Earnings release
Page 1
Exhibit 99.1 11011 Sunset Hills Road Reston, Virginia 20190 Newswww.gd.com Contact: Jeff A. Davis Tel: 703 876 3483 press@generaldynamics.com General Dynamics Reports Third-Quarter 2025 Financial Results October 24, 2025 • Revenue $12.9 billion, up 10.6% from year-ago quarter • Diluted EPS $3.88, up 15.8% from year-ago quarter • $2.1 billion cash from operating activities, 199% of net earnings • Very strong order activity in all four segments RESTON, Va. – General Dynamics (NYSE: GD) today reported third-quarter 2025 operating earnings of $1.3 billion, or $3.88 per diluted share (EPS), on revenue of $12.9 billion. Compared with the year-ago quarter, revenue increased 10.6%, operating earnings increased 12.7%, and diluted EPS increased 15.8%. Operating margin of 10.3% was a 20-basis-point expansion from the year-ago quarter and a 30-basis-point expansion sequentially. “Each of our four segments grew earnings and backlog in the quarter, reflecting solid execution coupled with growing demand,” said Phebe Novakovic, chairman and chief executive officer. “The Aerospace segment in particular performed impressively, growing revenue 30.3% and expanding margins by 100 basis points from the same period a year ago, with order activity for business jets remaining very strong.” Cash and Capital Deployment Net cash provided by operating activities in the quarter totaled $2.1 billion, or 199% of net earnings. During the quarter, the company paid $403 million in dividends and invested $212 million in capital expenditures, ending the quarter with $8 billion in total debt and $2.5 billion in cash and equivalents on hand. Orders and Backlog Orders totaled $19.3 billion in the quarter on a companywide basis. Consolidated book-to-bill ratio, defined as orders divided by revenue, was 1.5-to-1 for the quarter. Book-to-bill was 1.6-to-1 for the defense segments and 1.3-to-1 for the Aerospace segment. Total estimated contract value, the sum of all backlog components, was $167.7 billion at the end of the quarter. This includes backlog of $109.9 billion and estimated potential contract value, representing management’s estimate of additional value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, of $57.8 billion. – more –
Page 2
About General Dynamics Headquartered in Reston, Virginia, General Dynamics is a global aerospace and defense company that offers a broad portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapons systems and munitions; and technology products and services. General Dynamics employs more than 110,000 people worldwide and generated $47.7 billion in revenue in 2024. More information is available at www.gd.com. WEBCAST INFORMATION: General Dynamics will webcast its third-quarter 2025 financial results conference call at 9 a.m. EDT on Friday, October 24, 2025. The webcast will be a listen-only audio event available at www.gd.com. An on-demand replay of the webcast will be available by telephone two hours after the end of the call through October 31, 2025, at 800-770-2030 (international: +1 609-800-9909), conference ID 4299949. Charts furnished to investors and securities analysts in connection with General Dynamics’ announcement of its financial results are available at www.gd.com. This press release contains forward-looking statements (FLS), including statements about the company’s future operational and financial performance, which are based on management’s expectations, estimates, projections and assumptions. Words such as “expects,” “anticipates,” “plans,” “believes,” “forecasts,” “scheduled,” “outlook,” “estimates,” “should” and variations of these words and similar expressions are intended to identify FLS. In making FLS, we rely on assumptions and analyses based on our experience and perception of historical trends; current conditions and expected future developments; and other factors, estimates and judgments we consider reasonable and appropriate based on information available to us at the time. FLS