General Dynamics receives $98.8B in Q3 2026 orders
Large Virginia- and Columbia-class submarine orders drove General Dynamics’ defense bookings.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
General Dynamics Corporation reported third-quarter 2026 revenue of $14.566 billion, up 12.9% from a year earlier. Operating earnings were $1.527 billion, up 14.7%; net earnings were $1.229 billion, up 16.1%; and diluted EPS was $4.49, up 15.7%. Operating margin was 10.5%, 20 basis points above the year-ago quarter.
Orders received totaled $98.8 billion, including $93.8 billion in defense segments and $5 billion in Aerospace. Company-wide book-to-bill was 6.8-to-1. Backlog at quarter-end was $220.339 billion, and total estimated contract value was $270.669 billion, including $50.330 billion in estimated potential contract value. Operating cash flow was $1.710 billion, compared with $2.109 billion in third-quarter 2025; free cash flow was $1.229 billion versus $1.897 billion.
The company paid $429 million in dividends, invested $481 million in capital expenditures and reduced total debt by $500 million during the quarter. It ended the quarter with $7 billion in total debt and $4.4 billion in cash and equivalents. Revenue grew across all four segments.
1 point · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter revenue increased 12.9%; diluted EPS rose 15.7% year over year.
Negative
- Moderate pointThird-quarter operating cash flow fell to $1.710 billion from $2.109 billion a year earlier.
Filing Explained
At
8-K Event Classification
2 items: 2.02, 9.01
2 items
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, or exhibit attachments filed with this report.
Key Figures
Third-quarter revenue: $14.566 billion
Operating earnings: $1.527 billion
Net earnings: $1.229 billion
+5 more
8 metrics
Third-quarter revenue
$14.566 billion
Three months ended October 4, 2026; up 12.9% year over year
Operating earnings
$1.527 billion
Third quarter 2026; up 14.7% year over year
Net earnings
$1.229 billion
Third quarter 2026; up 16.1% year over year
Diluted EPS
$4.49 per diluted share
Third quarter 2026; up 15.7% year over year
Operating cash flow
$1.710 billion
Third quarter 2026; compared with $2.109 billion in third-quarter 2025
Orders received
$98.8 billion
Third quarter 2026
Backlog
$220.339 billion
At the end of third-quarter 2026
Total estimated contract value
$270.669 billion
Third-quarter 2026
Key Terms
book-to-bill ratio, estimated potential contract value, indefinite delivery, indefinite quantity (IDIQ) contracts, free cash flow, +1 more
5 terms
book-to-bill ratio financial
"book-to-bill ratio, defined as orders divided by revenue"
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.
estimated potential contract value financial
"estimated potential contract value, representing management’s estimate"
indefinite delivery, indefinite quantity (IDIQ) contracts technical
"unfunded indefinite delivery, indefinite quantity (IDIQ) contracts"
free cash flow financial
"We define free cash flow as net cash from operating activities less capital expenditures"
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
"We define net debt as short- and long-term debt (total debt) less cash and equivalents"
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.
Earnings Snapshot
Revenue: $14.566 billion
Third quarter 2026
Revenue
$14.566 billion
up 12.9% year over year
Operating earnings
$1.527 billion
up 14.7% year over year
Net earnings
$1.229 billion
up 16.1% year over year
Diluted EPS
$4.49 per diluted share
up 15.7% year over year
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were GD’s third-quarter 2026 revenue and earnings?
General Dynamics reported revenue of $14.566 billion, operating earnings of $1.527 billion, net earnings of $1.229 billion and diluted EPS of $4.49 for the third quarter.
How large was GD’s backlog at the end of third-quarter 2026?
Backlog was $220.339 billion at quarter-end. Total estimated contract value was $270.669 billion, including $50.330 billion in estimated potential contract value.
Which GD segment had the highest third-quarter revenue growth?
Marine Systems had the highest reported revenue growth at 21.1%, followed by Technologies at 10.8%, Aerospace at 9.3% and Combat Systems at 6.0%.
What were GD’s nine-month 2026 revenue and net earnings?
