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General Dynamics Reports Fourth-Quarter and Full-Year 2025 Financial Results
- Fourth-quarter net earnings of $1.1 billion, diluted EPS of $4.17, on $14.4 billion in revenue
- Full-year net earnings of $4.2 billion, diluted EPS of $15.45, on $52.6 billion in revenue
- $1.6 billion cash provided by operating activities in the quarter, 137% of net earnings
- $1.2 billion in capital expenditures for the year, up 27% from 2024
- Book-to-bill of 1.6x in the quarter and 1.5x for the full year, ending the year with $118 billion in backlog
RESTON, Va. - General Dynamics (NYSE: GD) today reported quarterly net earnings of $1.1 billion on revenue of $14.4 billion. Diluted earnings per share (EPS) was $4.17.
For the full year, net earnings were $4.2 billion, up 11.3% from 2024, on revenue of $52.6 billion, up 10.1% from 2024. Diluted EPS for the full year was $15.45, up 13.4% from 2024.
“We had a solid fourth quarter, capping off a year that saw growth in revenue and earnings in all four segments coupled with an impressive 30% growth in company-wide backlog,” said Phebe N. Novakovic, chairman and chief executive officer. “As we focus on execution of programs for our customers, we are also preparing aggressively for future growth, investing nearly $1.2 billion in capital expenditures in 2025 - with even more investments planned in the year ahead.”
Cash
Cash provided by operating activities in the quarter totaled $1.6 billion, or 137% of net earnings. For the year, cash provided by operating activities increased by $1 billion over 2024 to $5.1 billion, or 122% of net earnings.
During the year, the company invested $1.2 billion in capital expenditures, made tax payments of $568 million, reduced total debt by $749 million and paid dividends of $1.6 billion, ending 2025 with $2.3 billion in cash and equivalents on hand.
Orders and Backlog
Demand remained strong across the company, with orders of $22.4 billion during the quarter. Consolidated book-to-bill ratio, defined as orders divided by revenue, was 1.6-to-1 for the quarter and 1.5-to-1 for the year, with full-year book-to-bill exceeding 1-to-1 in each of the four segments. The company ended the year with backlog of $118 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 $60.9 billion. Total estimated contract value, the sum of all backlog components, was $179 billion at year end, up 24% from a year earlier.
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 110,000 people worldwide and generated $52.6 billion in revenue in 2025. More information is available at www.gd.com.
WEBCAST INFORMATION: General Dynamics will webcast its fourth-quarter and full-year 2025 financial results conference call today at 9 a.m. EST. The webcast will be a listen-only audio event available at GD.com. An on-demand replay of the webcast will be available by telephone two hours after the end of the call through February 4, 2026, at 800-770-2030 (international +1 647-362-9199), conference ID 4299949. Charts furnished to investors and securities analysts in connection with the announcement of financial results are available at GD.com. General Dynamics intends to supplement those charts on its website after its earnings call today to include information about 2026 guidance presented during the call.
Forward-looking statements notice
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 December 31 | Variance |
|---|
| 2025 | 2024 | $ | % |
|---|
| Revenue | $14,379 | | $13,338 | | $1,041 | 7.8% |
| Operating costs and expenses | (12,927) | | (11,915) | | (1,012) | |
| Operating earnings | 1,452 | | 1,423 | | 29 | 2.0% |
| Other, net | 10 | | 21 | | (11) | |
| Interest, net | (63) | | (76) | | 13 | |
| Earnings before income tax | 1,399 | | 1,368 | | 31 | 2.3% |
| Provision for income tax, net | (256) | | (220) | | (36) | |
| Net earnings | $1,143 | | $1,148 | | $(5) | (0.4)% |
| Earnings per share - basic | $4.23 | | $4.20 | | $0.03 | 0.7% |
| Basic weighted average shares outstanding | 269.9 | | 273.4 | | | |
| Earnings per share - diluted | $4.17 | | $4.15 | | $0.02 | 0.5% |
