January 28, 2026 Forward-Looking Statements; Non-GAAP Measures This presentation contains forward-looking statements (FLS), including statements about the company's future operational and financial performance, which are based on management's expectations, estimates, projections and assumptions. Words such as "expects," "anticipates," "plans," "believes," "forecasts," "scheduled," "outlook," "estimates," "should" and variations of these words and similar expressions are intended to identify FLS. In making F ...

Financial Data and Key Metrics Changes - Earnings per diluted share were reported at $3.88, with revenue of $12.9 billion, operating earnings of $1.3 billion, and net income of $1.59 billion, reflecting a revenue increase of $1.24 billion or 10.6% year-over-year [4] - Operating earnings increased by $150 million or 12.7%, while net earnings rose by $129 million or 13.9%, and earnings per share increased by $0.53 or 15.8% compared to the same quarter last year [4] - Year-to-date revenue reached $38.2 billion, up 11%, with operating earnings up 15.7% and net earnings up 16.4% [4] Business Line Data and Key Metrics Changes - Aerospace segment revenue was $3.2 billion, up $752 million or 30.3%, with operating earnings of $430 million, a 41% increase [6][7] - Combat systems revenue was $2.3 billion, a modest increase of 1.8%, with earnings of $335 million, up 3.1% [8][9] - Marine systems revenue reached $4.1 billion, up 13.8%, with operating earnings of $291 million, a 12.8% increase [10][11] - Technologies segment revenue was $3.3 billion, down 1.6%, but year-to-date revenue was up 3.5% [11][12] Market Data and Key Metrics Changes - Strong order momentum was noted across all segments, with a book-to-bill ratio of 1.5:1 for the company, and a record backlog of $109.9 billion, up 19% year-over-year [18] - The aerospace market showed accelerated interest, particularly in North America, contributing to strong order intake [8] - Combat systems backlog was approximately $18.7 billion, reflecting strong demand, particularly in Europe [10] Company Strategy and Development Direction - The company is focused on operational performance improvements and expects continued margin strength and strong cash generation [16] - Strategic investments in differentiated defense electronics are anticipated to drive future growth in the technologies segment [16] - The company plans to maintain its core competencies and invest prudently to support growth in its existing markets [72] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the potential impacts of the ongoing government shutdown on cash flow and contract timing [24][39] - The company anticipates annual revenue of around $52 billion with margins of approximately 10.3%, while increasing EPS forecast to between $15.30-$15.35 [24] - Management noted that the supply chain remains a critical factor affecting production and delivery schedules, particularly for the Columbia class submarines [72] Other Important Information - The company generated $2.1 billion in operating cash flow, with free cash flow of $1.9 billion for the quarter, representing 179% of net income [19][22] - Capital expenditures were $212 million in the quarter, with a target of over 2% of sales for the full year [22] - The company ended the quarter with a cash balance of $2.5 billion and a net debt position of $5.5 billion, down $1.7 billion from the previous quarter [23] Q&A Session Summary Question: What factors drove the strong orders in aerospace? - Management indicated that the strength of the economy, a resilient order book, and improved delivery cadence contributed to the strong orders [26] Question: Is there a particular geographic area of strength? - North America was highlighted as the area of particular strength [27] Question: Are there any changes in the contracting environment with the new administration? - Management noted an emphasis on speed in contracting but did not observe wholesale changes [77] Question: What is the outlook for the Columbia class contracts? - Management expects those contracts to be executed this year, emphasizing a close working relationship with the government [82] Question: How does the company view the future growth potential in Europe? - Management sees robust growth potential in Europe, particularly in indigenous operations [71]

