Ducommun Incorporated reported a strong financial performance for the third quarter and the first nine months of 2024, with notable increases in revenue and profitability compared to the same periods in 2023. For the three months ended September 28, 2024, net revenues reached $201.4 million, a 2.6% increase from $196.3 million in the prior year. For the nine months, revenues totaled $589.3 million, up 4.3% from $564.8 million. The growth was driven by higher revenues in military and space markets, as well as commercial aerospace, despite a decline in industrial end-use markets.

Gross profit for Q3 2024 was $52.7 million, representing 26.2% of net revenues, compared to $44.6 million (22.7%) in Q3 2023. Operating income also saw a significant rise, increasing to $15.3 million (7.6% of revenues) from $8.6 million (4.4%) year-over-year. For the nine-month period, operating income rose to $41.8 million (7.1% of revenues) from $20.0 million (3.5%).

Net income for Q3 2024 was $10.1 million, or $0.67 per diluted share, compared to $3.2 million ($0.22) in Q3 2023. For the nine months, net income increased to $24.7 million ($1.65 per diluted share) from $10.8 million ($0.79). The increase in net income was attributed to higher gross profit and lower restructuring charges, although SG&A expenses rose.

Ducommun's total assets as of September 28, 2024, were $1.13 billion, slightly up from $1.12 billion at the end of 2023. Total liabilities decreased to $464.3 million from $484.8 million, while total shareholders' equity increased to $665.6 million from $636.1 million. The company reported cash and cash equivalents of $37.3 million, down from $42.9 million at year-end 2023.

Strategically, Ducommun completed the acquisition of BLR Aerospace in April 2023 for $115 million, which has been integrated into its Structural Systems segment. The company also received unsolicited acquisition offers in 2024, which were ultimately declined by the Board of Directors. Restructuring efforts initiated in 2022 continue, with charges totaling $5.4 million for the nine months ended September 28, 2024.

Overall, Ducommun's performance reflects a robust recovery in key markets, particularly in aerospace and defense, alongside strategic acquisitions and ongoing restructuring initiatives aimed at enhancing operational efficiency.