DUCOMMUN INC /DE/ (DCO): auditor change — Ducommun restates 2024-2025 financials; net income overstated $9.8M in 2024, $3.4M in 2025

DUCOMMUN INC /DE/

Error in stock-based comp timing for retirement-eligible employees; operating income overstated $10M (2024) and $3.4M (2025).
No impact on revenue, gross margin, or cash flow; non-cash error.
Material weakness in ICFR; management concludes internal controls ineffective as of Dec 31, 2025.
Expects to recoup $4.3M-$4.9M in 2024 incentive comp and $0.7M-$1.1M in 2025.
Q1 2026 stock-based comp expense $5M-$6M higher vs prior expectations; full-year outlook unchanged.

item 4.02

Key facts

Extracted from this filing and checked against the source text.

Auditor Changes SEC 8-K Item 4.01/4.02 confidence 0.9

DUCOMMUN INC /DE/ reported that prior financial statements should not be relied upon.

Action: non reliance

Exact text from the filing

Due to the identification of this Error, on May 1, 2026, management concluded that the following previously issued financial statements of the Company (and related earnings releases, press releases, shareholder communications, investor presentations or other materials describing relevant portions of such financial statements) should no longer be relied upon

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Source: SEC EDGAR

accession 0001193125-26-201719

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