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 DeploymentNet 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 BacklogOrders 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 DynamicsHeadquartered 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
