# DUCOMMUN INC /DE/ (DCO) Informational only - not investment advice. CIK: 0000030305 SIC: 3728 Aircraft Parts & Auxiliary Equipment, NEC SIC breadcrumb: [Manufacturing](/division/D/) > [Transportation Equipment](/major-group/37/) > [SIC 3728 Aircraft Parts & Auxiliary Equipment, NEC](/industry/3728/) Latest 10-K filed: 2026-02-26 SEC page: https://www.sec.gov/edgar/browse/?CIK=30305 Filing source: https://www.sec.gov/Archives/edgar/data/30305/000162828026011952/dco-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-05-08 · accession 0001628280-26-032536 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000030305.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 824,839,000 USD | 2025 | verified | | Net income | -37,353,000 USD | 2025 | verified | | Assets | 1,186,415,000 USD | 2025 | verified | | Free cash flow | -48,643,000 USD | 2025 | computed | | Net margin | -4.53% | 2025 | computed | | Operating margin | -4.33% | 2025 | computed | | Revenue YoY | +4.88% | 2025 | computed | | ROE | -5.65% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | DCO | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | -4.5% | 3.7% | 11 | 65 | | Operating margin | -4.3% | 7.3% | 16 | 57 | | Revenue growth | 4.9% | 5.6% | 46 | 73 | | FCF margin | -5.9% | 4.4% | 24 | 72 | | ROE | -5.6% | 6.0% | 27 | 72 | | ROA | -3.1% | 2.8% | 23 | 75 | | Liabilities / equity | 0.79 | 1.45 | 31 | 72 | | Current ratio | 3.49 | 2.20 | 80 | 71 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 37 Transportation Equipment, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 824839000 | USD | 2025 | 2026-05-08 | | Net income | -37353000 | USD | 2025 | 2026-05-08 | | Assets | 1186415000 | USD | 2025 | 2026-05-08 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-08. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000030305.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | 550,642,000 | 558,183,000 | 629,307,000 | 721,088,000 | 628,941,000 | 645,413,000 | 712,537,000 | 756,992,000 | 786,442,000 | 824,839,000 | | Net income | 25,261,000 | 20,077,000 | 9,035,000 | 32,461,000 | 29,174,000 | 135,536,000 | 28,789,000 | 15,928,000 | 21,677,000 | -37,353,000 | | Operating income | 29,216,000 | 15,634,000 | 23,918,000 | 56,233,000 | 45,506,000 | 48,881,000 | 39,788,000 | 28,917,000 | 42,220,000 | -35,735,000 | | Gross profit | 106,540,000 | 103,133,000 | 122,596,000 | 152,197,000 | 137,738,000 | 142,460,000 | 144,297,000 | 163,187,000 | 197,265,000 | 221,615,000 | | Diluted EPS | 2.24 | 1.74 | 0.77 | 2.75 | 2.45 | 11.06 | 2.33 | 1.14 | 1.44 | -2.50 | | Operating cash flow | 43,268,000 | 35,434,000 | 46,237,000 | 51,031,000 | 12,611,000 | -565,000 | 32,680,000 | 31,067,000 | 34,180,000 | -33,405,000 | | Capital expenditures | 17,001,000 | 27,610,000 | 17,617,000 | 18,290,000 | 12,510,000 | 16,863,000 | 19,689,000 | 19,522,000 | 14,129,000 | 15,238,000 | | Assets | 515,429,000 | 566,753,000 | 644,739,000 | 790,429,000 | 837,347,000 | 978,735,000 | 1,021,506,000 | 1,120,919,000 | 1,126,273,000 | 1,186,415,000 | | Liabilities | 303,326,000 | 331,170,000 | 387,914,000 | 497,629,000 | 508,013,000 | 504,133,000 | 495,546,000 | 484,825,000 | 446,151,000 | 524,934,000 | | Stockholders' equity | 212,103,000 | 235,583,000 | 256,825,000 | 292,800,000 | 329,334,000 | 474,602,000 | 525,960,000 | 636,094,000 | 680,122,000 | 661,481,000 | | Cash and cash equivalents | 7,432,000 | 2,150,000 | 10,263,000 | 39,584,000 | 56,466,000 | 76,316,000 | 46,246,000 | 42,863,000 | 37,139,000 | 45,289,000 | | Free cash flow | 26,267,000 | 7,824,000 | 28,620,000 | 32,741,000 | 101,000 | -17,428,000 | 12,991,000 | 11,545,000 | 20,051,000 | -48,643,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | 4.59% | 3.60% | 1.44% | 4.50% | 4.64% | 21.00% | 4.04% | 2.10% | 2.76% | -4.53% | | Operating margin | 5.31% | 2.80% | 3.80% | 7.80% | 7.24% | 7.57% | 5.58% | 3.82% | 5.37% | -4.33% | | Return on equity | 11.91% | 8.52% | 3.52% | 11.09% | 8.86% | 28.56% | 5.47% | 2.50% | 3.19% | -5.65% | | Return on assets | 4.90% | 3.54% | 1.40% | 4.11% | 3.48% | 13.85% | 2.82% | 1.42% | 1.92% | -3.15% | | Liabilities / equity | 1.43 | 1.41 | 1.51 | 1.70 | 1.54 | 1.06 | 0.94 | 0.76 | 0.66 | 0.79 | | Current ratio | 2.62 | 2.75 | 2.25 | 2.36 | 2.87 | 3.03 | 2.64 | 2.99 | 3.24 | 3.49 | ## As-reported value updates 4 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/DCO/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000030305.