General Dynamics Reports Fourth-Quarter and Full-Year 2024 Financial Results

Fourth-quarter net earnings of $1.1 billion, diluted EPS of $4.15, on $13.3 billion in revenue Full-year net earnings of $3.8 billion, diluted EPS of $13.63, on $47.7 billion in revenue $2.2 billion net cash provided by operating activities in the quarter, 188% of net earnings Ended the year with $90.6 billion in backlog , /PRNewswire/ -- General Dynamics (NYSE: GD) today reported quarterly net earnings of $1.1 billion, up 14.2% from the year-ago quarter, on revenue of $13.3 billion, up 14.3% over the year-ago quarter. Diluted earnings per share (EPS) was $4.15, up 14% from the year-ago quarter.For the full year, net earnings were $3.8 billion, up 14.1% from 2023, on revenue of $47.7 billion, up 12.9% from 2023. Diluted EPS for the full year was $13.63, up 13.4% from 2023. Exhibit H-1 Exhibit H-2 "We had a solid fourth quarter, capping off a year that saw steady growth in revenue and earnings across all four segments," said Phebe N. Novakovic, chairman and chief executive officer. "Order activity continued to be very strong, with 1-to-1 book-to-bill for the year, even as revenue grew by 13%, positioning us well for continued growth." Gulfstream delivered 47 aircraft in the quarter, of which 42 were large-cabin aircraft. The company delivered a total of 136 aircraft during the year, of which 118 were large-cabin aircraft. CashNet cash provided by operating activities in the quarter totaled $2.2 billion, or 188% of net earnings. For the year, net cash provided by operating activities totaled $4.1 billion, or 109% of net earnings. During the year, the company invested $916 million in capital expenditures, made tax payments of $560 million, repaid fixed-rate notes of $500 million, and returned $3 billion to shareholders through dividends and share repurchases, ending 2024 with $1.7 billion in cash and equivalents on hand.BacklogOrders remained strong across the company with a consolidated book-to-bill ratio, defined as orders divided by revenue, of 0.9-to-1 for the quarter and 1-to-1 for the year. The company ended the year with backlog of $90.6 billion and estimated potential contract value, representing management's estimate of additional value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, of $53.4 billion. Total estimated contract value, the sum of all backlog components, was $144 billion at year end, up 9.1% from a year earlier.In the Aerospace segment, orders in the quarter totaled $3.8 billion. Backlog at the end of the year was $19.7 billion. Aerospace book-to-bill was 1-to-1 for the quarter and the year.In the three defense segments, significant awards in the quarter include a U.S. Air Force contract with maximum potential value of $5.6 billion to modernize, integrate and operate the Department of Defense's Mission Partner Environments (MPEs); a U.S. Space Force contract with maximum potential value of $2.2 billion to provide sustainment services for the Mobile User Objective System (MUOS) satellite communications system; $1.9 billion from the U.S. Navy for multiple contracts to provide services, materials and parts for Virginia-class submarines; $370 million from the U.S. Army for the production of 155mm artillery projectile metal parts; contracts for various munitions and ordnance with maximum potential value of $820 million; and several key contracts for classified customers with maximum potential value of $1.4 billion.About General DynamicsHeadquartered in Reston, Virginia, General Dynamics is a global aerospace and defense company that offers a broad portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapons systems and munitions; and technology products and services. General Dynamics employs more than 110,000 people worldwide and generated $47.7 billion in revenue in 2024. More information is available at www.gd.com.WEBCAST INFORMATION: General Dynamics will webcast its fourth-quarter and full-year 2024 financial results conference call today at 9 a.m. EST. The webcast will be a listen-only audio event available at GD.com. An on-demand replay of the webcast will be available by telephone two hours after the end of the call through February 5 at 800-770-2030 (international +1 647-362-9199), conference ID 4299949. Charts furnished to investors and securities analysts