General Dynamics Corporation (GD) is listed on NYSE and operates in the Aerospace & Defense industry (Industrials sector).
General Dynamics Corporation operates as an aerospace and defense company worldwide. It operates through four segments: Aerospace, Marine Systems, Combat Systems, and Technologies. The Aerospace segment designs, manufactures, and sells business jets; and offers aircraft maintenance and repair, management, charter, aircraft-on-ground support and completion, staffing, and fixed-base operator services. The Marine Systems segment designs and builds nuclear-powered submarines, surface combatants, and auxiliary ships for the United States Navy and Jones Act ships for commercial customers, as well as builds crude oil and product tankers, and container and cargo ships. This segment also provides navy ships maintenance and modernization services; lifecycle support and repair services for navy surface ships; and program management, planning, engineering, and design support services for submarines and surface ships. The Combat Systems segment manufactures land combat solutions, such as wheeled and tracked combat vehicles, Stryker wheeled combat vehicles, piranha vehicles, weapons systems, munitions, mobile bridge systems with payloads, tactical vehicles, main battle tanks, armored vehicles, and armaments. This segment also offers modernization programs, engineering, support, and sustainment services. The Technologies segment provides information technology solutions and mission support services; mobile communication, computers, and command-and-control mission systems; and intelligenc...
| Rating | Analysts |
|---|---|
| Strong Buy | 0 |
| Buy | 17 |
| Hold | 16 |
| Sell | 1 |
| Strong Sell | 0 |
General Dynamics Corporation is a global aerospace and defense company headquartered in Reston, Virginia. It operates through four main segments: Aerospace, Marine Systems, Combat Systems, and Technologies. The Aerospace segment focuses on the design, manufacture, and sale of business jets, along with providing aircraft maintenance, repair, and related services. Marine Systems is involved in designing and building nuclear-powered submarines, surface combatants, and auxiliary ships for the U.S. Navy, as well as commercial ships. It also offers maintenance, modernization, and lifecycle support for naval vessels. The Combat Systems segment produces land combat solutions, including combat vehicles, weapons systems, and munitions, and provides modernization and sustainment services. The Technologies segment delivers information technology solutions, mission support services, and communication systems to military, intelligence, and federal civilian clients. This segment also engages in cloud computing, artificial intelligence, machine learning, and big data analytics, among other services. Founded in 1899, General Dynamics continues to serve a diverse range of defense and commercial customers worldwide.
Over the past three fiscal years, the company has demonstrated a robust growth trajectory, with revenue consistently increasing at a compound annual growth rate (CAGR) of 11.5%, rising from $42.27 billion in 2023 to $52.55 billion in 2025. This growth was accompanied by a notable improvement in earnings per share (EPS), which grew at a CAGR of 13.4%, reaching $15.46 by 2025. Despite the revenue growth, gross margins experienced a slight compression, decreasing by 0.7 percentage points from 15.8% to 15.1%. However, operating and net margins showed modest improvements, increasing by 0.2 percentage points and 0.2 percentage points, respectively, indicating effective cost management and operational efficiency. Cash flow from operations (OCF) and free cash flow (FCF) were somewhat inconsistent, with OCF growing to $5.12 billion and FCF reaching $3.96 billion by 2025, though FCF margins decreased by 1.5 percentage points. The company's net debt position improved significantly, decreasing from $9.17 billion to $7.46 billion, reflecting strong cash management and debt reduction efforts. Additionally, the company's return on invested capital (ROIC) consistently increased, reaching 13.5%, highlighting effective capital allocation. The asset turnover ratio also improved, indicating enhanced efficiency in utilizing assets to generate revenue. Overall, the company has maintained a strong financial position with a current ratio of 1.44 and an interest coverage ratio of 17.3x, underscoring its ability to meet short-term obligations and interest expenses comfortably.
Recent developments for General Dynamics (GD) highlight a mix of financial results, analyst actions, and strategic contracts. In the earnings sphere, GD is among the defense stocks under scrutiny as they report financial results amid ongoing Middle East tensions. These companies are significant components of the iShares US Aerospace & Defense ETF, reflecting their market influence. On the analyst front, Deutsche Bank downgraded General Dynamics to a 'Hold,' suggesting potential concerns over valuation despite its strong dividend history. Strategically, GD secured a $1.27 billion contract to support Virginia Class submarines, reinforcing its position in defense contracting. Additionally, institutional interest in GD remains robust, with significant share acquisitions by AQR Capital Management LLC and Northern Trust Corp, indicating confidence in the company's long-term prospects. Meanwhile, the broader defense budget expansion under the current administration is expected to benefit GD, as evidenced by its substantial backlog and book-to-bill ratio. These developments collectively underscore GD's pivotal role in the defense sector, balancing immediate financial scrutiny with strategic growth opportunities.