Core Insights - General Dynamics reported strong demand in Aerospace, with a book-to-bill ratio of 1.3x and Gulfstream aircraft at 1.4x, driven by the introduction of G700 and G800 models [1] - The company achieved Aerospace revenue of $13.1 billion for the year, a 16.5% increase from 2024, with segment earnings rising 19.3% to $1.75 billion [2] - Overall, General Dynamics closed 2025 with record backlog and an optimistic outlook for 2026, highlighting improved productivity and international demand [7] Aerospace Performance - Fourth-quarter Aerospace revenue was $3.788 billion, a 1.2% year-over-year increase, while operating earnings declined by $104 million [3] - For the full year 2025, Aerospace revenue increased by 16.5%, with operating earnings up 19.3% [4] - The G600 line experienced a year-over-year earnings decline of $75 million due to fewer deliveries and other factors, but G800 earnings compensated for G650 losses [8] Defense Segment - Combat Systems reported fourth-quarter revenue of $2.5 billion, up 0.8% year over year, with operating earnings of $381 million [10] - The segment achieved a fourth-quarter book-to-bill ratio of 4.3x, contributing to a backlog of $27.2 billion [11] - The company anticipates revenue growth in 2026 as European programs transition from planning to production [12] Marine Systems - Marine Systems revenue reached $4.8 billion, a 21.7% increase year over year, with operating earnings rising 72.5% to $345 million [13] - Investments at Electric Boat have increased submarine output by 13% year over year [14] Technologies Segment - Technologies reported fourth-quarter revenue of $3.24 billion, roughly flat year over year, with operating earnings down to $290 million [15] - The segment ended the year with a backlog of $16.7 billion and total estimated contract value of $49.9 billion [15] Financial Metrics and Guidance - General Dynamics ended 2025 with a record backlog of $118 billion, a 30% increase year over year, and operating cash flow of $5.1 billion [16] - For 2026, the company expects free cash flow conversion to return to 100% of net income, with capital expenditures projected to rise significantly [17] - Management provided revenue guidance for 2026 of $54.3 billion to $54.8 billion, with an operating margin of 10.4% [19]

While the earning numbers are very good on a standalone, they do not compare favorably to a standout fourth quarter in the prior year aided by a number of discrete positive items that were significant increments to earnings. However, the sequential numbers are very positive with a 17.1% increase in revenue, coupled with an 11.9% increase in operating earnings. Importantly, for the year, Aerospace revenue of $13.1 billion is 16.5% greater than 2024. This is on top of a 30.5% growth in 2024 over 2023. Revenue ...

General Dynamics (NYSE:GD) Q4 2025 Earnings call January 28, 2026 09:00 AM ET Company ParticipantsDanny Deep - PresidentKimberly Kuryea - CFONicole Shelton - Head of Investor RelationsPhebe Novakovic - Chairman and CEOConference Call ParticipantsAndre Madrid - AnalystDouglas Harned - AnalystGautam Khanna - AnalystJohn Good - AnalystMatthew Akers - AnalystMyles Walton - AnalystRobert Stallard - AnalystRonald Epstein - AnalystScott Deuschle - AnalystSeth Seifman - AnalystSheila Kahyaoglu - AnalystOperatorGood ...

General Dynamics (NYSE:GD) Q4 2025 Earnings call January 28, 2026 09:00 AM ET Speaker9Good morning, and welcome to the General Dynamics fourth quarter 2025 earnings conference call. All participants will be in a listen-only mode. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press the star key followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Please n ...