| Diluted weighted average shares outstanding | 273.9 | | 276.9 | | | |
EXHIBIT B
CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED)
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
| Year Ended December 31 | Variance |
|---|
| 2025 | 2024 | $ | % |
|---|
| Revenue | $52,550 | | $47,716 | | $4,834 | 10.1% |
| Operating costs and expenses | (47,194) | | (42,920) | | (4,274) | |
| Operating earnings | 5,356 | | 4,796 | | 560 | 11.7% |
| Other, net | 61 | | 68 | | (7) | |
| Interest, net | (314) | | (324) | | 10 | |
| Earnings before income tax | 5,103 | | 4,540 | | 563 | 12.4% |
| Provision for income tax, net | (893) | | (758) | | (135) | |
| Net earnings | $4,210 | | $3,782 | | $428 | 11.3% |
| Earnings per share - basic | $15.65 | | $13.81 | | $1.84 | 13.3% |
| Basic weighted average shares outstanding | 269.1 | | 273.9 | | | |
| Earnings per share - diluted | $15.45 | | $13.63 | | $1.82 | 13.4% |
| Diluted weighted average shares outstanding | 272.4 | | 277.5 | | | |
EXHIBIT C
REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)
DOLLARS IN MILLIONS
| Three Months Ended December 31 | Variance |
|---|
| 2025 | 2024 | $ | % |
|---|
| Revenue: | | | | |
| Aerospace | $3,788 | | $3,743 | | $45 | 1.2% |
| Marine Systems | 4,818 | | 3,960 | | 858 | 21.7% |
| Combat Systems | 2,535 | | 2,395 | | 140 | 5.8% |
| Technologies | 3,238 | | 3,240 | | (2) | (0.1)% |
| Total | $14,379 | | $13,338 | | $1,041 | 7.8% |
| Operating earnings: | | | | |
| Aerospace | $481 | | $585 | | $(104) | (17.8)% |
| Marine Systems | 345 | | 200 | | 145 | 72.5% |
| Combat Systems | 381 | | 356 | | 25 | 7.0% |
| Technologies | 290 | | 319 | | (29) | (9.1)% |
| Corporate | (45) | | (37) | | (8) | (21.6)% |
| Total | $1,452 | | $1,423 | | $29 | 2.0% |
| Operating margin: | | | | |
| Aerospace | 12.7% | | 15.6% | | | |
| Marine Systems | 7.2% | | 5.1% | | | |
| Combat Systems | 15.0% | | 14.9% | | | |
| Technologies | 9.0% | | 9.8% | | | |
| Total | 10.1% | | 10.7% | | | |
EXHIBIT D
REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)
DOLLARS IN MILLIONS
| Year Ended December 31 | Variance |
|---|
| 2025 | 2024 | $ | % |
|---|
| Revenue: | | | | |
| Aerospace | $13,110 | | $11,249 | | $1,861 | 16.5% |
| Marine Systems | 16,723 | | 14,343 | | 2,380 | 16.6% |
| Combat Systems | 9,246 | | 8,997 | | 249 | 2.8% |
| Technologies | 13,471 | | 13,127 | | 344 | 2.6% |
| Total | $52,550 | | $47,716 | | $4,834 | 10.1% |
| Operating earnings: | | | | |
| Aerospace | $1,746 | | $1,464 | | $282 | 19.3% |
| Marine Systems | 1,177 | | 935 | | 242 | 25.9% |
| Combat Systems | 1,331 | | 1,276 | | 55 | 4.3% |
| Technologies | 1,277 | | 1,260 | | 17 | 1.3% |
| Corporate | (175) | | (139) | | (36) | (25.9)% |
| Total | $5,356 | | $4,796 | | $560 | 11.7% |
| Operating margin: | | | | |
| Aerospace | 13.3% | | 13.0% | | | |
| Marine Systems | 7.0% | | 6.5% | | | |
| Combat Systems | 14.4% | | 14.2% | | | |
| Technologies | 9.5% | | 9.6% | | | |
| Total | 10.2% | | 10.1% | | | |
EXHIBIT E
CONSOLIDATED BALANCE SHEET
DOLLARS IN MILLIONS
| (Unaudited) | |
|---|
| December 31, 2025 | December 31, 2024 |
|---|
| ASSETS | | |
| Current assets: | | |
| Cash and equivalents | $2,333 | $1,697 |
| Accounts receivable | 2,406 | 2,977 |
| Unbilled receivables | 8,380 | 8,248 |
| Inventories | 9,232 | 9,724 |
| Other current assets | 1,897 | 1,740 |
| Total current assets | 24,248 | 24,386 |
| Noncurrent assets: | | |
| Property, plant and equipment, net | 7,525 | 6,467 |
| Intangible assets, net | 1,375 | 1,520 |
| Goodwill | 21,009 | 20,556 |
| Other assets | 3,092 | 2,951 |
| Total noncurrent assets | 33,001 | 31,494 |
| Total assets | $57,249 | $55,880 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | |
| Current liabilities: | | |
| Short-term debt and current portion of long-term debt | $1,006 | $1,502 |
| Accounts payable | 2,678 | 3,344 |
| Customer advances and deposits | 9,824 | 9,491 |
| Other current liabilities | 3,288 | 3,487 |
| Total current liabilities | 16,796 | 17,824 |
| Noncurrent liabilities: | | |
| Long-term debt | 7,007 | 7,260 |
