General Dynamics Corporation Earnings Recaps
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.
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.