- General Dynamics (GD, Financial) reported Q1 2025 revenue of $12.2 billion, up 13.9% year-over-year.
- The Aerospace segment showed remarkable growth with a 45.2% increase in revenue and a 69.4% rise in operating earnings.
- Orders totaled $10.2 billion with a robust backlog of $88.7 billion, providing significant future revenue visibility.
General Dynamics (GD) has announced its first-quarter 2025 financial results, showcasing strong performance across various key metrics. The company reported a revenue increase of 13.9% year-over-year, reaching $12.2 billion. This growth was complemented by a significant increase in diluted earnings per share (EPS), which climbed 27.1% to $3.66. Furthermore, operating earnings saw an impressive 22.4% rise to $1.3 billion, with the operating margin expanding by 70 basis points to 10.4%.
The standout performer for the quarter was the Aerospace segment, which experienced a revenue surge of 45.2% and a remarkable 69.4% boost in operating earnings. The segment's margins expanded 210 basis points to 14.3%, attributed to manufacturing efficiencies from higher production levels of new aircraft models.
Despite a negative net operating cash flow of $148 million due to working capital growth, General Dynamics continued its shareholder-friendly capital deployment. The company allocated $383 million for dividends, reflecting a 5.6% increase, marking 28 consecutive annual rises. Additionally, $600 million was spent on share repurchases.
Order intake for the quarter was $10.2 billion, with a substantial backlog of $88.7 billion. The total estimated contract value, including potential IDIQ contracts and unexercised options, was reported at $141.3 billion. This strong backlog ensures significant visibility and stability for future revenues.
General Dynamics closed the quarter with $9.6 billion in total debt balanced against $1.2 billion in cash and cash equivalents. The company's continued growth and robust backlog demonstrate its ability to capitalize on current market opportunities and sustain future revenue streams.
