Ducommun delivered record fourth-quarter revenue of $215.8 million, achieving a 1.3x book-to-bill ratio and securing over $80 million of orders from the MIR program. Missile franchise orders topped $130 million with bookings on Tomahawk, AMRAAM, THAAD and other platforms. Remaining performance obligations rose by $75 million sequentially to a record $1.1 billion, driven primarily by defense programs.

GAAP diluted EPS increased to $0.48 from $0.45 year-over-year, while adjusted EPS jumped to $1.05 from $0.75, propelled by higher operating income excluding litigation costs. Gross profit climbed to $59.8 million with gross margin expanding to 27.7% from 23.5%, aided by favorable product mix and strategic pricing. Adjusted EBITDA margin reached 17.5%, and adjusted operating margin improved to 11.4% from 8.2%.

Military and space revenue rose to $124 million from $109 million, fueled by fixed-wing, rotorcraft, satellite, missile and radar programs. Commercial aerospace revenue grew 1% to $82 million with gains on 787 and A320 platforms offset by 737 MAX destocking. Structural Systems revenue increased to $96 million with operating margin rising to 17.8% from 9.2%, while Electronic Systems revenue climbed to $120 million with margin expanding to 18.6%.

The company expects mid-to-high single-digit revenue growth in 2026, with low-to-mid single-digit expansion in H1 and a ramp in H2 as commercial aerospace destocking eases. Full-year adjusted EBITDA margin is projected around 16.5% baseline, reflecting blend adjustments after Q4 mix benefits. Litigation settlement payments of $150 million drove Q4 operating cash usage to $74.7 million; excluding those, adjusted operating cash flow was $26.5 million.