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q3 | 2022-10-01 | | | 0.69 | reported discrete quarter | | 2023-Q1 | 2023-04-01 | | | 0.42 | reported discrete quarter | | 2023-Q2 | 2023-07-01 | | | 0.17 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 196,250,000 | 3,213,000 | 0.22 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 192,231,000 | 5,110,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-30 | 190,847,000 | 6,849,000 | 0.46 | reported discrete quarter | | 2024-Q2 | 2024-03-30 | | 6,849,000 | | reported discrete quarter | | 2024-Q2 | 2024-06-29 | 197,000,000 | | 0.52 | reported discrete quarter | | 2024-Q3 | 2024-09-28 | 201,412,000 | 10,148,000 | 0.67 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 197,292,000 | 6,774,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-29 | 194,114,000 | 10,511,000 | 0.69 | reported discrete quarter | | 2025-Q2 | 2025-03-29 | | 10,511,000 | | reported discrete quarter | | 2025-Q2 | 2025-06-28 | 202,260,000 | | 0.82 | reported discrete quarter | | 2025-Q3 | 2025-09-27 | 212,558,000 | -64,446,000 | -4.30 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 215,907,000 | 4,029,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-04-04 | 209,022,000 | 9,916,000 | 0.64 | reported discrete quarter | | 2026-Q2 | 2026-04-04 | | 9,916,000 | | reported discrete quarter | | 2026-Q2 | 2026-07-04 | 224,492,000 | | 1.31 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from DCO's latest 10-K: [/company/DCO/business/](/company/DCO/business/). ## Risk Factors Verbatim Item 1A Risk Factors from DCO's latest 10-K: [/company/DCO/risk-factors/](/company/DCO/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/30305/000162828026053776/dco-20260704.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-08-06 Report date: 2026-07-04 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Restatement of Previously Issued Financial Statements As disclosed in our Amendment No. 1 to Annual Report on Form 10-K for the year ended December 31, 2025 (“2025 Form 10-K/A”), we restated our audited consolidated financial statements for the year ended December 31, 2025, and our unaudited quarterly financial information for each quarter in the year ended December 31, 2025 (collectively, the “Affected Periods”), among other periods, and corrected certain other immaterial items that were previously identified and concluded as immaterial, individually and in the aggregate, to its consolidated financial statements during the Affected Periods as further described below. While preparing the first quarter of 2026 consolidated financial statements, management identified an error in our historical consolidated financial statements for the Affected Periods relating to the timing of stock-based compensation expense recognition (the “Error”). In particular, the Company did not apply the proper accounting for changes made in April 2024 to the retirement provision in the Company’s performance stock unit and restricted stock unit award agreements and did not record stock-based compensation expense in the correct periods for retirement eligible employees. As a result of the changes to the stock unit award agreements in April 2024, the stock-based compensation expense for any employee eligible for retirement on or before the grant date should have been accelerated and fully recognized on the grant date. Further, the stock-based compensation expense related to employees expected to become retirement eligible during the vesting period should have been accelerated and recognized from the grant date through the retirement eligible date instead of being recognized over the typical vesting period applicable to other employees. The correction for the Error impacted (i) selling, general and administrative expenses, (ii) accrued and other liabilities, (iii) other long-term liabilities, and (iv) additional paid-in capital. Additionally, the Company also corrected certain items that were previously corrected out of period and that were previously identified and concluded as immaterial, individually and in the aggregate, to its consolidated financial statements during the Affected Periods. These items primarily related to (i) revenue and cost of sales being recognized in the wrong period, which also impacted accounts receivable, contract assets, inventory, and other current assets (ii) employee compensation and benefits costs being recorded in the wrong period which also impacted accrued and other liabilities and other long-term liabilities, and (iii) incorrect netting of contract liabilities against contract assets. In addition, the tax effects of these adjustments impacted other current assets and deferred income taxes. See Part I, Item 4 of this Quarterly Report on Form 10-Q for information regarding our controls and procedures. Overview Ducommun Incorporated (“Ducommun,” “the Company,” “we,” “us” or “our”) is a leading designer and manufacturer of and provider of manufacturing solutions for high-performance products often used in high-cost-of failure applications primarily in the aerospace and defense (“A&D”), industrial, medical, and other industries (collectively, “Industrial”). We differentiate ourselves as a full-service solution-based provider, offering a wide range of value-added products and services in our primary businesses of electronics, structures and integrated solutions. We operate through two primary business segments: Electronic Systems and Structural Systems, each of which is a reportable segment. Economic Environment The Boeing Company In its 2025 Annual Report on Form 10-K, The Boeing Company (“Boeing”) indicated that in 2025, global air traffic expanded to near historical trend rates on an annual