General Dynamics reported a strong finish to 2025 with robust revenue and earnings growth across all segments, driven by significant order intake and a substantial increase in backlog. The company demonstrated solid cash flow generation and strategic capital expenditure investments, positioning it for continued future growth.
Full-year revenue increased 10.1% to $52.6 billion, with all four segments contributing to growth.
positiveFull-year net earnings increased 11.3% to $4.2 billion, and diluted EPS grew 13.4% to $15.45.
positiveConsolidated book-to-bill ratio was 1.6x in Q4 and 1.5x for the full year, ending with a record $118 billion in backlog.
positiveCash provided by operating activities increased by $1 billion over 2024 to $5.1 billion, representing 122% of net earnings for the full year.
positiveOperating margin in Aerospace decreased by 290 bps YoY to 12.7% in Q4, and by 30 bps YoY to 13.3% for the full year.
attentionOperating margin in Technologies decreased by 80 bps YoY to 9.0% in Q4, and by 10 bps YoY to 9.5% for the full year.
attentionInventories increased by $450 million in FY2025, compared to a decrease of $1.195 billion in FY2024.
attentionCapital expenditures increased by 27% to $1.2 billion in FY2025 from $0.9 billion in FY2024.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Aerospace | N/A | — | — | — |
Marine Systems | N/A | — | — | — |
Combat Systems | N/A | — | — | — |
Technologies | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Solid fourth quarter capping off a year of growth in revenue and earnings across all segments.
Impressive 30% growth in company-wide backlog.
Focus on execution of programs for customers while preparing aggressively for future growth.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.