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COSTA MESA, Calif. - Ducommun Incorporated (NYSE: DCO), a key provider of engineering solutions for the aerospace and defense sectors with a market capitalization of $835 million and annual revenue of $787 million, announced today that the company is well-positioned to face the newly enacted tariffs, thanks to its substantial U.S.-based operations. According to Ducommun, 95% of its revenue comes from its American manufacturing activities, with its sole international facility in Guaymas, Mexico, falling under the United States-Mexico-Canada Agreement, which mitigates the impact of the tariffs. InvestingPro data shows the company maintains a healthy current ratio of 3.24, indicating strong liquidity to support its operations.
Stephen G. Oswald, the chairman, president, and CEO of Ducommun, expressed confidence in the company’s strategy, emphasizing their commitment to maintaining high-quality production and on-time delivery for their customers and the U.S. warfighter. Oswald highlighted the company’s solid domestic presence, both in terms of operations and its supplier base, as a strategic advantage under the new U.S. trade policies.
Founded in 1849, Ducommun has a long history of providing complex products and components for commercial aircraft, military and space programs, and industrial applications. The company’s focus on innovative manufacturing solutions has been a cornerstone of its business model. According to InvestingPro analysis, which offers 8 additional key insights about the company’s performance, Ducommun has demonstrated a strong return over the last five years.
The recent statement from Ducommun also included forward-looking remarks concerning the potential effects of the tariffs. These statements, as noted by the company, are subject to various risks and uncertainties that could cause actual results to differ from expectations.
Ducommun’s announcement is based on a press release statement, and it is important to consider the inherent uncertainties in forward-looking statements. Investors are encouraged to evaluate these statements in light of the risks and uncertainties involved.
The company’s shares are publicly traded on the New York Stock Exchange under the ticker symbol DCO. Based on InvestingPro Fair Value analysis, the stock currently appears slightly undervalued, presenting a potential opportunity for investors seeking exposure to the aerospace and defense sector.
In other recent news, Ducommun Incorporated reported its fourth-quarter 2024 earnings, revealing an adjusted earnings per share (EPS) of $0.75, which fell short of the forecasted $0.85. The company generated revenue of $197.3 million, slightly below the anticipated $198.96 million, marking a 2.6% increase year-over-year. Despite the earnings miss, Ducommun achieved a full-year revenue of $786 million, setting a record high with a 3.9% growth. Truist Securities maintained a Buy rating on Ducommun stock with a target price of $82, citing the company’s commitment to its Vision 2027 strategy and expected mid-single-digit revenue growth for 2025. The company also reported a consolidated backlog of $1.06 billion, with significant contributions from a $40 million NATO-related contract. Management expressed optimism about future performance, emphasizing strategic initiatives and resilience in defense programs, as highlighted by CEO Steve Oswald and CFO Suman Mougherjee. Ducommun continues to focus on expanding its Engineered Products segment, which now accounts for 23% of total revenue, up from 19% in 2023.
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