| Other liabilities | 7,824 | 8,733 |
| Total noncurrent liabilities | 14,831 | 15,993 |
| Shareholders’ equity: | | |
| Common stock | 482 | 482 |
| Surplus | 4,403 | 4,062 |
| Retained earnings | 44,080 | 41,487 |
| Treasury stock | (22,860) | (22,450) |
| Accumulated other comprehensive loss | (483) | (1,518) |
| Total shareholders’ equity | 25,622 | 22,063 |
| Total liabilities and shareholders’ equity | $57,249 | $55,880 |
EXHIBIT F
CONSOLIDATED STATEMENT OF CASH FLOWS - (UNAUDITED)
DOLLARS IN MILLIONS
| Year Ended December 31 |
|---|
| 2025 | 2024 |
|---|
| Cash flows from operating activities - continuing operations: | | |
| Net earnings | $4,210 | | $3,782 | |
| Adjustments to reconcile net earnings to net cash from operating activities: | | |
| Depreciation of property, plant and equipment | 680 | | 644 | |
| Amortization of intangible and finance lease right-of-use assets | 244 | | 242 | |
| Equity-based compensation expense | 196 | | 183 | |
| Deferred income tax provision (benefit) | 256 | | (86) | |
| (Increase) decrease in assets, net of effects of business acquisitions: | | |
| Accounts receivable | 556 | | 16 | |
| Unbilled receivables | (146) | | (261) | |
| Inventories | 450 | | (1,195) | |
| Increase (decrease) in liabilities, net of effects of business acquisitions: | | |
| Accounts payable | (664) | | 247 | |
| Customer advances and deposits | (4) | | 343 | |
| Other, net | (658) | | 197 | |
| Net cash provided by operating activities | 5,120 | | 4,112 | |
| Cash flows from investing activities: | | |
| Capital expenditures | (1,161) | | (916) | |
| Other, net | (123) | | (37) | |
| Net cash used by investing activities | (1,284) | | (953) | |
| Cash flows from financing activities: | | |
| Dividends paid | (1,593) | | (1,529) | |
| Repayment of fixed-rate notes | (1,500) | | (500) | |
| Proceeds from fixed-rate notes | 747 | | - | |
| Purchases of common stock | (637) | | (1,501) | |
| Other, net | (207) | | 161 | |
| Net cash used by financing activities | (3,190) | | (3,369) | |
| Net cash used by discontinued operations | (10) | | (6) | |
| Net increase (decrease) in cash and equivalents | 636 | | (216) | |
| Cash and equivalents at beginning of year | 1,697 | | 1,913 | |
| Cash and equivalents at end of year | $2,333 | | $1,697 | |
EXHIBIT G
ADDITIONAL FINANCIAL INFORMATION - (UNAUDITED)
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
| December 31, 2025 | December 31, 2024 | | |
|---|
| Other Financial Information: | | | | |
| Debt-to-equity (a) | 31.3% | | 39.7% | | | |
| Book value per share (b) | $94.76 | | $81.61 | | | |
| Shares outstanding | 270,389,759 | | 270,340,502 | | | |
| Fourth Quarter | Twelve Months |
| | 2025 | | 2024 | | 2025 | | 2024 |
| Income tax payments, net | $305 | | $435 | | $568 | | $560 | |
| Company-sponsored research and development (c) | $147 | | $144 | | $486 | | $565 | |
| Return on sales (d) | 7.9% | | 8.6% | | 8.0% | | 7.9% | |
| Return on equity (e) | | | 17.9% | | 17.2% | |
| Non-GAAP Financial Measures: | | | | |
| Fourth Quarter | Twelve Months |
| | 2025 | | 2024 | | 2025 | | 2024 |
| Free cash flow: | | | | |
| Net cash provided by operating activities | $1,561 | | $2,160 | | $5,120 | | $4,112 | |
| Capital expenditures | (609) | | (355) | | (1,161) | | (916) | |
| Free cash flow (f) | $952 | | $1,805 | | $3,959 | | $3,196 | |
| Return on invested capital: | | | | |
| Net earnings | | | $4,210 | | $3,782 | |
| After-tax interest expense | | | 318 | | 310 | |
| After-tax amortization expense | | | 193 | | 191 | |
| Net operating profit after taxes | | | 4,721 | | 4,283 | |
| Average invested capital | | | 33,212 | | 32,451 | |
| Return on invested capital (g) | | | 14.2% | | 13.2% | |
| December 31, 2025 | December 31, 2024 | | |
| Net debt: | | | | |
| Total debt | $8,013 | | $8,762 | | | |
| Less cash and equivalents | 2,333 | | 1,697 | | | |
| Net debt (h) | $5,680 | | $7,065 | | | |
Notes describing the calculation of the other financial information and a reconciliation of non-GAAP financial measures are on the following page.
