-- 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
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," saidPhebe 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
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| 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%
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| 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%
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| 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
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| 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
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| 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 operatingactivities $ 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
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| (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 Estimated Total
Backlog Potential Estimated
ContractValue* 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
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| * 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
| |
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https://mma.prnewswire.com/media/2803757/Exhibit_H_1.jpg
| EXHIBIT H-2
BACKLOG BY SEGMENT - (UNAUDITED)
DOLLARS IN MILLIONS
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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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