are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. FLS are not guarantees of future performance and involve factors, risks and uncertainties that are difficult to predict. Actual future results and trends may differ materially from what is forecast in the FLS. All FLS speak only as of the date they were made. We do not undertake any obligation to update or publicly release revisions to FLS to reflect events, circumstances or changes in expectations after the date of this press release. Additional information regarding these factors is contained in the company’s filings with the SEC, and these factors may be revised or supplemented in future SEC filings. In addition, this press release contains some financial measures not prepared in accordance with U.S. generally accepted accounting principles (GAAP). While we believe these non-GAAP metrics provide useful information for investors, there are limitations associated with their use, and our calculations of these metrics may not be comparable to similarly titled measures of other companies. Non-GAAP metrics should not be considered in isolation from, or as a substitute for, GAAP measures. Reconciliations to comparable GAAP measures and other information relating to our non-GAAP measures are included in other filings with the SEC, which are available at investorrelations.gd.com. – more –
Page 3
EXHIBIT A CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED) DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS Three Months Ended Variance September 28, 2025 September 29, 2024 $ % Revenue $ 12,907 $ 11,671 $ 1,236 10.6% Operating costs and expenses (11,576) (10,490) (1,086) Operating earnings 1,331 1,181 150 12.7% Other, net 15 15 — Interest, net (74) (82) 8 Earnings before income tax 1,272 1,114 158 14.2% Provision for income tax, net (213) (184) (29) Net earnings $ 1,059 $ 930 $ 129 13.9% Earnings per share—basic $ 3.93 $ 3.39 $ 0.54 15.9% Basic weighted average shares outstanding 269.2 274.4 Earnings per share—diluted $ 3.88 $ 3.35 $ 0.53 15.8% Diluted weighted average shares outstanding 272.6 277.9 – more –
Page 4
EXHIBIT B CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED) DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS Nine Months Ended Variance September 28, 2025 September 29, 2024 $ % Revenue $ 38,171 $ 34,378 $ 3,793 11.0% Operating costs and expenses (34,267) (31,005) (3,262) Operating earnings 3,904 3,373 531 15.7% Other, net 51 47 4 Interest, net (251) (248) (3) Earnings before income tax 3,704 3,172 532 16.8% Provision for income tax, net (637) (538) (99) Net earnings $ 3,067 $ 2,634 $ 433 16.4% Earnings per share—basic $ 11.41 $ 9.61 $ 1.80 18.7% Basic weighted average shares outstanding 268.8 274.0 Earnings per share—diluted $ 11.29 $ 9.49 $ 1.80 19.0% Diluted weighted average shares outstanding 271.8 277.5 – more –
Page 5
EXHIBIT C REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED) DOLLARS IN MILLIONS Three Months Ended Variance September 28, 2025 September 29, 2024 $ % Revenue: Aerospace $ 3,234 $ 2,482 $ 752 30.3 % Marine Systems 4,096 3,599 497 13.8 % Combat Systems 2,252 2,212 40 1.8 % Technologies 3,325 3,378 (53) (1.6) % Total $ 12,907 $ 11,671 $ 1,236 10.6 % Operating earnings: Aerospace $ 430 $ 305 $ 125 41.0 % Marine Systems 291 258 33 12.8 % Combat Systems 335 325 10 3.1 % Technologies 327 326 1 0.3 % Corporate (52) (33) (19) (57.6) % Total $ 1,331 $ 1,181 $ 150 12.7 % Operating margin: Aerospace 13.3% 12.3% Marine Systems 7.1% 7.2% Combat Systems 14.9% 14.7% Technologies 9.8% 9.7% Total 10.3% 10.1% – more –
Page 6
EXHIBIT D REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED) DOLLARS IN MILLIONS Nine Months Ended Variance September 28, 2025 September 29, 2024 $ % Revenue: Aerospace $ 9,322 $ 7,506 $ 1,816 24.2 % Marine Systems 11,905 10,383 1,522 14.7 % Combat Systems 6,711 6,602 109 1.7 % Technologies 10,233 9,887 346 3.5 % Total $ 38,171 $ 34,378 $ 3,793 11.0 % Operating earnings: Aerospace $ 1,265 $ 879 $ 386 43.9 % Marine Systems 832 735 97 13.2 % Combat Systems 950 920 30 3.3 % Technologies 987 941 46 4.9 % Corporate (130) (102) (28) (27.5) % Total $ 3,904 $ 3,373 $ 531 15.7 % Operating margin: Aerospace 13.6% 11.7% Marine Systems 7.0% 7.1% Combat Systems 14.2% 13.9% Technologies 9.6% 9.5% Total 10.2% 9.8% – more –
