Ducommun Incorporated Reports Second Quarter 2025 Results

Ducommun Incorporated, a company specializing in innovative manufacturing solutions for the aerospace, defense, and industrial markets, has released its financial results for the second quarter of 2025. The company reported a solid performance with notable improvements in key financial metrics.

Financial Highlights

For the second quarter of 2025, Ducommun reported net revenue of $202.3 million, marking a 3% increase compared to the same period in 2024. The company achieved a record quarterly gross margin of 26.6%, up from 26.0% in the previous year. Net income saw a significant rise of 63% year-over-year, reaching $12.6 million, or $0.82 per diluted share. Adjusted EBITDA also showed an 8% increase, amounting to $32.4 million, or 16.0% of revenue.

Business and Operational Highlights

The growth in net revenue was driven primarily by a $16.5 million increase in the military and space end-use markets, which offset a $9.0 million decline in the commercial aerospace sector. The company's industrial end-use markets saw a slight decrease of $2.3 million due to selective pruning of non-core business.

Segment-wise, the Electronic Systems segment reported a revenue increase of 8.7% to $110.2 million, while the Structural Systems segment experienced a 3.7% decline, bringing in $92.0 million. The Electronic Systems segment's operating income rose to $21.0 million, or 19.0% of revenue, compared to $16.8 million, or 16.6% of revenue, in the previous year. The Structural Systems segment's operating income decreased to $9.5 million, or 10.4% of revenue, from $10.6 million, or 11.0% of revenue, in the same period last year.

Strategic Initiatives and Corporate Developments

Ducommun continues to make progress towards its VISION 2027 goals, focusing on margin expansion and consistent growth in Adjusted EBITDA. The company has also been proactive in mitigating the impact of tariffs through duty exemptions on military products and passing costs to customers under existing contracts.

Interest expense for the quarter decreased to $3.0 million from $4.0 million in the previous year, attributed to lower interest rates and a reduced debt balance. Net cash provided by operations significantly increased to $22.4 million, compared to $3.5 million in the second quarter of 2024.

Management's Perspective

Stephen G. Oswald, chairman, president, and CEO, expressed confidence in the company's performance, highlighting the strong demand in the defense sector and the anticipated recovery in Boeing's performance. He emphasized the company's achievements in margin expansion and consistent growth in Adjusted EBITDA, aligning with the VISION 2027 financial goals.

Future Outlook

Ducommun remains optimistic about greater revenue growth in the second half of 2025, driven by increasing market demand. The company does not expect the current tariff environment to have a material impact on its financial outlook, given its predominantly U.S.-based manufacturing operations.

SEC Filing: DUCOMMUN INC /DE/ [ DCO ] - 8-K - Aug. 07, 2025