SANTA ANA, CA – Ducommun reported third quarter Electronic Systems segment net revenue was $104.7 million, up 0.12% year-over-year.

The year-over-year increase was primarily due $1.2 million higher revenue within the company’s military and space end-use markets because of higher build rates on military fixed-wing aircraft platforms, partially offset by lower build rates on other military and space platforms. The segment also had $200,000 higher revenues in the commercial aerospace end-use markets.

For the quarter ended Oct. 2, Electronic Systems segment operating income was $15.3 million, or 14.6% of revenue, compared to $14.9 million, or 14.4% of revenue, for the comparable quarter in 2020. The year-over-year increase was primarily due favorable product mix, partially offset by unfavorable manufacturing volume.

The company’s total net revenue for the third quarter was $163.2 million, an increase of 8.5% year-over-year. Net income was $9.6 million, growth of 47.7% compared to the third quarter last year. Operating income was $13.4 million, or 8.2% of revenue, compared to $10.3 million, or 6.8% of revenue, in the comparable period in 2020.

“Our performance this quarter came in essentially as expected, with another solid performance in Ducommun's defense business, along with steadily increasing commercial aerospace demand driving top line growth both sequentially and year-over-year,” said Stephen G. Oswald, chairman, president and CEO. “Revenue rose to $163.2 million, up 9% over 2020, as large commercial aircraft platform sales climbed more than 50% due to increased build rates from Boeing and Airbus. At the same time, the company's backlog increased to $836 million, the highest level since the Covid-19 pandemic began in the first quarter of 2020, reflecting improving commercial order trends and solid demand across the board.

“I was also pleased by the strong bottom line results, including adjusted EBITDA of $23.9 million and $0.83 per diluted share for the quarter. We remain vigilant in driving earnings and assessing the business for additional ways to increase asset utilization and streamline operations. One area of particular interest is Ducommun's review of our legacy Southern California industrial real estate properties, specifically with regard to utilizing sale-leaseback transactions in this extremely strong real estate market. In addition, the operating team continues to provide a high level of service to our customers and has effectively managed the company's supply chain and human resources as we move forward to finish the year on a very positive note.”