10-K 0000040533-26-000006 (2026-01-30) vs 10-K 0000040533-25-000008 (2025-02-07)
| Section | Compared text | Words now | Changed |
|---|
| Risk Factors | Item 1A | 3,326 |
0.1% |
| MD&A | Item 7 | 6,563 |
29.0% |
| Legal Proceedings | Item 3 | 17 |
not compared |
| Accounting Policies | Item 8 (note not found) | 0 |
not compared |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
MD&A 93 words changed in this paragraph; it is 56% similar to last year's version.
Our estimate of a reporting unit’s fair value is based primarily on the discounted cash flows of the underlying operations and requires the use of judgment by management. The process requires numerous assumptions, including the timing of work embedded in our backlog, our performance and profitability under our contracts, our success in securing future business, the appropriate risk-adjusted interest rate used to discount the projected cash flows, and terminal-value growth rates applied to the final year of projected cash flows. Due to the variables inherent in our estimates of fair value, differences in assumptions may have a material effect on the result of our impairment analysis. To assess the reasonableness of our discounted cash flows, we compare the sum of our reporting units’ fair value to our market capitalization. Additionally, we evaluate the reasonableness of each reporting unit’s fair value by comparing the fair value to peer companies and recent relevant market transactions.
Source: Item 7, 10-K 0000040533-26-000006 vs Item 7, 10-K 0000040533-25-000008
Risk Factors 9 words changed in this paragraph; it is 98% similar to last year's version.
Government contractors operate in a highly regulated environment and are subject to audit by the U.S. government. Numerous U.S. government agencies routinely audit and review government contractors. These agencies review a contractor’s performance under its contracts and compliance with applicable laws, regulations and standards. The U.S. government also reviews the adequacy of, and compliance with, internal control systems and policies, including the contractor’s purchasing, property, estimating, material, earned value management and accounting systems. In some cases, audits may result in delayed payments or contractor costs not being reimbursed or subject to repayment. If an audit or investigation were to result in allegations against a contractor of improper or illegal activities, civil or criminal penalties and administrative sanctions could result, including termination of contracts, forfeiture of profits, suspension of payments, fines and suspension or prohibition from doing business with the U.S. government. In addition, reputational harm could result if allegations of impropriety were made. In some cases, audits may result in disputes with the respective government agency that can result in negotiated settlements, arbitration or litigation. Moreover, new laws, regulations regulations, executive orders or standards, or changes to existing ones, can increase our legal, reputation or operational risk, performance and compliance costs and reduce our revenue and earnings.
Source: Item 1A, 10-K 0000040533-26-000006 vs Item 1A, 10-K 0000040533-25-000008
Every change, by type
Sentences and paragraphs of GD's Risk Factors and MD&A, 10-K 2026-01-30 against 10-K 2025-02-07.
Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
RewordedRisk Factors
Moreover, new laws, regulations regulations, executive orders or standards, or changes to existing ones, can increase our legal, reputation or operational risk, performance and compliance costs and reduce our revenue and earnings.
Read it in 10-K 2026-01-30 at sec.gov ↗
AddedMD&A
As a global aerospace and defense company, we compete in domestic and international markets, serving both government and commercial customers. Our financial performance is significantly influenced by U.S. government spending levels, administration priorities and the overall economy.
Read it in 10-K 2026-01-30 at sec.gov ↗
AddedMD&A
In the federal market, defense spending has been at elevated levels, and the administration has publicly stated support for further increases in fiscal year (FY) 2027. This is reflected in the significant demand in U.S. Navy shipbuilding, particularly submarines. We have invested in our facilities and workforce to increase production capacity to meet this demand, and expect to continue to do so. The increased demand has placed great pressure on the shipbuilding supply chain, which was already impacted by significant demographic issues coming out of the global pandemic. Together with the Navy customer, we have been working to stabilize and grow the supply chain to meet this heightened demand.