EXHIBIT G (Cont.)
ADDITIONAL FINANCIAL INFORMATION - (UNAUDITED)
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
(a)Debt-to-equity ratio is calculated as total debt divided by total equity as of year end.
(b)Book value per share is calculated as total equity divided by total outstanding shares as of year end.
(c)Includes independent research and development and Aerospace product-development costs.
(d)Return on sales is calculated as net earnings divided by revenue.
(e)Return on equity is calculated by dividing net earnings by our average total equity during the year. Average total equity is calculated using the total equity balance at the end of the preceding year and the total equity balances at the end of each of the four quarters of the year presented.
(f)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.
(g)We believe return on invested capital (ROIC) is a useful measure for investors because it reflects our ability to generate returns from the capital we have deployed in our operations. We use ROIC to evaluate investment decisions and as a performance measure in evaluating management. We define ROIC as net operating profit after taxes divided by average invested capital. Net operating profit after taxes is defined as net earnings plus after-tax interest and amortization expense, calculated using the statutory federal income tax rate. Average invested capital is defined as the sum of the average debt and average shareholders’ equity excluding accumulated other comprehensive loss. Average debt and average shareholders’ equity excluding accumulated other comprehensive loss are calculated using the respective balances at the end of the preceding year and the respective balances at the end of each of the four quarters of the year presented. ROIC excludes goodwill impairments and non-economic accounting changes as they are not reflective of company performance.
(h)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 Backlog | EstimatedPotentialContract Value* | Total Estimated Contract Value |
|---|
| Fourth Quarter 2025: | | | | | |
| Aerospace | $20,804 | $1,024 | $21,828 | $1,120 | $22,948 |
| Marine Systems | 36,808 | 15,532 | 52,340 | 11,823 | 64,163 |
| Combat Systems | 26,064 | 1,154 | 27,218 | 14,670 | 41,888 |
| Technologies | 9,865 | 6,795 | 16,660 | 33,280 | 49,940 |
| Total | $93,541 | $24,505 | $118,046 | $60,893 | $178,939 |
| 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 |
| Fourth Quarter 2024: | | | | | |
| Aerospace | $18,895 | $798 | $19,693 | $1,132 | $20,825 |
| Marine Systems | 30,530 | 9,288 | 39,818 | 9,560 | 49,378 |
| Combat Systems | 16,142 | 838 | 16,980 | 8,647 | 25,627 |
| Technologies | 9,577 | 4,529 | 14,106 | 34,029 | 48,135 |
| Total | $75,144 | $15,453 | $90,597 | $53,368 | $143,965 |
*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.
EXHIBIT H-1
BACKLOG - (UNAUDITED)
DOLLARS IN MILLIONS
Funded Backlog
Unfunded Backlog
EXHIBIT H-2
BACKLOG BY SEGMENT - (UNAUDITED)
DOLLARS IN MILLIONS
Funded Backlog
Unfunded Backlog
EXHIBIT I
AEROSPACE SUPPLEMENTAL DATA - (UNAUDITED)
DOLLARS IN MILLIONS
| Fourth Quarter | Twelve Months |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| Gulfstream Aircraft Deliveries (units): | | | | |
| Large-cabin aircraft | 41 | | 42 | | 136 | | 118 | |
| Mid-cabin aircraft | 4 | | 5 | | 22 | | 18 | |
| Total | 45 | | 47 | | 158 | | 136 | |
| Aerospace Book-to-Bill: | | | | |
| Orders* | $5,075 | | $3,814 | | $15,492 | | $11,278 | |
| Revenue | 3,788 | | 3,743 | | 13,110 | | 11,249 | |
| Book-to-Bill Ratio | | 1.3x | | 1.0x | | 1.2x | | 1.0x |
*Does not include customer defaults, liquidated damages, cancellations, foreign exchange fluctuations and other backlog adjustments.
Contacts
Jeff A. Davis
Tel: 703 876 3483 press@generaldynamics.com