General Dynamics(US:GD)2025-04-23 11:50Financial Performance - General Dynamics reported Q1 2025 operating earnings of $1.3 billion, or $3.66 per diluted share, on revenue of $12.2 billion, representing increases of 22.4%, 27.1%, and 13.9% respectively compared to the year-ago quarter[1][6]. - Net earnings for the quarter were $994 million, a 24.4% increase from $799 million in the same quarter last year[12]. - Operating margin for the company improved to 10.4%, reflecting a 70-basis-point expansion from the year-ago quarter[1][15]. - Return on sales improved to 8.1% in Q1 2025, compared to 7.4% in Q1 2024[24]. Segment Performance - The Aerospace segment experienced significant growth, with revenue up 45.2% to $3.0 billion and operating earnings up 69.4% to $432 million, resulting in a margin expansion of 210 basis points to 14.3%[2][15]. - The Marine Systems segment saw a revenue increase of 7.7% to $3.6 billion, while Combat Systems and Technologies segments reported revenue increases of 3.5% and 6.8% respectively[15]. - Aerospace segment delivered 36 aircraft in Q1 2025, an increase from 24 in Q1 2024[40]. - Book-to-bill ratio for Aerospace was 0.8x in Q1 2025, down from 1.2x in Q1 2024[40]. Orders and Backlog - Total orders for the quarter amounted to $10.2 billion, with a backlog of $88.7 billion and an estimated potential contract value of $52.7 billion, leading to a total estimated contract value of $141.3 billion[5]. - Total backlog reached $88,657 million in Q1 2025, with funded backlog at $74,933 million[30]. Cash Flow and Investments - Free cash flow improved to $(290) million in Q1 2025, compared to $(437) million in Q1 2024[25]. - The company paid $383 million in dividends, invested $142 million in capital expenditures, and repurchased $600 million in shares during the quarter[3]. Debt and Equity - The company ended the quarter with a total debt of $9.6 billion and cash and equivalents of $1.2 billion, having used $148 million in net cash from operating activities due to working capital growth[3][18]. - Debt-to-equity ratio increased to 43.2% in Q1 2025 from 39.7% in Q4 2024[24]. - Net debt increased to $8,367 million in Q1 2025 from $7,065 million in Q4 2024[25]. - Total debt rose to $9,609 million in Q1 2025, up from $8,762 million in Q4 2024[25]. Shareholder Returns - General Dynamics declared a quarterly dividend of $1.50 per share, marking a 5.6% increase from the previous year and the 28th consecutive annual increase[4]. - Book value per share rose to $82.81 in Q1 2025, up from $81.61 in Q4 2024[24]. Research and Development - Company-sponsored research and development expenses decreased to $101 million in Q1 2025 from $137 million in Q1 2024[24]. Employment - General Dynamics employed over 110,000 people globally and generated $47.7 billion in revenue in 2024[7].