Read it in 10-K 2026-01-30 at sec.gov ↗
AddedMD&A
We have also been investing in the development of the next generation of combat vehicles and artillery. While the U.S. Army is reviewing its funding priorities and begins transitioning to next-generation combat vehicles, we expect short-term production volumes to be down slightly. Demand for our munitions products has been high and is expected to remain at an elevated level given ongoing conflicts and regional threats.
Read it in 10-K 2026-01-30 at sec.gov ↗
AddedMD&A
The administration began taking steps in 2025 to address federal spending and reduce the size of the government. These actions resulted in federal government staff reductions, contract modifications and terminations, and award delays. We experienced some impact from these actions which were largely limited to our IT services business. Our IT services business was also somewhat impacted by the government shutdown at the start of the current fiscal year. We expect some limited ongoing impact from these actions.
Read it in 10-K 2026-01-30 at sec.gov ↗
AddedMD&A
We entered 2026 with the government operating under a continuing resolution that expires on January 30. Our outlook for the year assumes that the FY26 budget is approved without significant delay or another prolonged shutdown.
Read it in 10-K 2026-01-30 at sec.gov ↗
AddedMD&A
Internationally, as a result of ongoing regional conflicts and the overall threat environment, we have seen increased demand, particularly in Europe, for our Combat Systems military products and services. This provides opportunities for our European businesses present in local markets as well as exports from our North American businesses. To meet this expected demand, there will be increased pressure on the supply chain and our hiring of skilled workers.
Read it in 10-K 2026-01-30 at sec.gov ↗
AddedMD&A
In our principal commercial market, Aerospace is experiencing strong demand for business jets. Our ability to produce new aircraft is dependent on our supply chain, and while performance has improved
Read it in 10-K 2026-01-30 at sec.gov ↗
AddedMD&A
and the overall supply chain has stabilized, we have experienced some challenges in terms of delay including at our Israel-based supplier of mid-cabin airframes caused by the conflict with Hamas.
Read it in 10-K 2026-01-30 at sec.gov ↗
AddedMD&A
Our Aerospace business has been impacted by inflationary pressures and the administration’s implementation of tariffs. To date, the tariffs have not had a material impact on our results but did reduce the Aerospace operating margins by 30 basis points in 2025. The duration and extent of the tariffs continue to evolve. The ongoing sanctions on Russia have also restricted access to a segment of the market.
Read it in 10-K 2026-01-30 at sec.gov ↗
AddedMD&A
Overall, we believe our investments in a new family of Gulfstream aircraft will continue to fuel demand. The most recent addition is the G800, which entered service in 2025. In addition, we expect the growing installed base of aircraft will continue to lead to increased demand for global aircraft services.
Read it in 10-K 2026-01-30 at sec.gov ↗
AddedMD&A
Aircraft manufacturing operating earnings increased in 2025 due primarily to the increase in ultra-large-cabin aircraft deliveries. G&A/other expenses decreased in 2025 due primarily to reduced R&D expenditures after completion of the G800 certification process. In total, the Aerospace segment’s operating margin increased 30 basis points in 2025.
Read it in 10-K 2026-01-30 at sec.gov ↗
RemovedMD&A
The coronavirus (COVID-19) pandemic caused significant disruptions to national and global economies and government activities, including supply chain and staffing challenges. Additionally, in response to the Russian invasion of Ukraine, the United States and several other countries imposed economic and trade sanctions, export controls and other restrictions targeting Russia and Belarus. Lastly, the impact of the conflict in the Middle East continues to evolve. The disruptions caused by these events continue to impact global economies and businesses, including ours. The primary impact to our business is supply chain challenges, including availability of parts, quality escapes and inflationary pressures.
Read it in 10-K 2025-02-07 at sec.gov ↗
RemovedMD&A
In our Aerospace segment, supply chain challenges paced our ability to ramp up production at the rate we like in response to strong customer demand for our aircraft, causing out-of-sequence manufacturing that increased costs and decreased operational efficiency. In addition, the conflict in the Middle East impacted the delivery schedule for our Israel-based supplier of mid-cabin aircraft. Within our defense segments, the COVID-19 pandemic resulted in supply chain challenges that continue to impact our Marine Systems segment. The Russia-Ukraine conflict and increased threat environment have created additional demand for certain of our products and services, particularly in our Combat Systems segment.
