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General Dynamics Reports Second-Quarter 2025 Financial Results

1. GD reported $13 billion revenue, up 8.9% from last year. 2. Diluted EPS rose to $3.74, up 14.7% from previous quarter. 3. Strong cash flow of $1.6 billion, 158% of net earnings, reported. 4. Defense segments showed a book-to-bill ratio of 2.4:1. 5. Total backlog stands at $103.7 billion, indicating healthy future prospects.

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Why Bullish?

The significant revenue and EPS growth supports a bullish sentiment. Historically, strong earnings reports in defense sector boost stock prices following similar patterns.

How important is it?

The article details strong financial performance and significant order improvements, which are highly relevant for investment decisions.

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Immediate investor reactions to earnings tend to influence short-term pricing; evidence from past earnings reports indicates this trend.

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Revenue $13 billion, up 8.9% from year-ago quarter Diluted EPS $3.74, up 14.7% from year-ago quarter $1.6 billion cash from operating activities, 158% of net earnings Very strong order activity in Marine and Aerospace segments , /PRNewswire/ -- General Dynamics (NYSE: GD) today reported second-quarter 2025 operating earnings of $1.3 billion, or $3.74 per diluted share (EPS), on revenue of $13 billion. Compared with the year-ago quarter, revenue increased 8.9%, operating earnings increased 12.9%, and diluted EPS increased 14.7%. Operating margin of 10.0% was a 30-basis-point expansion from the year-ago quarter. EXHIBIT H-1 EXHIBIT H-2 "During the first half of the year, each of our four segments achieved growth in revenue and earnings, with margins on a companywide basis expanding 50 basis points over the same period last year," said Phebe Novakovic, chairman and chief executive officer. "Our strong cash flow and healthy backlog position us well to have a good second half." Cash and Capital Deployment Net cash provided by operating activities in the quarter totaled $1.6 billion, or 158% of net earnings. During the quarter, the company paid $402 million in dividends, invested $198 million in capital expenditures, and reduced total debt by $897 million. The company ended the quarter with $8.7 billion in total debt and $1.5 billion in cash and equivalents on hand.Orders and BacklogConsolidated book-to-bill ratio, defined as orders divided by revenue, was 2.2-to-1 for the quarter. Book-to-bill was 2.4-to-1 for the defense segments and 1.3-to-1 for the aerospace segment. On a companywide basis, orders totaled $28.3 billion. Backlog at the end of the quarter was $103.7 billion. Estimated potential contract value, representing management's estimate of additional value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $57.5 billion. Total estimated contract value, the sum of all backlog components, was $161.2 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 second-quarter 2025 financial results conference call at 9 a.m. EDT on Wednesday, July 23, 2025. The webcast will be a listen-only audio event available at www.gd.com. An on-demand replay of the webcast will be available by telephone two hours after the end of the call through July 30, 2025, at 800-770-2030 (international: +1 609-800-9909), conference ID 4299949. Charts furnished to investors and securities analysts in connection with General Dynamics' announcement of its financial results are available at www.gd.com. 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 ACONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED)DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS Three Months Ended Variance June 29, 2025 June 30, 2024 $ % Revenue $                       13,041 $                       11,976 $     1,065 8.9 % Operating costs and expenses (11,736) (10,820) (916) Operating earnings 1,305 1,156 149 12.9 % Other, net 15 18 (3) Interest, net (88) (84) (4) Earnings before income tax 1,232 1,090 142 13.0 % Provision for income tax, net (218) (185) (33) Net earnings $                          1,014 $                             905 $        109 12.0 % Earnings per share—basic $                            3.78 $                            3.30 $       0.48 14.5 % Basic weighted average shares outstanding 268.1 274.1 Earnings per share—diluted $                            3.74 $                            3.26 $       0.48 14.7 % Diluted weighted average shares outstanding 270.9 277.7 EXHIBIT BCONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED)DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS Six Months Ended Variance June 29, 2025 June 30, 2024 $ % Revenue $                       