Ducommun reported record third quarter revenue and gross margins, exceeding analyst expectations for both top and bottom-line results. Performance was driven by a significant ramp in commercial aerospace, which surged 28% year-over-year, nearly reaching a $100 million quarterly run rate. Despite temporary timing-related weakness in defense revenues, the company achieved an all-time high backlog supported by a massive 2.2x defense book-to-bill ratio.
Key Highlights
- Record net revenue of $227.0 million grew 6% year-over-year, beating the consensus estimate of $214.33 million.
- Adjusted EPS of $1.21 surpassed the $1.06 estimate, aided by a record gross margin of 28.9%, a 140 bps improvement.
- Remaining performance obligations (backlog) hit an all-time high of $1.3 billion, well ahead of the $1.08 billion analyst projection.
- Commercial aerospace growth was highlighted by higher build rates for the Boeing 737 MAX and Airbus A320 platforms.
- Defense segment bookings were exceptionally strong at $263.5 million for the quarter, positioning the company for multi-year growth despite a 7% decline in quarterly defense revenue.