For the nine months ended October 4, 2026, revenue was $42.141 billion and net earnings were $3.514 billion. The comparable figures for the nine months ended September 28, 2025, were $38.171 billion and $3.067 billion.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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) October 30, 2026 (October 30, 2026 )
Commission File Number 1-3671
(Exact name of registrant as specified in its charter)
| State or other jurisdiction of incorporation or organization | I.R.S. Employer Identification No. | |||||||||||||
| Address of principal executive offices | Zip 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:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
| 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 October 30, 2026, General Dynamics announced its financial results for the quarter ended October 4, 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 October 30, 2026, with respect to the company’s financial results for the quarter ended October 4, 2026. | ||||
| 104 | Cover 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: | ||||||||
Exhibit 99.1
| 11011 Sunset Hills Road | ||||||||
| Reston, Virginia 20190 | News | |||||||
| www.gd.com | ||||||||
Contact: Jeff A. Davis
Tel: 703 876 3483
press@generaldynamics.com
General Dynamics Reports Third-Quarter 2026 Financial Results
October 30, 2026
•Revenue $14.6 billion, up 12.9% versus prior year
•Diluted EPS $4.49, up 15.7% versus prior year
•$1.7 billion cash from operating activities, 139% of net earnings
•6.8-to-1 book-to-bill, $220 billion backlog
RESTON, Va. – General Dynamics (NYSE: GD) today reported third-quarter 2026 operating earnings of $1.5 billion, and $4.49 per diluted share (EPS), on revenue of $14.6 billion. Compared with the year-ago quarter, revenue increased 12.9%, operating earnings increased 14.7%, and diluted EPS increased 15.7%. Operating margin of 10.5% was a 20-basis-point expansion from the year-ago quarter.
“Our business had exceptional third quarter results, with revenue growth across all four segments, robust bookings and solid operational performance,” said Phebe Novakovic, chairman and chief executive officer. “With the consistent growth in our backlog and our significant investment in our businesses over the last decade, we are poised to drive continued performance in the years to come.”
Cash and Capital Deployment
Cash provided by operating activities in the quarter totaled $1.7 billion, or 139% of net earnings. During the quarter, the company paid $429 million in dividends, invested $481 million in capital expenditures, and reduced total debt by $500 million. The company ended the quarter with $7 billion in total debt and $4.4 billion in cash and equivalents on hand.
Orders and Backlog
Orders received in the quarter totaled $93.8 billion in the defense segments, driven by large orders in the Marine Systems segment for Virginia- and Columbia-class submarines, and $5 billion in the Aerospace segment, for a total of $98.8 billion. Book-to-bill ratio, defined as orders divided by revenue, was 8.5-to-1 for the quarter for the defense segments, 1.4-to-1 for the Aerospace segment, and 6.8-to-1 on a company-wide basis.
Backlog at the end of the quarter was $220.3 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 $270.7 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, weapon 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 Friday, October 30, 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 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 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 Ended | Variance | ||||||||||||||||||||||
| October 4, 2026 | September 28, 2025 | $ | % | ||||||||||||||||||||
| Revenue | $ | 14,566 | $ | 12,907 | $ | 1,659 | 12.9 | % | |||||||||||||||
| Operating costs and expenses | (13,039) | (11,576) | (1,463) | ||||||||||||||||||||
| Operating earnings | 1,527 | 1,331 | 196 | 14.7 | % | ||||||||||||||||||