in connection with the announcement of financial results are available at GD.com. General Dynamics intends to supplement those charts on its website after its earnings call today to include information about 2025 guidance presented during the call.This press release contains forward-looking statements (FLS), including statements about the company's future operational and financial performance, which are based on management's expectations, estimates, projections and assumptions. Words such as "expects," "anticipates," "plans," "believes," "forecasts," "scheduled," "outlook," "estimates," "should" and variations of these words and similar expressions are intended to identify FLS. In making FLS, we rely on assumptions and analyses based on our experience and perception of historical trends; current conditions and expected future developments; and other factors, estimates and judgments we consider reasonable and appropriate based on information available to us at the time. FLS are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. FLS are not guarantees of future performance and involve factors, risks and uncertainties that are difficult to predict. Actual future results and trends may differ materially from what is forecast in the FLS. All FLS speak only as of the date they were made. We do not undertake any obligation to update or publicly release revisions to FLS to reflect events, circumstances or changes in expectations after the date of this press release. Additional information regarding these factors is contained in the company's filings with the SEC, and these factors may be revised or supplemented in future SEC filings. In addition, this press release contains some financial measures not prepared in accordance with U.S. generally accepted accounting principles (GAAP). While we believe these non-GAAP metrics provide useful information for investors, there are limitations associated with their use, and our calculations of these metrics may not be comparable to similarly titled measures of other companies. Non-GAAP metrics should not be considered in isolation from, or as a substitute for, GAAP measures. Reconciliations to comparable GAAP measures and other information relating to our non-GAAP measures are included in other filings with the SEC, which are available at investorrelations.gd.com. EXHIBIT A CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED) DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS Three Months Ended December 31 Variance 2024 2023 $ % Revenue $ 13,338 $ 11,668 $ 1,670 14.3 % Operating costs and expenses (11,915) (10,380) (1,535) Operating earnings 1,423 1,288 135 10.5 % Other, net 21 17 4 Interest, net (76) (78) 2 Earnings before income tax 1,368 1,227 141 11.5 % Provision for income tax, net (220) (222) 2 Net earnings $ 1,148 $ 1,005 $ 143 14.2 % Earnings per share—basic $ 4.20 $ 3.68 $ 0.52 14.1 % Basic weighted average shares outstanding 273.4 272.8 Earnings per share—diluted $ 4.15 $ 3.64 $ 0.51 14.0 % Diluted weighted average shares outstanding 276.9 275.9 EXHIBIT B CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED) DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS Year Ended December 31 Variance 2024 2023 $ % Revenue $ 47,716 $ 42,272 $ 5,444 12.9 % Operating costs and expenses (42,920) (38,027) (4,893) Operating earnings 4,796 4,245 551 13.0 % Other, net 68 82 (14) Interest, net (324) (343) 19 Earnings before income tax 4,540 3,984 556 14.0 % Provision for income tax, net (758) (669) (89) Net earnings $ 3,782 $ 3,315 $ 467 14.1 % Earnings per share—basic $ 13.81 $ 12.14 $ 1.67 13.8 % Basic weighted average shares outstanding 273.9 273.1 Earnings per share—diluted $ 13.63 $ 12.02 $ 1.61 13.4 % Diluted weighted average shares outstanding 277.5 275.7 EXHIBIT C REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED) DOLLARS IN MILLIONS Three Months Ended December 31 Variance 2024 2023 $ % Revenue: Aerospace $ 3,743 $ 2,744 $ 999 36.4 % Marine Systems 3,960 3,408 552 16.2 % Combat Systems 2,395 2,364 31 1.3 % Technologies 3,240 3,152 88 2.8 % Total $ 13,338 $ 11,668 $ 1,670 14.3 % Operating earnings: Aerospace $ 585 $ 449 $ 136 30.3 % Marine Systems 200 217 (17) (7.8) % Combat Systems 356 351 5 1.4 % Technologies 319 305 14 4.6 % Corporate (37) (34) (3) (8.8) % Total $ 1,423 $ 1,288 $ 135 10.5 % Operating margin: Aerospace 15.6 % 16.4 % Marine Systems 5.1 % 6.4 % Combat Systems 14.9 % 14.8 % Technologies 9.8 % 9.7 % Total 10.7 % 11.0 % EXHIBIT D REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED) DOLLARS IN MILLIONS Year Ended December 31 Variance 2024 2023 $ % Revenue: Aerospace $ 11,249 $ 8,621 $ 2,628 30.5 % Marine Systems 14,343 12,461 1,882 15.1 % Combat Systems 8,997 8,268 729 8.8 % Technologies 13,127 12,922 205 1.6 % Total $ 47,716 $ 42,272 $ 5,444 12.9 % Operating earnings: Aerospace $ 1,464 $ 1,182 $ 282 23.9 % Marine Systems 935 874 61 7.0 % Combat Systems 1,276 1,147 129 11.2 % Technologies 1,260 1,202 58 4.8 % Corporate (139) (160) 21 13.1 % Total $ 4,796 $ 4,245 $ 551 13.0 % Operating margin: Aerospace 13.0 % 13.7 % Marine Systems 6.5 % 7.0 % Combat Systems 14.2 % 13.9 % Technologies 9.6 % 9.3 % Total 10.1 % 10.0 % EXHIBIT E CONSOLIDATED BALANCE SHEET DOLLARS IN MILLIONS (Unaudited) December 31, 2024 December 31, 2023 ASSETS Current assets: Cash and equivalents $ 1,697 $ 1,913 Accounts receivable 2,977 3,004 Unbilled receivables 8,248 7,997 Inventories 9,724 8,578 Other current assets 1,740 2,123 Total current assets 24,386 23,615 Noncurrent assets: Property, plant and equipment, net 6,467 6,198 Intangible assets, net 1,520 1,656 Goodwill 20,556 20,586 Other assets 2,951 2,755 Total noncurrent assets 31,494 31,195 Total assets $ 55,880 $ 54,810 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term debt and current portion of long-term debt $ 1,502 $ 507 Accounts payable 3,344 3,095 Customer advances and deposits 9,491 9,564 Other current liabilities 3,487 3,266 Total current liabilities 17,824 16,432 Noncurrent liabilities: Long-term debt 7,260 8,754 Other liabilities 8,733 8,325 Total noncurrent liabilities 15,993 17,079 Shareholders' equity: Common stock 482 482 Surplus 4,062 3,760 Retained earnings 41,487 39,270 Treasury stock (22,450) (21,054) Accumulated other comprehensive loss (1,518) (1,159) Total shareholders' equity 22,063 21,299 Total liabilities and shareholders' equity $ 55,880 $ 54,810 EXHIBIT F CONSOLIDATED STATEMENT OF CASH FLOWS - (UNAUDITED) DOLLARS IN MILLIONS Year Ended December 31 2024 2023 Cash flows from operating activities—continuing operations: Net earnings $ 3,782 $ 3,315 Adjustments to reconcile net earnings to net cash from operating activities: Depreciation of property, plant and equipment 644 608 Amortization of intangible and finance lease right-of-use assets 242 255 Equity-based compensation expense 183 181 Deferred income tax benefit (86) (177) (Increase) decrease in assets, net of effects of business acquisitions: Accounts receivable 16 38 Unbilled receivables (261) 913 Inventories (1,195) (2,219) Increase (decrease) in liabilities, net of effects of business acquisitions: Accounts payable 247 (303) Customer advances and deposits 343 2,415 Income taxes payable 266 (209) Other, net (69) (107) Net cash provided by operating activities 4,112 4,710 Cash flows from investing activities: Capital expenditures (916) (904) Other, net (37) (37) Net cash used by investing activities (953) (941) Cash flows from financing activities: Dividends paid (1,529) (1,428) Purchases of common stock (1,501) (434) Repayment of fixed-rate notes (500) (1,250) Other, net 161 18 Net cash used by financing activities (3,369) (3,094) Net cash used by discontinued operations (6) (4) Net (decrease) increase in cash and equivalents (216) 671 Cash and equivalents at beginning of year 1,913 1,242 Cash and equivalents at end of year $ 1,697 $ 1,913 EXHIBIT G ADDITIONAL FINANCIAL INFORMATION - (UNAUDITED) DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS Other Financial Information: December 31, 2024 December 31, 2023 Debt-to-equity (a) 39.7 % 43.5 % Book value per share (b) $ 81.61 $ 77.85 Shares outstanding 270,340,502 273,599,948 Fourth Quarter Twelve Months 2024 2023 2024 2023 Income tax payments, net $ 435 $ 607 $ 560 $ 1,100 Company-sponsored research and development (c) $ 144 $ 115 $ 565 $ 510 Return on sales (d) 8.6 % 8.6 % 7.9 % 7.8 % Return on equity (e) 17.2 % 16.8 % Non-GAAP Financial Measures: Fourth Quarter Twelve Months 2024 2023 2024 2023 Free cash flow: Net cash provided by operating activities $ 2,160 $ 1,196 $ 4,112 $ 4,710 Capital expenditures (355) (304) (916) (904) Free cash flow (f) $ 1,805 $ 892 $ 