10-QPeriod: Q3 FY2026

GENERAL DYNAMICS CORP Quarterly Report for Q3 Ended Jul 5, 2026

Filed July 29, 2026For Securities:GD

Summary

General Dynamics Corporation (GD) reported robust financial performance for the six months ended July 5, 2026. Revenue increased by 9.1% year-over-year to $27.6 billion, driven by strong growth across all four operating segments, particularly Aerospace and Marine Systems. Net earnings also saw a significant jump of 14.3%, reaching $2.3 billion, with diluted Earnings Per Share (EPS) rising to $8.35 from $7.40 in the prior year period. The company's operating margin improved slightly to 10.4% for the six-month period. The defense segments, including Marine Systems and Combat Systems, demonstrated continued strength, with substantial backlog growth attributed to naval shipbuilding and munitions demand. The Aerospace segment also performed well, experiencing strong demand for Gulfstream aircraft and services, supported by a favorable book-to-bill ratio. The Technologies segment contributed steady revenue growth. GD's financial position remains solid, with $4.3 billion in cash and equivalents at the end of the period. The company generated strong free cash flow of $3.6 billion for the first six months, reflecting effective working capital management and operational discipline. GD reiterated its commitment to shareholder returns through consistent dividend payments and share repurchases. The company also maintains a significant total backlog of $136.5 billion, providing good visibility into future revenues.

Key Highlights

  • 1Total revenue for the six months ended July 5, 2026, increased by 9.1% to $27.575 billion compared to $25.264 billion in the prior year.
  • 2Net earnings for the six-month period rose to $2.285 billion, a 14.3% increase from $2.008 billion in the comparable prior-year period.
  • 3Diluted Earnings Per Share (EPS) improved to $8.35 for the six months ended July 5, 2026, from $7.40 for the six months ended June 29, 2025.
  • 4The Aerospace segment reported a 11.8% revenue increase for the six months, driven by higher aircraft manufacturing and services, with operating earnings up 20.1%.
  • 5Marine Systems saw a significant 15.3% revenue increase for the six months, primarily from U.S. Navy ship construction, with operating earnings up 21.6%.
  • 6Total backlog stood at a robust $136.5 billion as of July 5, 2026, indicating strong future revenue potential.
  • 7Free cash flow for the six months was $3.598 billion, significantly up from $1.110 billion in the prior year period, demonstrating strong cash generation.

Frequently Asked Questions

For the six months ended July 5, 2026, General Dynamics reported total revenue of $27.575 billion, an increase of 9.1% compared to $25.264 billion in the same period of 2025. Net earnings for the period were $2.285 billion, up 14.3% from $2.008 billion in the prior year. Diluted EPS rose to $8.35 from $7.40.

The Aerospace and Marine Systems segments were the primary drivers of revenue growth. The Aerospace segment's revenue increased by 11.8% due to higher aircraft manufacturing and services, while Marine Systems saw a 15.3% revenue jump, mainly from U.S. Navy ship construction.

General Dynamics ended the period with a strong cash position of $4.333 billion. The company generated substantial free cash flow of $3.598 billion in the first six months of 2026. The total backlog remains significant at $136.5 billion as of July 5, 2026, providing strong visibility into future revenue streams across its diverse segments.

The company's net interest expense decreased due to lower commercial paper issuances. Total debt was $7.516 billion, down from $8.013 billion at the end of 2025. The company repaid $500 million in fixed-rate notes in June 2026. It maintains a $4 billion committed bank credit facility and has an effective shelf registration for debt market access. Financing activities included $834 million in dividends paid and $319 million in share repurchases for dilution.