General Dynamics(US:GD)2025-10-24 11:50Financial Performance - General Dynamics reported third-quarter 2025 operating earnings of $1.3 billion, or $3.88 per diluted share (EPS), on revenue of $12.9 billion, representing a 10.6% increase in revenue year-over-year[1][5]. - The company’s revenue for the first nine months of 2025 reached $38.2 billion, an 11.0% increase compared to the same period in 2024[19]. - Net earnings for the nine months ended September 28, 2025, were $3,067 million, compared to $2,634 million for the same period in 2024, reflecting an increase of 16.5%[25]. - Free cash flow for the nine months ended September 28, 2025, was $3,007 million, up from $1,391 million in the same period of 2024, indicating a growth of 116%[29]. - Operating margin for the quarter was 10.3%, reflecting a 20-basis-point expansion from the previous year[1][12]. Segment Performance - The Aerospace segment experienced significant growth, with revenue increasing by 30.3% and operating earnings rising by 41.0% compared to the same period last year[2][17]. - The Marine Systems segment reported revenue of $4.1 billion, up 13.8% from the prior year, while Combat Systems revenue increased by 1.8% to $2.3 billion[17]. - The Technologies segment saw a slight decline in revenue, decreasing by 1.6% to $3.3 billion, but maintained an operating margin of 9.8%[17]. Orders and Backlog - Total orders for the quarter amounted to $19.3 billion, resulting in a consolidated book-to-bill ratio of 1.5-to-1, with the defense segments achieving a ratio of 1.6-to-1[3]. - The total estimated contract value at the end of the quarter was $167.7 billion, which includes a backlog of $109.9 billion and an estimated potential contract value of $57.8 billion[4]. - The total backlog reached $109,857 million, with funded backlog at $85,734 million and unfunded backlog at $24,123 million[34]. - The book-to-bill ratio for Aerospace was 1.3x in the third quarter of 2025, compared to 1.0x in the same quarter of 2024, indicating stronger order intake relative to revenue[43]. Cash and Debt Management - The company generated $2.1 billion in net cash from operating activities, which is 199% of net earnings, and paid $403 million in dividends during the quarter[2][5]. - General Dynamics ended the quarter with $8 billion in total debt and $2.5 billion in cash and equivalents[2]. - Cash and equivalents at the end of the period increased to $2,520 million from $2,101 million a year earlier, representing a rise of 19.9%[25]. - The debt-to-equity ratio improved to 32.8% as of September 28, 2025, down from 39.7% at December 31, 2024, showing a reduction in leverage[28]. Research and Development - The company spent $339 million on company-sponsored research and development in the nine months ended September 28, 2025, down from $421 million in the same period of 2024[28]. Assets and Liabilities - Total assets increased to $57,599 million as of September 28, 2025, up from $55,880 million at December 31, 2024, representing a growth of 3%[22]. - Total current liabilities increased to $18,464 million as of September 28, 2025, compared to $17,824 million at December 31, 2024, reflecting a rise of 3.6%[22]. Aircraft Deliveries - The company delivered 39 Gulfstream aircraft in the third quarter of 2025, compared to 28 in the same quarter of 2024, marking an increase of 39.3%[43].