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Ducommun and other aerospace suppliers see gains as demand stays firm
Ducommun reported record Q2 revenue of $209 million, up about 8% year over year, alongside margin improvements and stronger missile defense revenue.
Aerospace service suppliers are drawing fresh analyst attention after GE Aerospace boosted full-year profit guidance, supported by resilient demand for repairs and spare parts even as challenges remain around fuel prices. The outlook also points to a favorable environment for companies positioned to supply critical services, not just aircraft makers, as aerospace and defense demand continues to rise, according to MarketBeat Ratings.
MarketBeat Ratings highlights Ducommun as one of the names benefiting from that demand, noting the company’s pivot toward defense. Ducommun’s defense segment now represents the majority of its revenue, and the outlet attributes recent momentum to the company’s ability to grow revenue while improving margins, including in its commercial aerospace business.
In its latest quarter, Ducommun reported record revenue of $209 million, up about 8% year over year, marking the fourth straight quarter with at least $200 million in sales. The outlet also says Ducommun’s commercial aerospace revenue grew about 18% year over year in the quarter and that missile defense revenue stood out, rising 22% year over year.
MarketBeat Ratings adds that Ducommun’s shares have surged, with stock up 74% year to date, though a July selloff interrupted the run. It also cites valuation context including a price-to-sales ratio of 3.0 and notes analysts show modest upside expectations based on four Buy ratings and three Holds, with the view tied to continued near-term optimism.