Ducommun Incorporated (DCO) AI Stock Analysis

Ducommun Incorporated specializes in engineering and manufacturing products and services primarily for the aerospace and defense sectors, as well as industrial and medical industries. It operates two core segments: Electronic Systems and Structural Systems. Electronic Systems produces cable assemblies, interconnect systems, printed circuit board assemblies, lightning diversion systems, radar enclosures, and avionics racks. Structural Systems designs and manufactures contoured aluminum, titanium, and Inconel aerostructures, including winglets, fuselage structural panels, engine components, rotor blades, and flight control surfaces. The company serves commercial aircraft as well as military fixed-wing and rotary-wing platforms.

Ducommun grew annual revenue from $645.4M in FY2021 to $824.8M in FY2025, reflecting a 5-year revenue CAGR of 5.6%. Gross margin expanded from 22.1% in FY2021 to 26.9% in FY2025, while operating margin rose to 8.9%. Despite operating improvements, net income dropped from $135.5M in FY2021 to -$37.4M in FY2025, producing a net margin of -4.5%, although EPS was reported at $3.75. In the latest quarter ended June 30, 2026, quarterly revenue grew 11.8% year-over-year and quarterly earnings grew 56.0%. Trailing twelve month revenue reached $865.1M, with an operating margin of 12.6% and an EPS of -$1.85.

As of June 30, 2026, Ducommun held $39.8M in cash and short-term investments against $335.9M in total debt, resulting in net debt of $296.1M. Shareholders' equity was $690.4M, with total assets of $1.22B. The company maintains a current ratio of 3.36 and a debt-to-equity ratio of 0.49. In FY2025, operating cash flow was -$33.4M and free cash flow was -$48.6M. Capital expenditures totaled $15.2M, alongside $3.2M directed toward share buybacks, while share count increased 27.1% over five years.

DCO trades at a forward P/E of 31.5x, above the 17.2x median of its US-listed Industrials peers. Its price-to-sales multiple of 3.0x and EV-to-EBITDA of 131.5x also compare to peer medians of 1.5x and 13.9x, respectively. The stock has a PEG ratio of 3.34 and an enterprise value of $2.90B. DCO's 1-year return of 86.3% and 5-year return of 246.4% outpaced the S&P 500 benchmark returns of 16.8% and 83.0% over the same periods.

Wall Street coverage includes 5 Strong Buy ratings and 1 Hold rating among analysts. The mean price target is $219.67, representing a 28.6% premium over the last close of $170.76. For the current fiscal year ending December 31, 2026, consensus estimates project EPS of $4.35 (up 16.1%) on revenue of $883.6M. For the following fiscal year, 6 analysts anticipate EPS of $5.37 on revenue of $968.6M. Ducommun has beaten EPS estimates in each of the last 4 quarters, with next earnings scheduled for November 5, 2026.

This page is an AI-written research summary of Ducommun Incorporated (DCO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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