Earnings release
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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 Second-Quarter 2026 Financial Results July 29, 2026 • Revenue $14.1 billion, up 8.1% versus prior year • Diluted EPS $4.24, up 13.4% versus prior year • $1.9 billion cash from operating activities, 162% of net earnings • 1.4-to-1 book-to-bill, with strong order activity in all segments RESTON, Va. – General Dynamics (NYSE: GD) today reported second-quarter 2026 operating earnings of $1.5 billion, and $4.24 per diluted share (EPS), on revenue of $14.1 billion. Compared with the year-ago quarter, revenue increased 8.1%, operating earnings increased 11.9%, and diluted EPS increased 13.4%. Operating margin of 10.4% was a 40-basis-point expansion from the year-ago quarter. “Our businesses delivered solid results in the quarter, with revenue growth across all four segments – including double-digit increases in revenue and noteworthy margin expansion in Aerospace and Marine Systems – reflecting our ongoing efforts to increase the pace of execution and deliver on our backlog,” said Phebe Novakovic, chairman and chief executive officer. “We are well positioned to support our customers’ needs and are continuing to make significant investments to increase output to meet strong and growing demand.” Cash and Capital Deployment Net cash provided by operating activities in the quarter totaled $1.9 billion, or 162% of net earnings. During the quarter, the company paid $429 million in dividends, invested $234 million in capital expenditures, and reduced total debt by $498 million. The company ended the quarter with $7.5 billion in total debt and $4.3 billion in cash and equivalents on hand. Orders and Backlog Orders received in the quarter totaled $14.7 billion in the defense segments and $5.3 billion in the Aerospace segment, for a total of $20 billion. Book-to-bill ratio, defined as orders divided by revenue, was 1.4-to-1 for the quarter for the defense segments, 1.5-to-1 for the Aerospace segment, and 1.4-to-1 on a company-wide basis. Backlog at the end of the quarter was $136.5 billion. Estimated potential contract value, representing management’s estimate of additional value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $50.4 billion. Total estimated contract value, the sum of backlog plus estimated potential contract value, was $186.9 billion. – more –
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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 120,000 people worldwide and generated $52.6 billion in revenue in 2025. More information is available at www.gd.com. WEBCAST INFORMATION: General Dynamics' financial results conference call will be held on Wednesday, July 29, 2026, at 9:00 a.m. EDT. A link to the live webcast will be available at www.gd.com and will be available for replay following the call. Corresponding presentation slides will be available for download prior to the call. This press release may contain 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 may contain 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 –
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EXHIBIT A CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED) DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS Three Months Ended Variance July 5, 2026 June 29, 2025 $ % Revenue $ 14,094 $ 13,041 $ 1,053 8.1% Operating costs and expenses (12,634) (11,736) (898) Operating earnings 1,460 1,305 155 11.9% Other, net (4) 15 (19) Interest, net (49) (88) 39 Earnings before income tax 1,407 1,232 175 14.2% Provision for income tax, net (247) (218) (29) Net earnings $ 1,160 $ 1,014 $ 146 14.4% Earnings per share—basic $ 4.29 $ 3.78 $ 0.51 13.5% Basic weighted average shares outstanding 270.2 268.1 Earnings per share—diluted $ 4.24 $ 3.74 $ 0.50 13.4% Diluted weighted average shares outstanding 273.5 270.9 – more –
