11011 Sunset Hills Road
Reston, Virginia 20190						News
www.gd.com

Contact: Jeff A. Davis

Tel: 703 876 3483

press@generaldynamics.com

October 24, 2025

•Revenue $12.9 billion, up 10.6% from year-ago quarter

•Diluted EPS $3.88, up 15.8% from year-ago quarter

•$2.1 billion cash from operating activities, 199% of net earnings

•Very strong order activity in all four segments

RESTON, Va. – General Dynamics (NYSE: GD) today reported third-quarter 2025 operating earnings of $1.3 billion, or $3.88 per diluted share (EPS), on revenue of $12.9 billion. Compared with the year-ago quarter, revenue increased 10.6%, operating earnings increased 12.7%, and diluted EPS increased 15.8%. Operating margin of 10.3% was a 20-basis-point expansion from the year-ago quarter and a 30-basis-point expansion sequentially.

“Each of our four segments grew earnings and backlog in the quarter, reflecting solid execution coupled with growing demand,” said Phebe Novakovic, chairman and chief executive officer. “The Aerospace segment in particular performed impressively, growing revenue 30.3% and expanding margins by 100 basis points from the same period a year ago, with order activity for business jets remaining very strong.”

Net cash provided by operating activities in the quarter totaled $2.1 billion, or 199% of net earnings. During the quarter, the company paid $403 million in dividends and invested $212 million in capital expenditures, ending the quarter with $8 billion in total debt and $2.5 billion in cash and equivalents on hand.

Orders totaled $19.3 billion in the quarter on a companywide basis. Consolidated book-to-bill ratio, defined as orders divided by revenue, was 1.5-to-1 for the quarter. Book-to-bill was 1.6-to-1 for the defense segments and 1.3-to-1 for the Aerospace segment.

Total estimated contract value, the sum of all backlog components, was $167.7 billion at the end of the quarter. This includes backlog of $109.9 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 $57.8 billion.

Headquartered 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 third-quarter 2025 financial results conference call at 9 a.m. EDT on Friday, October 24, 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 October 31, 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.

 

			Three Months Ended												Variance
			September 28, 2025						September 29, 2024						$						%
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			269.2						274.4
Earnings per share—diluted			$	3.88					$	3.35					$	0.53					15.8		%
Diluted weighted average shares outstanding			272.6						277.9

 

			Nine Months Ended												Variance
			September 28, 2025						September 29, 2024						$						%
Revenue			$	38,171					$	34,378					$	3,793					11.0		%
Operating costs and expenses			(34,267)						(31,005)						(3,262)
Operating earnings			3,904						3,373						531						15.7		%
Other, net			51						47						4
Interest, net			(251)						(248)						(3)
Earnings before income tax			3,704						3,172						532						16.8		%
Provision for income tax, net			(637)						(538)						(99)
Net earnings			$	3,067					$	2,634					$	433					16.4		%
Earnings per share—basic			$	11.41					$	9.61					$	1.80					18.7		%
Basic weighted average shares outstanding			268.8						274.0
Earnings per share—diluted			$	11.29					$	9.49					$	1.80					19.0		%
Diluted weighted average shares outstanding			271.8						277.5

 

			Three Months Ended												Variance
			September 28, 2025						September 29, 2024						$						%
Revenue:
Aerospace			$	3,234					$	2,482					$	752					30.3		%
Marine Systems			4,096						3,599						497						13.8		%
Combat Systems			2,252						2,212						40						1.8		%
Technologies			3,325						3,378						(53)						(1.6)		%
Total			$	12,907					$	11,671					$	1,236					10.6		%
Operating earnings:
Aerospace			$	430					$	305					$	125					41.0		%
Marine Systems			291						258						33						12.8		%
Combat Systems			335						325						10						3.1		%
Technologies			327						326						1						0.3		%
Corporate			(52)						(33)						(19)						(57.6)		%
Total			$	1,331					$	1,181					$	150					12.7		%
Operating margin:
Aerospace			13.3		%				12.3		%
Marine Systems			7.1		%				7.2		%
Combat Systems			14.9		%				14.7		%
Technologies			9.8		%				9.7		%
Total			10.3		%				10.1		%

 

			Nine Months Ended												Variance
			September 28, 2025						September 29, 2024						$						%
Revenue:
Aerospace			$	9,322					$	7,506					$	1,816					24.2		%
Marine Systems			11,905						10,383						1,522						14.7		%
Combat Systems			6,711						6,602						109						1.7		%
Technologies			10,233						9,887						346						3.5		%
Total			$	38,171					$	34,378					$	3,793					11.0		%
Operating earnings:
Aerospace			$	1,265					$	879					$	386					43.9		%
Marine Systems			832						735						97						13.2		%
Combat Systems			950						920						30						3.3		%
Technologies			987						941						46						4.9		%
Corporate			(130)						(102)						(28)						(27.5)		%
Total			$	3,904					$	3,373					$	531					15.7		%
Operating margin:
Aerospace			13.6		%				11.7		%
Marine Systems			7.0		%				7.1		%
Combat Systems			14.2		%				13.9		%
Technologies			9.6		%				9.5		%
Total			10.2		%				9.8		%

 

			(Unaudited)
			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

 

 

			Nine Months Ended
			September 28, 2025						September 29, 2024
Cash flows from operating activities—continuing operations:
Net earnings			$	3,067					$	2,634
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation of property, plant and equipment			490						469
Amortization of intangible and finance lease right-of-use assets			182						177
Equity-based compensation expense			146						137
Deferred income tax provision (benefit)			151						(107)
(Increase) decrease in assets, net of effects of business acquisitions:
Accounts receivable			(314)						(172)
Unbilled receivables			(415)						(874)
Inventories			(131)						(1,612)
Increase (decrease) in liabilities, net of effects of business acquisitions:
Accounts payable			119						193
Customer advances and deposits			45						628
Other, net			219						479
Net cash provided by operating activities			3,559						1,952
Cash flows from investing activities:
Capital expenditures			(552)						(561)
Other, net			130						(27)
Net cash used by investing activities			(422)						(588)
Cash flows from financing activities:
Repayment of fixed-rate notes			(1,500)						—
Proceeds from fixed-rate notes			747						—
Dividends paid			(1,188)						(1,140)
Purchases of common stock			(600)						(183)
Other, net			235						150
Net cash used by financing activities			(2,306)						(1,173)
Net cash used by discontinued operations			(8)						(3)
Net increase in cash and equivalents			823						188
Cash and equivalents at beginning of period			1,697						1,913
Cash and equivalents at end of period			$	2,520					$	2,101

(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.

 

						Funded						Unfunded						Total Backlog						Estimated Potential Contract Value*						Total Estimated Contract Value
Third Quarter 2025:
Aerospace						$	19,476					$	1,131					$	20,607					$	1,147					$	21,754
Marine Systems						38,757						14,854						53,611						14,839						68,450
Combat Systems						17,232						1,470						18,702						9,553						28,255
Technologies						10,269						6,668						16,937						32,341						49,278
Total						$	85,734					$	24,123					$	109,857					$	57,880					$	167,737
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
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

*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.

 

 

Funded Backlog

Unfunded Backlog

*Does not include customer defaults, liquidated damages, cancellations, foreign exchange fluctuations and other backlog adjustments.