Financial Data and Key Metrics Changes - The company reported earnings of $3.88 per diluted share on revenue of $12.9 billion, with operating earnings of $1.3 billion and net income of $1.059 billion, reflecting a revenue increase of $1.24 billion or 10.6% year-over-year [4][5] - Operating earnings increased by $150 million or 12.7%, while net earnings rose by $129 million or 13.9%, and earnings per share increased by $0.53 or 15.8% compared to the same quarter last year [5][6] - Year-to-date revenue reached $38.2 billion, up 11%, with operating earnings up 15.7% and net earnings up 16.4% [5] Business Line Data and Key Metrics Changes Aerospace - Aerospace revenue was $3.2 billion, up $752 million or 30.3% year-over-year, with operating earnings of $430 million, a 41% increase [7][8] - The operating margin for Aerospace improved to 13.3%, up 100 basis points from the previous year [8] - Year-to-date, Aerospace revenue is up $1.82 billion or 24.2%, with operating earnings up $386 million or 43.9% [9] Defense Combat Systems - Combat Systems revenue was $2.3 billion, a modest increase of 1.8%, with earnings of $335 million, up 3.1% [12] - Year-to-date revenue is $6.7 billion, up 1.7%, and earnings are $950 million, up 3.3% [13] Marine Systems - Marine Systems revenue reached $4.1 billion, up $497 million or 13.8%, with operating earnings of $291 million, a 12.8% increase [15] - Year-to-date, Marine revenue is $11.9 billion, up 14.7%, and earnings are $832 million, up 13.2% [16] Technologies - Technologies revenue was $3.3 billion, down 1.6%, with operating earnings of $327 million, essentially unchanged [17] - Year-to-date revenue is $10.2 billion, up 3.5%, and earnings are $987 million, up almost 5% [18] Market Data and Key Metrics Changes - The overall book-to-bill ratio for the company was 1.5 to 1, with all segments experiencing a book-to-bill of at least 1.2 times [25] - The backlog reached a record level of $109.9 billion, up 19% year-over-year and 6% from the previous quarter [26] Company Strategy and Development Direction - The company anticipates annual revenue of around $52 billion and margins of approximately 10.3% for the year [33] - The management emphasized the importance of operational performance and cash generation, expecting continued margin strength in the future [24][27] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the potential impacts of a government shutdown on cash flow and contract timing, indicating a prudent approach to cash conservation [28][30] - The company remains optimistic about growth driven by international demand, particularly in combat vehicles and munitions [76] Other Important Information - The company generated $2.1 billion of operating cash flow, with free cash flow of $1.9 billion for the quarter, representing 179% of net income [27] - The tax rate for the quarter was 16.7%, with an expected full-year rate around 17.5% [32] Q&A Session Summary Question: What factors drove the strong orders in aerospace? - Management indicated that the strength of the economy and a robust order book were primary drivers, along with improved delivery cadence and new models [36][37] Question: Are there any impacts from the government shutdown on cash collection or contracts? - Management noted no immediate impacts on cash collection but mentioned potential delays in contracting processes due to government personnel being sent home [50][51] Question: How is the company addressing efficiency in shipbuilding? - Management highlighted improvements in the supply chain and investments in productivity, robotics, and employee training as key levers for enhancing shipbuilding efficiency [56][58] Question: What is the outlook for the Columbia Class program? - Management stated that the first Columbia is about 60% complete and emphasized ongoing efforts to improve production cadence and address supply chain challenges [68][90] Question: How does the company view the future of combat systems in Europe? - Management expressed confidence in the growth potential in Europe, particularly due to indigenous operations and increasing international demand [76][87]

Third-Quarter 2025 Financial Highlights - Third-quarter 2025 revenue was $1290 million [6] - Third-quarter 2025 diluted earnings per share was $109 [6] - Third-quarter 2025 total backlog was $92634186 million [6] - Third-quarter 2025 free cash flow was $163 million [6] Year-to-Date 2025 Financial Highlights - Year-to-date 2025 revenue was $38117 million [8] - Year-to-date 2025 diluted earnings per share was $1129 million [8] - Year-to-date 2025 total backlog was $92634186 million [8] - Year-to-date 2025 free cash flow was $3007 million [8] Aerospace - Third-Quarter 2025 Highlights - Aerospace third-quarter 2025 revenue increased to $3234 million, up 30% [10, 11] - Aerospace third-quarter 2025 operating earnings increased to $430 million, up 41% [10, 11] Combat Systems - Third-Quarter 2025 Highlights - Combat Systems secured $1700 million in awards for munitions, ordnance, and propellant [14]

