10:53 AM EDT, 10/28/2025 (MT Newswires) -- Ducommun ( DCO ) is facing allegations from short seller GlassHouse Research, accusing the company of aggressive accounting, poor cash flow quality, and weak corporate governance.

GlassHouse said in a report on Tuesday that the aerospace and defense components maker has overstated earnings power by recognizing revenue prematurely and inflating its backlog with "accounting gimmicks," claiming the company recognized $61.3 million in revenue ahead of delivery in fiscal 2024.

The short seller also said Ducommun's ( DCO ) rising contract assets, excess inventory, and weak cash conversion point to "unsustainable" operational momentum.

Ducommun ( DCO ) did not immediately respond to an MT Newswires request to comment.

Ducommun ( DCO ) shares were more than 1% higher in recent trading.

Price: 94.33, Change: +1.26, Percent Change: +1.35