Contact: Jeff A. Davis

Tel: 703 876 3483

press@generaldynamics.com

January 28, 2026

•Fourth-quarter net earnings of $1.1 billion, diluted EPS of $4.17, on $14.4 billion in revenue

•Full-year net earnings of $4.2 billion, diluted EPS of $15.45, on $52.6 billion in revenue

•$1.6 billion cash provided by operating activities in the quarter, 137% of net earnings

•$1.2 billion in capital expenditures for the year, up 27% from 2024

•Book-to-bill of 1.6x in the quarter and 1.5x for the full year, ending the year with $118 billion in backlog

RESTON, Va. – General Dynamics (NYSE: GD) today reported quarterly net earnings of $1.1 billion on revenue of $14.4 billion. Diluted earnings per share (EPS) was $4.17.

For the full year, net earnings were $4.2 billion, up 11.3% from 2024, on revenue of $52.6 billion, up 10.1% from 2024. Diluted EPS for the full year was $15.45, up 13.4% from 2024.

“We had a solid fourth quarter, capping off a year that saw growth in revenue and earnings in all four segments coupled with an impressive 30% growth in company-wide backlog,” said Phebe N. Novakovic, chairman and chief executive officer. “As we focus on execution of programs for our customers, we are also preparing aggressively for future growth, investing nearly $1.2 billion in capital expenditures in 2025 – with even more investments planned in the year ahead.”

Cash provided by operating activities in the quarter totaled $1.6 billion, or 137% of net earnings. For the year, cash provided by operating activities increased by $1 billion over 2024 to $5.1 billion, or 122% of net earnings.

During the year, the company invested $1.2 billion in capital expenditures, made tax payments of $568 million, reduced total debt by $749 million and paid dividends of $1.6 billion, ending 2025 with $2.3 billion in cash and equivalents on hand.

Demand remained strong across the company, with orders of $22.4 billion during the quarter. Consolidated book-to-bill ratio, defined as orders divided by revenue, was 1.6-to-1 for the quarter and 1.5-to-1 for the year, with full-year book-to-bill exceeding 1-to-1 in each of the four segments. The company ended the year with backlog of $118 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 $60.9 billion. Total estimated contract value, the sum of all backlog components, was $179 billion at year end, up 24% from a year earlier.

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, weapon systems and munitions; and technology products and services. General Dynamics employs more than 110,000 people worldwide and generated $52.6 billion in revenue in 2025. More information is available at www.gd.com.

WEBCAST INFORMATION: General Dynamics will webcast its fourth-quarter and full-year 2025 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 4, 2026, 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 2026 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.

 

			Three Months Ended December 31												Variance
			2025						2024						$						%
Revenue			$	14,379					$	13,338					$	1,041					7.8		%
Operating costs and expenses			(12,927)						(11,915)						(1,012)
Operating earnings			1,452						1,423						29						2.0		%
Other, net			10						21						(11)
Interest, net			(63)						(76)						13
Earnings before income tax			1,399						1,368						31						2.3		%
Provision for income tax, net			(256)						(220)						(36)
Net earnings			$	1,143					$	1,148					$	(5)					(0.4)		%
Earnings per share—basic			$	4.23					$	4.20					$	0.03					0.7		%
Basic weighted average shares outstanding			269.9						273.4
Earnings per share—diluted			$	4.17					$	4.15					$	0.02					0.5		%
Diluted weighted average shares outstanding			273.9						276.9

 

			Year Ended December 31												Variance
			2025						2024						$						%
Revenue			$	52,550					$	47,716					$	4,834					10.1		%
Operating costs and expenses			(47,194)						(42,920)						(4,274)
Operating earnings			5,356						4,796						560						11.7		%
Other, net			61						68						(7)
Interest, net			(314)						(324)						10
Earnings before income tax			5,103						4,540						563						12.4		%
Provision for income tax, net			(893)						(758)						(135)
Net earnings			$	4,210					$	3,782					$	428					11.3		%
Earnings per share—basic			$	15.65					$	13.81					$	1.84					13.3		%
Basic weighted average shares outstanding			269.1						273.9
Earnings per share—diluted			$	15.45					$	13.63					$	1.82					13.4		%
Diluted weighted average shares outstanding			272.4						277.5

 

 

			Three Months Ended December 31												Variance
			2025						2024						$						%
Revenue:
Aerospace			$	3,788					$	3,743					$	45					1.2		%
Marine Systems			4,818						3,960						858						21.7		%
Combat Systems			2,535						2,395						140						5.8		%
Technologies			3,238						3,240						(2)						(0.1)		%
Total			$	14,379					$	13,338					$	1,041					7.8		%
Operating earnings:
Aerospace			$	481					$	585					$	(104)					(17.8)		%
Marine Systems			345						200						145						72.5		%
Combat Systems			381						356						25						7.0		%
Technologies			290						319						(29)						(9.1)		%
Corporate			(45)						(37)						(8)						(21.6)		%
Total			$	1,452					$	1,423					$	29					2.0		%
Operating margin:
Aerospace			12.7		%				15.6		%
Marine Systems			7.2		%				5.1		%
Combat Systems			15.0		%				14.9		%
Technologies			9.0		%				9.8		%
Total			10.1		%				10.7		%

 

