In This Article:
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Revenue: $197.3 million in Q4 2024, up 2.6% year-over-year.
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Gross Margin: 23.5% in Q4 2024, up from 21.7% in Q4 2023.
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Adjusted EBITDA Margin: 13.8% in Q4 2024, up 180 basis points year-over-year.
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Net Income: $6.8 million in Q4 2024, compared to $5.1 million in Q4 2023.
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Adjusted Net Income: $11.4 million in Q4 2024, compared to $10.4 million in Q4 2023.
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GAAP Diluted EPS: $0.45 in Q4 2024, compared to $0.34 in Q4 2023.
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Adjusted Diluted EPS: $0.75 in Q4 2024, compared to $0.70 in Q4 2023.
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Backlog: $1.06 billion, up $67 million year-over-year.
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Defense Backlog: $625 million, up $98 million year-over-year.
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Commercial Aerospace Revenue: Grew 4% year-over-year in Q4 2024.
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Military and Space Revenue: $109 million in Q4 2024, up from $104 million in Q4 2023.
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Cash Flow from Operating Activities: $34.2 million in 2024, up from $31.1 million in 2023.
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Interest Expense: $3.6 million in Q4 2024, down from $5.4 million in Q4 2023.
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Ducommun Inc (NYSE:DCO) achieved its 15th consecutive quarter of year-over-year revenue growth, with Q4 2024 revenue increasing by 2.6% to $197.3 million.
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The company reported strong growth in its missile and electronic warfare programs, contributing to a 5% increase in military space revenue over the prior year.
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Gross margins improved to 23.5% in Q4 2024, up 180 basis points from the previous year, driven by strategic pricing initiatives and productivity improvements.
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Ducommun Inc (NYSE:DCO) has made significant progress in its Vision 2027 strategy, with engineered product revenue reaching 23% of total revenue, up from 19% in 2023.
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The company's backlog remains strong at $1.06 billion, with a notable increase in defense backlog by $98 million year-over-year.
Negative Points
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Ducommun Inc (NYSE:DCO) faced significant headwinds in commercial aerospace build rates and destocking at Boeing and Spirit AeroSystems.
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The commercial aerospace backlog decreased sequentially by $14 million, indicating challenges in this segment.
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The Structural Systems segment experienced a decline in operating margin due to unfavorable program mix and higher onetime costs.
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The company incurred $2.3 million in restructuring charges during Q4 2024, with additional expenses expected as the program completes.
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Ducommun Inc (NYSE:DCO) faced legal fees related to an unsolicited nonbinding acquisition offer, impacting financial resources.
Q & A Highlights
Q: Can you provide any color on expectations for defense and commercial markets, specifically regarding the MAX program and potential destocking risks in early 2025? A: Stephen Oswald, CEO: We anticipate destocking headwinds in the first half of 2025, particularly with Spirit. However, we expect improvements in the second half as build rates increase. Defense markets remain strong, supported by a solid backlog and new orders, such as the recent $40 million order from Bayern-Chemie.