Read it in 10-K 2025-02-07 at sec.gov ↗
RemovedMD&A
Any longer-term impact of these global events to our business is currently unknown due to the uncertainty around duration and their broader impact. For additional information, see the Risk Factors in Part I, Item 1A.
Read it in 10-K 2025-02-07 at sec.gov ↗
RemovedMD&A
With approximately 70% of our revenue from the U.S. government, government spending levels — particularly defense spending — influence our financial performance. The Congress has not yet passed a defense appropriations bill for the government’s current fiscal year. However, the government has been operating under a continuing resolution (CR) that provides funding for some federal agencies through March 14, 2025. When the government operates under a CR, all programs of record are funded at the prior year’s appropriated levels until the current year appropriations bill is signed into law. Therefore, the U.S. Department of Defense (DoD) is prohibited from starting new programs or increasing funding on existing programs unless there is an exception for the program included in the CR. The current CR included exceptions allowing the DoD to obligate additional funds for two fiscal year 2024 and one fiscal year 2025 Virginia-class submarines, and for non-executive pay improvements and infrastructure
Read it in 10-K 2025-02-07 at sec.gov ↗
RemovedMD&A
investments to support the submarine industrial base. In addition, the CR included an exception allowing the DoD to obligate funds for the construction of the second submarine under the existing Columbia-class submarine contract. We do not anticipate the current CR having a material impact on our results of operations, financial condition or cash flows. However, the impact to our business from an extended CR or government shutdown that may result from any continuing delay by Congress to pass a new defense appropriations bill would depend on the duration and government implementation of the CR or shutdown.
Read it in 10-K 2025-02-07 at sec.gov ↗
RemovedMD&A
The long-term outlook for our U.S. defense business is influenced by the U.S. military’s funding priorities, the diversity of our programs and customers, our insight into customer requirements stemming from our incumbency on core programs, our ability to evolve our products to address a fast-changing threat environment and our proven track record of successful contract execution.
Read it in 10-K 2025-02-07 at sec.gov ↗
RemovedMD&A
International demand for military equipment and technologies presents opportunities for our non-U.S. operations and exports from our North American businesses. While the revenue potential can be significant, there are risks to doing business in foreign countries, including changing budget priorities and overall spending pressures unique to each country.
Read it in 10-K 2025-02-07 at sec.gov ↗
RemovedMD&A
In our Aerospace segment, we expect our investment in the development of new aircraft products and technologies to support the segment’s long-term growth. Similarly, we believe our aircraft services business will be a source of steady revenue growth as the global business jet fleet continues to grow.
Read it in 10-K 2025-02-07 at sec.gov ↗
RemovedMD&A
of services work performed, the market for pre-owned aircraft, and the level of general and administrative (G&A) and net research and development (R&D) costs incurred by the segment.
Read it in 10-K 2025-02-07 at sec.gov ↗
RemovedMD&A
Aircraft manufacturing operating earnings increased in 2024 but not at the same rate as revenue, reflecting additional costs associated with the initial deliveries of G700 aircraft due to out of station work caused by supplier quality escapes and late delivery of components. Aircraft services operating earnings were higher in 2024 due to higher volume. G&A/other expenses increased in 2024 consistent with the growth in the business. In total, the Aerospace segment’s operating margin decreased 70 basis points in 2024.
Read it in 10-K 2025-02-07 at sec.gov ↗
RemovedMD&A
Aircraft manufacturing revenue increased due to additional aircraft deliveries. Ship construction revenue was up due primarily to higher volume on the Columbia-class and Virginia-class submarine programs. Weapons systems and munitions revenue increased due to heightened demand for artillery products. In 2024, product operating costs increased at a higher rate than revenue due to supplier quality issues and late supply chain deliveries on the Virginia-class Block IV contract within our Marine Systems segment and additional costs associated with initial deliveries of G700 aircraft due to out of station work caused by supplier quality escapes and late delivery of components in our Aerospace segment.
