CW vs DCO

Key Takeaways

• Curtiss-Wright (CW) is a diversified $27.5 billion aerospace and defense giant with record 2025 revenue of $3.5 billion, while Ducommun (DCO) is a $2.8 billion specialized engineering and manufacturing firm targeting $950 million to $1 billion in revenue under its VISION 2027 plan.
• CW delivered 21% adjusted diluted earnings per share (EPS) growth in 2025, compared to DCO's adjusted net income growth of 2% in its most recent quarter, though DCO's top-line momentum in defense is accelerating.
• DCO posted a year-to-date return of approximately 87% as of late July 2026, sharply outpacing CW's roughly 35% over the same period, reflecting stronger percentage gains from a smaller base.
• Both companies benefit from secular defense spending trends, but CW also has meaningful exposure to commercial nuclear power, while DCO is navigating commercial aerospace destocking headwinds.
• CW's $4.1 billion backlog and 1.2x book-to-bill ratio signal sustained demand, whereas DCO's 1.6x book-to-bill ratio and record remaining performance obligations (RPO) suggest faster relative order momentum.

Introduction

Investors scanning the aerospace and defense sector often encounter two companies that, while operating in overlapping end markets, differ markedly in scale, strategy, and recent market behavior. CW (Curtiss-Wright Corporation) and DCO (Ducommun Incorporated) each supply critical components to military and commercial aerospace programs, yet their stock performances and underlying financial profiles have diverged in notable ways. For traders and long-term investors seeking exposure to defense industrials, understanding how these two names compare across dimensions such as revenue scale, margin trajectory, order momentum, and relative valuation can provide useful context when evaluating portfolio positioning in the current market environment.

CW Overview and Recent Performance

Curtiss-Wright Corporation operates across three segments: Aerospace & Industrial, Defense Electronics, and Naval & Power. The company supplies engineered products and services to aerospace, defense, commercial nuclear power, and general industrial markets worldwide. In recent weeks, CW shares have traded near the $740–$760 range, having pulled back modestly from an all-time closing high of $792.77 reached in early July 2026. The stock has delivered a year-to-date gain of approximately 35%, building on a 56% rise in 2025.

Fundamentally, CW reported record full-year 2025 sales of $3.5 billion, representing 12% growth, with adjusted diluted EPS of $13.23, up 21%. The company generated free cash flow (FCF) of $554 million, achieving 111% FCF conversion. Its backlog reached $4.1 billion, up 18% year-over-year, supported by a book-to-bill ratio of 1.2x. Management's 2026 outlook calls for organic sales growth of 6% to 8%, operating margin expansion to a range of 18.9% to 19.2%, and double-digit EPS growth. The "Pivot to Growth" strategy has resonated with the market, as CW's alignment with naval defense programs and commercial nuclear power has provided multiple demand catalysts.

DCO Overview and Recent Performance

Ducommun Incorporated provides engineering and manufacturing services through two segments: Electronic Systems and Structural Systems. The company supplies complex components and assemblies for commercial and military aircraft, missile systems, space programs, and industrial applications. In recent weeks, DCO shares have traded in the $160–$190 range, with the stock recently closing at approximately $184. The company's year-to-date return stands at roughly 87%, following a 49% gain in 2025, making it one of the stronger performers in the mid-cap aerospace supplier space.

DCO's most recent quarterly results showed record revenue of $212.6 million, up 6% year-over-year, and record gross margins of 26.6%. However, a $99.7 million litigation settlement produced a reported net loss. On an adjusted basis, the company posted net income of $15.2 million, or $0.99 per diluted share, and an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin of 16.2% — both records. Defense revenue growth, particularly from missile programs and military rotorcraft, offset ongoing weakness in commercial aerospace original equipment manufacturer (OEM) demand. DCO's book-to-bill ratio reached 1.6x, and remaining performance obligations hit a new record, signaling robust future demand. The company remains on track toward its VISION 2027 targets of $950 million to $1 billion in revenue and an 18% adjusted EBITDA margin.

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Head-to-Head Comparison

CW and DCO differ most starkly in scale: CW's $27.5 billion market capitalization and $3.5 billion in annual revenue dwarf DCO's $2.8 billion market cap and roughly $840 million in trailing twelve-month sales. CW's diversified revenue base — spanning naval propulsion, defense electronics, commercial aerospace, and nuclear power — contrasts with DCO's more concentrated exposure to aerospace structures and electronic subsystems. This diversification gives CW a smoother earnings profile, while DCO's narrower focus can produce sharper upside when defense demand surges.

On profitability, CW's adjusted operating margin of 18.6% in 2025 exceeds DCO's adjusted operating margin of approximately 10.6%. However, DCO's margin trajectory is steepening, with adjusted EBITDA margins climbing from 15.8% to 16.2% year-over-year. The litigation overhang at DCO — which produced a GAAP (Generally Accepted Accounting Principles) net loss — adds a layer of event risk not present at CW.

From a momentum perspective, DCO's 1.6x book-to-bill ratio and 87% year-to-date stock gain reflect powerful near-term order flow and sentiment, while CW's steadier 1.2x ratio and 35% year-to-date return suggest a more mature, less volatile growth profile. Both companies benefit from rising global defense budgets and reshoring tailwinds, but CW's nuclear exposure and DCO's commercial aerospace recovery narrative represent differentiated catalysts.

Tickeron AI Verdict

Based on observable factors such as trend consistency, stability of earnings, and breadth of demand catalysts, Tickeron's AI analytical framework would likely tilt in favor of CW for investors prioritizing earnings visibility and margin resilience. CW's record backlog, diversified end markets, consistent free cash flow generation, and clear 2026 guidance trajectory present a more predictable fundamental picture. That said, DCO might be favored by momentum-oriented strategies given its stronger book-to-bill ratio, faster year-to-date price appreciation, and the potential upside from commercial aerospace recovery. The AI's preference ultimately depends on the weighting assigned to stability versus momentum in any given market regime — in a risk-on environment, DCO's higher beta and smaller base could attract greater relative interest, while CW's steadier compound growth profile may prove more durable through volatility.

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