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Ducommun Incorporated (DCO) Reports Record Quarterly Revenue in Q3, Reaffirms Full-Year Guidance

Ducommun Incorporated (NYSE:DCO) is among the 8 Best Small-Cap Defense Stocks to Buy Right Now. On November 6, the company reported its third-quarter fiscal 2025 financial results.

Net revenue was reported at $212.6 million, a new quarterly record and up 6% year-over-year, attributed to a strong show by the company’s defense business. This was the third successive quarter of double-digit growth for the segment, driven primarily by its missile franchise.

Gross margin stood at 26.6%, improving by 40 bps from last year. Adjusted EBITDA was posted at $34.4 million, increasing 40 bps year-over-year, and marking the third back-to-back quarter of exceeding the $30 million figure. This represented 16.2% of revenue, putting the company on track to achieve its financial goal of 18% adjusted EBITDA by 2027.

Ducommun Incorporated (NYSE:DCO) reported a net loss of $64.4 million, compared to net income of $10.1 million in the prior year’s quarter. This was the result of a litigation settlement and associated costs. However, adjusted net income stood at $15.2 million, or $0.99 per diluted share, surpassing estimates by four cents.

Chairman, President, and CEO Stephen G. Oswald highlighted weakness in commercial aerospace and described ongoing destocking as a major headwind. However, he welcomed the Federal Aviation Administration (FAA)’s decision to approve an increase in Boeing’s monthly 737 production cap, which could help in reducing inventory in the system.

The company reaffirmed its full-year 2025 guidance and brushed aside concerns that tariffs could impact financial results, since about 95% of its revenue is generated domestically in the United States.

The stock has had an impressive run in 2025, gaining 43.53% year-to-date, as of the close on November 14.

Ducommun Incorporated (NYSE:DCO) provides manufacturing solutions to customers in the global aerospace, defense, military, space, and industrial markets.

While we acknowledge the risk and potential of DCO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DCO and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 13 Most Undervalued Stocks Under $20 to Buy and ChatGPT Stock Advice: Top 8 Defense Stocks

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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