General Dynamics Sees Growth in Q2 Earnings and Revenue

Author: Owen Jenkins Updated: 07-23-2025 07:27 AM

General Dynamics Q2 Financial Highlights

General Dynamics reported remarkable financial results for the second quarter of 2025, showcasing a revenue of $13 billion, which marks an 8.9% increase compared to the same quarter last year. The company achieved operating earnings of $1.3 billion, translating to a diluted earnings per share (EPS) of $3.74, reflecting a 14.7% growth from last year.

Strong Operational Performance

Phebe Novakovic, the chairman and CEO, expressed satisfaction with the company’s operational performance, indicating that all four segments experienced growth in both revenue and earnings. The operating margin improved to 10.0%, reflecting a gain of 30 basis points year-on-year, demonstrating the company’s efficient operational strategies.

Cash Flow and Capital Management

The cash generated from operating activities was notable, amounting to $1.6 billion, which is an impressive 158% of net earnings. During this quarter, General Dynamics distributed $402 million in dividends and invested $198 million in capital expenditures while also managing to reduce total debt by $897 million. The ending total debt stood at $8.7 billion, with $1.5 billion in cash and equivalents available, painting a strong picture of financial stability.

Orders and Backlog Insights

General Dynamics recorded a robust book-to-bill ratio of 2.2-to-1 during the quarter, which reflects a healthy demand for its products and services. The defense segments captured a book-to-bill ratio of 2.4-to-1, while the aerospace segment reported 1.3-to-1. The overall orders amassed to $28.3 billion, placing the total backlog at $103.7 billion, along with a $57.5 billion estimated potential contract value. This strong order intake underscores the ongoing demand for General Dynamics’ offerings.

Company Overview

As a prominent global aerospace and defense enterprise, General Dynamics has established itself as a leader in delivering a diverse range of products and services. The company operates in multiple sectors such as business aviation, marine systems, combat systems, and technology solutions. With over 110,000 dedicated employees and an impressive revenue of $47.7 billion recorded last year, General Dynamics is well-positioned for future growth.

Frequently Asked Questions

1. What were the key financial metrics reported by General Dynamics for Q2 2025?

General Dynamics reported a revenue of $13 billion and an operating earnings of $1.3 billion with a diluted EPS of $3.74.

2. How did General Dynamics' operating margin perform this quarter?

The operating margin increased to 10.0%, which is a 30 basis point expansion compared to the previous year.

3. What is the status of General Dynamics' cash flow?

The company generated $1.6 billion from operating activities, which is 158% of net earnings, reflecting robust cash management.

4. How does General Dynamics' order activity look?

The company has reported a book-to-bill ratio of 2.2-to-1, with strong order flow in both defense and aerospace segments.

5. What is General Dynamics' total debt situation?

As of the end of the quarter, General Dynamics reported a total debt of $8.7 billion, having reduced it by $897 million during the quarter.

About The Author

Hi there I'm 38-year-old author and financial consultant Owen Jenkins. Having worked in the financial sector for more than ten years, I am well-versed in the subtleties and complexity that mold our financial environment. Following a degree in finance, I worked in a number of financial institutions honing my abilities in market analysis, financial planning, and investment strategies.

My love is teaching others about investing and personal finance. My goal in writing many books and articles has been to demystify financial ideas and give readers the information they need to make wise financial decisions. I write with a direct, useful style that emphasizes doable suggestions for daily living.

Along with writing, I lead webinars and seminars where I impart knowledge on how to successfully negotiate the financial world. I also write for financial journals and show up as a guest expert on financial news programs a lot. Whether they are new to investing or want to improve their approach, my mission is to enable people to take charge of their financial futures.

Beyond work, I like to hike, play the guitar, and spend time with my family. I think that balance is crucial and want to encourage people to strike a balance between their financial aspirations and their hobbies. I want to help people succeed and achieve financial security through my work, so having a good influence.

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