Ducommun Inc. (NYSE:DCO) reported third-quarter results on Thursday that surpassed analyst forecasts, supported by another strong performance in its defense segment even as commercial aerospace activity remained under pressure. The company’s stock climbed 2.12% in premarket trading following the release.
The aerospace and defense manufacturer posted adjusted earnings of $0.99 per share, topping the consensus estimate of $0.97. Revenue rose 6% year over year to $212.6 million, marginally above Wall Street’s forecast of $211.41 million, as demand for missiles and radar systems continued to drive growth.
Ducommun’s Electronic Systems division led the advance, with revenue up 6.6% to $123.1 million, fueled by strong contributions from missiles, radar systems, and military fixed-wing aircraft. Meanwhile, the Structural Systems segment grew 4% to $89.5 million, supported by gains in military rotorcraft and ground vehicles, which helped offset weakness tied to Boeing and regional aircraft programs.
Bookings during the quarter reached $338 million, reflecting a book-to-bill ratio of 1.6x, signaling sustained demand momentum. The company’s remaining performance obligations rose 8% year over year to $1.03 billion, pointing to a solid backlog.
However, on a GAAP basis, Ducommun posted a net loss of $64.4 million due to a $99.7 million litigation settlement and associated expenses.
Despite that one-time charge, management reaffirmed its full-year 2025 revenue growth outlook in the mid-single digits, adding that growth is expected to accelerate to low double digits in the fourth quarter, driven by robust defense orders and improving execution.