General Dynamics Corporation (GD) Financial Results Summary

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General Dynamics (GD) Q3 2025 Financial Results Summary

General Dynamics (NYSE: GD) released its third-quarter financial results on October 24, 2025. Below is a summary of the significant financial metrics and operational highlights for the quarter.

Financial Highlights

  • Revenue:
  • Total revenue for Q3 2025 was $12.9 billion.

  • This reflects an increase of 10.6% compared to $11.7 billion in Q3 2024.

  • Diluted Earnings Per Share (EPS):

  • Reported diluted EPS was $3.88, which represents a 15.8% increase from $3.35 in Q3 2024.

  • Operating Earnings:

  • Operating earnings were $1.3 billion, up 12.7% from $1.2 billion year-over-year.

  • Operating Margin:

  • Operating margin improved to 10.3%, up by 20 basis points compared to 10.1% in Q3 2024.

  • Net Cash from Operating Activities:

  • Generated $2.1 billion, amounting to 199% of net earnings.

Segment Performance

  • Aerospace Segment:
  • Revenue increased significantly to $3.2 billion, reflecting a growth of 30.3% from $2.5 billion in the previous year.
  • Operating earnings surged to $430 million, a rise of 41.0% from $305 million in Q3 2024.

  • Operating margin expanded to 13.3% compared with 12.3% in the same quarter last year.

  • Marine Systems:

  • Revenue reached $4.1 billion, marking an increase of 13.8% from $3.6 billion.

  • Operating earnings rose to $291 million, a growth of 12.8% from $258 million.

  • Combat Systems:

  • A modest revenue increase of 1.8% to $2.3 billion compared to $2.2 billion.

  • Operating earnings were $335 million, up 3.1% from $325 million in Q3 2024.

  • Technologies:

  • Revenue slightly decreased to $3.3 billion, marking a 1.6% decline from $3.4 billion.
  • Operating earnings remained stable at $327 million, a growth of 0.3% from $326 million.

Capital Deployment

  • During the quarter, $403 million was distributed in dividends.
  • The company invested $212 million in capital expenditures.
  • General Dynamics ended the quarter with a total debt of $8 billion and $2.5 billion in cash and cash equivalents.

Orders and Backlog

  • Total orders for the quarter amounted to $19.3 billion, with a consolidated book-to-bill ratio of 1.5-to-1.

  • Defense segments recorded a book-to-bill of 1.6-to-1 while the Aerospace segment showed 1.3-to-1.

  • Backlog Estimate:

  • The total estimated contract value at the end of the quarter was $167.7 billion, including backlog of $109.9 billion and an estimated potential contract value of $57.8 billion.

Dividends and Share Repurchases

  • General Dynamics declared a quarterly dividend amounting to $403 million during this quarter.
  • Additionally, the company purchased shares worth $600 million.

Summary of Financial Metrics

  • Revenue Year-over-Year Growth: 10.6%
  • Diluted EPS Year-over-Year Growth: 15.8%
  • Operating Earnings Year-over-Year Growth: 12.7%
  • Operating Margin Improvement: 20 basis points (from 10.1% to 10.3%)
  • Net Cash from Operating Activities: 199% of net earnings
  • Total Debt: $8 billion
  • Cash and Equivalents: $2.5 billion
  • Total Backlog: $167.7 billion

General Dynamics demonstrated robust performance across its segments, with significant increases in both earnings and revenue compared to the previous year, aligning with effective operational execution against strong market demand.

CONSOLIDATED STATEMENT OF EARNINGS – (UNAUDITED)

DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS

Three Months Ended September 28, 2025 September 29, 2024 Variance %
Revenue $12,907 $11,671 $1,236 10.6%
Operating costs and expenses -11,576 -10,490 -1,086
Operating earnings 1,331 1,181 150 12.7%
Other, net 15 15 —
Interest, net -74 -82 8
Earnings before income tax 1,272 1,114 158 14.2%
Provision for income tax, net -213 -184 -29
Net earnings $1,059 $930 $129 13.9%
Earnings per share—basic $3.93 $3.39 $0.54 15.9%
Basic weighted average shares outstanding 259.2 274.4
Earnings per share—diluted $3.88 $3.35 $0.53 15.8%
Diluted weighted average shares outstanding 272.6 277.9

CONSOLIDATED BALANCE SHEET

DOLLARS IN MILLIONS

September 28, 2025 December 31, 2024
ASSETS
Current assets:
Cash and equivalents $2,520 $1,697
Accounts receivable 3,303 2,977
Unbilled receivables 8,641 8,248
Inventories 9,813 9,724
Other current assets 1,575 1,740
Total current assets 25,852 24,386
Noncurrent assets:
Property, plant and equipment, net 6,602 6,467
Intangible assets, net 1,402 1,520
Goodwill 20,871 20,556
Other assets 2,872 2,951
Total noncurrent assets 31,747 31,494
Total assets $57,599 $55,880
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt $1,006 $1,502
Accounts payable 3,459 3,344
Customer advances and deposits 10,462 9,491
Other current liabilities 3,537 3,487
Total current liabilities 18,464 17,824
Noncurrent liabilities:
Long-term debt 7,008 7,260
Other liabilities 7,693 8,733
Total noncurrent liabilities 14,701 15,993
Shareholders’ equity:
Common stock 482 482
Surplus 4,323 4,062
Retained earnings 43,345 41,487
Treasury stock -22,856 -22,450
Accumulated other comprehensive loss -860 -1,518
Total shareholders’ equity 24,434 22,063
Total liabilities and shareholders’ equity $57,599 $55,880

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