3,196 $ 3,806 Return on invested capital: Net earnings $ 3,782 $ 3,315 After-tax interest expense 310 315 After-tax amortization expense 191 201 Net operating profit after taxes 4,283 3,831 Average invested capital 32,451 31,258 Return on invested capital (g) 13.2 % 12.3 % December 31, 2024 December 31, 2023 Net debt: Total debt $ 8,762 $ 9,261 Less cash and equivalents 1,697 1,913 Net debt (h) $ 7,065 $ 7,348 Notes describing the calculation of the other financial information and a reconciliation of non-GAAP financial measures are on the following page. EXHIBIT G (Cont.) ADDITIONAL FINANCIAL INFORMATION - (UNAUDITED) DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS (a) Debt-to-equity ratio is calculated as total debt divided by total equity as of year end. (b) Book value per share is calculated as total equity divided by total outstanding shares as of year end. (c) Includes independent research and development and Aerospace product-development costs. (d) Return on sales is calculated as net earnings divided by revenue. (e) Return on equity is calculated by dividing net earnings by our average total equity during the year. Average total equity is calculated using the total equity balance at the end of the preceding year and the total equity balances at the end of each of the four quarters of the year presented. (f) We define free cash flow as net cash from operating activities less capital expenditures. We believe free cash flow is a useful measure for investors because it portrays our ability to generate cash from our businesses for purposes such as repaying debt, funding business acquisitions, repurchasing our common stock and paying dividends. We use free cash flow to assess the quality of our earnings and as a key performance measure in evaluating management. (g) We believe return on invested capital (ROIC) is a useful measure for investors because it reflects our ability to generate returns from the capital we have deployed in our operations. We use ROIC to evaluate investment decisions and as a performance measure in evaluating management. We define ROIC as net operating profit after taxes divided by average invested capital. Net operating profit after taxes is defined as net earnings plus after-tax interest and amortization expense, calculated using the statutory federal income tax rate. Average invested capital is defined as the sum of the average debt and average shareholders' equity excluding accumulated other comprehensive loss. Average debt and average shareholders' equity excluding accumulated other comprehensive loss are calculated using the respective balances at the end of the preceding year and the respective balances at the end of each of the four quarters of the year presented. ROIC excludes goodwill impairments and non-economic accounting changes as they are not reflective of company performance. (h) We define net debt as short- and long-term debt (total debt) less cash and equivalents. We believe net debt is a useful measure for investors because it reflects the borrowings that support our operations and capital deployment strategy. We use net debt as an important indicator of liquidity and financial position. EXHIBIT H BACKLOG - (UNAUDITED) DOLLARS IN MILLIONS Funded Unfunded Total Backlog Estimated Potential Contract Value* Total Estimated Contract Value Fourth Quarter 2024: Aerospace $ 18,895 $ 798 $ 19,693 $ 1,132 $ 20,825 Marine Systems 30,530 9,288 39,818 9,560 49,378 Combat Systems 16,142 838 16,980 8,647 25,627 Technologies 9,577 4,529 14,106 34,029 48,135 Total $ 75,144 $ 15,453 $ 90,597 $ 53,368 $ 143,965 Third Quarter 2024: Aerospace $ 18,859 $ 937 $ 19,796 $ 254 $ 20,050 Marine Systems 29,008 11,463 40,471 9,578 50,049 Combat Systems 17,289 682 17,971 8,016 25,987 Technologies 9,794 4,602 14,396 27,093 41,489 Total $ 74,950 $ 17,684 $ 92,634 $ 44,941 $ 137,575 Fourth Quarter 2023: Aerospace $ 19,557 $ 897 $ 20,454 $ 451 $ 20,905 Marine Systems 30,141 15,755 45,896 3,647 49,543 Combat Systems 13,816 721 14,537 6,236 20,773 Technologies 8,961 3,779 12,740 28,011 40,751 Total $ 72,475 $ 21,152 $ 93,627 $ 38,345 $ 131,972 * The estimated potential contract value includes work awarded on unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options associated with existing firm contracts, including options and other agreements