Ducommun Incorporated (DCO) is one of the 8 best small-cap defense stocks to buy right now, reporting record quarterly revenue of $212.6 million in Q3, up 6% year-over-year. The company’s defense business drove this growth, marking the third consecutive quarter of double-digit growth.

Gross margin improved to 26.6%, with adjusted EBITDA at $34.4 million, representing 16.2% of revenue. Although the company reported a net loss of $64.4 million due to a litigation settlement, adjusted net income of $15.2 million surpassed estimates by four cents per diluted share.

CEO Stephen G. Oswald noted weakness in commercial aerospace but welcomed the FAA’s approval for increasing Boeing’s 737 production cap. Ducommun reaffirmed its full-year 2025 guidance, unaffected by potential tariff impacts, as 95% of revenue is domestically generated in the US.

The stock has gained 43.53% year-to-date, closing on November 14. Ducommun Incorporated (DCO) provides manufacturing solutions for aerospace, defense, military, space, and industrial markets, with potential investment opportunities. However, AI stocks may offer greater upside potential and less downside risk.

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Read more at Yahoo Finance: Ducommun Incorporated (DCO) Reports Record Quarterly Revenue in Q3, Reaffirms Full-Year Guidance