basis. The growth occurred despite a lower than usual contribution from the North America market, which had stagnant demand, particularly in the low-cost space. International demand outpaced domestic demand on an annual basis as the international demand continue to build on the recovery momentum from 2024, including in China, lifting demand for wide-body airplanes. Based on these trends, both single-aisle and wide-body demand remain above current industry supply levels. Overall, Boeing is experiencing strong demand from their airplane customers globally. Boeing was one of our largest customers in 2025, and the 737 MAX was one of our highest commercial end use market revenue platforms. In early January 2024, the Federal Aviation Administration (“FAA”) initiated an investigation into Boeing’s quality control system, which was followed by the agency announcing actions to increase its oversight of Boeing as well as not approving production rate increases or additional production lines for the 737 MAX until it was satisfied that Boeing attained full compliance with required quality control procedures. Subsequently, in July 2024, Boeing pleaded guilty to conspiracy fraud charges, which may result in additional external oversight on its manufacturing and quality control processes. More recently, Boeing announced that the FAA cleared Boeing’s plan to raise 737 MAX production from 42 airplanes to 47 airplanes per month. In addition, the FAA recently announced that Boeing can resume issuing airworthiness certificates for its 737 MAX aircraft. 30 Table of Contents Since Boeing is one of our largest customers, if Boeing is unable to meet the full compliance of the FAA’s required quality control procedures, in the near term, it could have a material adverse impact on our business, results of operations and financial condition. Airbus SE Airbus SE (“Airbus”) is aligned with Boeing’s view on international demand as its Global Services Forecast for Asia-Pacific (including China and India) anticipates that total services demand in the region will grow at a 5.2% compound annual growth rate through 2044, reaching an estimated market value of $138.7 billion. This sustained growth is expected to be underpinned by expanding air traffic and fleet growth. The region is also expected to remain the world’s fastest growing air travel market, with passenger traffic expected to rise by 4.4% annually, well above the global average of 3.6%. U.S. Government Tariffs Since February 2025, the U.S. government has issued several executive orders (“Executive Orders”), under various statutes, imposing tariffs on imports from most countries with whom the U.S. engages in trade. As such, during 2025, the United States reached bilateral trade agreements that recognize tariff-free trade of products within the scope of the World Trade Organization Agreement on Trade in Civil Aircraft with the United Kingdom, Japan, and the European Union. Moreover, the United States applies a diverse range of reciprocal tariffs to imports originating from countries that have not concluded bilateral trade agreements with the United States. In February 2026, the U.S. Supreme Court struck down the sweeping tariffs that the U.S. government had imposed through the Executive Orders issued pursuant to International Emergency Economic Powers Act (“IEEPA”) of 1977. However, the U.S. government subsequently imposed a global tariff of 10% (which could potentially increase to 15%) that went into effect on February 24, 2026, and which would be effective for 150 days unless they are extended by the U.S. Congress. Additionally, in late July 2026, an Executive Order implementing tariffs under Section 304(a) of the Trade Act of 1974, as amended, was issued imposing tariffs of 10% to 12.5% on non-exempt goods depending on the country of origin, and from which civil aircraft parts and components and goods qualifying under the United States-Mexico-Canada Agreement are exempt. If the imposition of current tariff levels is sustained, our profitability, cash flows and the estimates inherent in our financial statements could be negatively affected to the extent we are either unable to claim duty exemptions or are unable to pass on such incremental tariffs to our customers. The actual financial impacts of tariffs are dependent upon various factors, most notably, the scope of goods covered by tariffs, the value of our imports subject to tariffs, the rate of tariffs applied, the timing and duration of tariffs, the implementation of tariff and non-tariff countermeasures by countries subject to U.S. tariffs, and our ability to mitigate the impacts of tariffs by availing ourselves of applicable exemptions. Changes in any of these factors and actual tariff costs incurred could significantly affect the estimates inherent in our financial statements, including those used in our estimates-at-completion (“EACs”), and estimates supporting the recoverability of our inventories, contract assets, intangible assets, and goodwill, and could have a material effect on our results of operations and cash