Revenue $14.1 billion, up 8.1% versus prior yearDiluted EPS $4.24, up 13.4% versus prior year$1.9 billion cash from operating activities, 162% of net earnings1.4-to-1 book-to-bill, with strong order activity in all segments
RESTON, Va., July 29, 2026 /PRNewswire/ — 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.
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.
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
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
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 %
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 %
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
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
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.
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.
EXHIBIT H-1
BACKLOG – (UNAUDITED)
DOLLARS IN MILLIONS
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