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EXHIBIT B CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED) DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS Six Months Ended Variance July 5, 2026 June 29, 2025 $ % Revenue $ 27,575 $ 25,264 $ 2,311 9.1% Operating costs and expenses (24,695) (22,691) (2,004) Operating earnings 2,880 2,573 307 11.9% Other, net 14 36 (22) Interest, net (118) (177) 59 Earnings before income tax 2,776 2,432 344 14.1% Provision for income tax, net (491) (424) (67) Net earnings $ 2,285 $ 2,008 $ 277 13.8% Earnings per share—basic $ 8.46 $ 7.48 $ 0.98 13.1% Basic weighted average shares outstanding 270.2 268.6 Earnings per share—diluted $ 8.35 $ 7.40 $ 0.95 12.8% Diluted weighted average shares outstanding 273.8 271.3 – more –
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EXHIBIT C REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED) DOLLARS IN MILLIONS Three Months Ended Variance July 5, 2026 June 29, 2025 $ % Revenue: Aerospace $ 3,525 $ 3,062 $ 463 15.1 % Marine Systems 4,660 4,220 440 10.4 % Combat Systems 2,290 2,283 7 0.3 % Technologies 3,619 3,476 143 4.1 % Total $ 14,094 $ 13,041 $ 1,053 8.1 % Operating earnings: Aerospace $ 510 $ 403 $ 107 26.6 % Marine Systems 342 291 51 17.5 % Combat Systems 318 324 (6) (1.9) % Technologies 339 332 7 2.1 % Corporate (49) (45) (4) (8.9) % Total $ 1,460 $ 1,305 $ 155 11.9 % Operating margin: Aerospace 14.5% 13.2% Marine Systems 7.3% 6.9% Combat Systems 13.9% 14.2% Technologies 9.4% 9.6% Total 10.4% 10.0% – more –
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EXHIBIT D REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED) DOLLARS IN MILLIONS Six Months Ended Variance July 5, 2026 June 29, 2025 $ % Revenue: Aerospace $ 6,804 $ 6,088 $ 716 11.8 % Marine Systems 9,003 7,809 1,194 15.3 % Combat Systems 4,573 4,459 114 2.6 % Technologies 7,195 6,908 287 4.2 % Total $ 27,575 $ 25,264 $ 2,311 9.1 % Operating earnings: Aerospace $ 1,003 $ 835 $ 168 20.1 % Marine Systems 658 541 117 21.6 % Combat Systems 628 615 13 2.1 % Technologies 678 660 18 2.7 % Corporate (87) (78) (9) (11.5) % Total $ 2,880 $ 2,573 $ 307 11.9 % Operating margin: Aerospace 14.7% 13.7% Marine Systems 7.3% 6.9% Combat Systems 13.7% 13.8% Technologies 9.4% 9.6% Total 10.4% 10.2% – more –
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EXHIBIT E CONSOLIDATED BALANCE SHEET DOLLARS IN MILLIONS (Unaudited) July 5, 2026 December 31, 2025 ASSETS Current assets: Cash and equivalents $ 4,333 $ 2,333 Accounts receivable 2,398 2,406 Unbilled receivables 9,255 8,380 Inventories 9,097 9,232 Other current assets 1,955 1,897 Total current assets 27,038 24,248 Noncurrent assets: Property, plant and equipment, net 7,575 7,525 Intangible assets, net 1,281 1,375 Goodwill 20,927 21,009 Other assets 3,342 3,092 Total noncurrent assets 33,125 33,001 Total assets $ 60,163 $ 57,249 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term debt and current portion of long-term debt $ 1,256 $ 1,006 Accounts payable 2,874 2,678 Customer advances and deposits 11,034 9,824 Other current liabilities 3,601 3,288 Total current liabilities 18,765 16,796 Noncurrent liabilities: Long-term debt 6,260 7,007 Other liabilities 8,312 7,824 Total noncurrent liabilities 14,572 14,831 Shareholders’ equity: Common stock 482 482 Surplus 4,535 4,403 Retained earnings 45,502 44,080 Treasury stock (23,110) (22,860) Accumulated other comprehensive loss (583) (483) Total shareholders’ equity 26,826 25,622 Total liabilities and shareholders’ equity $ 60,163 $ 57,249 – more –
