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Ducommun Settles Guaymas Fire Subrogation Claim for $4M

Story Highlights
  • Ducommun settled a subrogation claim over a June 2020 Mexico facility fire on January 7, 2026.
  • The company will pay $4 million from cash, book an expense in Q4 2025, and secured mutual releases without admitting liability.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Ducommun Settles Guaymas Fire Subrogation Claim for $4M

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An update from Ducommun ( (DCO) ) is now available.

On January 7, 2026, Ducommun Incorporated entered into a confidential settlement agreement to resolve a previously disclosed subrogation claim arising from a June 2020 fire at its performance center in Guaymas, Mexico, which had been pursued in an Arizona arbitration by the insurer of the entity providing labor and facilities for that site after payments to customer Williams International Co., LLC. Following a December 9, 2025 mediation, the parties agreed to dismiss the arbitration with prejudice and mutually release all past, present and future claims related to the fire in exchange for a $4 million payment by Ducommun, which the company plans to expense in the quarter ended December 31, 2025 and fund from existing cash, while denying any admission of liability and stating it believes no material claims remain outstanding from the incident aside from a potential Mexican insurer claim it considers time-barred.

The most recent analyst rating on (DCO) stock is a Buy with a $124.00 price target. To see the full list of analyst forecasts on Ducommun stock, see the DCO Stock Forecast page.

Spark’s Take on DCO Stock

According to Spark, TipRanks’ AI Analyst, DCO is a Neutral.

Ducommun’s overall stock score reflects a stable financial position with operational challenges, particularly in profitability. The technical indicators suggest bearish sentiment, and the valuation is unattractive due to negative earnings. Despite strong defense sector growth and improved liquidity, the litigation settlement and commercial aerospace challenges weigh on the score.

To see Spark’s full report on DCO stock, click here.

More about Ducommun

Ducommun Incorporated operates a performance center in Guaymas, Mexico that provides labor and facilities services, including work for customer Williams International Co., LLC, within the broader aerospace and defense manufacturing and services industry.

Average Trading Volume: 128,047

Technical Sentiment Signal: Buy

Current Market Cap: $1.5B

See more insights into DCO stock on TipRanks’ Stock Analysis page.

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