DCO: Strong 1Q26 margins and aero growth, missile upside remains intact, maintain OP, PT to $155

研报英文原文证据摘录

DCO: Strong 1Q26 margins and aero growth, missile upside remains intact, maintain OP, PT to $155

RBC Capital Markets, LLC

Ken Herbert (Analyst)

(415) 633-8583, ken.herbert@rbccm.com

Kevin Liu (Senior Associate)

(646) 618-6929, kevin.liu@rbccm.com

Stephen Strackhouse (Vice President)

(212) 905-5943, stephen.strackhouse@rbccm.com

May 12, 2026

Ducommun Inc Outperform

NYSE: DCO; USD 145.03RESEARCH Strong 1Q26 margins and aero growth, missile Price Target USD 155.00 ↑ 150.00

upside remains intact, maintain OP, PT to $155 Scenario Analysis*

Our view: Ducommun (DCO) posted robust 1Q26 results, with $35.4M

adj. EBITDA beating consensus by 16%. The strength in the quarter was DownsideScenario CurrentPrice TargetPrice ScenarioUpside

driven by less-than-feared de-stocking in commercial aero, particularly

from Airbus (A220, A320). The 16.9% adj. EBITDA margin was impressive 90.0038% 145.03 155.007% 195.0034%

and continues to build confidence in upside to the VISION 2027 outlook of

*Implied Total ReturnsEQUITY 18% margins in 2027. We believe the near-term focus for investors is on Key Statistics

the opportunity in the missile portfolio growth and timing of greater order Shares O/S (MM): 15.6 Market Cap (MM): 2,262

inflows and the M&A outlook (EP portfolio expansion). Maintain OP, PT to Dividend: 0.00 Yield: 0.0%

$155. Avg. Daily Volume: 218,035

RBC Estimates Key points: FY Dec 2025A 2026E 2027E 2028E

DCO posted another strong quarter of adj. EBITDA margins. Revenues of Revenue 824.7 879.2 957.1 1,029.0

$209M were up 9% YoY, driven by commercial aero +18%, while military Prev. 878.2 955.9 1,027.5

and space was up 5% and industrial down (16%). Adj. EPS of $0.75 was in- EPS, Adj Diluted 3.27 4.37 5.27 5.69

line with consensus $0.76 and FCF of $8M was slightly ahead of consensus Prev.