General Dynamics Reports 24% Increase in Net Earnings to $994 Million in Q1 2025

General Dynamics Corporation reported a significant increase in financial performance for the first quarter of 2025, with net earnings reaching $994 million, up from $799 million in the same period last year. This represents a 24% increase in profitability. The company’s total revenue also rose to $12.2 billion, a 14% increase compared to $10.7 billion in the first quarter of 2024. The growth was driven by strong performance across all four operating segments, particularly in Aerospace, which saw nearly 50% growth in revenue.

The company experienced notable changes in its operational metrics compared to the previous fiscal period. Operating cash flows improved, with a net cash used by operating activities of $148 million, a significant reduction from $278 million in the prior year. This improvement was attributed to better management of working capital, particularly in the Aerospace and Combat Systems segments. Additionally, General Dynamics reported a total backlog of $88.7 billion, down from $90.6 billion at the end of 2024, with an estimated potential contract value of $141.3 billion.

Strategically, General Dynamics made significant advancements, including the certification of its G800 ultra-long-range business jet by the FAA and EASA, paving the way for customer deliveries in the second quarter of 2025. The company also repurchased 2.4 million shares for $600 million during the quarter, reflecting its commitment to returning value to shareholders. Furthermore, the board declared an increased quarterly dividend of $1.50 per share, marking the 28th consecutive annual increase.

Operationally, the company reported a total employee headcount of approximately 100,000, with a focus on maintaining a skilled workforce to support its diverse portfolio of products and services. The Aerospace segment's revenue was bolstered by 13 G700 deliveries, while the Marine Systems segment benefited from increased volume in submarine programs. The Technologies segment saw a rise in demand for IT services, contributing to overall revenue growth.

Looking ahead, General Dynamics remains cautiously optimistic about its future performance, despite uncertainties in federal government spending and potential impacts from new tariffs. The company anticipates continued demand for its defense products and services, particularly in light of its substantial backlog and ongoing contracts with the U.S. government. Management emphasized a focus on cost control and working capital management to sustain cash flow generation and support strategic investments in growth opportunities.