flows in the periods recognized and paid. U.S. Government Budget In October 2025, Congress failed to reach an agreement on funding the federal government, resulting in a shutdown until an agreement is reached. This resulted in the disruption of non-essential government services, with over hundreds of thousands of federal employees being furloughed or working without pay. In November 2025, the U.S. Government enacted a continuing resolution (“CR”) to keep the government funded through January 2026 while Congress works to enact full year fiscal year 2026 (“FY26”) remaining appropriation bills or an additional CR to fund government departments and agencies after January 2026. In addition, in January 2026, President Trump called for increasing the FY27 U.S. military budget to $1.5 trillion, significantly higher than the $901 billion approved by Congress for FY26. However, such increase in the military budget would require congressional authorization. In February 2026, President Trump signed into law a funding package to end the brief U.S. Government shutdown. The legislation will ensure full year funding for the federal government through the end of September 2026, with the lone exception of funding for the Department of Homeland Security. On June 10, 2026, President Trump signed into law a funding package that included funding for the Department of Homeland Security. U.S. Taxation Legislation In July 2025, the U.S. enacted the One Big Beautiful Bill Act (“OBBBA”), which, among other things, provides a corporate tax provision change in reinstating the immediate expensing of U.S. research and development expenditures paid or incurred for tax years beginning after December 31, 2024. See Note 10 to our unaudited condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q for further information. The OBBBA also provides a supplementary $156 billion to the U.S. Department of War (“DoW”) for obligations through 2029. 31 Table of Contents Executive Order Regarding Modernizing Defense Acquisitions In April 2025, the U.S. government issued an executive order requiring, among other things, a DoW review of its Major Defense Acquisition Programs to identify those programs that are 15% behind schedule, 15% over budget, unable to meet key performance parameters, or unaligned with the Secretary of Defense’s mission priorities for potential cancellation. Although Ducommun does not, at this time, believe the Executive Order will have a material impact on our business or results of operations, the longer-term ramifications, if any, to Ducommun will depend on a variety of factors including the formulation and implementation of the review criteria in the order, the review timeline, the Secretary of Defense’s mission priorities, and future budget determinations based on the results of such review. Guaymas Fire - Developments Subsequent to December 31, 2025, [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/30305/000162828026011952/dco-20251231.htm Complete FY 2025 MD&A: /company/DCO/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture. Confidence: high Filing date: 2026-02-26 Report date: 2025-12-31 Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Overview Ducommun Incorporated (“Ducommun,” “the Company,” “we,” “us” or “our”) is a leading designer and manufacturer of and provider of manufacturing solutions for high-performance products often used in high-cost-of failure applications primarily in the aerospace and defense (“A&D”), industrial, medical, and other industries (collectively, “Industrial”). Ducommun differentiates itself as a full-service solution-based provider, offering innovative, value-added proprietary products and manufacturing solutions to our customers in our primary businesses of electronics, structures and integrated solutions. We operate through two primary business segments: Electronic Systems and Structural Systems, each of which is a reportable segment. Economic Environment The Boeing Company In its 2025 Annual Report on Form 10-K, The Boeing Company (“Boeing”) indicated that in 2025, global air traffic expanded to near historical trend rates on an annual basis. The growth occurred despite a lower than usual contribution from the North America market, which had stagnant demand, particularly in the low-cost space. International demand outpaced domestic demand on an annual basis as the international demand continue to build on the recovery momentum from 2024, including in China, lifting demand for wide-body airplanes. Based on these trends, both single-aisle and wide-body demand remain above current industry supply levels. Overall, Boeing is experiencing strong demand from their airplane customers globally. Boeing was one of our largest customers in 2025, and the 737 MAX was one of our highest commercial end use market revenue platforms. In early January 2024, the Federal Aviation Administration (“FAA”) initiated an investigation into Boeing’s quality control system, which was followed by the agency announcing actions to increase its oversight of Boeing as well as not approving production