General Dynamics Reports Third-Quarter 2025 Financial Results

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General Dynamics (NYSE: GD) reported third-quarter 2025 results on October 24, 2025 showing $12.9 billion in revenue and $3.88 diluted EPS. Revenue rose 10.6% YoY, operating earnings were $1.3 billion, and diluted EPS increased 15.8% YoY. Operating margin expanded by 20 basis points to 10.3%. Cash from operations was $2.1 billion (199% of net earnings). Orders totaled $19.3 billion with a consolidated book-to-bill of 1.5-to-1 and total estimated contract value of $167.7 billion. Aerospace revenue grew 30.3% with a 100-basis-point margin expansion.

Positive

• Revenue +10.6% year-over-year to $12.9 billion
• Diluted EPS +15.8% year-over-year to $3.88
• Operating margin expanded 20 basis points to 10.3%
• Aerospace revenue +30.3% with margins +100 basis points
• Cash from operations $2.1 billion (199% of net earnings)
• Orders $19.3 billion; consolidated book-to-bill 1.5-to-1

Negative

• Total debt of $8.0 billion at quarter end
• Cash and equivalents $2.5 billion on hand (lower than total debt)

• 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., Oct. 24, 2025 /PRNewswire/ -- 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."

Cash and Capital Deployment
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 and Backlog
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.

About General Dynamics
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.

EXHIBIT A CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED) DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
	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

 

EXHIBIT B CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED) DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
	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

 

EXHIBIT C REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED) DOLLARS IN MILLIONS
	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 %

 

EXHIBIT D REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED) DOLLARS IN MILLIONS
	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 %

 

EXHIBIT E CONSOLIDATED BALANCE SHEET DOLLARS IN MILLIONS
	(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

 

EXHIBIT F CONSOLIDATED STATEMENT OF CASH FLOWS - (UNAUDITED) DOLLARS IN MILLIONS
	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

 

EXHIBIT G ADDITIONAL FINANCIAL INFORMATION - (UNAUDITED) DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
Other Financial Information:
	September 28, 2025		December 31, 2024
Debt-to-equity (a)	32.8 %		39.7 %
Book value per share (b)	$                90.46		$                 81.61
Shares outstanding	270,120,442		270,340,502
	Third Quarter				Nine Months
	2025		2024		2025		2024
Income tax payments, net	$                     27		$                   173		$               263		$              125
Company-sponsored research and development (c)	$                   119		$                   137		$               339		$              421
Return on sales (d)	8.2 %		8.0 %		8.0 %		7.7 %
Non-GAAP Financial Measures:
	Third Quarter				Nine Months
	2025		2024		2025		2024
Free cash flow:
Net cash provided by operating activities	$               2,109		$               1,416		$           3,559		$          1,952
Capital expenditures	(212)		(201)		(552)		(561)
Free cash flow (e)	$               1,897		$               1,215		$           3,007		$          1,391
	September 28, 2025		December 31, 2024
Net debt:
Total debt	$               8,014		$               8,762
Less cash and equivalents	2,520		1,697
Net debt (f)	$               5,494		$               7,065

(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.

 

EXHIBIT H BACKLOG - (UNAUDITED) DOLLARS IN MILLIONS
		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.

 

EXHIBIT H-1 BACKLOG - (UNAUDITED)  DOLLARS IN MILLIONS

https://mma.prnewswire.com/media/2803757/Exhibit_H_1.jpg

EXHIBIT H-2 BACKLOG BY SEGMENT - (UNAUDITED)  DOLLARS IN MILLIONS

https://mma.prnewswire.com/media/2803758/Exhibit_H_2.jpg

EXHIBIT I AEROSPACE SUPPLEMENTAL DATA - (UNAUDITED) DOLLARS IN MILLIONS
		Third Quarter				Nine Months
		2025		2024		2025		2024
Gulfstream Aircraft Deliveries (units):
Large-cabin aircraft		33		24		95		76
Mid-cabin aircraft		6		4		18		13
Total		39		28		113		89
Aerospace Book-to-Bill:
Orders*		$               4,053		$               2,365		$               10,417		$               7,464
Revenue		3,234		2,482		9,322		7,506
Book-to-Bill Ratio		1.3x		1.0x		1.1x		1.0x
*     Does not include customer defaults, liquidated damages, cancellations, foreign exchange fluctuations and other        backlog adjustments.

 

 

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SOURCE General Dynamics

FAQ

What were General Dynamics (GD) third-quarter 2025 revenues and EPS?

General Dynamics reported $12.9 billion in revenue and $3.88 diluted EPS for Q3 2025.

How much cash did General Dynamics (GD) generate from operations in Q3 2025?

GD generated $2.1 billion of cash from operating activities in the quarter, equal to 199% of net earnings.

What was General Dynamics (GD) order activity and book-to-bill in Q3 2025?

Orders totaled $19.3 billion with a consolidated book-to-bill ratio of 1.5-to-1 in Q3 2025.

How did General Dynamics (GD) Aerospace segment perform in Q3 2025?

The Aerospace segment grew revenue 30.3% year-over-year and expanded margins by 100 basis points in Q3 2025.

What were General Dynamics (GD) balance sheet cash and debt levels at quarter end?

At quarter end GD reported $2.5 billion in cash and equivalents and $8.0 billion in total debt.