Core Insights - General Dynamics reported Q2 2025 revenue of $13 billion, an 8.9% increase year-over-year, with three of four business segments showing gains [5][10] - The company raised its FY2025 revenue and earnings guidance, citing strong order flow and record backlog [7][46] - The Marine Systems segment saw a significant backlog increase of $14.6 billion, or 38%, primarily from Virginia class submarine contracts [7][28] Financial Performance - Operating earnings for Q2 2025 were $1.3 billion, reflecting nearly 13% growth year-over-year [8][10] - Net income was slightly over $1 billion, a 12% increase, with diluted EPS of $3.74, up 14.7% compared to the previous year [8][10] - The backlog reached a record level of $103.7 billion, up 14% from a year ago, with a total estimated contract value exceeding $160 billion [8][13] Segment Performance - **Marine Systems Segment**: Revenue of $4.22 billion, up 22.2% year-over-year, with a backlog increase of $14.6 billion [8][27] - **Aerospace Segment**: Revenue of $3.06 billion, a 4.1% increase, with operating earnings of $403 million, up 26.3% [8][18] - **Combat Systems Segment**: Revenue was $2.28 billion, flat year-over-year, but operating earnings increased by 3.5% [8][30] - **Technologies Segment**: Revenue of $3.5 billion, up 5.5%, with operating margin at 9%, down 10 basis points [8][35] Order Activity and Backlog - The company achieved a book-to-bill ratio of 2.2, driven by $28 billion in orders, particularly in Marine Systems [8][12] - The Marine segment's strong order activity was highlighted, with significant contracts for submarine construction [12][28] - GDIT experienced significantly lower contract award adjudications in the first half of 2025 compared to the same period in 2024, which may impact second-half results [6][39] Guidance and Future Outlook - The company expects approximately $51.2 billion in revenue for 2025, with an operating margin of 10.3% and EPS between $15.05 and $15.15 [46] - Capital expenditures were $198 million in Q2 2025, expected to exceed 2% of sales for the full year [16][46] - The first G800 deliveries are anticipated in Q3 2025, with about 13 deliveries expected for the year [8][20]

Second-Quarter 2025 Financial Performance - The company reported second-quarter revenue of $13,304 million [6], representing a 9% increase compared to $11,968 million in the second quarter of 2024 [6] - Second-quarter earnings were $1,305 million [6], a 29% increase from $1,014 million in the same period last year [6] - Second-quarter diluted EPS was $340 [6], up 26% from $270 in 2024 [6] First-Half 2025 Financial Performance - First-half revenue reached $26,422 million [8], a 113% increase compared to $22,707 million in the first half of 2024 [8] - First-half earnings were $2,573 million [8], a 18% increase from $2,174 million in the same period last year [8] - First-half diluted EPS was $740 [8], up 25% from $614 in 2024 [8] Aerospace Segment - Aerospace revenue increased by 4%, reaching $3,062 million [10] compared to $2,940 million in the second quarter of 2024 [10] - Aerospace operating earnings increased by 26%, reaching $403 million [10] compared to $319 million in the second quarter of 2024 [10] - Aerospace backlog reached $199 billion [10] driven by orders of $4 billion [11] Marine Systems Segment - Marine Systems revenue increased by 22%, reaching $4,220 million [16] compared to $3,453 million in the second quarter of 2024 [16] - Marine Systems backlog reached a record $53 billion [17], including over $18 billion in awards [17]

Core Insights - Boeing has secured a contract to deliver 210 widebody aircraft to Qatar Airways, including 130 787 Dreamliners and 30 777-9s, with an option for an additional 50 jets [1] Group 1: Boeing's Aircraft Features - The Boeing 787 Dreamliner offers unmatched fuel efficiency and range flexibility, reducing fuel use and emissions by 25% due to its lightweight composite structure [2] - The 777-9s is the largest twin-engine airplane globally, designed to enhance efficiency and reduce fuel use and emissions by 25% compared to its predecessors [2] Group 2: Market Growth Prospects - The commercial aviation market is experiencing growth driven by rising air passenger traffic and demand for fuel-efficient aircraft, prompting airlines to prioritize advanced models [4] - Mordor Intelligence forecasts a compound annual growth rate of over 6.5% for the global commercial aviation market from 2025 to 2030 [5] Group 3: Boeing's Backlog and Revenue Potential - Boeing has over 14,000 jetliners in service worldwide, with a commercial aircraft backlog exceeding 5,600 airplanes valued at $460 billion as of March 31, 2025, indicating strong demand for its new aircraft [6] - The recent contract win is expected to further enhance Boeing's commercial backlog and improve revenue performance [6] Group 4: Opportunities for Other Defense Stocks - Airbus SE has over 12,000 commercial aircraft in service and offers modern, fuel-efficient models, with a long-term earnings growth rate of 4% and a projected 10.4% sales growth for 2025 [7][8] - General Dynamics Corporation produces business jets and has a long-term earnings growth rate of 10%, with a 5.7% sales growth estimate for 2025 [8][9] - Textron, Inc. offers a range of commercial aircraft and has a long-term earnings growth rate of 10%, with a projected 6.8% sales growth for 2025 [9][10] Group 5: Boeing Stock Performance - Boeing's shares have increased by 11.9% over the past three months, outperforming the industry's growth of 10.3% [13]