STOCK TITAN

General Dynamics (NYSE: GD) lifts Q2 EPS to $4.24 on 8% growth

(High)
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

General Dynamics Corporation reported higher second-quarter 2026 results, with revenue of $14.1 billion and diluted EPS of $4.24. Revenue grew 8.1%, operating earnings rose 11.9% to $1.5 billion, and the company-wide operating margin expanded to 10.4%.

Net cash provided by operating activities in the quarter was $1.9 billion, equal to 162% of net earnings. The company paid $429 million in dividends, invested $234 million in capital expenditures, and reduced total debt by $498 million, ending with total debt of $7.5 billion and cash of $4.3 billion.

Orders totaled $20 billion, producing a company-wide book-to-bill ratio of 1.4x and 1.5x in Aerospace. Backlog at quarter-end was $136.5 billion, with estimated potential contract value of $50.4 billion, for total estimated contract value of $186.9 billion.

Positive

  • Second-quarter 2026 diluted EPS rose 13.4% to $4.24 on revenue growth of 8.1% and a company-wide operating margin expansion to 10.4%.
  • Operating cash flow reached $1.9 billion, equal to 162% of net earnings, while six-month free cash flow was $3,598 million and net debt declined to $3,183 million.
  • Total backlog stood at $136.5 billion and total estimated contract value at $186.9 billion, supported by company-wide book-to-bill of 1.4x and Aerospace book-to-bill of 1.5x.

Negative

  • None.

Insights

Analyzing...

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q2 2026 Revenue $14.1 billion Second quarter 2026 revenue, up 8.1% versus prior-year quarter
Q2 2026 Diluted EPS $4.24 Second quarter 2026 diluted EPS, up 13.4% versus prior-year quarter
Q2 2026 Operating Margin 10.4% Company-wide operating margin for the quarter, a 40-basis-point expansion year over year
Q2 2026 Net Earnings $1,160 million Net earnings for the three months ended July 5, 2026, up 14.4% from $1,014 million
Q2 2026 Operating Cash Flow $1.9 billion Net cash provided by operating activities in the quarter, 162% of net earnings
Backlog at Quarter-End $136.5 billion Total backlog at the end of the second quarter of 2026
Net Debt $3,183 million Net debt as of July 5, 2026, versus $5,680 million at December 31, 2025
Six-Month 2026 Free Cash Flow $3,598 million Free cash flow for the six months ended July 5, 2026, versus $1,110 million a year earlier
book-to-bill ratio financial
"Book-to-bill ratio, defined as orders divided by revenue, was 1.4-to-1"
The book-to-bill ratio compares the value of new orders a company receives to the value of products it ships out or bills for over a certain period. If the ratio is above 1, it means the company is getting more orders than it is completing, which can indicate growth. If it's below 1, it suggests demand is slowing down.
backlog financial
"Backlog at the end of the quarter was $136.5 billion"
A backlog is the amount of work or orders that a company has received but hasn't completed yet. It’s like a restaurant with many dishes to serve; the backlog shows how many orders are still waiting to be finished. It matters because a large backlog can indicate strong demand or potential delays in delivering products or services.
free cash flow financial
"Free cash flow (a) $ 1,646 $ 1,400 $ 3,598 $ 1,110"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
net debt financial
"Net debt (b) $ 3,183 $ 5,680"
Net debt is the total amount a company owes after subtracting the cash and assets it has that can be used to pay off that debt. It shows how much debt is truly a burden, helping investors understand if a company is financially healthy or heavily borrowed. Think of it like calculating how much money you owe after using your savings to pay part of it.
indefinite delivery, indefinite quantity (IDIQ) contracts financial
"unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options"
Q2 2026 revenue $14.1 billion up 8.1% versus the quarter ended June 29, 2025
Q2 2026 operating earnings $1,460 million up 11.9% versus the quarter ended June 29, 2025
Q2 2026 net earnings $1,160 million up 14.4% versus the quarter ended June 29, 2025
Q2 2026 diluted EPS $4.24 up 13.4% versus the quarter ended June 29, 2025
Six-month 2026 revenue $27,575 million up 9.1% versus the six months ended June 29, 2025
Six-month 2026 diluted EPS $8.35 up 12.8% versus the six months ended June 29, 2025

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FAQ

What were General Dynamics (GD) second-quarter 2026 revenue and EPS?

General Dynamics reported second-quarter 2026 revenue of $14.1 billion and diluted EPS of $4.24. Revenue increased 8.1%, operating earnings rose 11.9%, and diluted EPS grew 13.4% compared with the same quarter in 2025.

How did General Dynamics (GD) margins change in Q2 2026?

Company-wide operating margin in Q2 2026 was 10.4%, a 40-basis-point expansion from 10.0% a year earlier. Aerospace margin rose to 14.5% from 13.2%, while Marine Systems improved to 7.3% from 6.9%.

