COSTA MESA, CA – Ducommun Incorporated reported fourth quarter revenue of $215.8 million, up 9.4% year-over-year, as margin expansion and defense-driven growth lifted results.

Gross margin increased 420 basis points to 27.7% of revenue, compared to 23.5% in the fourth quarter of 2024. Net income increased 10% to $7.4 million.

The electronic systems segment, Ducommun’s electronics manufacturing and systems integration business, generated revenue of $119.6 million, up 11.8% from $107 million in the prior-year quarter. Segment operating income rose to $22 million, or 18.4% of revenue, compared to 17.7% a year earlier.

Growth in the segment was primarily driven by higher production rates on missile platforms, selected fixed-wing aircraft, and a classified program, partially offset by lower rates on electronic warfare platforms. Industrial revenue also increased due to restocking activity.

Remaining performance obligations reached a record $1.1 billion at year-end, supported by a book-to-bill ratio of 1.3x, driven largely by missile platform orders.