| Other, net | 4 | 15 | (11) | ||||||||||||||||||||
| Interest, net | (45) | (74) | 29 | ||||||||||||||||||||
| Earnings before income tax | 1,486 | 1,272 | 214 | 16.8 | % | ||||||||||||||||||
| Provision for income tax, net | (257) | (213) | (44) | ||||||||||||||||||||
| Net earnings | $ | 1,229 | $ | 1,059 | $ | 170 | 16.1 | % | |||||||||||||||
| Earnings per share—basic | $ | 4.55 | $ | 3.93 | $ | 0.62 | 15.8 | % | |||||||||||||||
| Basic weighted average shares outstanding | 270.2 | 269.2 | |||||||||||||||||||||
| Earnings per share—diluted | $ | 4.49 | $ | 3.88 | $ | 0.61 | 15.7 | % | |||||||||||||||
| Diluted weighted average shares outstanding | 273.8 | 272.6 | |||||||||||||||||||||
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EXHIBIT B
CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED)
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
| Nine Months Ended | Variance | ||||||||||||||||||||||
| October 4, 2026 | September 28, 2025 | $ | % | ||||||||||||||||||||
| Revenue | $ | 42,141 | $ | 38,171 | $ | 3,970 | 10.4 | % | |||||||||||||||
| Operating costs and expenses | (37,734) | (34,267) | (3,467) | ||||||||||||||||||||
| Operating earnings | 4,407 | 3,904 | 503 | 12.9 | % | ||||||||||||||||||
| Other, net | 18 | 51 | (33) | ||||||||||||||||||||
| Interest, net | (163) | (251) | 88 | ||||||||||||||||||||
| Earnings before income tax | 4,262 | 3,704 | 558 | 15.1 | % | ||||||||||||||||||
| Provision for income tax, net | (748) | (637) | (111) | ||||||||||||||||||||
| Net earnings | $ | 3,514 | $ | 3,067 | $ | 447 | 14.6 | % | |||||||||||||||
| Earnings per share—basic | $ | 13.01 | $ | 11.41 | $ | 1.60 | 14.0 | % | |||||||||||||||
| Basic weighted average shares outstanding | 270.2 | 268.8 | |||||||||||||||||||||
| Earnings per share—diluted | $ | 12.83 | $ | 11.29 | $ | 1.54 | 13.6 | % | |||||||||||||||
| Diluted weighted average shares outstanding | 273.8 | 271.8 | |||||||||||||||||||||
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EXHIBIT C
REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)
DOLLARS IN MILLIONS
| Three Months Ended | Variance | ||||||||||||||||||||||
| October 4, 2026 | September 28, 2025 | $ | % | ||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Aerospace | $ | 3,536 | $ | 3,234 | $ | 302 | 9.3 | % | |||||||||||||||
| Marine Systems | 4,960 | 4,096 | 864 | 21.1 | % | ||||||||||||||||||
| Combat Systems | 2,386 | 2,252 | 134 | 6.0 | % | ||||||||||||||||||
| Technologies | 3,684 | 3,325 | 359 | 10.8 | % | ||||||||||||||||||
| Total | $ | 14,566 | $ | 12,907 | $ | 1,659 | 12.9 | % | |||||||||||||||
| Operating earnings: | |||||||||||||||||||||||
| Aerospace | $ | 513 | $ | 430 | $ | 83 | 19.3 | % | |||||||||||||||
| Marine Systems | 391 | 291 | 100 | 34.4 | % | ||||||||||||||||||
| Combat Systems | 330 | 335 | (5) | (1.5) | % | ||||||||||||||||||
| Technologies | 346 | 327 | 19 | 5.8 | % | ||||||||||||||||||
| Corporate | (53) | (52) | (1) | (1.9) | % | ||||||||||||||||||
| Total | $ | 1,527 | $ | 1,331 | $ | 196 | 14.7 | % | |||||||||||||||
| Operating margin: | |||||||||||||||||||||||
| Aerospace | 14.5 | % | 13.3 | % | |||||||||||||||||||
| Marine Systems | 7.9 | % | 7.1 | % | |||||||||||||||||||
| Combat Systems | 13.8 | % | 14.9 | % | |||||||||||||||||||
| Technologies | 9.4 | % | 9.8 | % | |||||||||||||||||||
| Total | 10.5 | % | 10.3 | % | |||||||||||||||||||
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EXHIBIT D
REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)
DOLLARS IN MILLIONS
| Nine Months Ended | Variance | ||||||||||||||||||||||
| October 4, 2026 | September 28, 2025 | $ | % | ||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Aerospace | $ | 10,340 | $ | 9,322 | $ | 1,018 | 10.9 | % | |||||||||||||||
| Marine Systems | 13,963 | 11,905 | 2,058 | 17.3 | % | ||||||||||||||||||
| Combat Systems | 6,959 | 6,711 | 248 | 3.7 | % | ||||||||||||||||||