What cash flow did General Dynamics (GD) generate in Q2 2026 and how was it used?

Net cash from operating activities in Q2 2026 was $1.9 billion, or 162% of net earnings. The company paid $429 million in dividends, invested $234 million in capital expenditures, and reduced total debt by $498 million during the quarter.

What were General Dynamics (GD) orders, backlog and book-to-bill in Q2 2026?

Orders in Q2 2026 totaled $20 billion, including $14.7 billion in defense and $5.3 billion in Aerospace. Company-wide book-to-bill was 1.4x, Aerospace book-to-bill 1.5x, and total backlog at quarter-end was $136.5 billion.

How did General Dynamics (GD) perform in the first half of 2026 versus 2025?

For the six months ended July 5, 2026, revenue was $27,575 million versus $25,264 million, up 9.1%. Net earnings were $2,285 million versus $2,008 million, and diluted EPS was $8.35 compared with $7.40 in the prior-year period.

What is General Dynamics (GD) net debt and liquidity position as of July 5, 2026?

As of July 5, 2026, total debt was $7,516 million and cash and equivalents were $4,333 million. Net debt was $3,183 million, improved from $5,680 million at December 31, 2025, reflecting strong cash generation and debt reduction.
0000040533false00000405332026-07-292026-07-29

8K - Logo.gif
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) July 29, 2026 (July 29, 2026)
Commission File Number 1-3671
GENERAL DYNAMICS CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
13-1673581
State or other jurisdiction of incorporation or organizationI.R.S. Employer Identification No.
11011 Sunset Hills RoadReston,Virginia20190
Address of principal executive officesZip code


(703) 876-3000
Registrant’s telephone number, including area code


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common StockGDNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o





Item 2.02    Results of Operations and Financial Condition

On July 29, 2026, General Dynamics announced its financial results for the quarter ended July 5, 2026. A copy of the press release is being furnished as Exhibit 99.1 to this Form 8-K and is hereby incorporated by reference.
Item 9.01    Financial Statements and Exhibits
(d)     Exhibits (furnished only)

99.1
General Dynamics press release dated July 29, 2026, with respect to the company’s financial results for the quarter ended July 5, 2026.
104Cover Page Interactive Data File (embedded within the Inline XBRL document)




SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
GENERAL DYNAMICS CORPORATION
by/s/ Dana O. Maisano
Dana O. Maisano
Vice President and Controller
(Authorized Officer and Chief Accounting Officer)
Dated: July 29, 2026




Exhibit 99.1 
 
bluegdlogoa.jpg
11011 Sunset Hills Road 
Reston, Virginia 20190News
www.gd.com 

Contact: Jeff A. Davis
Tel: 703 876 3483
press@generaldynamics.com


General Dynamics Reports Second-Quarter 2026 Financial Results

July 29, 2026

Revenue $14.1 billion, up 8.1% versus prior year
Diluted EPS $4.24, up 13.4% versus prior year
$1.9 billion cash from operating activities, 162% of net earnings
1.4-to-1 book-to-bill, with strong order activity in all segments

RESTON, Va. – General Dynamics (NYSE: GD) today reported second-quarter 2026 operating earnings of $1.5 billion, and $4.24 per diluted share (EPS), on revenue of $14.1 billion. Compared with the year-ago quarter, revenue increased 8.1%, operating earnings increased 11.9%, and diluted EPS increased 13.4%. Operating margin of 10.4% was a 40-basis-point expansion from the year-ago quarter.

“Our businesses delivered solid results in the quarter, with revenue growth across all four segments – including double-digit increases in revenue and noteworthy margin expansion in Aerospace and Marine Systems – reflecting our ongoing efforts to increase the pace of execution and deliver on our backlog,” said Phebe Novakovic, chairman and chief executive officer. “We are well positioned to support our customers’ needs and are continuing to make significant investments to increase output to meet strong and growing demand.”

Cash and Capital Deployment
Net cash provided by operating activities in the quarter totaled $1.9 billion, or 162% of net earnings. During the quarter, the company paid $429 million in dividends, invested $234 million in capital expenditures, and reduced total debt by $498 million. The company ended the quarter with $7.5 billion in total debt and $4.3 billion in cash and equivalents on hand.

Orders and Backlog
Orders received in the quarter totaled $14.7 billion in the defense segments and $5.3 billion in the Aerospace segment, for a total of $20 billion. Book-to-bill ratio, defined as orders divided by revenue, was 1.4-to-1 for the quarter for the defense segments, 1.5-to-1 for the Aerospace segment, and 1.4-to-1 on a company-wide basis.

Backlog at the end of the quarter was $136.5 billion. Estimated potential contract value, representing management’s estimate of additional value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $50.4 billion. Total estimated contract value, the sum of backlog plus estimated potential contract value, was $186.9 billion.