with existing customers to purchase new aircraft and aircraft services. We recognize options in backlog when the customer exercises the option and establishes a firm order. For IDIQ contracts, we evaluate the amount of funding we expect to receive and include this amount in our estimated potential contract value. The actual amount of funding received in the future may be higher or lower than our estimate of potential contract value. EXHIBIT H-1 BACKLOG - (UNAUDITED)DOLLARS IN MILLIONS EXHIBIT H-2 BACKLOG BY SEGMENT - (UNAUDITED)DOLLARS IN MILLIONS EXHIBIT I FOURTH QUARTER 2024 SIGNIFICANT ORDERS - (UNAUDITED)DOLLARS IN MILLIONS We received the following significant contract awards during the fourth quarter of 2024:Marine Systems: $880 from the U.S. Navy for long-lead materials for Block V Virginia-class submarines. $375 from the Navy for lead yard services, development studies and design efforts for Virginia-class submarines. $350 from the Navy for long-lead materials for Block VI Virginia-class submarines. $245 from the Navy for procurement and delivery of initial Virginia-class spare parts to support maintenance availabilities. $230 from the Navy to provide engineering, technical, design and planning yard support services for operational strategic and attack submarines. $80 from the Navy for maintenance and modernization work on the USS Hartford, a Los Angeles-class submarine. Combat Systems: $505 for various munitions and ordnance. These contracts have a maximum potential value of $820. $370 from the U.S. Army for the production of 155mm artillery projectile metal parts. $65 to provide configuration changes for Canadian light armored vehicles (LAV). $50 to produce launch pod containers for the Guided Multiple Launch Rocket System (GMLRS) for the Army. Technologies: $50 from the U.S. Air Force to modernize, integrate and operate the Department of Defense's Mission Partner Environments (MPEs), enabling the military and its partners to securely communicate and share real-time information at multiple levels of classification. The contract has a maximum potential value of $5.6 billion. A contract from the U.S. Space Force to provide sustainment services for the Mobile User Objective System (MUOS) satellite communications system. The contract has a maximum potential value of $2.2 billion. $305 for several key contracts for classified customers. These contracts including options have a maximum potential value of $1.4 billion. $140 from the Navy to manufacture and test various components for MK54 torpedoes and for general engineering services. The contract including options has a maximum potential value of $810. $280 for two awards from the New York State Department of Health to operate and modernize the state's health insurance exchange and to support and enhance the state's Medicaid Management Information System. These contracts including options have a maximum potential value of $480. $115 from the Department of Veteran Affairs (VA) under the Veterans Intake, Conversion and Communications Services (VICCS) program to digitally convert historical veteran records and automate data extraction of existing records. The contract including options has a maximum potential value of $345. A contract from the VA to provide information technology (IT) support services to more than 600,000 VA personnel at all VA locations nationwide. The contract including options has a maximum potential value of $230. $155 from the National Geospatial-Intelligence Agency (NGA) to provide hybrid cloud services and IT design, engineering, and operations and sustainment services. EXHIBIT J AEROSPACE SUPPLEMENTAL DATA - (UNAUDITED) DOLLARS IN MILLIONS Fourth Quarter Twelve Months 2024 2023 2024 2023 Gulfstream Aircraft Deliveries (units): Large-cabin aircraft 42 32 118 89 Mid-cabin aircraft 5 7 18 22 Total 47 39 136 111 Aerospace Book-to-Bill: Orders* $ 3,814 $ 3,164 $ 11,278 $ 10,283 Revenue 3,743 2,744 11,249 8,621 Book-to-Bill Ratio 1.0x 1.2x 1.0x 1.2x * Does not include customer defaults, liquidated damages, cancellations, foreign exchange fluctuations and other backlog adjustments. SOURCE General Dynamics WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

General Dynamics Reports Fourth-Quarter and Full-Year 2024 Financial Results

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