General Dynamics Corporation

General Dynamics Corporation Earnings Recaps

GD Industrials 3 recaps
Next earnings: October 28, 2026 (estimated) · full calendar
Q2 2026 Jul 31, 2026

General Dynamics shares fell 2.8% after the earnings release despite solid revenue and earnings growth, as investors reacted cautiously to the company’s cautious outlook and notably higher capital expenditures expected in the second half, which will weigh on free cash flow conversion.

Key takeaways
  • Q2 revenue rose 8.1% year-over-year to $14.1 billion; operating earnings increased nearly 12% to $1.46 billion; EPS grew 13.4% to $4.24.
  • Operating margin improved 40 basis points to 10.4%, led by Aerospace and Marine Systems segments.
  • Strong cash flow with $1.9 billion generated in the quarter; free cash flow reached $1.6 billion, translating to a 142% cash conversion rate.
  • Capital expenditures increased nearly 30% year-over-year to $234 million this quarter, with an expected rise to 3.5-4.0% of sales for the full year, reflecting heavy investment in shipyards.
  • The company flagged a lighter second half in free cash flow due to higher capex, a $500 million pension contribution, increased cash taxes, and working down advance payments—concerns that likely muted investor enthusiasm.
Full recap
Q1 2026 May 1, 2026

General Dynamics shares surged 9.8% post-earnings as the company delivered results that exceeded expectations across revenue, earnings, and cash flow, fueled by broad-based segment growth and a record backlog expansion.

Key takeaways
  • Revenue grew 10.3% to $13.5 billion, with every segment reporting year-over-year increases and Marine Systems leading on both revenue and operating earnings growth (+26.4%).
  • Diluted EPS rose 12% to $4.10, with total net earnings of $1.125 billion; operating margin improved to 10.5%, up 10 basis points from last year.
  • Operating cash flow was $2.2 billion, driving free cash flow to just under $2 billion — a 174% cash conversion rate — while the company repurchased $200 million in stock and paid $400 million in dividends.
  • Backlog reached $131 billion, up 48% from the prior year and 11% sequentially, with order intake over $26 billion and a book-to-bill of 2:1; total estimated contract value rose to a record $188 billion.
  • Capital expenditures increased more than 40% year-over-year to $203 million, with continued investment planned for shipyards to meet accelerating demand.
Full recap
Q3 2025 Oct 24, 2025

General Dynamics delivered a remarkable third quarter with a 10.6% revenue increase to $12.9 billion and earnings per share rising 15.8% to $3.88, driven by strong performance across Aerospace and Marine Systems.

Key takeaways
  • Aerospace segment revenue surged 30.3%, with operating earnings up 41% year-over-year.
  • Marine Systems revenue grew 13.8%, supported by increased Columbia-class and Virginia-class construction.
  • Combat Systems saw a 1.8% revenue increase and strong international demand, leading to a book-to-bill ratio of 2:1 for the quarter.
  • Overall, year-to-date results reflect an 11% revenue growth and a 16.4% increase in net earnings compared to the previous year.
  • Strong order momentum has pushed backlog to record levels, positioning the company for continued growth.
Full recap

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