Summary
General Dynamics Corporation's 2016 Form 10-K highlights a robust year characterized by strong operating performance and strategic capital deployment. The company, a global aerospace and defense leader, reported stable revenue of $31.4 billion, coupled with record operating earnings of $4.3 billion and an improved operating margin of 13.7%. This financial strength was supported by growth in its defense segments, particularly Marine Systems and Information Systems and Technology, which offset a planned decrease in aircraft deliveries within the Aerospace group. The company demonstrated a strong commitment to shareholder returns, repurchasing $2 billion in stock and increasing its dividend. General Dynamics also maintained a significant backlog of $59.8 billion, providing visibility into future revenue streams. The report underscores the company's focus on innovation, operational efficiency, and disciplined execution across its diverse portfolio, positioning it well for continued success in the aerospace and defense sectors.
Financial Highlights
56 data points| Revenue | $30.56B |
| Cost of Revenue | $24.90B |
| Gross Profit | $5.67B |
| Operating Expenses | $26.82B |
| Operating Income | $3.74B |
| Interest Expense | $99.00M |
| Net Income | $2.57B |
| EPS (Basic) | $8.44 |
| EPS (Diluted) | $8.29 |
| Shares Outstanding (Basic) | 304.71M |
| Shares Outstanding (Diluted) | 310.39M |
Key Highlights
- 1Revenue remained stable at $31.4 billion in 2016, with operating earnings reaching a record $4.3 billion.
- 2Operating margin improved to 13.7%, driven by strong performance in defense segments and cost management.
- 3The company returned approximately $2.9 billion to shareholders through share repurchases ($2 billion) and dividends ($0.9 billion).
- 4Total backlog stood strong at $59.8 billion at year-end 2016, indicating robust future business.
- 5The Marine Systems segment saw revenue growth, primarily due to increased U.S. Navy ship construction and engineering work.
- 6The Information Systems and Technology segment experienced revenue growth driven by C4ISR solutions, despite a decrease in IT services.
- 7The Aerospace segment reported lower revenue due to planned fewer aircraft deliveries but improved its operating margin.