Q3 revenue was $14.566B, up 12.9% YoY; operating earnings rose 14.7% to $1.527B and diluted EPS increased 15.7% to $4.49.
Growth spanned all four segments, with consolidated operating margin up 20 bps to 10.5%.
Record backlog reached $220.339B, supported by $98.8B of Q3 orders and major submarine awards.
Q3 net earnings were $1.229B, up 16.1% YoY; operating margin was 10.5%, up 20 bps.
9M revenue rose 10.4% to $42.141B; operating earnings increased 12.9% to $4.407B, net earnings were $3.514B, and diluted EPS was $12.83, up 13.6%.
9M operating cash flow was $5.745B and free cash flow was $4.827B, versus $3.559B and $3.007B a year earlier.
FY2026 outlook: revenue of $56.5B–$56.8B, operating margin around 10.5%, diluted EPS of $17.20–$17.30 and net interest expense of approximately $215M.
FY2026 free cash flow conversion is expected near 105%; Q4 capital-project timing could affect potential upside, with significant spending planned.
Capital expenditures are expected at 3.5%–4% of sales in 2026; 2027 spending is expected to remain elevated, likely in a similar range.
Technologies is expected to grow mid-single digits and Combat in the high single digits; Marine growth is expected to remain robust but below its recent pace.
Gulfstream plans to deliver 200 aircraft in 2030, dependent on supplier capacity and demand.
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General Dynamics is a major American aerospace and defense contractor. The company operates through several business segments: Aerospace, Combat Systems, Information Technology, Mission Systems, and Marine Systems. General Dynamics primarily does business with branches of the U.S. government and its armed forces, as well as its allies across the world. The company is headquartered in Reston, Virginia, and its shares are listed on the NYSE.
General Dynamics' roots go back to the formation of the Electric Boat Company in 1899 which played a significant role in developing the first modern submarines for the U.S. Navy. During World War II, the company expanded its production to meet wartime demands, focusing on submarines and surface warships. After the war, the company diversified and expanded, involving itself in various sectors, primarily through acquisitions and mergers. The F-16, which is arguably what the company is most known for, first saw the light of day in the mid-1970s. Today, it is a massive player in the defense sector, together with names such as Northrop Grumman and Lockheed Martin.
General Dynamics is a diversified aerospace and defense company, engaging in the design, development, and production of a wide range of complex systems and products for government and commercial customers. Its operations span several key sectors, each with its specialized focus.
Aerospace: Through its subsidiary, Gulfstream Aerospace, General Dynamics is a prominent player in the business jet market. Gulfstream designs, manufactures, and services advanced business jets known for their luxury, technology, and performance. The company also designs and builds various systems and aircraft for military applications.
Combat Systems: This segment of General Dynamics is focused on land-based military hardware. It produces a variety of armored vehicles, tanks (like the famous M1 Abrams), and artillery systems. Additionally, it manufactures munitions and is involved in modernizing existing military hardware.
Marine Systems: General Dynamics is a leader in marine defense technology, primarily through its Electric Boat and NASSCO subsidiaries. It designs and builds nuclear-powered submarines, such as the Virginia and Columbia class, for the U.S. Navy. Besides submarines, it is also involved in the construction and maintenance of surface ships, including destroyers and auxiliary ships.
Technologies: This sector includes General Dynamics Information Technology and General Dynamics Mission Systems. It offers a range of services and products in information technology, mission support, and cybersecurity. This includes providing secure communication systems, and information management solutions, and developing advanced technology for defense, intelligence, and civilian government applications.
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