			Year Ended December 31												Variance
			2025						2024						$						%
Revenue:
Aerospace			$	13,110					$	11,249					$	1,861					16.5		%
Marine Systems			16,723						14,343						2,380						16.6		%
Combat Systems			9,246						8,997						249						2.8		%
Technologies			13,471						13,127						344						2.6		%
Total			$	52,550					$	47,716					$	4,834					10.1		%
Operating earnings:
Aerospace			$	1,746					$	1,464					$	282					19.3		%
Marine Systems			1,177						935						242						25.9		%
Combat Systems			1,331						1,276						55						4.3		%
Technologies			1,277						1,260						17						1.3		%
Corporate			(175)						(139)						(36)						(25.9)		%
Total			$	5,356					$	4,796					$	560					11.7		%
Operating margin:
Aerospace			13.3		%				13.0		%
Marine Systems			7.0		%				6.5		%
Combat Systems			14.4		%				14.2		%
Technologies			9.5		%				9.6		%
Total			10.2		%				10.1		%

 

 

 

			(Unaudited)
			December 31, 2025						December 31, 2024
ASSETS
Current assets:
Cash and equivalents			$	2,333					$	1,697
Accounts receivable			2,406						2,977
Unbilled receivables			8,380						8,248
Inventories			9,232						9,724
Other current assets			1,897						1,740
Total current assets			24,248						24,386
Noncurrent assets:
Property, plant and equipment, net			7,525						6,467
Intangible assets, net			1,375						1,520
Goodwill			21,009						20,556
Other assets			3,092						2,951
Total noncurrent assets			33,001						31,494
Total assets			$	57,249					$	55,880
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt			$	1,006					$	1,502
Accounts payable			2,678						3,344
Customer advances and deposits			9,824						9,491
Other current liabilities			3,288						3,487
Total current liabilities			16,796						17,824
Noncurrent liabilities:
Long-term debt			7,007						7,260
Other liabilities			7,824						8,733
Total noncurrent liabilities			14,831						15,993
Shareholders’ equity:
Common stock			482						482
Surplus			4,403						4,062
Retained earnings			44,080						41,487
Treasury stock			(22,860)						(22,450)
Accumulated other comprehensive loss			(483)						(1,518)
Total shareholders’ equity			25,622						22,063
Total liabilities and shareholders’ equity			$	57,249					$	55,880

 

 

			Year Ended December 31
			2025						2024
Cash flows from operating activities—continuing operations:
Net earnings			$	4,210					$	3,782
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation of property, plant and equipment			680						644
Amortization of intangible and finance lease right-of-use assets			244						242
Equity-based compensation expense			196						183
Deferred income tax provision (benefit)			256						(86)
(Increase) decrease in assets, net of effects of business acquisitions:
Accounts receivable			556						16
Unbilled receivables			(146)						(261)
Inventories			450						(1,195)
Increase (decrease) in liabilities, net of effects of business acquisitions:
Accounts payable			(664)						247
Customer advances and deposits			(4)						343
Other, net			(658)						197
Net cash provided by operating activities			5,120						4,112
Cash flows from investing activities:
Capital expenditures			(1,161)						(916)
Other, net			(123)						(37)
Net cash used by investing activities			(1,284)						(953)
Cash flows from financing activities:
Dividends paid			(1,593)						(1,529)
Repayment of fixed-rate notes			(1,500)						(500)
Proceeds from fixed-rate notes			747						—
Purchases of common stock			(637)						(1,501)
Other, net			(207)						161
Net cash used by financing activities			(3,190)						(3,369)
Net cash used by discontinued operations			(10)						(6)
Net increase (decrease) in cash and equivalents			636						(216)
Cash and equivalents at beginning of year			1,697						1,913
Cash and equivalents at end of year			$	2,333					$	1,697

 

 

Other Financial Information:
			December 31, 2025						December 31, 2024
Debt-to-equity (a)			31.3		%				39.7		%
Book value per share (b)			$	94.76					$	81.61
Shares outstanding			270,389,759						270,340,502
			Fourth Quarter												Twelve Months
			2025						2024						2025						2024
Income tax payments, net			$	305					$	435					$	568					$	560
Company-sponsored research and development (c)			$	147					$	144					$	486					$	565
Return on sales (d)			7.9		%				8.6		%				8.0		%				7.9		%
Return on equity (e)															17.9		%				17.2		%
Non-GAAP Financial Measures:
			Fourth Quarter												Twelve Months
			2025						2024						2025						2024
Free cash flow:
Net cash provided by operating activities			$	1,561					$	2,160					$	5,120					$	4,112
Capital expenditures			(609)						(355)						(1,161)						(916)
Free cash flow (f)			$	952					$	1,805					$	3,959					$	3,196
Return on invested capital:
Net earnings															$	4,210					$	3,782
After-tax interest expense															318						310
After-tax amortization expense															193						191
Net operating profit after taxes															4,721						4,283
Average invested capital															33,212						32,451
Return on invested capital (g)															14.2		%				13.2		%
			December 31, 2025						December 31, 2024
Net debt:
Total debt			$	8,013					$	8,762
Less cash and equivalents			2,333						1,697
Net debt (h)			$	5,680					$	7,065

Notes describing the calculation of the other financial information and a reconciliation of non-GAAP financial measures are on the following page.

(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.

 

						Funded						Unfunded						Total Backlog						Estimated Potential Contract Value*						Total Estimated Contract Value
Fourth Quarter 2025:
Aerospace						$	20,804					$	1,024					$	21,828					$	1,120					$	22,948
Marine Systems						36,808						15,532						52,340						11,823						64,163
Combat Systems						26,064						1,154						27,218						14,670						41,888
Technologies						9,865						6,795						16,660						33,280						49,940
Total						$	93,541					$	24,505					$	118,046					$	60,893					$	178,939
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
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

*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.