Read it in 10-K 2025-02-07 at sec.gov ↗
RemovedMD&A
•$780 from the U.S. Navy for the construction of an additional John Lewis-class (T-AO-205) fleet replenishment oiler. The contract including options for an additional seven T-AO-205 oilers has a maximum potential value of more than $6.7 billion.
Read it in 10-K 2025-02-07 at sec.gov ↗
RewordedMD&A
Additional factors affecting the segment’s earnings and margin include the volume, mix and profitability of services work performed, the market for pre-owned aircraft, and the level of general and administrative (G&A) and net research and development (R&D) costs incurred by the segment.
Read it in 10-K 2026-01-30 at sec.gov ↗
RewordedMD&A
Cash flows in 2024 were affected negatively by growth in operating working capital, particularly driven by the ramp-up in production of new Gulfstream aircraft models, offset partially by an increase in customer deposits driven by Gulfstream aircraft orders timing in our Aerospace segment. and Combat Systems segments.
Read it in 10-K 2026-01-30 at sec.gov ↗
RewordedMD&A
Revenue from U.S. military vehicles was up decreased in 2024 2025 due primarily to the termination of the M10 Booker program and lower volume on Stryker programs, partially offset by higher volume on the U.S. XM30 program.
Read it in 10-K 2026-01-30 at sec.gov ↗
RewordedMD&A
The Technologies segment’s revenue increased in 2024 2025 due primarily to strong demand for IT services, including the ramp-up of new programs, offset partially by C5ISR solutions program timing and the ramp-down of legacy programs. services.
Read it in 10-K 2026-01-30 at sec.gov ↗
RewordedMD&A
The process requires numerous assumptions, including the timing of work embedded in our backlog, our performance and profitability under our contracts, our success in securing future business, the appropriate risk-adjusted interest rate used to discount the projected cash flows, and terminal-value growth rates applied to the final year of projected cash flows.
Read it in 10-K 2026-01-30 at sec.gov ↗
RewordedMD&A
Financing activities include the use of cash for repurchases of common stock, payment of dividends, and settlement of finance lease liabilities, debt and commercial paper repayments. repayments, and some repurchase of common stock.
Read it in 10-K 2026-01-30 at sec.gov ↗
RewordedMD&A
Weapons Weapon systems and munitions $509 $258 International military vehicles 194 U.S. military vehicles 218 International military vehicles 2 (203) Total increase $729 $249
Read it in 10-K 2026-01-30 at sec.gov ↗
RewordedMD&A
The segment’s total estimated contract value remained steady was $64.2 billion on December 31, 2025, up 30% compared with $49.4 billion at year-end 2023. 2024.
Read it in 10-K 2026-01-30 at sec.gov ↗
RewordedMD&A
The segment’s backlog was $27.2 billion on December 31, 2025, up 16.8% 60.3% from $17 billion at year-end 2023 to $17 billion. 2024.
Read it in 10-K 2026-01-30 at sec.gov ↗
RewordedMD&A
Revenue from U.S. international military vehicles was up in 2024 2025 due primarily to higher volume on the U.S. several wheeled and tracked vehicle programs in Europe.
Read it in 10-K 2026-01-30 at sec.gov ↗
RewordedMD&A
Corporate operating costs totaled $175 in 2025 and $139 in 2024 and $160 in 2023 and consisted primarily of equity-based compensation expense. expense and other miscellaneous expenses.
Read it in 10-K 2026-01-30 at sec.gov ↗
RewordedMD&A
Aircraft services $ 527 C5ISR solutions/IT services 493 Ship $368 Aircraft services 357 259 Other, net 27 (179) Total increase $ 1,404 $448
Read it in 10-K 2026-01-30 at sec.gov ↗
