Reston, Virginia 20190 News
press@generaldynamics.com General Dynamics Reports Third-Quarter 2026 Financial Results
. – General Dynamics (NYSE: GD) today reported third-quarter 2026 operating earnings of $1.5 billion, and $4.49 per diluted share (EPS), on revenue of $14.6 billion. Compared with the year-ago quarter, revenue increased 12.9%, operating earnings increased 14.7%, and diluted EPS increased 15.7%. Operating margin of 10.5% was a 20-basis-point expansion from the year-ago quarter.
“Our business had exceptional third quarter results, with revenue growth across all four segments, robust bookings and solid operational performance,” said Phebe Novakovic, chairman and chief executive officer. “With the consistent growth in our backlog and our significant investment in our businesses over the last decade, we are poised to drive continued performance in the years to come.”
Cash provided by operating activities in the quarter totaled $1.7 billion, or 139% of net earnings. During the quarter, the company paid $429 million in dividends, invested $481 million in capital expenditures, and reduced total debt by $500 million. The company ended the quarter with $7 billion in total debt and $4.4 billion in cash and equivalents on hand.
Orders received in the quarter totaled $93.8 billion in the defense segments, driven by large orders in the Marine Systems segment for Virginia- and Columbia- class submarines, and $5 billion in the Aerospace segment, for a total of $98.8 billion. Book-to-bill ratio, defined as orders divided by revenue, was 8.5-to-1 for the quarter for the defense segments, 1.4-to-1 for the Aerospace segment, and 6.8-to-1 on a company-wide basis.
Backlog at the end of the quarter was $220.3 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 $270.7 billion. – more –
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, weapon 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 Friday, October 30, 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 . – more –
(Unaudited) October 4, 2026 December 31, 2025 ────────────────────────────────────────────────────────────────────────────── ASSETS Current assets: Cash and equivalents $ 4,388 $ 2,333 Accounts receivable 2,529 2,406 Unbilled receivables 8,906 8,380 Inventories 9,124 9,232 Other current assets 1,926 1,897 Total current assets 26,873 24,248 Noncurrent assets: Property, plant and 7,853 7,525 equipment, net Intangible assets, 1,231 1,375 net Goodwill 20,849 21,009 Other assets 3,399 3,092 Total noncurrent 33,332 33,001 assets Total assets $ 60,205 $ 57,249 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term debt and current portion of $ 756 $ 1,006 long-term debt Accounts payable 3,166 2,678 Customer advances 11,083 9,824 and deposits Other current 3,821 3,288 liabilities Total current 18,826 16,796 liabilities Noncurrent liabilities: Long-term debt 6,260 7,007 Other liabilities 7,827 7,824 Total noncurrent 14,087 14,831 liabilities Shareholders’ equity: Common stock 482 482 Surplus 4,646 4,403 Retained earnings 46,299 44,080 Treasury stock -23,403 -22,860 Accumulated other -732 -483 comprehensive loss Total shareholders’ 27,292 25,622 equity Total liabilities and shareholders’ $ 60,205 $ 57,249 equity
September 28, Nine Months Ended October 4, 2026 2025 ────────────────────────────────────────────────────────────────────────────── Cash flows from operating activities—con… operations: Net earnings $ 3,514 $ 3,067 Adjustments to reconcile net earnings to net cash from operating activities: Depreciation of property, plant 525 490 and equipment Amortization of intangible and finance 173 182 lease right-of-use assets Equity-based compensation 169 146 expense Deferred income 335 151 tax provision (Increase) decrease in assets, net of effects of business acquisitions:
Accounts -123 -314 receivable Unbilled -480 -415 receivables Inventories 108 -131 Increase (decrease) in liabilities, net of effects of business acquisitions:
Accounts 488 119 payable Customer advances and 1,232 45 deposits Other, net -196 219 Net cash provided by 5,745 3,559 operating activities Cash flows from investing activities: Capital -918 -552 expenditures Other, net 18 130 Net cash used by investing -900 -422 activities Cash flows from financing activities: Dividends paid -1,263 -1,188 Repayment of fixed-rate -1,000 -1,500 notes Purchases of -604 -600 common stock Proceeds from fixed-rate — 747 notes Other, net 87 235 Net cash used by financing -2,780 -2,306 activities Net cash used by discontinued -10 -8 operations Net increase in cash and 2,055 823 equivalents Cash and equivalents at 2,333 1,697 beginning of period Cash and equivalents at $ 4,388 $ 2,520 end of period
(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. – more –
* 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. – more –
Full text with the tables
Exhibit 99.1
11011 Sunset Hills Road
Reston, Virginia 20190 News
www.gd.com
Contact: Jeff A. Davis
Tel: 703 876 3483
press@generaldynamics.com
General Dynamics Reports Third-Quarter 2026 Financial Results
October 30, 2026
• Revenue $14.6 billion, up 12.9% versus prior year
• Diluted EPS $4.49, up 15.7% versus prior year
• $1.7 billion cash from operating activities, 139% of net earnings
• 6.8-to-1 book-to-bill, $220 billion backlog
RESTON, Va
. – General Dynamics (NYSE: GD) today reported third-quarter 2026 operating
earnings of $1.5 billion, and $4.49 per diluted share (EPS), on revenue of $14.6
billion. Compared with the year-ago quarter, revenue increased 12.9%, operating
earnings increased 14.7%, and diluted EPS increased 15.7%. Operating margin of
10.5% was a 20-basis-point expansion from the year-ago quarter.
