General Dynamics Corporation

GD
Financial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$13.5B
Q1 2026 · +10.3% YoY
TTM ROIC
14.2%
FY2025 · NOPAT / Invested Capital (Book): EBIT × (1 - tax rate) / (Total Assets - Non-Interest-Bearing Current Liabilities) · WACC ~7.5% · Moat spread +6.7pp
Margin Profile
Gross 15.3%
Operating 10.1%
FCF 7.5%
FY2025
Net Debt
$7.1B
Cash $1.7B · Debt $8.8B · FY2024
Diluted Shares
265M
FY2025

Business Overview

ticker: GD step: 01 generated: 2026-05-12 source: quick-research

General Dynamics Corporation (GD) — Business Overview

Business Description

General Dynamics is a global aerospace + defense prime contractor, the only US defense company with both heavy defense exposure (submarines, armored vehicles, defense IT) AND commercial aerospace exposure (Gulfstream business jets). The company has four business segments: Aerospace (Gulfstream), Marine Systems (Electric Boat submarines + Bath Iron Works destroyers), Combat Systems (armored vehicles), and Technologies (defense IT + cybersecurity via GDIT + Mission Systems).

Revenue Model

~$50.5B FY2025 revenue split: Aerospace ~26%, Marine Systems ~28%, Combat Systems ~17%, Technologies ~29%. Defense (Marine + Combat + Technologies) ~74% of revenue funded by US DoD (~70%) and allied governments. Gulfstream ~$13B annual revenue from corporate + government business jet sales. Long-cycle contract revenue (10+ year submarine builds) + book-to-bill 1.5x company-wide.

Products & Services

  • Aerospace (Gulfstream) — G650, G700 (entered service late 2024), G800 (deliveries started Q3 2025), G500, G600, MRO services, ground services
  • Marine Systems — Electric Boat (Virginia-class + Columbia-class submarines), Bath Iron Works (DDG-51 destroyers), NASSCO (Navy + commercial ships)
  • Combat Systems — M10 Booker, Abrams tank upgrades, Stryker, M1A2 tank, ARV (Advanced Reconnaissance Vehicle), MUTT
  • Technologies — GDIT (defense IT services), Mission Systems (cybersecurity, ISR, EW)

Customer Base & Go-to-Market

~74% US DoD via primary contracts (submarines, armored vehicles, IT). ~10% allied governments (Israel, UK, Australia, etc.). ~16% commercial (Gulfstream business jet customers — Fortune 500, billionaires, charter operators globally). Aerospace backlog $21.8B reflects 18-24 months production visibility.

Competitive Position

Top 5 defense contractor globally with unique diversification. Electric Boat is one of two US nuclear submarine builders (with Newport News/Huntington Ingalls). Gulfstream is #1 in heavy/long-range business jets (competing with Bombardier Global, Dassault Falcon). Combat Systems leader in heavy armored vehicles. GDIT top-3 federal IT contractor.

Key Facts

  • Founded: 1952
  • Headquarters: Reston, VA
  • Employees: ~117,000
  • Exchange: NYSE (GD)
  • Sector / Industry: Industrials / Aerospace & Defense
  • Market Cap: ~$80-85B
  • CEO: Phebe Novakovic (since 2013)

Financial Snapshot

ticker: GD step: 04 generated: 2026-05-12 source: quick-research

General Dynamics Corporation (GD) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 FY2025 YoY (25)
Revenue $39.4B $42.3B $47.7B $52.5B +10.1%
Aerospace Revenue $8.7B $9.2B $11.2B $13.1B +16.5%
Operating Margin 11.0% 9.7% 9.6% 10.1%
Operating Income $4.34B $4.10B $4.59B $5.13B +11.7%
Net Income $3.39B $3.32B $3.78B $4.21B +11.3%
Diluted EPS $12.19 $12.02 $13.63 $15.45 +13.4%
Backlog $91B $93.6B $90.6B $118B +30%
Book-to-Bill 1.0x 1.1x 1.0x 1.5x

Record $118B backlog (up 30% YoY) with company-wide book-to-bill 1.5x = multi-year revenue visibility. 158 Gulfstream deliveries 2025 vs 136 in 2024.

Cash Flow & Balance Sheet (FY2024)

Metric Value
Operating Cash Flow ~$4.1B
Free Cash Flow ~$3.2B
FCF Conversion ~85%
Cash & Equivalents ~$1.7B
Total Debt ~$8.8B
Net Debt/EBITDA ~1.0x

Key Ratios (approximate)

  • P/E: ~18x | EV/EBITDA: ~14x | FCF Yield: ~4%
  • Revenue Growth (TTM): ~10% | Op Margin: ~10%
  • Dividend Yield: ~2.0% | Dividend: $5.84/share
  • 33-year consecutive dividend growth

Growth Profile

Defense Super-Cycle: $1.5T defense budget proposal + Columbia-class ramp + Virginia-class blocks + armored vehicle modernization driving multi-year visibility. Gulfstream G700/G800 ramp + record 158 aircraft deliveries 2025 + $21.8B aerospace backlog = aerospace cycle inflection. EPS compounding mid-double-digits 2025-2027.

Forward Estimates

  • FY 2026: Consensus revenue ~$56-58B; adj EPS $17.50-18.50; op margin 10.5%+
  • FY 2027: Columbia delivery + G800 ramp full; adj EPS $19.50-20.50
  • $118B backlog provides 2.2 years of revenue coverage

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $GD.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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