Page 7
EXHIBIT E CONSOLIDATED BALANCE SHEET DOLLARS IN MILLIONS (Unaudited) September 28, 2025 December 31, 2024 ASSETS Current assets: Cash and equivalents $ 2,520 $ 1,697 Accounts receivable 3,303 2,977 Unbilled receivables 8,641 8,248 Inventories 9,813 9,724 Other current assets 1,575 1,740 Total current assets 25,852 24,386 Noncurrent assets: Property, plant and equipment, net 6,602 6,467 Intangible assets, net 1,402 1,520 Goodwill 20,871 20,556 Other assets 2,872 2,951 Total noncurrent assets 31,747 31,494 Total assets $ 57,599 $ 55,880 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term debt and current portion of long-term debt $ 1,006 $ 1,502 Accounts payable 3,459 3,344 Customer advances and deposits 10,462 9,491 Other current liabilities 3,537 3,487 Total current liabilities 18,464 17,824 Noncurrent liabilities: Long-term debt 7,008 7,260 Other liabilities 7,693 8,733 Total noncurrent liabilities 14,701 15,993 Shareholders’ equity: Common stock 482 482 Surplus 4,323 4,062 Retained earnings 43,345 41,487 Treasury stock (22,856) (22,450) Accumulated other comprehensive loss (860) (1,518) Total shareholders’ equity 24,434 22,063 Total liabilities and shareholders’ equity $ 57,599 $ 55,880 – more –
Page 8
EXHIBIT F CONSOLIDATED STATEMENT OF CASH FLOWS - (UNAUDITED) DOLLARS IN MILLIONS Nine Months Ended September 28, 2025 September 29, 2024 Cash flows from operating activities—continuing operations: Net earnings $ 3,067 $ 2,634 Adjustments to reconcile net earnings to net cash from operating activities: Depreciation of property, plant and equipment 490 469 Amortization of intangible and finance lease right-of-use assets 182 177 Equity-based compensation expense 146 137 Deferred income tax provision (benefit) 151 (107) (Increase) decrease in assets, net of effects of business acquisitions: Accounts receivable (314) (172) Unbilled receivables (415) (874) Inventories (131) (1,612) Increase (decrease) in liabilities, net of effects of business acquisitions: Accounts payable 119 193 Customer advances and deposits 45 628 Other, net 219 479 Net cash provided by operating activities 3,559 1,952 Cash flows from investing activities: Capital expenditures (552) (561) Other, net 130 (27) Net cash used by investing activities (422) (588) Cash flows from financing activities: Repayment of fixed-rate notes (1,500) — Proceeds from fixed-rate notes 747 — Dividends paid (1,188) (1,140) Purchases of common stock (600) (183) Other, net 235 150 Net cash used by financing activities (2,306) (1,173) Net cash used by discontinued operations (8) (3) Net increase in cash and equivalents 823 188 Cash and equivalents at beginning of period 1,697 1,913 Cash and equivalents at end of period $ 2,520 $ 2,101 – more –
Page 9
EXHIBIT G ADDITIONAL FINANCIAL INFORMATION - (UNAUDITED) DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS Other Financial Information: September 28, 2025 December 31, 2024 Debt-to-equity (a) 32.8% 39.7% Book value per share (b) $ 90.46 $ 81.61 Shares outstanding 270,120,442 270,340,502 Third Quarter Nine Months 2025 2024 2025 2024 Income tax payments, net $ 27 $ 173 $ 263 $ 125 Company-sponsored research and development (c) $ 119 $ 137 $ 339 $ 421 Return on sales (d) 8.2% 8.0% 8.0% 7.7% Non-GAAP Financial Measures: Third Quarter Nine Months 2025 2024 2025 2024 Free cash flow: Net cash provided by operating activities $ 2,109 $ 1,416 $ 3,559 $ 1,952 Capital expenditures (212) (201) (552) (561) Free cash flow (e) $ 1,897 $ 1,215 $ 3,007 $ 1,391 September 28, 2025 December 31, 2024 Net debt: Total debt $ 8,014 $ 8,762 Less cash and equivalents 2,520 1,697 Net debt (f) $ 5,494 $ 7,065 (a) Debt-to-equity ratio is calculated as total debt divided by total equity as of the end of the period. (b) Book value