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DCO · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Ducommun Incorporated (DCO) stock moving?
Ducommun reported a beat on Q3 2026 (adjusted EPS $1.21 vs. $1.15 expected, sales $227.0M vs. $221.9M) with record revenue, record 28.9% gross margin, and record RPO of $1.3B. Commercial aerospace grew 28% year over year, nearing a $100M quarterly run rate, and defense book-to-bill reached 2.2x, though defense revenue was temporarily weaker on program timing. Despite the beat, the stock fell from $156.33 on Nov 4 to $132.50 on Nov 5 on about 543K shares, more than double recent daily volume, with an intraday low of $128.47. The shares have since recovered to $145.58 on Nov 10, but remain below the pre-earnings range of roughly $156 to $168. Both RBC (Sector Perform, target cut to $155 from $180) and B. Riley (Buy, target cut to $203 from $222) lowered targets after the report, yet both remain above the current price. The company's VISION 2027 goal of 18% adjusted EBITDA margin is close, with the CFO presenting at the RBC conference on Nov 17.
News behind the analysis
- Ducommun Incorporated Reports Third Quarter 2026 ResultsReported record Q3 net revenue of $227.0M (up 6%), record 28.9% gross margin, and record RPO of $1.3B with defense book-to-bill at 2.2x.
- Ducommun Q3 Adj. EPS $1.21 Beats $1.15 Estimate, Sales $227.023M Beat $221.929M EstimateAdjusted EPS of $1.21 and sales of $227.0M both topped consensus estimates for the quarter.
- Ducommun Q3 2026 Earnings Call TranscriptFull transcript of the third-quarter 2026 earnings call, where management discussed commercial aerospace growth and defense timing.
- RBC Capital Maintains Sector Perform on Ducommun, Lowers Price Target to $155RBC kept its Sector Perform rating and cut its price target to $155 from $180.
- B. Riley Securities Maintains Buy on Ducommun, Lowers Price Target to $203B. Riley kept its Buy rating and lowered its price target to $203 from $222.
- B. Riley Adjusts Ducommun Price Target to $203 From $222B. Riley has lowered its price target for Ducommun to $203 from $222 while maintaining a Buy rating.
- RBC Adjusts Ducommun Price Target to $155 From $180RBC has lowered its price target for Ducommun to $155 from $180 while maintaining a Sector Perform rating.
- RBC Cuts Price Target on Ducommun to $180 From $200, Keeps Sector Perform RatingRBC lowered its price target for Ducommun to $180 from $200 while maintaining a Sector Perform rating.
- Ducommun to Participate in RBC Global Industrials ConferenceCFO Suman Mookerji will present at the RBC Capital Markets Global Industrials Conference on November 17, 2026.
About Ducommun Incorporated
Ducommun is a Costa Mesa, California-based supplier of parts and assemblies for aircraft, missiles and space systems, including aerostructures, cable and wire harnesses, circuit boards and other electronics. It doesn't sell finished aircraft. Instead it builds pieces for big defense and aerospace companies such as RTX (its largest customer), Lockheed Martin and Boeing. Its missile, radar and electronic-warfare work is a growing part of the business.
How it makes money
Ducommun makes money by manufacturing parts to order under contracts with large aerospace and defense companies. It reports two segments. Electronic Systems (about half of sales) makes cables, harnesses, circuit boards and electronic assemblies. Structural Systems makes aircraft structures and parts. Defense programs are the larger share of revenue. They include missiles such as the Patriot PAC-3, SM-6 and Tomahawk, plus fighter jets like the F-15 and F-35. Missiles, radar and electronic warfare together are roughly a fifth of total sales. Commercial aerospace work, such as parts for the Boeing 737 MAX and Airbus A320, is the other major source. Quarterly revenue was a record of roughly $227 million in Q3 2026, and its order backlog was above roughly $1.2 billion.
What usually moves DCO
- US defense and missile production budgets
- Boeing and Airbus single-aisle jet production rates
- Customer inventory destocking cycles
- Gross and EBITDA margin progress toward its VISION 2027 targets
- Order bookings and backlog growth