Overview

• Aerospace and defense components maker's Q1 revenue rose 9%, beating analyst expectations

• Adjusted EPS for Q1 missed analyst expectations

• Growth driven by commercial aerospace rebound and strong defense missile demand

Outlook

• Ducommun expects destocking headwinds in commercial aerospace for the rest of 2026

• Company sees strong momentum in missile programs through long-term defense agreements

• Ducommun remains on track to reach 18% adjusted EBITDA margin by 2027

Result Drivers

• COMMERCIAL AEROSPACE DEMAND - Higher rates on large aircraft and rotary-wing platforms led to 18% year-over-year growth in commercial aerospace revenue

• DEFENSE MISSILE PROGRAMS - Increased demand for missile platforms, notably the Patriot missile, and growth in fixed-wing aircraft programs supported defense revenue

• MARGIN EXPANSION - Gross margin rose 70 bps year-over-year due to lower manufacturing costs, favorable product mix, and higher manufacturing volume

Company press release: ID:nGNX23Zwtk

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for Ducommun Inc is $150.00, about 6.6% above its May 11 closing price of $140.68

• The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 25 three months ago

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