per share is calculated as total equity divided by total outstanding shares as of the end of the period. (c) Includes independent research and development and Aerospace product-development costs. (d) Return on sales is calculated as net earnings divided by revenue. (e) We define free cash flow as net cash from operating activities less capital expenditures. We believe free cash flow is a useful measure for investors because it portrays our ability to generate cash from our businesses for purposes such as repaying debt, funding business acquisitions, repurchasing our common stock and paying dividends. We use free cash flow to assess the quality of our earnings and as a key performance measure in evaluating management. (f) We define net debt as short- and long-term debt (total debt) less cash and equivalents. We believe net debt is a useful measure for investors because it reflects the borrowings that support our operations and capital deployment strategy. We use net debt as an important indicator of liquidity and financial position. – more –
Page 10
EXHIBIT H BACKLOG - (UNAUDITED) DOLLARS IN MILLIONS Funded Unfunded Total Backlog Estimated Potential Contract Value* Total Estimated Contract Value Third Quarter 2025: Aerospace $ 19,476 $ 1,131 $ 20,607 $ 1,147 $ 21,754 Marine Systems 38,757 14,854 53,611 14,839 68,450 Combat Systems 17,232 1,470 18,702 9,553 28,255 Technologies 10,269 6,668 16,937 32,341 49,278 Total $ 85,734 $ 24,123 $ 109,857 $ 57,880 $ 167,737 Second Quarter 2025: Aerospace $ 18,676 $ 1,227 $ 19,903 $ 1,165 $ 21,068 Marine Systems 39,298 13,674 52,972 14,708 67,680 Combat Systems 15,961 616 16,577 9,592 26,169 Technologies 9,945 4,285 14,230 32,011 46,241 Total $ 83,880 $ 19,802 $ 103,682 $ 57,476 $ 161,158 Third Quarter 2024: Aerospace $ 18,859 $ 937 $ 19,796 $ 254 $ 20,050 Marine Systems 29,008 11,463 40,471 9,578 50,049 Combat Systems 17,289 682 17,971 8,016 25,987 Technologies 9,794 4,602 14,396 27,093 41,489 Total $ 74,950 $ 17,684 $ 92,634 $ 44,941 $ 137,575 * The estimated potential contract value includes work awarded on unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options associated with existing firm contracts, including options and other agreements with existing customers to purchase new aircraft and aircraft services. We recognize options in backlog when the customer exercises the option and establishes a firm order. For IDIQ contracts, we evaluate the amount of funding we expect to receive and include this amount in our estimated potential contract value. The actual amount of funding received in the future may be higher or lower than our estimate of potential contract value. – more –
Page 11
EXHIBIT H-1 BACKLOG - (UNAUDITED) DOLLARS IN MILLIONS $89,825 $91,357 $95,560 $93,627 $93,734 $91,301 $92,634 $90,597 $88,657 $103,682 $109,857 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $110,000 $120,000 Funded Backlog Unfunded Backlog – more –
Page 12
EXHIBIT H-2 BACKLOG BY SEGMENT - (UNAUDITED) DOLLARS IN MILLIONS AEROSPACE $19,796 $19,693 $18,999 $19,903 $20,607 3Q24 4Q24 1Q25 2Q25 3Q25 $0 $5,000 $10,000 $15,000 $20,000 $25,000 MARINE SYSTEMS $40,471 $39,818 $38,373 $52,972 $53,611 3Q24 4Q24 1Q25 2Q25 3Q25 $0 $15,000 $30,000 $45,000 $60,000 COMBAT SYSTEMS $17,971 $16,980 $16,928 $16,577 $18,702 3Q24 4Q24 1Q25 2Q25 3Q25 $0 $5,000 $10,000 $15,000 $20,000 TECHNOLOGIES $14,396 $14,106 $14,357 $14,230 $16,937 3Q24 4Q24 1Q25 2Q25 3Q25 $0 $5,000 $10,000 $15,000 $20,000 Funded Backlog Unfunded Backlog – more –
Page 13
EXHIBIT I AEROSPACE SUPPLEMENTAL DATA - (UNAUDITED) DOLLARS IN MILLIONS Third Quarter Nine Months 2025 2024 2025 2024 Gulfstream Aircraft Deliveries (units): Large-cabin aircraft 33 24 95 76 Mid-cabin aircraft 6 4 18 13 Total 39 28 113 89 Aerospace Book-to-Bill: Orders* $ 4,053 $ 2,365 $ 10,417 $ 7,464 Revenue 3,234 2,482 9,322 7,506 Book-to-Bill Ratio 1.3x 1.0x 1.1x 1.0x * Does not include customer defaults, liquidated damages, cancellations, foreign exchange fluctuations and other backlog adjustments. # # #