Ducommun Q4 Revenue Rises 9.4% to $215.8M, RPO Hits $1.1B
Ducommun reported Q4 net revenue of $215.8 million, a 9.4% increase year-over-year, with gross margin expanding 420 basis points to 27.7% and non-GAAP EPS of $1.05. Full-year revenue hit a record $825 million with RPO reaching $1.106 billion and book-to-bill at 1.3x.
1. Q4 Financial Highlights
Ducommun delivered Q4 net revenue of $215.8 million, up 9.4% versus prior year, driven by growth across military and space platforms. Gross margin widened to 27.7%, while non-GAAP adjusted net income rose 43% to $16.2 million, representing $1.05 per diluted share, and adjusted EBITDA margin reached 17.5%.
2. Record Backlog and Bookings
Remaining performance obligations climbed to a record $1.106 billion, supported by a book-to-bill ratio of 1.3x, led by strong missile platform orders. Defense business strength was fueled by increased rates on fixed-wing, rotorcraft and missile programs, with long-term agreements in place with RTX and Lockheed.
3. Outlook and Strategic Goals
Full-year revenue surpassed $800 million for the third consecutive year, reaching $825 million, as gross margins and adjusted EBITDA margins set new records. Management reiterated its commitment to VISION 2027 margin targets, anticipates continued defense spending growth, expects commercial aerospace to recover in H2 2026, and sees minimal tariff impact on its U.S.-centric operations.