SANTA ANA, CA -- Ducommun's Electronic Systems segment today reported third quarter net revenue of $103.5 million, up 14% year-over-year on higher demand for military and space end-use systems, partially offset by lower revenue for commercial aerospace products.

The EMS unit had operating income for the quarter of $14.9 million, or 14.4% of revenue, compared to $9.7 million, or 10.7% of revenue, for the comparable quarter in 2019. The year-over-year increase of $5.2 million was due to favorable volume and favorable mix.

For the period ended Sept. 26, adjusted operating income was 14.7%, up 400 basis points.

Overall, the conglomerate reported net revenue for the third quarter of 2020 was $150.4 million, down 17% year-over-year. Adjusted net income of $8.3 million, and gross margin increased 110 basis points year-over-year to 22.3%. Adjusted EBITDA increased 130 basis points year-over-year to 14.4% of revenue.

“Ducommun’s results due to our defense business and operational performance really shined in the third quarter despite significant headwind from the pandemic in commercial aerospace along with the continued grounding of the 737 MAX,” said Stephen G. Oswald, chairman, peesident and chief executive. “The defense business grew 40% year-over-year, reflecting a diverse array of demand for nearly all aspects of the company’s product portfolio. Our military and space backlog remains at record levels as well, positioning the Company for continued strong performance in this part of our business now and in 2021.

“While near term shipments within the commercial aerospace market will remain under pressure, our operations’ footprint and capacity are ready to support the eventual demand increases. We are also cautiously optimistic given the recent positive statements about the 737 MAX’s return to service. Overall, Ducommun is well positioned to weather the remaining headwinds and is prepared for strengthening economic fundamentals and a return to revenue growth for the Company in 2021.”