General Dynamics(GD) - 2024 Q4 - Annual Results

Financial Performance - Fourth-quarter net earnings were $1.1 billion, a 14.2% increase year-over-year, with revenue of $13.3 billion, up 14.3% from the previous year[1][2] - For the full year, net earnings reached $3.8 billion, up 14.1% from 2023, on revenue of $47.7 billion, which is a 12.9% increase[2][4] - The diluted earnings per share (EPS) for the fourth quarter was $4.15, a 14% increase, while the full-year diluted EPS was $13.63, up 13.4%[1][2] - Net earnings for 2024 reached $3,782 million, a 14.05% increase compared to $3,315 million in 2023[30] - Total revenue for 2024 was $11.249 billion, compared to $8.621 billion in 2023, reflecting a significant year-over-year growth[54] Backlog and Contracts - The company ended the year with a backlog of $90.6 billion, with a total estimated contract value of $144 billion, reflecting a 9.1% increase from the previous year[5][6] - The company’s total backlog reached $90,597 million in the fourth quarter of 2024, compared to $93,627 million in the fourth quarter of 2023, a decrease of 3.36%[39] - Significant contract awards in the defense segments included a U.S. Air Force contract valued at $5.6 billion and a U.S. Space Force contract worth $2.2 billion[7] - The company secured a contract with the U.S. Air Force with a maximum potential value of $5.6 billion for modernizing and integrating Mission Partner Environments[52] - A contract from the U.S. Space Force has a maximum potential value of $2.2 billion for sustainment services for the Mobile User Objective System[52] - The company reported $305 million for several key contracts for classified customers, with a maximum potential value of $1.4 billion[52] - The company received $115 million from the Department of Veteran Affairs for digitizing historical veteran records, with a maximum potential value of $345 million[52] Cash Flow and Investments - Net cash provided by operating activities for the fourth quarter was $2.2 billion, representing 188% of net earnings, while for the full year, it totaled $4.1 billion, or 109% of net earnings[4][5] - The company invested $916 million in capital expenditures and returned $3 billion to shareholders through dividends and share repurchases during the year[4][5] - Free cash flow for 2024 was $3,196 million, down from $3,806 million in 2023, reflecting a decrease of 16.06%[34] - Capital expenditures for 2024 were $916 million, slightly higher than $904 million in 2023, reflecting a 1.32% increase[30] Operational Metrics - The consolidated book-to-bill ratio was 0.9-to-1 for the quarter and 1-to-1 for the year, indicating strong order activity[5][6] - The aerospace book-to-bill ratio was 1.0x in Q4 2024, down from 1.2x in Q4 2023, indicating a decrease in order intake relative to revenue[54] - Gulfstream Aircraft deliveries totaled 47 units in Q4 2024, up from 39 units in Q4 2023, with large-cabin aircraft deliveries increasing from 32 to 42 units[54] - The company delivered 136 aircraft in the twelve months of 2024, compared to 111 in the previous year, showing a 22.5% increase[54] Financial Ratios and Equity - The operating margin for the total company was 10.1% for the full year, slightly up from 10.0% in the previous year[22] - The debt-to-equity ratio improved to 39.7% in 2024 from 43.5% in 2023, indicating a stronger equity position[33] - Book value per share increased to $81.61 in 2024, up from $77.85 in 2023, marking a growth of 4.48%[33] - Return on equity improved to 17.2% in 2024, compared to 16.8% in 2023, indicating enhanced profitability relative to equity[33] Shareholder Returns - The company paid dividends totaling $1,529 million in 2024, an increase from $1,428 million in 2023, representing a growth of 7.07%[30]