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EXHIBIT F CONSOLIDATED STATEMENT OF CASH FLOWS - (UNAUDITED) DOLLARS IN MILLIONS Six Months Ended July 5, 2026 June 29, 2025 Cash flows from operating activities—continuing operations: Net earnings $ 2,285 $ 2,008 Adjustments to reconcile net earnings to net cash from operating activities: Depreciation of property, plant and equipment 348 325 Amortization of intangible and finance lease right-of-use assets 115 121 Equity-based compensation expense 107 89 Deferred income tax provision (benefit) 365 (98) (Increase) decrease in assets, net of effects of business acquisitions: Accounts receivable 8 (612) Unbilled receivables (846) (200) Inventories 135 (207) Increase (decrease) in liabilities, net of effects of business acquisitions: Accounts payable 196 (261) Customer advances and deposits 1,168 106 Other, net 154 179 Net cash provided by operating activities 4,035 1,450 Cash flows from investing activities: Capital expenditures (437) (340) Other, net 13 124 Net cash used by investing activities (424) (216) Cash flows from financing activities: Dividends paid (834) (785) Repayment of fixed-rate notes (500) (1,500) Purchases of common stock (319) (600) Proceeds from commercial paper, net — 696 Proceeds from fixed-rate notes — 747 Other, net 48 39 Net cash used by financing activities (1,605) (1,403) Net cash used by discontinued operations (6) (5) Net increase (decrease) in cash and equivalents 2,000 (174) Cash and equivalents at beginning of period 2,333 1,697 Cash and equivalents at end of period $ 4,333 $ 1,523 – more –
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EXHIBIT G ADDITIONAL FINANCIAL INFORMATION - (UNAUDITED) DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS Non-GAAP Financial Measures: Second Quarter Six Months 2026 2025 2026 2025 Free cash flow: Net cash provided by operating activities $ 1,880 $ 1,598 $ 4,035 $ 1,450 Capital expenditures (234) (198) (437) (340) Free cash flow (a) $ 1,646 $ 1,400 $ 3,598 $ 1,110 July 5, 2026 December 31, 2025 Net debt: Total debt $ 7,516 $ 8,013 Less cash and equivalents 4,333 2,333 Net debt (b) $ 3,183 $ 5,680 Supplemental Aerospace Data: Second Quarter Six Months 2026 2025 2026 2025 Gulfstream Aircraft Deliveries (units): Large-cabin aircraft 35 32 66 62 Mid-cabin aircraft 6 6 13 12 Total 41 38 79 74 Aerospace Book-to-Bill: Orders (c) $ 5,278 $ 4,003 $ 9,121 $ 6,364 Revenue 3,525 3,062 6,804 6,088 Book-to-Bill Ratio 1.5x 1.3x 1.3x 1.0x (a) 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, paying dividends and repurchasing our common stock to cover dilution. We use free cash flow to assess the quality of our earnings and as a key performance measure in evaluating management. (b) 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. (c) Excludes customer defaults, liquidated damages, cancellations, foreign exchange fluctuations and other backlog adjustments. – more –
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EXHIBIT H BACKLOG - (UNAUDITED) DOLLARS IN MILLIONS Funded Unfunded Total Backlog Estimated Potential Contract Value* Total Estimated Contract Value Second Quarter 2026: Aerospace $ 22,992 $ 985 $ 23,977 $ 1,170 $ 25,147 Marine Systems 42,356 22,826 65,182 7,442 72,624 Combat Systems 27,507 1,843 29,350 10,847 40,197 Technologies 11,256 6,733 17,989 30,945 48,934 Total $ 104,111 $ 32,387 $ 136,498 $ 50,404 $ 186,902 First Quarter 2026: Aerospace $ 21,172 $ 1,095 $ 22,267 $ 1,040 $ 23,307 Marine Systems 40,598 23,373 63,971 12,519 76,490 Combat Systems 25,532 1,383 26,915 11,770 38,685 Technologies 10,818 6,869 17,687 32,272 49,959 Total $ 98,120 $ 32,720 $ 130,840 $ 57,601 $ 188,441 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 * 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 –
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EXHIBIT H-1 BACKLOG - (UNAUDITED) DOLLARS IN MILLIONS $93,734 $91,301 $92,634 $90,597 $88,657 $103,682 $109,857 $118,046 $130,840 $136,498 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 $0 $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 Funded Backlog Unfunded Backlog # # #