Ducommun Reports $202.3 Million Revenue and $12.6 Million Net Income in Q2 2025

Ducommun Incorporated reported a net revenue of $202.3 million for the second quarter of 2025, reflecting a 1.3% increase from $197.0 million in the same period last year. The company's net income rose significantly to $12.6 million, or $0.82 per diluted share, compared to $7.7 million, or $0.52 per diluted share, in the prior year. This increase in profitability was attributed to higher gross profit, lower restructuring charges, and increased other income, despite a rise in income tax expenses.

In terms of operational performance, Ducommun's Electronic Systems segment saw a revenue increase of 8.7% to $110.2 million, driven primarily by higher sales in military and space markets. Conversely, the Structural Systems segment experienced a decline in revenue of 3.7% to $92.0 million, largely due to decreased sales in the commercial aerospace sector, particularly from Boeing. The overall gross profit margin improved to 26.6% for the quarter, up from 26.0% a year earlier, aided by lower manufacturing costs and reduced restructuring charges.

The company has also made strategic moves, including the sale of its Berryville, Arkansas facility for $2.0 million, which resulted in a gain of $1.2 million. Ducommun continues to focus on restructuring efforts initiated in April 2022, which are expected to yield annual cost savings of $11.0 million to $13.0 million. As of June 28, 2025, the company reported total assets of $1.14 billion, with total liabilities of $433.0 million, reflecting a decrease in long-term debt from $229.8 million at the end of 2024 to $218.1 million.

Looking ahead, Ducommun anticipates continued growth driven by its military and space markets, although it remains cautious about potential impacts from macroeconomic factors, including tariffs and government spending on defense. The company expects to maintain its focus on strategic acquisitions and capital expenditures to support long-term contracts in both commercial and military sectors. The recent enactment of the One Big Beautiful Bill Act, which reinstates immediate expensing of research and development expenditures, is also expected to positively influence the company's financial outlook.