SANTA ANA, CA – Ducommun reported fourth quarter Electronic Systems net revenue was $106 million, an increase of 7% year-over-year.

The year-over-year increase was primarily due to $4.9 million higher revenue within the industrial end-use markets due to timing of customer requirements and $2.9 million higher revenue within commercial aerospace due to higher build rates on other commercial aerospace platforms. This was partially offset by $900,000 lower revenue within the military and space end-use markets due to lower build rates on various missile platforms, partially offset by higher build rates on military fixed-wing aircraft platforms.

Electronic Systems operating income for the fourth quarter was $15.4 million, or 14.6% of revenue, compared to $11.5 million, or 11.6% of revenue, for the comparable quarter in 2020. The year-over-year increase was due to favorable product mix and favorable manufacturing volume, partially offset by higher compensation and benefits costs.

Total net revenue for the fourth quarter was $164.8 million, up 4.4% year-over-year.

The increase is attributed to $4.9 million higher revenue within the industrial end-use markets due to timing of customer requirements and $4.4 million higher revenue within the commercial aerospace end-use markets due to higher build rates on other commercial aerospace platforms and regional and business aircraft platforms. This is partially offset by $2.3 million lower revenue within the military and space end-use markets due to lower build rates on military rotary-wing aircraft platforms.

Ducommun posted net income for the period of $110.8 million, compared to $9.7 million for the fourth quarter of 2020. Operating income was $11.8 million, or 7.2% of revenue, compared to $11.6 million, or 7.3% of revenue, in the same period in the prior year. Adjusted EBITDA was $24.4 million, or 14.8% of revenue, compared to $22.8 million, or 14.4% of revenue in the fourth quarter of 2020.

“2021 was a return to growth story for Ducommun, and I'm pleased with how much we accomplished, along with positioning the company for continued success in the years ahead,” said Stephen G. Oswald, chairman, president and CEO. “In December alone, we netted over $110 million in after-tax proceeds related to the sale-leaseback of our Gardena, CA, performance center building and land, effectively monetizing and unlocking its value at record prices to fuel growth and strengthen our balance sheet. A portion of the proceeds were immediately deployed for the MagSeal acquisition, which brings innovative engineered sealing solutions to Ducommun, enhances our aerospace product portfolio and increases the company's aftermarket capabilities and revenue.

“Ducommun ended the year with a strong backlog as well of approximately $905 million, with gains driven by a recent uptick in commercial aerospace orders. For 2021, we posted revenues of approximately $645 million, led by another record year for military and space, topping $450 million, along with strong gross margins. In 2022, with growing travel demand and subsiding pandemic-related restrictions, the commercial aerospace industry should continue its recovery, especially in the narrow body market. Our longstanding customer relationships with Boeing, Raytheon, and other leading OEMs, along with our five-year Airbus contract for titanium products awarded in 2021, are expected to drive stronger performance in 2022 and beyond.”