| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 18 | — | 17.6x | Bottom tier | |
Growth | 31 | 8.8% | 7.1% | Bottom tier | |
Quality | 27 | -0.2% | 4.5% | Bottom tier | |
Safety | 32 | 14.9x | 2.6x | Bottom tier | |
Capital Return | 23 | — | 2.15% | Bottom tier | |
Momentum | 85 | 125.7% | 2.3% | Top tier | |
Sentiment | 36 | 3 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Ducommun Incorporated manufactures specialized components and systems for the commercial aerospace, defense, and space markets, generating revenue from two operating segments: Structural Systems and Electronic Systems. Its capabilities include titanium forming, rugged harnesses and interconnects for harsh environments, and engineered products whose designs and intellectual property are owned by the company; the contribution of engineered products increased to 23% of revenue during the twelve months ended in fiscal Q2 2026, compared with 15% in 2022. The company also benefits from aftermarket business, including a Carson-designed switch for retrofitting the 737 MAX fleet, and from missile program contracts including PAC-3, SM-3, SM-6, Tomahawk, THAAD, and AMRAAM.
In fiscal Q2 2026, revenue was approximately $225 million, up 12% year over year, marking the fifth consecutive quarter with revenue exceeding $200 million and the twenty-first consecutive quarter of annual growth. Gross profit was $62.9 million at a record margin of 28%, compared with $53 million and a margin of 26.4% in the corresponding quarter, while net income was $20.4 million and diluted earnings per share were $1.31; the reported results included a nonrecurring benefit from the recovery of executive compensation, while adjusted net income was $18.4 million and adjusted earnings per share were $1.18. Adjusted EBITDA margin reached 17.1%, or $38.4 million, approaching the VISION 2027 target of 18%.
Electronic Systems led the business mix with revenue of $131 million in fiscal Q2 2026, up 20%, and an operating margin of 19.4%, while Structural Systems recorded revenue of $93 million and an operating margin of 13.7%. By end market, commercial aerospace revenue rose 16% to $89 million, supported by the 737 MAX and A321 platforms, wide-body aircraft, and retrofit work, while military and space revenue increased 7% to $124 million, driven by missiles and fixed-wing military aircraft. EDGAR data show a clear improvement from a net loss of $37.4 million in fiscal 2025 to net income of $9.9 million in fiscal Q1 2026, followed by $20.4 million in fiscal Q2 2026.
Automated analysis for informational purposes only — not investment advice.
The average analyst target is $192, within a range of $175 to $209, with a consensus Buy rating; the average target is slightly below the annual high of $210.39, while the highest target nearly matches it. No price-to-earnings multiple is available in the data, so this consensus should be assessed in light of the shift from a fiscal 2025 loss to profitability in the first half of fiscal 2026, as well as the 52-week range of $84.76 to $210.39 and the sharp repricing it reflects.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
Revenue was approximately $225 million in fiscal Q2 2026, up 12% year over year. Commercial aerospace revenue rose 16% to $89 million, supported by the 737 MAX, A321, and wide-body aircraft, while military and space revenue grew 7% to $124 million. The missile business was the fastest-growing driver, expanding 68% in the quarter and 29% over the trailing twelve months, with a notable contribution from PAC-3.
Remaining performance obligations reached a record $1.16 billion in fiscal Q2 2026. The balance increased by more than $250 million from the prior year and by $85 million from the previous quarter, and the company recorded a book-to-bill ratio of 1.4 times during the quarter. The annual increase included $197 million in defense and $54 million in commercial aerospace, without including some potential orders related to long-term missile agreements at that time.
Gross margin increased to a record 28% from 26.4% in the corresponding quarter, and gross profit reached $62.9 million. Adjusted operating income margin was 11.9%, and adjusted EBITDA margin was 17.1%, compared with the VISION 2027 target of 18%. Management attributed the improvement to facility consolidation savings, estimated at approximately $13 million annually, reaching their full run rate, as well as higher manufacturing volume, pricing, and the engineered product mix.
Ducommun's cited programs include PAC-3, SM-3, SM-6, Tomahawk, THAAD, and AMRAAM, as well as Naval Strike Missile. The missile business grew 68% in fiscal Q2 2026, and missiles, radar, and electronic warfare together represented approximately 35% of defense revenue over the trailing twelve months and more than 20% of the company's total revenue. Management reported that most of the required production capacity is available, with an additional 25 thousand to 30 thousand square feet in Joplin allocated to Tomahawk work.
Management reaffirmed its expectation of mid- to high-single-digit revenue growth for full-year fiscal 2026. However, it expects low- to mid-single-digit growth in both fiscal Q3 and Q4 2026 because some production and revenue were pulled forward into the first half. It also expects some commercial aerospace destocking to continue through the end of fiscal 2026, with defense and commercial aerospace growth continuing at a slower pace than in the first half.
The company depends significantly on RTX, its largest customer, and Boeing, its second-largest customer, increasing its sensitivity to changes in production rates and order timing. Operational risks include continued destocking, Airbus engine challenges, and the need to hire workers to support increased missile production after adding approximately 80 to 90 employees in Joplin since January 2026. Financially, interest expense was $3.5 million in fiscal Q2 2026 as debt balances increased, although the $650 million credit facility and the hedge on $150 million of debt mitigate financing costs.
