GD

GENERAL DYNAMICS CORP

Industrials • CIK: 0000040533

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Market Cap
$90.59B
P/E (TTM)
21.5x
Rev Growth (TTM)
+10.1%
Net Margin (TTM)
8.0%
FCF Yield (TTM)
4.4%
FCF Margin (TTM)
7.5%

Filing Intelligence

6.0/10
10-K filed Jan 30, 2026 • FYNone

Executive Summary

Strong revenue and earnings growth driven by broad-based segment performance, particularly in Aerospace and Marine Systems.. Operating cash flow improved significantly due to better working capital...

Key Concerns

  • ●Goodwill is not amortized and remains on the balance sheet indefinitely unless impaired, with annual impairment reviews or triggered by...
  • ●Subsidiaries fully and unconditionally guarantee parent debt, creating a consolidated risk profile.
  • ●Significant debt maturities in 2026 and 2027, with refinancing expected at higher rates.

Key Strengths

  • ●Strong revenue and earnings growth driven by broad-based segment performance, particularly in Aerospace and Marine Systems.
View Full Quarterly Insights →

LATEST EARNINGS

•
Q4 FY2025
•
2 months ago
•View source
Revenue
$14.38B
+7.8%
Net Income
$1.14B
-0.4%
EPS
$4.17
+0.5%
Operating
10.1%↓ -0.6%
Net
8.0%↓ -0.7%
  • •Full-year revenue increased 10.1% to $52.6 billion, with all four segments contributing to growth.
  • •Full-year net earnings increased 11.3% to $4.2 billion, and diluted EPS grew 13.4% to $15.45.
  • •Consolidated book-to-bill ratio was 1.6x in Q4 and 1.5x for the full year, ending with a record $118 billion in backlog.
  • •Cash provided by operating activities increased by $1 billion over 2024 to $5.1 billion, representing 122% of net earnings for the full year.
View Full Earnings →

Cash Flow Health

Free Cash Flow6/8 positive
TTM$4.0B
Q4 '25
$952M-50%
Q3 '25
$1.9B+36%
FCF Margin
TTM7.5%
Q4 '256.6%-55%
Sector: 4.7%Above Avg
OCF Margin9.7%
OCF/NI1.22x
CapEx Coverage4.4x
FCF Yield4.4%
FCF Growth (2Y)+5%
Cash Conversion Cycle
135 days
DSO: 22+DIO: 168−DPO: 55
View Insights from Latest Filing →View Full Cash Flow Statement →

Capital Allocation & Returns

Balanced
Total Shareholder YieldTTM
TTM2.5%
Div Yield1.8%
+
Buyback (TTM)0.7%

Balancing returns with reinvestment

Dividend & Payout Metrics
Dividend Yield (TTM)1.8%
FCF Payout Ratio40.2%
Free Cash Flow (TTM)$4.0B
Stock Repurchases (TTM)$637.0M
Capital Return / FCF56.3%
Est. Dividends Paid (TTM)$1.6B
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
12.3%
Stable
+0.0% YoY+2.5%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
8.4%
8Q: 8.3%
Asset Turnover
0.92x
8Q: 0.89x
Leverage (1+D/E)
1.31x
D/E: 0.31x
DuPont: 10.2% ≈ 12.3% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
7.90x
8Q:7.77x
+86.2%
Invested Cap Turn
1.46x
8Q:1.40x
+25.6%
CapEx Intensity
3.2%
8Q:2.3%
CapEx/Depreciation
1.26x
Asset-based ROIC formula
Full Analysis

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
Revenue
$52.5B
$14.4B↑11.4%
$12.9B↓1.0%
$13.0B↑6.7%
$12.2B↓8.4%
$13.3B↑14.3%
$11.7B↓2.5%
$12.0B↑11.6%
$10.7B
Operating Income
$5.4B
$1.5B↑9.1%
$1.3B↑2.0%
$1.3B↑2.9%
$1.3B↓10.9%
$1.4B↑20.5%
$1.2B↑2.2%
$1.2B↑11.6%
$1.0B
Net Income
$4.2B
$1.1B↑7.9%
$1.1B↑4.4%
$1.0B↑2.0%
$994.0M↓13.4%
$1.1B↑23.4%
$930.0M↑2.8%
$905.0M↑13.3%
$799.0M
Operating Cash Flow
$5.1B
$1.6B↓26.0%
$2.1B↑32.0%
$1.6B↑1179.7%
$-148.0M↓106.9%
$2.2B↑52.5%
$1.4B↑74.0%
$814.0M↑392.8%
$-278.0M
Free Cash Flow
$4.0B
$952.0M↓49.8%
$1.9B↑35.5%
$1.4B↑582.8%
$-290.0M↓116.1%
$1.8B↑48.6%
$1.2B↑98.2%
$613.0M↑240.3%
$-437.0M
Total Equity
N/A
Income StatementCash Flow StatementBalance Sheet

Valuation Analysis

Fair Value
Price-to-EarningsTTM
21.5x
Volatile
8Q: 81.7x-1374%
Valuation Lenses
Earnings
21.5x
vs – sector
Cash Flow
24.6x
EV/FCF vs –
Growth-Adj
1.6xPEG
Fair for growth
Quality-Adj
1.8P/E per %ROIC
ROIC: 12.3%
Shareholder Returns
Dividend
1.8%
Buyback
0.7%
Total Yield
2.5%
Market Cap$90.59B
EV$97.44B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
88/100
Exceptional

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Top 25%
17.9%
8Q:–
Return on Invested Capital (ROIC)Top 25%
12.3%
8Q:–
+2.5%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 8.4%
Asset Turnover: 0.92x

Earnings Quality

Cash Conversion

1.22x

OCF / Net Income ✓

FCF Consistency

–

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin59.6%

Capital Efficiency

Invested Capital Turnover1.46x

Working Capital

Cash Conversion Cycle135 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
62/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
10.1%
OpInc Growth YoY
2.0%
EPS Growth YoY
13.4%
FCF 3Y CAGR
4.5%

Margin Quality & Sustainability

High Quality
Profitability Cascade
Gross
59.6%
Operating
10.2%
Above Avg in sector
Net
8.0%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
-0.5 pts
FCF: 7.5% | Net: 8.0%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Adequate
Net Debt / EBITDA
–Net Debt: $5.68B
Interest Coverage
–
Balance sheet risk & solvency analysis

Research

All research