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Ducommun Inc

Ducommun Inc

DCO
$168.47USD↓-0.12%-0.20 today

MARKET CAP

2.5B

P/E (TTM)

45.9x

FWD P/E

35.2x

DAY RANGE

$163 – $173

52W RANGE

$85
$197

AI Summary

Stalk
Buy NowMedium

DCO remains in a Stage 2 advancing uptrend, supported by a clear Higher Highs & Higher Lows structure and rising EMAs. The medium-term outlook is bullish, with recent pullbacks into the 21 EMA absorbing selling pressure and offering a buyable support zone. Short-term indicators align with bullish timing, favoring immediate participation. Moderate stage transition risk and flattening shorter EMAs warrant caution and a tight invalidation.

  • ↑Q1 ’26 revenue $209M (+9% YoY) with military revenue +15%
  • ↑Gross margin rose to 26.9% (+70bps YoY) en route to 18% EBITDA target
  • ↓Commercial aerospace destocking expected to weigh on Q2–Q4 revenues
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The case for & against

Bull & Bear analysis

Bullish

Ducommun Incorporated (NYSE:DCO) is a prominent participant in the defense and commercial aerospace sectors, focusing on engineered product solutions including missile and electronic warfare systems. The company is well-positioned within a robust growth environment characterized by rising defense budgets and a recovering commercial aerospace market. Ducommun aims to capitalize on these trends through its ambitious Vision 2027 strategy, increasing engineered product content and executing efficient operational consolidation.

Bull says

  • ↑Q1 ’26 revenue $209M (+9% YoY) with military revenue +15%
  • ↑Gross margin rose to 26.9% (+70bps YoY) en route to 18% EBITDA target
  • ↑Engineered products now 23% of revenue under Vision 2027, boosting margins
  • ↑Cash flow from operations $11.2M vs $0.8M prior year, driving free cash
  • ↑High momentum factor and positive rate sensitivity support further upside
  • ↑Rising U.S. defense budgets and prime partnerships underpin growth outlook

Bear says

  • ↓Commercial aerospace destocking expected to weigh on Q2–Q4 revenues
  • ↓Negative earnings yield and weak profitability factors signal return challenges
  • ↓High short interest and declining 13F ownership reflect institutional skepticism
  • ↓Limited acquisition pipeline limits bolt-on growth amid disciplined valuation
  • ↓Barely positive liquidity and size factors suggest capital constraints
  • ↓Dependence on defense budgets and supply-chain risks heightens cyclicality

Investment themes with DCO

Defense↓ -0.89%

Military equipment and defense contractors

BWXT · RKLB · CRS

Earnings Call · Q1 2025 · Mgmt. Guidance

Updated 05-28-2026neutral

Transcript signals

Bull points

  • our first quarter results reflected another period of solid performance with strong growth in our military end markets.
  • Revenue for the first quarter of 2025 was $194.1 million versus $190.8 million for the first quarter of 2024. The year-over-year increase of 1.7% reflects strong growth in military and space of 15%, driven by increases in electronic warfare, missiles, and radar systems.
  • We posted total gross profit of 51.6 million or 26.6% of revenue for the quarter versus 46.9 million or 24.6% of revenue in the prior year period.

Bear points

  • weakness in our commercial aerospace business, mainly driven by lower revenues on the 737 MAX.
  • The year-over-year decrease was primarily due to lower manufacturing volume and higher manufacturing costs, partially offset by favorable product mix in the quarter.
  • weakness in our commercial aerospace business, mainly driven by lower revenues on the 737 MAX.
Read full transcript analysis ›