| Technologies | 10,879 | 10,233 | 646 | 6.3 | % | ||||||||||||||||||
| Total | $ | 42,141 | $ | 38,171 | $ | 3,970 | 10.4 | % | |||||||||||||||
| Operating earnings: | |||||||||||||||||||||||
| Aerospace | $ | 1,516 | $ | 1,265 | $ | 251 | 19.8 | % | |||||||||||||||
| Marine Systems | 1,049 | 832 | 217 | 26.1 | % | ||||||||||||||||||
| Combat Systems | 958 | 950 | 8 | 0.8 | % | ||||||||||||||||||
| Technologies | 1,024 | 987 | 37 | 3.7 | % | ||||||||||||||||||
| Corporate | (140) | (130) | (10) | (7.7) | % | ||||||||||||||||||
| Total | $ | 4,407 | $ | 3,904 | $ | 503 | 12.9 | % | |||||||||||||||
| Operating margin: | |||||||||||||||||||||||
| Aerospace | 14.7 | % | 13.6 | % | |||||||||||||||||||
| Marine Systems | 7.5 | % | 7.0 | % | |||||||||||||||||||
| Combat Systems | 13.8 | % | 14.2 | % | |||||||||||||||||||
| Technologies | 9.4 | % | 9.6 | % | |||||||||||||||||||
| Total | 10.5 | % | 10.2 | % | |||||||||||||||||||
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EXHIBIT E
CONSOLIDATED BALANCE SHEET
DOLLARS IN MILLIONS
| (Unaudited) | |||||||||||
| October 4, 2026 | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and equivalents | $ | 4,388 | $ | 2,333 | |||||||
| Accounts receivable | 2,529 | 2,406 | |||||||||
| Unbilled receivables | 8,906 | 8,380 | |||||||||
| Inventories | 9,124 | 9,232 | |||||||||
| Other current assets | 1,926 | 1,897 | |||||||||
| Total current assets | 26,873 | 24,248 | |||||||||
| Noncurrent assets: | |||||||||||
| Property, plant and equipment, net | 7,853 | 7,525 | |||||||||
| Intangible assets, net | 1,231 | 1,375 | |||||||||
| Goodwill | 20,849 | 21,009 | |||||||||
| Other assets | 3,399 | 3,092 | |||||||||
| Total noncurrent assets | 33,332 | 33,001 | |||||||||
| Total assets | $ | 60,205 | $ | 57,249 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Short-term debt and current portion of long-term debt | $ | 756 | $ | 1,006 | |||||||
| Accounts payable | 3,166 | 2,678 | |||||||||
| Customer advances and deposits | 11,083 | 9,824 | |||||||||
| Other current liabilities | 3,821 | 3,288 | |||||||||
| Total current liabilities | 18,826 | 16,796 | |||||||||
| Noncurrent liabilities: | |||||||||||
| Long-term debt | 6,260 | 7,007 | |||||||||
| Other liabilities | 7,827 | 7,824 | |||||||||
| Total noncurrent liabilities | 14,087 | 14,831 | |||||||||
| Shareholders’ equity: | |||||||||||
| Common stock | 482 | 482 | |||||||||
| Surplus | 4,646 | 4,403 | |||||||||
| Retained earnings | 46,299 | 44,080 | |||||||||
| Treasury stock | (23,403) | (22,860) | |||||||||
| Accumulated other comprehensive loss | (732) | (483) | |||||||||
| Total shareholders’ equity | 27,292 | 25,622 | |||||||||
| Total liabilities and shareholders’ equity | $ | 60,205 | $ | 57,249 | |||||||
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EXHIBIT F
CONSOLIDATED STATEMENT OF CASH FLOWS - (UNAUDITED)
DOLLARS IN MILLIONS
| Nine Months Ended | |||||||||||
| October 4, 2026 | September 28, 2025 | ||||||||||
| Cash flows from operating activities—continuing operations: | |||||||||||
| Net earnings | $ | 3,514 | $ | 3,067 | |||||||
| Adjustments to reconcile net earnings to net cash from operating activities: | |||||||||||
| Depreciation of property, plant and equipment | 525 | 490 | |||||||||
| Amortization of intangible and finance lease right-of-use assets | 173 | 182 | |||||||||
| Equity-based compensation expense | 169 | 146 | |||||||||
| Deferred income tax provision | 335 | 151 | |||||||||
| (Increase) decrease in assets, net of effects of business acquisitions: | |||||||||||
| Accounts receivable | (123) | (314) | |||||||||
| Unbilled receivables | (480) | (415) | |||||||||
| Inventories | 108 | (131) | |||||||||
| Increase (decrease) in liabilities, net of effects of business acquisitions: | |||||||||||
| Accounts payable | 488 | 119 | |||||||||
| Customer advances and deposits | 1,232 | 45 | |||||||||
| Other, net | (196) | 219 | |||||||||