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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 120,000 people worldwide and generated $52.6 billion in revenue in 2025. More information is available at www.gd.com.

WEBCAST INFORMATION: General Dynamics' financial results conference call will be held on Wednesday, July 29, 2026, at 9:00 a.m. EDT. A link to the live webcast will be available at www.gd.com and will be available for replay following the call. Corresponding presentation slides will be available for download prior to the call.

This press release may contain forward-looking statements (FLS), including statements about the companys future operational and financial performance, which are based on managements 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 companys filings with the SEC, and these factors may be revised or supplemented in future SEC filings. In addition, this press release may contain 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.
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EXHIBIT A
CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED)
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS

 
 Three Months EndedVariance
 July 5, 2026June 29, 2025$%
Revenue$14,094 $13,041 $1,053 8.1%
Operating costs and expenses(12,634)(11,736)(898)
Operating earnings1,460 1,305 155 11.9%
Other, net(4)15 (19)
Interest, net(49)(88)39 
Earnings before income tax1,407 1,232 175 14.2%
Provision for income tax, net(247)(218)(29)
Net earnings$1,160 $1,014 $146 14.4%
Earnings per share—basic$4.29 $3.78 $0.51 13.5%
Basic weighted average shares outstanding270.2 268.1 
Earnings per share—diluted$4.24 $3.74 $0.50 13.4%
Diluted weighted average shares outstanding273.5 270.9 





































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

 
 Six Months EndedVariance
 July 5, 2026June 29, 2025$%
Revenue$27,575 $25,264 $2,311 9.1%
Operating costs and expenses(24,695)(22,691)(2,004)
Operating earnings2,880 2,573 307 11.9%
Other, net14 36 (22)
Interest, net(118)(177)59 
Earnings before income tax2,776 2,432 344 14.1%
Provision for income tax, net(491)(424)(67)
Net earnings$2,285 $2,008 $277 13.8%
Earnings per share—basic$8.46 $7.48 $0.98 13.1%
Basic weighted average shares outstanding270.2 268.6 
Earnings per share—diluted$8.35 $7.40 $0.95 12.8%
Diluted weighted average shares outstanding273.8 271.3 
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EXHIBIT C
REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)
DOLLARS IN MILLIONS

 
 Three Months EndedVariance
 July 5, 2026June 29, 2025$%
Revenue:
Aerospace$3,525 $3,062 $463 15.1 %
Marine Systems4,660 4,220 440 10.4 %
Combat Systems2,290 2,283 0.3 %
Technologies3,619 3,476 143 4.1 %
Total$14,094 $13,041 $1,053 8.1 %
Operating earnings:
Aerospace$510 $403 $107 26.6 %
Marine Systems342 291 51 17.5 %
Combat Systems318 324 (6)(1.9)%
Technologies339 332 2.1 %
Corporate(49)(45)(4)(8.9)%
Total$1,460 $1,305 $155 11.9 %
Operating margin:
Aerospace14.5%13.2%
Marine Systems7.3%6.9%
Combat Systems13.9%14.2%
Technologies9.4%9.6%
Total10.4%10.0%






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

 
 Six Months EndedVariance
 July 5, 2026June 29, 2025$%
Revenue:
Aerospace$6,804 $6,088 $716 11.8 %
Marine Systems9,003 7,809 1,194 15.3 %
Combat Systems4,573 4,459 114 2.6 %
Technologies7,195 6,908 287 4.2 %
Total$27,575 $25,264 $2,311 9.1 %
Operating earnings:
Aerospace$1,003 $835 $168 20.1 %
Marine Systems658 541 117 21.6 %
Combat Systems628 615 13 2.1 %
Technologies678 660 18 2.7 %
Corporate(87)(78)(9)(11.5)%
Total$2,880 $2,573 $307 11.9 %
Operating margin:
Aerospace14.7%13.7%
Marine Systems7.3%6.9%
Combat Systems13.7%13.8%
Technologies9.4%9.6%
Total10.4%10.2%



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EXHIBIT E
CONSOLIDATED BALANCE SHEET
DOLLARS IN MILLIONS
 
(Unaudited)
July 5, 2026December 31, 2025
ASSETS
Current assets:
Cash and equivalents$4,333 $2,333 
Accounts receivable2,398 2,406 
Unbilled receivables9,255 8,380 
Inventories9,097 9,232 
Other current assets1,955 1,897 
Total current assets27,038 24,248 
Noncurrent assets:
Property, plant and equipment, net7,575 7,525 
Intangible assets, net1,281 1,375 
Goodwill20,927 21,009 
Other assets3,342 3,092 
Total noncurrent assets 33,125 33,001 
Total assets$60,163 $57,249 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt$1,256 $1,006 
Accounts payable2,874 2,678 
Customer advances and deposits11,034 9,824 
Other current liabilities3,601 3,288 
Total current liabilities18,765 16,796 
Noncurrent liabilities:
Long-term debt6,260 7,007 
Other liabilities8,312 7,824 
Total noncurrent liabilities14,572 14,831 
Shareholders’ equity:
Common stock482 482 
Surplus4,535 4,403 
Retained earnings45,502 44,080 
Treasury stock(23,110)(22,860)
Accumulated other comprehensive loss(583)(483)
Total shareholders’ equity26,826 25,622 
Total liabilities and shareholders’ equity$60,163 $57,249 



