Q1 2025 General Dynamics Corp Earnings Call Transcript
Key Points
- General Dynamics Corp (GD) reported a strong first quarter with earnings of $3.66 per diluted share, a 27.1% increase from the previous year.
- Revenue increased by 13.9% to $12.2 billion, with operating earnings up 22.4% and net earnings up 24.4%.
- The Aerospace segment led with a 45.2% revenue increase, driven by a 50% increase in aircraft deliveries, including the introduction of the G700.
- The Technologies group had a strong quarter with a book-to-bill ratio of 1.1, reflecting robust demand for advanced technology solutions.
- The Marine Systems segment demonstrated impressive revenue growth, driven by Columbia class and Virginia class construction, and increased DDG-51 construction.
- Free cash flow for the quarter was negative $290 million, impacted by inventory buildup and working capital requirements.
- The total backlog decreased slightly to $89 billion due to a book-to-bill ratio of less than one, influenced by a 14% revenue increase.
- The supply chain continues to face delays and quality issues, affecting the Marine Systems segment's ability to achieve operating leverage.
- The Aerospace segment faces potential impacts from tariffs, with uncertainty around how these will affect export revenue.
- The Technologies group faces uncertainty in the IT services market due to the administration's evolving spending priorities.
Good morning and welcome to the General Dynamics first quarter 2025 earnings conference call. All lines have placed on mute to prevent any background noise. (Operator Instructions) Please note this event is being recorded. At this time I'd like to turn the conference over to Nicole Shelton, Vice President of Investor Relations.
Thank you, operator. Good morning, everyone. Welcome to the General Dynamics first quarter 2025 conference call. Any forward-looking statements made today represent our estimates regarding the company's outlook. These estimates are subject to some risks and uncertainties. Additional information regarding these factors is contained in the company's 10-K,10-Q and 8-K filings.
We will also refer to certain non-GAAP financial measures. For additional disclosures about these non-GAAP measures, including reconciliations to comparable GAAP measures, please see the slides that accompany this webcast, which are available on the investor relations page of our
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