| Net cash provided by operating activities | 5,745 | 3,559 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Capital expenditures | (918) | (552) | |||||||||
| Other, net | 18 | 130 | |||||||||
| Net cash used by investing activities | (900) | (422) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Dividends paid | (1,263) | (1,188) | |||||||||
| Repayment of fixed-rate notes | (1,000) | (1,500) | |||||||||
| Purchases of common stock | (604) | (600) | |||||||||
| Proceeds from fixed-rate notes | — | 747 | |||||||||
| Other, net | 87 | 235 | |||||||||
| Net cash used by financing activities | (2,780) | (2,306) | |||||||||
| Net cash used by discontinued operations | (10) | (8) | |||||||||
| Net increase in cash and equivalents | 2,055 | 823 | |||||||||
| Cash and equivalents at beginning of period | 2,333 | 1,697 | |||||||||
| Cash and equivalents at end of period | $ | 4,388 | $ | 2,520 | |||||||
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EXHIBIT G
ADDITIONAL FINANCIAL INFORMATION - (UNAUDITED)
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
| Non-GAAP Financial Measures: | |||||||||||||||||||||||
| Third Quarter | Nine Months | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Free cash flow: | |||||||||||||||||||||||
| Net cash provided by operating activities | $ | 1,710 | $ | 2,109 | $ | 5,745 | $ | 3,559 | |||||||||||||||
| Capital expenditures | (481) | (212) | (918) | (552) | |||||||||||||||||||
| Free cash flow (a) | $ | 1,229 | $ | 1,897 | $ | 4,827 | $ | 3,007 | |||||||||||||||
| October 4, 2026 | December 31, 2025 | ||||||||||||||||||||||
| Net debt: | |||||||||||||||||||||||
| Total debt | $ | 7,016 | $ | 8,013 | |||||||||||||||||||
| Less cash and equivalents | 4,388 | 2,333 | |||||||||||||||||||||
Net debt (b) | $ | 2,628 | $ | 5,680 | |||||||||||||||||||
| Supplemental Aerospace Data: | |||||||||||||||||||||||
| Third Quarter | Nine Months | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Gulfstream Aircraft Deliveries (units): | |||||||||||||||||||||||
| Large-cabin aircraft | 35 | 33 | 101 | 95 | |||||||||||||||||||
| Mid-cabin aircraft | 5 | 6 | 18 | 18 | |||||||||||||||||||
| Total | 40 | 39 | 119 | 113 | |||||||||||||||||||
| Aerospace Book-to-Bill: | |||||||||||||||||||||||
| Orders (c) | $ | 4,970 | $ | 4,053 | $ | 14,091 | $ | 10,417 | |||||||||||||||
| Revenue | 3,536 | 3,234 | 10,340 | 9,322 | |||||||||||||||||||
| Book-to-Bill Ratio | 1.4x | 1.3x | 1.4x | 1.1x | |||||||||||||||||||
(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
| Funded | Unfunded | Total Backlog | Estimated Potential Contract Value* | Total Estimated Contract Value | ||||||||||||||||||||||||||||
| Third Quarter 2026: | ||||||||||||||||||||||||||||||||
| Aerospace | $ | 24,460 | $ | 925 | $ | 25,385 | $ | 1,374 | $ | 26,759 | ||||||||||||||||||||||
| Marine Systems | 47,289 | 99,576 | 146,865 | 7,644 | 154,509 | |||||||||||||||||||||||||||
| Combat Systems | 26,983 | 1,701 | 28,684 | 9,588 | 38,272 | |||||||||||||||||||||||||||
| Technologies | 13,064 | 6,341 | 19,405 | 31,724 | 51,129 | |||||||||||||||||||||||||||
| Total | $ | 111,796 | $ | 108,543 | $ | 220,339 | $ | 50,330 | $ | 270,669 | ||||||||||||||||||||||
| Second Quarter 2026: | ||||||||||||||||||||||||||||||||
| Aerospace | $ | 22,992 | $ | 985 | $ | 23,977 | $ | 1,170 | $ | 25,147 | ||||||||||||||||||||||
| Marine Systems | 42,356 | 22,826 | 65,182 | 7,442 | 72,624 | |||||||||||||||||||||||||||
| Combat Systems | 27,507 | 1,843 | 29,350 | 10,847 | 40,197 | |||||||||||||||||||||||||||
| Technologies | 11,256 | 6,733 | 17,989 | 30,945 | 48,934 | |||||||||||||||||||||||||||
| Total | $ | 104,111 | $ | 32,387 | $ | 136,498 | $ | 50,404 | $ | 186,902 | ||||||||||||||||||||||
| 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 | ||||||||||||||||||||||
*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
| Funded Backlog | Unfunded Backlog | |||||||||||||||||||||||||||||||
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