General Dynamics Reports Second-Quarter 2025 Financial Results
Revenue $13 billion, up 8.9% from year-ago quarter
Diluted EPS $3.74, up 14.7% from year-ago quarter
$1.6 billion cash from operating activities, 158% of net earnings
Very strong order activity in Marine and Aerospace segments
RESTON, Va., July 23, 2025 /PRNewswire/ -- General Dynamics (NYSE:GD) today reported second-quarter 2025 operating earnings of $1.3 billion, or $3.74 per diluted share (EPS), on revenue of $13 billion. Compared with the year-ago quarter, revenue increased 8.9%, operating earnings increased 12.9%, and diluted EPS increased 14.7%. Operating margin of 10.0% was a 30-basis-point expansion from the year-ago quarter.
"During the first half of the year, each of our four segments achieved growth in revenue and earnings, with margins on a companywide basis expanding 50 basis points over the same period last year," said Phebe Novakovic, chairman and chief executive officer. "Our strong cash flow and healthy backlog position us well to have a good second half."
Cash and Capital Deployment
Net cash provided by operating activities in the quarter totaled $1.6 billion, or 158% of net earnings. During the quarter, the company paid $402 million in dividends, invested $198 million in capital expenditures, and reduced total debt by $897 million. The company ended the quarter with $8.7 billion in total debt and $1.5 billion in cash and equivalents on hand.
Orders and Backlog
Consolidated book-to-bill ratio, defined as orders divided by revenue, was 2.2-to-1 for the quarter. Book-to-bill was 2.4-to-1 for the defense segments and 1.3-to-1 for the aerospace segment. On a companywide basis, orders totaled $28.3 billion. Backlog at the end of the quarter was $103.7 billion. Estimated potential contract value, representing management's estimate of additional value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $57.5 billion. Total estimated contract value, the sum of all backlog components, was $161.2 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 second-quarter 2025 financial results conference call at 9 a.m. EDT on Wednesday, July 23, 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 July 30, 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 ACONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED)DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
Three Months Ended
Variance
June 29, 2025
June 30, 2024
$
%
Revenue
$ 13,041
$ 11,976
$ 1,065
8.9 %
Operating costs and expenses
(11,736)
(10,820)
(916)
Operating earnings
1,305
1,156
149
12.9 %
Other, net
15
18
(3)
Interest, net
(88)
(84)
(4)
Earnings before income tax
1,232
1,090
142
13.0 %
Provision for income tax, net
(218)
(185)
(33)
Net earnings
$ 1,014
$ 905
$ 109
12.0 %
Earnings per share—basic
$ 3.78
$ 3.30
$ 0.48
14.5 %
Basic weighted average shares outstanding
268.1
274.1
Earnings per share—diluted
$ 3.74
$ 3.26
$ 0.48
14.7 %
Diluted weighted average shares outstanding
270.9
277.7
EXHIBIT BCONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED)DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
Six Months Ended
Variance
June 29, 2025
June 30, 2024
$
%
Revenue
$ 25,264
$ 22,707
$ 2,557
11.3 %
Operating costs and expenses
(22,691)
(20,515)
(2,176)
Operating earnings
2,573
2,192
381
17.4 %
Other, net
36
32
4
Interest, net
(177)
(166)
(11)
Earnings before income tax
2,432
2,058
374
18.2 %
Provision for income tax, net
(424)
(354)
(70)
Net earnings
$ 2,008
$ 1,704
$ 304
17.8 %
Earnings per share—basic
$ 7.48
$ 6.22
$ 1.26
20.3 %
Basic weighted average shares outstanding
268.6
273.8
Earnings per share—diluted
$ 7.40
$ 6.14
$ 1.26
20.5 %
Diluted weighted average shares outstanding
271.3
277.4
EXHIBIT CREVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)DOLLARS IN MILLIONS
Three Months Ended
Variance
June 29, 2025
June 30, 2024
$
%
Revenue:
Aerospace
$ 3,062
$ 2,940
$ 122
4.1 %
Marine Systems
4,220
3,453
767
22.2 %
Combat Systems
2,283
2,288
(5)
(0.2) %
Technologies
3,476
3,295
181
5.5 %
Total
$ 13,041
$ 11,976
$ 1,065
8.9 %
Operating earnings:
Aerospace
$ 403
$ 319
$ 84
26.3 %
Marine Systems
291
245
46
18.8 %
Combat Systems
324
313
11
3.5 %
Technologies
332
320
12
3.8 %
Corporate
(45)
(41)