25,264 $                       22,707 $     2,557 11.3 % Operating costs and expenses (22,691) (20,515) (2,176) Operating earnings 2,573 2,192 381 17.4 % Other, net 36 32 4 Interest, net (177) (166) (11) Earnings before income tax 2,432 2,058 374 18.2 % Provision for income tax, net (424) (354) (70) Net earnings $                          2,008 $                          1,704 $        304 17.8 % Earnings per share—basic $                            7.48 $                            6.22 $       1.26 20.3 % Basic weighted average shares outstanding 268.6 273.8 Earnings per share—diluted $                            7.40 $                            6.14 $       1.26 20.5 % Diluted weighted average shares outstanding 271.3 277.4 EXHIBIT CREVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)DOLLARS IN MILLIONS Three Months Ended Variance June 29, 2025 June 30, 2024 $ % Revenue: Aerospace $                    3,062 $                     2,940 $             122 4.1 % Marine Systems 4,220 3,453 767 22.2 % Combat Systems 2,283 2,288 (5) (0.2) % Technologies 3,476 3,295 181 5.5 % Total $                  13,041 $                   11,976 $          1,065 8.9 % Operating earnings:                               Aerospace $                        403 $                        319 $               84 26.3 % Marine Systems 291 245 46 18.8 % Combat Systems 324 313 11 3.5 % Technologies 332 320 12 3.8 % Corporate (45) (41) (4) (9.8) % Total $                    1,305 $                     1,156 $             149 12.9 % Operating margin: Aerospace 13.2 % 10.9 % Marine Systems 6.9 % 7.1 % Combat Systems 14.2 % 13.7 % Technologies 9.6 % 9.7 % Total 10.0 % 9.7 % EXHIBIT DREVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)DOLLARS IN MILLIONS Six Months Ended Variance June 29, 2025 June 30, 2024 $ % Revenue: Aerospace $                    6,088 $                     5,024 $          1,064 21.2 % Marine Systems 7,809 6,784 1,025 15.1 % Combat Systems 4,459 4,390 69 1.6 % Technologies 6,908 6,509 399 6.1 % Total $                  25,264 $                   22,707 $          2,557 11.3 % Operating earnings:                               Aerospace $                        835 $                        574 $             261 45.5 % Marine Systems 541 477 64 13.4 % Combat Systems 615 595 20 3.4 % Technologies 660 615 45 7.3 % Corporate (78) (69) (9) (13.0) % Total $                    2,573 $                     2,192 $             381 17.4 % Operating margin: Aerospace 13.7 % 11.4 % Marine Systems 6.9 % 7.0 % Combat Systems 13.8 % 13.6 % Technologies 9.6 % 9.4 % Total 10.2 % 9.7 % EXHIBIT ECONSOLIDATED BALANCE SHEETDOLLARS IN MILLIONS (Unaudited) June 29, 2025 December 31, 2024 ASSETS Current assets: Cash and equivalents $                           1,523 $                           1,697 Accounts receivable 3,613 2,977 Unbilled receivables 8,412 8,248 Inventories 9,889 9,724 Other current assets 1,629 1,740 Total current assets 25,066 24,386 Noncurrent assets: Property, plant and equipment, net 6,556 6,467 Intangible assets, net 1,437 1,520 Goodwill 20,876 20,556 Other assets 2,953 2,951 Total noncurrent assets 31,822 31,494 Total assets $                         56,888 $                         55,880 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term debt and current portion of long-term debt                                    $                           1,204 $                           1,502 Accounts payable 3,078 3,344 Customer advances and deposits 10,678 9,491 Other current liabilities 3,419 3,487 Total current liabilities 18,379 17,824 Noncurrent liabilities: Long-term debt 7,508 7,260 Other liabilities 7,421 8,733 Total noncurrent liabilities 14,929 15,993 Shareholders' equity: Common stock 482 482 Surplus 4,173 4,062 Retained earnings 42,695 41,487 Treasury stock (22,975) (22,450) Accumulated other comprehensive loss (795) (1,518) Total shareholders' equity 23,580 22,063 Total liabilities and shareholders' equity $                         56,888 $                         55,880 EXHIBIT FCONSOLIDATED STATEMENT OF CASH FLOWS - (UNAUDITED)DOLLARS IN MILLIONS Six Months Ended June 29, 2025 June 30, 2024 Cash flows from operating activities—continuing operations: Net earnings $                        2,008 $                        1,704 Adjustments to reconcile net earnings to net cash from operating activities: Depreciation of property, plant and equipment 325 311 Amortization of intangible and finance lease right-of-use assets 121 117 Equity-based compensation expense 89 87 Deferred income tax benefit (98) (90) (Increase) decrease in assets, net of effects of business acquisitions: Accounts receivable (612) (158) Unbilled receivables (200) (601) Inventories (207) (1,152) Increase (decrease) in liabilities, net of effects of