from 26.4% to 28.0%, and Adjusted EBITDA margin rose from 15.8% to 17.1% year-over-year. The Company exceeded $800 million revenue in 2025, reaching $825 million. Management is delivering progress toward VISION 2027 financial goals including the 18% Adjusted EBITDA target.
“Our team continued to make great progress towards our VISION 2027 goals with another record for revenue and gross margin during the second quarter.”
“Our team continued to make great progress towards our VISION 2027 goals with another record for revenue during the first quarter along with strong gross margin and Adjusted EBITDA margins.”
“The Company set a new record for revenue for the third consecutive year, exceeding $800 million for the first time.”
Address destocking pressures in commercial aerospace while building momentum for growth in 2027 and 2028.
Stated as a priority in 3 of last 3 quarters. Management acknowledges destocking headwinds in commercial aerospace through 2026 but notes these pressures are easing gradually. The outlook for 2027 and 2028 is described as very promising. Revenue growth in commercial aerospace contributed to overall 12% revenue increase in 2026-Q2, indicating partial delivery and improving momentum.
Expand revenue and orders in missile and defense platforms, leveraging long-term Department of War agreements.
Stated as a priority in 3 of last 3 quarters. Missile franchise revenue increased by $7.9 million year-over-year in 2026-Q2, contributing to overall military and space market growth. Management highlights strong positioning for a major ramp-up in missile production supported by long-term Department of War agreements. The trajectory shows delivering growth in this segment.
“Ducommun's missile franchise continues to gain strength both in revenue and orders, well positioned to benefit from expected major ramp-up in missile production.”
Manage stock-based compensation costs to limit impact on operating expenses and earnings.
Stated as a priority in 2 of last 2 quarters. Management expected higher stock-based compensation expense in 2026-Q1 ($5.0M to $6.0M) but maintained full-year 2026 guidance unchanged. Actual stock-based compensation expense decreased from $15.7 million in 2025-Q1 to $11.4 million in 2026-Q1, indicating some control over costs. The trajectory shows mixed progress with ongoing focus.
The company aims to achieve record revenue for the third consecutive year, exceeding $800 million.
Over the trailing year it converted 1.14x of net income into operating cash flow. Historically, Industrials names rated neutral grew net income 59% of the time over the next year (vs 53% for the rest of the cohort, n=6654).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity (low R² over the window).
5 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Industrials names rated neutral grew net income 58% of the time over the next year (vs 56% for the rest of the cohort, n=3431).
Not investment advice. As of 2026-09-04.
“We expect to see some continued destocking headwinds in the remaining quarters of 2026, we have begun to see those pressures ease gradually.”
“While we expect to see some destocking headwinds in the remaining quarters of 2026, the outlook is very promising, especially in 2027 and 2028.”
“We are optimistic for greater revenue growth year-over-year in second half of 2025 as market demand increases.”
“Ducommun's defense business saw growth yet again with our missile franchise specifically the Patriot missile platform being a highlight.”
“The Company is well positioned to benefit from the Department of War's long-term 7 year framework agreements for key missile programs.”
“The Company expects to incur higher stock-based compensation expense of approximately $5.0 million to $6.0 million in Q1 2026.”
“The Company does not expect a change to its expectations for stock-based compensation expense for full fiscal year 2026.”