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

Six Months Ended
 July 5, 2026June 29, 2025
Cash flows from operating activities—continuing operations:
Net earnings$2,285 $2,008 
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation of property, plant and equipment348 325 
Amortization of intangible and finance lease right-of-use assets115 121 
Equity-based compensation expense107 89 
Deferred income tax provision (benefit)365 (98)
(Increase) decrease in assets, net of effects of business acquisitions:
Accounts receivable8 (612)
Unbilled receivables(846)(200)
Inventories135 (207)
Increase (decrease) in liabilities, net of effects of business acquisitions:
Accounts payable196 (261)
Customer advances and deposits1,168 106 
Other, net154 179 
Net cash provided by operating activities4,035 1,450 
Cash flows from investing activities:
Capital expenditures(437)(340)
Other, net13 124 
Net cash used by investing activities(424)(216)
Cash flows from financing activities:
Dividends paid(834)(785)
Repayment of fixed-rate notes(500)(1,500)
Purchases of common stock(319)(600)
Proceeds from commercial paper, net 696 
Proceeds from fixed-rate notes 747 
Other, net48 39 
Net cash used by financing activities(1,605)(1,403)
Net cash used by discontinued operations(6)(5)
Net increase (decrease) in cash and equivalents2,000 (174)
Cash and equivalents at beginning of period2,333 1,697 
Cash and equivalents at end of period$4,333 $1,523 

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EXHIBIT G
ADDITIONAL FINANCIAL INFORMATION - (UNAUDITED)
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
Non-GAAP Financial Measures:
Second QuarterSix Months
2026202520262025
Free cash flow:
Net cash provided by operating activities$1,880 $1,598 $4,035 $1,450 
Capital expenditures(234)(198)(437)(340)
Free cash flow (a)$1,646 $1,400 $3,598 $1,110 
 July 5, 2026December 31, 2025
Net debt:
Total debt$7,516 $8,013 
Less cash and equivalents4,333 2,333 
Net debt (b)
$3,183 $5,680 
Supplemental Aerospace Data:
Second QuarterSix Months
2026202520262025
Gulfstream Aircraft Deliveries (units):
Large-cabin aircraft35 32 66 62 
Mid-cabin aircraft6 13 12 
Total41 38 79 74 
Aerospace Book-to-Bill:
Orders (c)$5,278 $4,003 $9,121 $6,364 
Revenue3,525 3,062 6,804 6,088 
Book-to-Bill Ratio1.5x1.3x1.3x1.0x
(a)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, paying dividends and repurchasing our common stock to cover dilution. We use free cash flow to assess the quality of our earnings and as a key performance measure in evaluating management.

(b)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.

(c)Excludes customer defaults, liquidated damages, cancellations, foreign exchange fluctuations and other backlog adjustments.


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EXHIBIT H
BACKLOG - (UNAUDITED)
DOLLARS IN MILLIONS
 
FundedUnfundedTotal
Backlog
Estimated
Potential
Contract Value*
Total
Estimated
Contract Value
Second Quarter 2026:
Aerospace$22,992 $985 $23,977 $1,170 $25,147 
Marine Systems42,356 22,826 65,182 7,442 72,624 
Combat Systems27,507 1,843 29,350 10,847 40,197 
Technologies11,256 6,733 17,989 30,945 48,934 
Total$104,111 $32,387 $136,498 $50,404 $186,902 
First Quarter 2026:
Aerospace$21,172 $1,095 $22,267 $1,040 $23,307 
Marine Systems40,598 23,373 63,971 12,519 76,490 
Combat Systems25,532 1,383 26,915 11,770 38,685 
Technologies10,818 6,869 17,687 32,272 49,959 
Total$98,120 $32,720 $130,840 $57,601 $188,441 
Second Quarter 2025:
Aerospace$18,676 $1,227 $19,903 $1,165 $21,068 
Marine Systems39,298 13,674 52,972 14,708 67,680 
Combat Systems15,961 616 16,577 9,592 26,169 
Technologies9,945 4,285 14,230 32,011 46,241 
Total$83,880 $19,802 $103,682 $57,476 $161,158 

*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.






 



 





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




chart-948a2d5d133f432eb7aa.jpg
Funded BacklogUnfunded Backlog














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