Ducommun Incorporated (NYSE:DCO) released mixed first-quarter 2026 results on Monday, with revenue coming in above Wall Street expectations while earnings fell short of analyst forecasts.
Shares of the aerospace and defense supplier were little changed in after-hours trading following the announcement.
The company reported adjusted earnings per share of $0.75, below analyst consensus estimates of $0.85. Revenue, however, rose to $209 million, topping forecasts of $199.65 million and increasing 9% from $192.5 million in the first quarter of 2025.
Commercial Aerospace and Defense Programs Drive Sales
Ducommun said revenue growth was fueled primarily by strong demand across commercial aerospace programs.
Commercial aerospace sales increased 18% year-on-year, supported by higher production activity for single-aisle aircraft platforms including the Airbus A220, A320 and Boeing 737 MAX, as well as commercial rotorcraft programs.
Military and space revenue also increased by $5.4 million during the quarter, benefiting from demand tied to the Patriot missile system and fixed-wing aircraft programs such as the F-35 and F-15.
“An excellent quarter and strong start to 2026 for Ducommun,” said Stephen G. Oswald, chairman, president and chief executive officer.
“Our team continued to make great progress towards our VISION 2027 goals with another record for revenue during the first quarter along with strong gross margin and Adjusted EBITDA margins,” he added.
Margins Improve as EBITDA Rises
Gross margin expanded 70 basis points year-on-year to 26.9%, while adjusted EBITDA increased 19% to $35.4 million.
Adjusted EBITDA margin rose to 16.9% of revenue, compared with 15.4% in the same quarter last year.
Net income climbed sharply to $9.9 million, or $0.64 per diluted share, versus $1.4 million, or $0.09 per diluted share, in the prior-year period.
Both Operating Segments Post Revenue Growth
Ducommun’s Electronic Systems segment generated revenue of $117.6 million during the quarter, up from $109.1 million a year earlier.
Meanwhile, revenue from the company’s Structural Systems division increased to $91.4 million from $83.4 million in the first quarter of 2025.