General Dynamics Reports 8.9% Revenue Growth to $13.04 Billion in Latest Quarter

General Dynamics Corporation reported significant financial growth in its latest quarterly results, with total revenue reaching $13.04 billion for the three months ended June 29, 2025, marking an increase of 8.9% from $11.98 billion in the same period last year. The company's net earnings also rose to $1.01 billion, or $3.74 per diluted share, compared to $905 million, or $3.26 per diluted share, in the prior year. For the first half of 2025, revenue totaled $25.26 billion, up 11.3% from $22.71 billion in the first half of 2024, while net earnings increased to $2.01 billion from $1.70 billion.

The growth in revenue was primarily driven by the Aerospace and Marine Systems segments, which saw increases in both product and service revenues. Aerospace revenue rose to $3.06 billion, up from $2.94 billion, largely due to higher aircraft manufacturing and services demand. Marine Systems revenue surged to $4.22 billion from $3.45 billion, attributed to increased ship construction for the U.S. Navy, particularly on Virginia-class and Columbia-class submarines. The Combat Systems segment experienced a slight decline in revenue, while the Technologies segment reported a 5.5% increase.

In terms of operational metrics, General Dynamics reported a total backlog of $103.7 billion as of June 29, 2025, a notable increase from $88.7 billion at the end of the previous quarter. This backlog includes both funded and unfunded portions, indicating strong future revenue potential. The company also highlighted a book-to-bill ratio of 1-to-1 for the first half of 2025, reflecting a balanced order intake relative to revenue. The total estimated contract value, combining backlog with potential future contracts, stood at $161.2 billion.

Strategically, General Dynamics has made significant advancements, including the recent certification of its G800 business jet, which is expected to begin deliveries in the third quarter of 2025. The company has also been actively managing its capital structure, with cash and equivalents at $1.52 billion as of the end of the second quarter, down from $1.70 billion at the end of 2024. The firm repurchased $600 million of its stock in the first half of 2025 and declared a quarterly dividend of $1.50 per share, reflecting a commitment to returning value to shareholders.

Looking ahead, General Dynamics anticipates continued growth across its segments, with projected revenue of approximately $12.9 billion for Aerospace and $15.6 billion for Marine Systems in 2025. The company expects to maintain an operating margin of around 13.5% for Aerospace and 7.0% for Marine Systems, indicating a focus on operational efficiency and profitability as it navigates the evolving defense and aerospace markets.