Ducommun Incorporated (NYSE: DCO) is a Costa Mesa based aerospace and defense subcontractor that produced record second quarter fiscal 2026 results while carrying a restated fiscal 2025 behind it. The company's core business is building electronic and structural components for commercial aircraft and military programs. This is a specialty shop that has spent a decade climbing the content value chain.
The second quarter ended July 4, 2026. Net revenue hit a company record of $224.5 million. Gross margin reached a record 28.0% in the same period, and the level of profitability is the highest the operating business has ever shown. The quarter marks the clearest evidence yet that the turnaround is real.
The shares sat at roughly $168, near the middle of a 52 week trading range. The range spanned $84.76 to $210.39 over that stretch, and the stock has held its footing through a restated prior year. Enterprise value of about $2.78 billion stands against the forward earnings power. That valuation is about 18.5x earnings, and the bull case rests on three observable facts while the bear case rests on two. The debate over those two cases is the center of gravity for the investment.
On the positive side, the framework targets $950 million to $1.0 billion of net revenue by the plan horizon. The framework also targets an 18% adjusted EBITDA margin, and the second quarter margin sits just under that level. Remaining performance obligations reached an all time high of $1.2 billion, and the missile franchise is entering a production ramp that management calls the largest single driver of future revenue growth. On the negative side, fiscal 2025 delivered a restatement driven by an error in stock based compensation timing. That year also produced a $5.0 million executive clawback and a $107.3 million litigation settlement tied to the Guaymas fire. The reported net loss for that year was $33.9 million. The tension between an operating business that is compounding and a reporting history that requires a credibility haircut is the entire investment debate in one sentence.