Ducommun Incorporated (DCO) Stock Analysis
Breakout setup
Industrials · Aerospace & Defense
Sell if holding. Engine safety override at $164.68: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.6/10. Specifically: Below-average business quality.
Ducommun manufactures aerospace and defense electronics and structural components through Electronic Systems and Structural Systems segments, with A&D end-markets representing 96% of 2025 net revenues. Boeing (13%) and RTX (18%) were the largest customers; the top 10 customers... Read more
Sell if holding. Engine safety override at $164.68: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.6/10. Specifically: Below-average business quality. Chart setup: Golden cross, above all MAs, RSI 69, MACD bullish. Score 4.6/10, moderate confidence.
Passes 6/9 gates (positive momentum, clean insider activity, news events none recent, earnings proximity 51d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and SEC filing concern. Suitability: aggressive.
About Ducommun Incorporated
About Ducommun Incorporated
Defense and military/space programs generated 58% of Ducommun's 2025 net revenues, commercial aerospace 38%, and industrial end-markets 4%, for a combined A&D concentration of 96%. Backlog totaled $1,202.9 million at December 31, 2025, up from $1,060.8 million a year earlier, with remaining performance obligations of $1,106.0 million; the company anticipates recognizing approximately $774 million — 70% of that total — during 2026.
Ducommun earns revenue through firm fixed-price contracts across two segments: Electronic Systems, which designs and manufactures cable assemblies, printed circuit board assemblies, radar enclosures, avionics racks, and lightning diversion systems; and Structural Systems, which produces aerostructure components, composite bonded assemblies, wing spoilers, rotor blades, and ammunition handling systems. The company operates as a Tier Two and Tier Three supplier, deriving a significant portion of revenues from subcontracts with prime contractors. Boeing contributed 13% and RTX Corporation (formerly Raytheon Technologies) 18% of 2025 net revenues; the top 10 customers combined represented 61%. Raw materials including aluminum, titanium, steel, and carbon fibers are generally available from multiple suppliers, though the 10-K notes that certain components are purchased from single-source suppliers — occasionally at customer direction — creating potential disruption exposure.
Show full overview
Ducommun's defense revenue dependence subjects the company to federal appropriations risk. The U.S. Government operated under continuing resolutions in late 2025 before legislation signed February 3, 2026 secured full-year FY26 funding, and the 10-K notes a future shutdown could cause payment delays and impair contract execution. Separately, in May 2026, Ducommun disclosed via Form 8-K that prior-period financial statements required restatement due to an error in stock-based compensation expense timing for retirement-eligible employees — an error described as non-cash that did not affect revenues, gross margin, or operating cash flows.
See also: Industrials · Aerospace & Defense
From Ducommun Incorporated's most recent 10-K filing, extracted June 9, 2026.
Recent developments
updated 2026-06-15Recent Developments — Ducommun Incorporated
Latest news
- NEWS Congressman On Armed Services Committee Can't Stop Buying Defense Stock: 9 Purchases Since September — benzinga Jun 10, 2026 neutral
- NEWS Truist Securities Maintains Buy on Ducommun, Raises Price Target to $150 — benzinga May 26, 2026 positive
- NEWS Citigroup Maintains Buy on Ducommun, Raises Price Target to $167 — benzinga May 18, 2026 positive
- NEWS B. Riley Securities Maintains Buy on Ducommun, Raises Price Target to $187 — benzinga May 13, 2026 positive
- NEWS RBC Capital Maintains Outperform on Ducommun, Raises Price Target to $155 — benzinga May 13, 2026 positive
Generated 2026-06-15T18:11:46Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHCustomeraerospace and defense96%10-K Item 1: 'Our largest end-use markets are the aerospace and defense markets, and our revenues from these markets represented 96% of our total net revenues in 2025'
- HIGHCustomermilitary and space58%10-K Item 1: 'Revenues from the military and space end-use market in 2025 represented 58% of our total net revenues during 2025'
- LOWCustomerRTX Corporation18%10-K Item 1: 'Boeing generating 13% and RTX generating 18% of our 2025 net revenues'
- LOWCustomerBoeing13%10-K Item 1: 'Boeing generating 13% and RTX generating 18% of our 2025 net revenues'
- HIGHCustomertop 10 customers61%10-K Item 1: 'Revenues from our top 10 customers, including Boeing and RTX, were 61% of total net revenues during 2025'
Material Events(8-K, last 90d)
- 2026-05-01Item 4.02HIGHOn May 1, 2026, management concluded prior-period financial statements must be restated due to an error in stock-based compensation expense timing for retirement-eligible employees (changes to award agreements made April 2024). Error was non-cash; did not affect net revenues, gross margin, or operating cash flows.SEC filing →
- 2026-05-04Item 5.02LOWOn May 4, 2026, the Board appointed Mark A. Caylor as Class II Director effective immediately, to serve until the 2029 annual stockholder meeting; also appointed to the Audit Committee. Routine non-employee director compensation structure disclosed. No reason cited.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Rating Breakdown
3 floor-breakers
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Unprofitable operations — net margin -3.4%. Quality floor flags this regardless of sector context.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $164.68: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.6/10. Specifically: Below-average business quality. Chart setup: Golden cross, above all MAs, RSI 69, MACD bullish. Prior stop was $152.91. Score 4.6/10, moderate confidence.
Take-profit target: $164.52 (+0.1% upside). Prior stop was $152.91. Stop-loss: $152.91.
Concentration risk — Customer: aerospace and defense (96.0%); Concentration risk — Customer: military and space (58.0%); Target reached (-13.2% upside).
Ducommun Incorporated trades at a P/E of N/A (forward 32.4). TrendMatrix value score: 5.0/10. Verdict: Sell.
9 analysts cover DCO with a consensus score of 4.1/5. Average price target: $164.
What does Ducommun Incorporated do?Ducommun manufactures aerospace and defense electronics and structural components through Electronic Systems and...
Ducommun manufactures aerospace and defense electronics and structural components through Electronic Systems and Structural Systems segments, with A&D end-markets representing 96% of 2025 net revenues. Boeing (13%) and RTX (18%) were the largest customers; the top 10 customers combined represented 61% of 2025 net revenues. Backlog was $1,202.9 million at December 31, 2025.