Ducommun (NYSE:DCO) capped a record-breaking fiscal year 2025 with a strong fourth-quarter performance, driven by accelerating defense demand and significant strides in operational efficiency.
The company reported fourth-quarter net revenue of $215.8 million, a 9.4% increase over the same period last year, which helped propel full-year revenue to an all-time high of $825 million.
A key highlight of the report was the company’s remaining performance obligations (RPO), which reached a record $1,106 million.
Supported by a robust 1.3x book-to-bill ratio, this backlog provides substantial visibility into 2026 and 2027 revenue streams, particularly as the company navigates a high-demand environment for defense and electronic systems.
The manufacturer demonstrated significant progress in its "VISION 2027" strategy, which targets long-term profitability and operational scaling.
The fourth-quarter gross margin reached 27.7%, representing a substantial expansion of 420 basis points year-over-year.
This efficiency gain translated to an adjusted EBITDA of $37.9 million, or 17.5% of revenue, placing Ducommun within striking distance of its 18% margin objective for 2027.
On the bottom line, Ducommun reported non-GAAP adjusted net income of $16.2 million, or $1.05 per diluted share, for the quarter.