General Dynamics Q4 Earnings Call Highlights

4 months ago 51

MarketBeat

Wed, January 28, 2026 astatine 11:02 AM CST 9 min read

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General Dynamics closed 2025 with beardown full‑year maturation and a grounds backlog, and guided 2026 to $54.3–$54.8 billion successful revenue, an operating borderline of ~10.4% and EPS of $16.10–$16.20; absorption expects escaped cash‑flow conversion to instrumentality to 100% portion superior spending volition emergence sharply (~79% increase).
Combat Systems delivered a Q4 book‑to‑bill of 4.3x (full twelvemonth 2.1x), lifting backlog to $27.2 billion and securing large planetary awards (including >$4 billion from Germany and $640 million from Canada), supporting gross acceleration into 2027.
Aerospace/Gulfstream saw robust demand—158 craft delivered successful 2025 and book‑to‑bill of 1.3x (Gulfstream 1.4x)—but tariffs (about $41 million successful 2025) and supply‑chain timing pressured quarterly margins, which absorption expects to amended successful 2026.
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General Dynamics (NYSE:GD) executives said the institution closed 2025 with beardown full-year growth, grounds backlog, and an outlook for higher gross and net successful 2026, portion highlighting improved shipyard productivity, robust planetary request successful Combat Systems, and continued momentum astatine Gulfstream contempt tariff and supply-chain headwinds.

Chairman and CEO Phebe Novakovic said the institution reported fourth-quarter net of $4.17 per diluted share connected $14.379 billion of revenue. Operating net were $1.452 billion and nett net were $1.143 billion. Novakovic noted gross was up 7.8% twelvemonth implicit twelvemonth and operating net roseate 2%, portion nett income and EPS were “relatively flat” versus a peculiarly beardown prior-year 4th that benefited from “significant one-time items” and unusually precocious margins.

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On a sequential basis, the institution pointed to wide improvement, citing quarter-over-quarter increases of 11.4% successful revenue, 9.1% successful operating earnings, 7.9% successful nett earnings, and $0.29 successful diluted EPS.

For the afloat twelvemonth 2025, absorption described results arsenic “absolutely terrific,” with gross up 10.1%, operating net up 11.7%, nett net up 11.3%, and diluted EPS up 13.4%. Marine Systems and Aerospace led growth, with gross increases of 16.6% and 16.5%, respectively, and operating net up 25.9% successful Marine and 19.3% successful Aerospace.

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