Ducommun Incorporated (DCO) Stock Analysis
Range Bound setup
Industrials · Aerospace & Defense
Sell if holding. Engine safety override at $150.04: 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 high-performance electronics and aerostructures for aerospace and defense through Electronic Systems and Structural Systems segments; A&D markets represent 96% of 2025 net revenues (58% military/space, 38% commercial aerospace). Key customers include RTX... Read more
Sell if holding. Engine safety override at $150.04: 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: RSI 58 mid-range, Bollinger mid-band. Score 4.6/10, moderate confidence.
Passes 5/8 gates (clean insider activity, news events none recent, earnings proximity 58d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and 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.
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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 2026-06-09Recent 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)
- MEDIUMCustomerRTX Corporation18%10-K Item 1: 'with Boeing generating 13% and RTX generating 18% of our 2025 net revenues'
- MEDIUMCustomerBoeing13%10-K Item 1: 'with 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 4.02HIGHManagement concluded prior financial statements cannot be relied upon due to error in timing of stock-based compensation expense recognition for retirement-eligible employees following April 2024 award agreement changes. Error is non-cash; did not impact net revenues, gross margin, or operating cash flows.SEC filing →
- 2026-05-04Item 5.02LOWMark A. Caylor appointed as Class II Director effective May 4, 2026, assigned to Audit Committee. Board size not specified. No arrangements or understandings cited. Standard non-employee director compensation.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 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
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $150.04: 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: RSI 58 mid-range, Bollinger mid-band. Prior stop was $139.54. Score 4.6/10, moderate confidence.
Take-profit target: $153.18 (+2.1% upside). Prior stop was $139.54. Stop-loss: $139.54.
Concentration risk — Customer: top 10 customers (61.0%); Target reached (-4.9% upside); Quality below floor (3.5 < 4.0).
Ducommun Incorporated trades at a P/E of N/A (forward 29.5). TrendMatrix value score: 5.3/10. 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 high-performance electronics and aerostructures for aerospace and defense through Electronic...
Ducommun manufactures high-performance electronics and aerostructures for aerospace and defense through Electronic Systems and Structural Systems segments; A&D markets represent 96% of 2025 net revenues (58% military/space, 38% commercial aerospace). Key customers include RTX (18% of revenues) and Boeing (13%). Remaining performance obligations were $1.1B at December 31, 2025.