business acquisitions: Accounts payable (261) (125) Customer advances and deposits 106 169 Other, net 179 274 Net cash provided by operating activities 1,450 536 Cash flows from investing activities: Capital expenditures (340) (360) Other, net 124 53 Net cash used by investing activities (216) (307) Cash flows from financing activities: Repayment of fixed-rate notes (1,500) — Proceeds from fixed-rate notes 747 — Proceeds from commercial paper, net 696 — Dividends paid (785) (750) Purchases of common stock (600) (139) Other, net 39 111 Net cash used by financing activities (1,403) (778) Net cash used by discontinued operations (5) (2) Net decrease in cash and equivalents (174) (551) Cash and equivalents at beginning of period 1,697 1,913 Cash and equivalents at end of period $                        1,523 $                        1,362 EXHIBIT GADDITIONAL FINANCIAL INFORMATION - (UNAUDITED)DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS Other Financial Information: June 29, 2025 December 31, 2024 Debt-to-equity (a) 36.9 % 39.7 % Book value per share (b) $                  87.66 $                   81.61 Shares outstanding 268,993,342 270,340,502 Second Quarter Six Months 2025 2024 2025 2024 Income tax (payments) refunds, net $                    (202) $                        81 $                      (236) $                          48 Company-sponsored research and development (c)                $                     119 $                      147 $                       220 $                        284 Return on sales (d) 7.8 % 7.6 % 7.9 % 7.5 % Non-GAAP Financial Measures: Second Quarter Six Months 2025 2024 2025 2024 Free cash flow: Net cash provided by operating activities $                  1,598 $                      814 $                    1,450 $                        536 Capital expenditures (198) (201) (340) (360) Free cash flow (e) $                  1,400 $                      613 $                    1,110 $                        176 June 29, 2025 December 31, 2024 Net debt: Total debt $                  8,712 $                   8,762 Less cash and equivalents 1,523 1,697 Net debt (f) $                  7,189 $                   7,065 ‌ (a) Debt-to-equity ratio is calculated as total debt divided by total equity as of the end of the period. (b) Book value per share is calculated as total equity divided by total outstanding shares as of the end of the period. (c) Includes independent research and development and Aerospace product-development costs. (d) Return on sales is calculated as net earnings divided by revenue. (e) 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. (f) 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 HBACKLOG - (UNAUDITED)DOLLARS IN MILLIONS Funded Unfunded Total Backlog Estimated Potential Contract Value* Total Estimated Contract Value Second Quarter 2025: Aerospace $             18,676 $               1,227 $             19,903 $                       1,165 $                 21,068 Marine Systems 39,298 13,674 52,972 14,708 67,680 Combat Systems 15,961 616 16,577 9,592 26,169 Technologies 9,945 4,285 14,230 32,011 46,241 Total $             83,880 $             19,802 $           103,682 $                    57,476 $               161,158 First Quarter 2025: Aerospace $             18,171 $                  828 $             18,999 $                       1,090 $                 20,089 Marine Systems 30,882 7,491 38,373 10,261 48,634 Combat Systems 16,129 799 16,928 8,649 25,577 Technologies 9,751 4,606 14,357 32,670 47,027 Total $             74,933 $             13,724 $             88,657 $                    52,670 $               141,327 Second Quarter 2024:     Aerospace $             19,126 $                  911 $             20,037 $                          372 $                 20,409 Marine Systems 29,912 11,436 41,348 3,983 45,331 Combat Systems 16,003 673 16,676 5,816 22,492 Technologies 9,365 3,875 13,240 28,283 41,523 Total $             74,406 $             16,895 $             91,301 $                    38,454 $               129,755 *  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-1BACKLOG - (UNAUDITED)DOLLARS IN MILLIONS EXHIBIT H-2BACKLOG BY SEGMENT - (UNAUDITED)DOLLARS IN MILLIONS EXHIBIT IAEROSPACE SUPPLEMENTAL DATA - (UNAUDITED)DOLLARS IN MILLIONS Second Quarter Six Months 2025 2024 2025 2024 Gulfstream Aircraft Deliveries (units):                            Large-cabin aircraft 32 31 62 52 Mid-cabin aircraft 6 6 12 9 Total 38 37 74 61 Aerospace Book-to-Bill: Orders* $               4,003 $               2,673 $               6,364 $               5,099 Revenue 3,062 2,940 6,088 5,024 Book-to-Bill Ratio 1.3x 0.9x 1.0x 1.0x *  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

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