rate increases or additional production lines for the 737 MAX until it was satisfied that Boeing attained full compliance with required quality control procedures. Subsequently, in July 2024, Boeing pleaded guilty to conspiracy fraud charges, which may result in additional external oversight on its manufacturing and quality control processes. More recently, Boeing announced that the FAA cleared Boeing’s plan to raise 737 MAX production from 38 airplanes to 42 airplanes per month. Since Boeing is one of our largest customers, if Boeing is unable to meet the full compliance of the FAA’s required quality control procedures, and/or recover from the impact of a labor strike, which extended from early August 2025 to mid-November 2025, in the near term, it could have a material adverse impact on our business, results of operations and financial condition. See Risk Factors included in Part I, Item 1A of this Annual Report on Form 10-K (“Form 10-K”). Airbus SE Airbus SE (“Airbus”) is aligned with Boeing’s view on international demand as its Global Services Forecast for Asia-Pacific (including China and India) anticipates that total services demand in the region will grow at a 5.2% compound annual growth rate through 2044, reaching an estimated market value of $138.7 billion. This sustained growth is expected to be underpinned by expanding air traffic and fleet growth. The region is also expected to remain the world’s fastest growing air travel market, with passenger traffic expected to rise by 4.4% annually, well above the global average of 3.6%. U.S. Government Tariffs Since February 2025, the U.S. government has issued several executive orders (“Executive Orders”), under various statutes, imposing tariffs on imports from most countries with whom the U.S. engages in trade. As such, during 2025, the United States reached bilateral trade agreements that recognize tariff-free trade of products within the scope of the World Trade Organization Agreement on Trade in Civil Aircraft with the United Kingdom, Japan, and the European Union. Moreover, the United States applies a diverse range of reciprocal tariffs to imports originating from countries that have not concluded bilateral trade agreements with the United States. On February 20, 2026, the U.S. Supreme Court struck down the sweeping tariffs that the U.S. government had imposed through the Executive Orders issued pursuant to International Emergency Economic Powers Act (“IEEPA”) of 1977. However, the U.S. government subsequently imposed a global tariff of 10% (which could potentially increase to 15%) that went into effect on February 24, 2026, and which would be effective for 150 days unless they are extended by the U.S Congress. 25 Table of Contents If the imposition of current tariff levels is sustained, our profitability, cash flows and the estimates inherent in our financial statements could be negatively affected to the extent we are either unable to claim duty exemptions or are unable to pass on such incremental tariffs to our customers. The actual financial impacts of tariffs are dependent upon various factors, most notably, the scope of goods covered by tariffs, the value of our imports subject to tariffs, the rate of tariffs applied, the timing and duration of tariffs, the implementation of tariff and non-tariff countermeasures by countries subject to U.S. tariffs, and our ability to mitigate the impacts of tariffs by availing ourselves of applicable exemptions. Changes in any of these factors and actual tariff costs incurred could significantly affect the estimates inherent in our financial statements, including those used in our estimates-at-completion (“EACs”), and estimates supporting the recoverability of our inventories, contract assets, intangible assets, and goodwill, and could have a material effect on our results of operations and cash flows in the periods recognized and paid. U.S. Government Budget On October 1, 2025, Congress failed to reach an agreement on funding the federal government, resulting in a shutdown until an agreement is reached. This resulted in the disruption of non-essential government services, with over hundreds of thousands of federal employees being furloughed or working without pay. On November 12, 2025, the U.S. Government enacted a continuing resolution (“CR”) to keep the government funded through January 30, 2026 while Congress works to enact full year fiscal year 2026 (“FY26”) remaining appropriation bills or an additional CR to fund government departments and agencies after January 30, 2026. In addition, on January 7, 2026, President Trump called for increasing the FY27 U.S. military budget to $1.5 trillion, significantly higher than the $901 billion approved by Congress for FY26. However, such increase in the military budget would require congressional authorization. On February 3, 2026, President Trump signed into law a funding package to end the brief U.S. Government shutdown. The legislation will ensure full year funding for the federal government through the end of September 2026, with the lone exception of