Q2 2026 Ducommun Incorporated Earnings Call Transcript

Aug 6, 2026 / 05:00 PM GMT

Release Date Price: €174.8 (+7.24%)

Transcript 10-Q8-K

Key Points

Positve

Record Q2 revenue of $224 million, up 12% year-over-year, marking the fifth consecutive quarter above $200 million.
Strong growth across all end markets, with commercial aerospace up 16% and military/space up 7%.
Record backlog of $1.16 billion, up $250 million year-over-year, with a book-to-bill ratio of 1.4x in the quarter.
Gross margin expanded to 28% (up 160 bps) and adjusted EBITDA margin reached 17.1%, on track for the 18% Vision 2027 goal.
Missile business grew 68% in Q2 and 29% over the past 12 months, with strong positioning for future defense prime orders.
Facility consolidation program synergies are now fully realized, contributing to margin expansion.
New aftermarket retrofit order for the 737 MAX (Carson switch) provides multi-year revenue opportunity and supports engineered product growth.
Strong liquidity of $410 million and a new credit facility with lower cost of capital to support M&A.
Adjusted EPS of $1.18, up from $0.90 year-over-year, driven by higher operating income.
Positive outlook for 2027 with easing destocking and expected production rate increases from Boeing and Airbus.

Negative

Destocking in commercial aerospace remains a headwind, expected to last through the end of 2026.
Q2 results benefited from pulling forward production from H2, leading to more muted growth (low-to-mid single digits) in Q3 and Q4.
Temporary weakness in radar, space, and naval revenues due to timing of orders.
Supply chain challenges at Airbus, particularly with engines, could impact production rates.
Cash flow from operations in Q2 was only $3.5 million, down from $22.4 million last year, due to higher working capital.
Interest expense increased year-over-year due to higher debt balances, despite lower rates.
The company's contract manufacturing business, while profitable, is not considered engineered products, which may limit margin expansion in that segment.
Potential for further delays in missile framework agreements with defense primes, which could impact order flow.
The company faces risks from tariffs, elevated interest rates, and potential government shutdowns.
The company's growth is partly dependent on successful execution of M&A strategy, which has been slow to materialize.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

DCO.N - Ducommun Incorporated
Q2 2026 Ducommun Incorporated Earnings Call
Aug 06, 2026 / 05:00PM GMT

=====================
Presentation
--------------------------------------------------------------------------------
Unidentified_1 [1]
--------------------------------------------------------------------------------
Good day and welcome to the Dohamon second quarter 2026 earnings conference call at this time, all participants are in a listen-only mode.

After the speaker presentation, there will be a question-and-answer session.

To ask a question during the session, you'll need to press 11 on your telephone, you will then hear an automated message advising your hand is raised.

To withdraw your question, press 11 again.

Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker, Mr.

Suman Mukherjee, Vice President and Chief Financial Officer, please go ahead.

Thank you and welcome to the Commons 20,262 quarter

Already have an account? Log in

Get the full story

Subscribe Now

	Access to All Earning Calls and Stock Analysis
	30-Year Financial on one screen
	All-in-one Stock Screener with unlimited filters
	Customizable Stock Dashboard
	Real Time Insider Trading Transactions
	8,000+ Institutional investors’ 13F holdings
	Powerful Excel Add-in and Google sheets Add-on
	All data downloadable
	Quick customer support
	And much more...

7-Day Free Trial · Cancel Anytime

Subscription fee may be tax deductible.

Excellent

4.6 out of 5

Trustpilot

Research Tools

All-In-One Screener Stock Ideas Stock List Guru List Guru Real-Time Picks Insider List Insider Trades Economic Indicators Sector & Industry Performance DCF Calculator Calculators Discussion Board

Product

Pricing Plans Excel Add-In Google Sheets Add-on Data API Stock Comparison Table Manual of Stocks Instant Alerts Mobile App Newsletters Signup 中文

Education

Financial Glossary Tutorials FAQ Buffett Indicator Shiller P/E Yield Curve Today U.S. Inflation Rate Global Market Valuation Fed Net Liquidity Buffett Assets Allocation

Company

About GuruFocus Career Contact Us Advertise Term of Use Privacy Policy Referral Program Partner Program

Survey

We'd love to learn more about your experiences on GuruFocus.com and how we can improve!

Take Survey

Disclaimers

GuruFocus.com is not operated by a broker or a dealer. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar, with priority given to Refinitiv data. Data is updated daily.