Tue, May 6, 10:17 AM (13 days ago)
**Ducommun Incorporated (DCO) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $194.1 million, up from $190.8 million in Q1 2024. - **Net Income:** $10.5 million, a 54% increase from $6.8 million in Q1 2024. - **Earnings per Share (EPS):** $0.69, up from $0.46 in Q1 2024. - **Gross Profit Margin:** 26.6%, up from 24.6% in Q1 2024. - **Operating Income:** $16.6 million, up from $12.6 million in Q1 2024. - **Cash Flow from Operations:** $0.8 million, a positive reversal from a $1.6 million outflow in Q1 2024. **Profit Margins and Cash Flow:** - **Operating Margin:** 8.5%, up from 6.6% in Q1 2024. - **Net Margin:** 5.4%, up from 3.6% in Q1 2024. - **Cash Flow from Investing Activities:** -$4.8 million, slightly improved from -$5.0 million in Q1 2024. - **Cash Flow from Financing Activities:** -$2.4 million, improved from -$4.2 million in Q1 2024. **Earnings Changes and Trends:** - **Revenue Growth:** Driven by higher rates on selected missile, electronic warfare, radar, and rotary-wing platforms. - **Cost Management:** Lower restructuring charges and interest expenses contributed to improved profitability. - **Backlog:** $1,053.6 million, down from $1,060.8 million in Q4 2024, with $756.0 million expected to be delivered in the next 12 months. **Uncertainties and Future Operations:** - **Economic Environment:** Tariffs and trade policies pose risks to supply chain and profitability. - **Customer Dependence:** Boeing, a major customer, faces regulatory and labor issues that could impact Ducommun. - **Restructuring:** Ongoing restructuring efforts aim to reduce costs and improve efficiency. - **Capital Expenditures:** $23.0 million to $25.0 million planned for 2025 to support new contract awards and strategic growth. - **Debt Management:** $243.2 million in total debt, with a weighted-average interest rate of 6.18%, and compliance with all covenants under the 2022 Credit Facilities. **Segment Performance:** - **Electronic Systems:** Revenue up 2.1%, operating income down slightly due to higher manufacturing costs. - **Structural Systems:** Revenue up 1.3%, operating income up significantly due to higher manufacturing volume and favorable product mix. **Future Outlook:** - **Growth Strategy:** Focus on becoming a supplier of higher-level assemblies and pursuing acquisitions. - **Liquidity:** Strong liquidity position with $30.7 million in cash and $191.0 million in unused revolving credit facility. - **Risk Management:** Monitoring market risks, including interest rate changes and tariffs, to mitigate potential impacts.