funding for the Department of Homeland Security. U.S. Taxation Legislation On July 4, 2025, the U.S. enacted the One Big Beautiful Bill Act (“OBBBA”), which, among other things, provides a corporate tax provision change in reinstating the immediate expensing of U.S. research and development expenditures paid or incurred for tax years beginning after December 31, 2024. See Note 14 to our consolidated financial statements included in Part IV, Item 15(a) of this Form 10-K for further information. The OBBBA also provides a supplementary $156 billion to the DoW for obligations through 2029. Executive Order Regarding Modernizing Defense Acquisitions On April 9, 2025, the U.S. government issued an executive order requiring, among other things, a DoW review of its Major Defense Acquisition Programs to identify those programs that are 15% behind schedule, 15% over budget, unable to meet key performance parameters, or unaligned with the Secretary of Defense’s mission priorities for potential cancellation. Although Ducommun does not, at this time, believe the Executive Order will have a material impact on our business or results of operations, the longer-term ramifications, if any, to Ducommun will depend on a variety of factors including the formulation and implementation of the review criteria in the order, the review timeline, the Secretary of Defense’s mission priorities, and future budget determinations based on the results of such review. Guaymas Fire - Developments A neighboring, non-related manufacturing facility also suffered fire damage during the same time as the fire that severely damaged our Guaymas performance center in June 2020, and in November 2023, the occupant of the neighboring facility filed suit against us in U.S. District Court for the Central District of California (the “District Court”) seeking unspecified amounts for damages relating to the fire (the “Guaymas Fire Litigation”). Subsequent to our quarter ended September 27, 2025, on October 17, 2025, we entered into a settlement agreement (the “Settlement Agreement”) to resolve the Guaymas Fire Litigation against us. The Settlement Agreement provides for, among other things, the final dismissal of the Guaymas Fire Litigation against us with prejudice and a release of claims against us in exchange for us issuing a payment of $150.0 million, $56.0 million of which we expected at that time to be funded by our insurance carriers. On October 9, 2025, we also settled an ancillary subrogation claim related to the Guaymas fire for $1.4 million. 26 Table of Contents Subsequent to the fiscal year ended December 31, 2025, on January 7, 2026, we entered into a binding confidential agreement (“Confidential Agreement”) to resolve an additional subrogation claim (“Additional Subrogation Claim”) against us related to the Guaymas fire. The Confidential Agreement provides for, among other things, the final dismissal of the Additional Subrogation Claim and a release of all claims against us, with prejudice, in exchange for us issuing a payment of $4.0 million. We do not believe there are any remaining subrogation or other claims relating to the Guaymas fire at this time other than by an insurer of the plaintiff in the Guaymas Fire Litigation based in Mexico for payments issued to its insured for damages allegedly incurred in the Guaymas fire, which we believe to be time barred. See Note 1 and Note 15 to our consolidated financial statements included in Part IV, Item 15(a) of this Form 10-K for further information. Recap for the year ended December 31, 2025: •Net revenues of $824.7 million •Net loss of $33.9 million, or 4.1% of net revenues, or $2.27 per share •Adjusted EBITDA of $135.6 million, or 16.4% of net revenues 27 Table of Contents RESULTS OF OPERATIONS 2025 Compared to 2024 The following table sets forth net revenues, selected financial data, the effective tax (benefit) rate and diluted (loss) earnings per share: [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/DCO/mda/fy2025/ All MD&A years: /company/DCO/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/DCO/mda/fy2024/): filed 2025-02-27; accession 0001628280-25-008401 (https://www.sec.gov/Archives/edgar/data/30305/000162828025008401/dco-20241231.htm) - [FY 2023 MD&A](/company/DCO/mda/fy2023/): filed 2024-02-22; accession 0001628280-24-006363 (https://www.sec.gov/Archives/edgar/data/30305/000162828024006363/dco-20231231.htm) - [FY 2022 MD&A](/company/DCO/mda/fy2022/): filed 2023-02-16; accession 0001628280-23-003810 (https://www.sec.gov/Archives/edgar/data/30305/000162828023003810/dco-20221231.htm) - [FY 2021 MD&A](/company/DCO/mda/fy2021/): filed 2022-02-23; accession 0001628280-22-003518 (https://www.sec.gov/Archives/edgar/data/30305/000162828022003518/dco-20211231.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 3728 Aircraft Parts & Auxiliary Equipment, NEC) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/DCO.md · JSON record: /company/DCO.json · verified financials: /company/DCO/financials.json / /company/DCO/financials.csv · machine TOC for the whole site: /llms.txt