“Our business had exceptional third quarter results, with revenue growth across
all four segments, robust bookings and solid operational performance,” said
Phebe Novakovic, chairman and chief executive officer. “With the consistent
growth in our backlog and our significant investment in our businesses over the
last decade, we are poised to drive continued performance in the years to come.”
Cash and Capital Deployment
Cash provided by operating activities in the quarter totaled $1.7 billion, or
139% of net earnings. During the quarter, the company paid $429 million in
dividends, invested $481 million in capital expenditures, and reduced total debt
by $500 million. The company ended the quarter with $7 billion in total debt and
$4.4 billion in cash and equivalents on hand.
Orders and Backlog
Orders received in the quarter totaled $93.8 billion in the defense segments,
driven by large orders in the Marine Systems segment for Virginia- and Columbia-
class submarines, and $5 billion in the Aerospace segment, for a total of $98.8
billion. Book-to-bill ratio, defined as orders divided by revenue, was 8.5-to-1
for the quarter for the defense segments, 1.4-to-1 for the Aerospace segment,
and 6.8-to-1 on a company-wide basis.
Backlog at the end of the quarter was $220.3 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 $270.7 billion.
– more –
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, weapon
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 Friday, October 30, 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 .
– more –
EXHIBIT A
CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED)
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
Three
Months October Septemb…
Ended 4, 2026 28, 2025 Varian… %
──────────────────────────────────────────────────────────────────────────────
Revenue $ 14,566 $ 12,907 $ 1,659 12.9 %
Operat…
costs -13,039 -11,576 -1,463
and
expens…
Operat… 1,527 1,331 196 14.7 %
earnin…
Other, 4 15 -11
net
Intere… -45 -74 29
net
Earnin…
before 1,486 1,272 214 16.8 %
income
tax
Provis…
for
income -257 -213 -44
tax,
net
Net $ 1,229 $ 1,059 $ 170 16.1 %
earnin…
Earnin…
per $ 4.55 $ 3.93 $ 0.62 15.8 %
share—…
Basic
weight…
average 270.2 269.2
shares
outsta…
Earnin…
per $ 4.49 $ 3.88 $ 0.61 15.7 %
share—…
Diluted
weight…
average 273.8 272.6
shares
outsta…
– more –
EXHIBIT B
CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED)
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
Nine
Months October Septemb…
Ended 4, 2026 28, 2025 Varian… %
──────────────────────────────────────────────────────────────────────────────
Revenue $ 42,141 $ 38,171 $ 3,970 10.4 %
Operat…
costs -37,734 -34,267 -3,467
and
expens…
Operat… 4,407 3,904 503 12.9 %
earnin…
Other, 18 51 -33
net
Intere… -163 -251 88
net
Earnin…
before 4,262 3,704 558 15.1 %
income
tax
Provis…
for
income -748 -637 -111
tax,
net
Net $ 3,514 $ 3,067 $ 447 14.6 %
earnin…
Earnin…
per $ 13.01 $ 11.41 $ 1.60 14.0 %
share—…
Basic
weight…
average 270.2 268.8
shares
outsta…
Earnin…
per $ 12.83 $ 11.29 $ 1.54 13.6 %
share—…
Diluted
weight…
average 273.8 271.8
shares
outsta…
– more –
EXHIBIT C
REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)
DOLLARS IN MILLIONS
Three Septe…
Months October 28,
Ended 4, 2026 2025 Varian… %
──────────────────────────────────────────────────────────────────────────────
Reven…
Aeros… $ 3,536 $ 3,234 $ 302 9.3 %
Marine 4,960 4,096 864 21.1 %
Syste…
Combat 2,386 2,252 134 6.0 %
Syste…
Techn… 3,684 3,325 359 10.8 %
Total $ 14,566 $ 12,907 $ 1,659 12.9 %
Opera…
earni…
Aeros… $ 513 $ 430 $ 83 19.3 %
Marine 391 291 100 34.4 %
Syste…
Combat 330 335 -5 -1.5 %
Syste…
Techn… 346 327 19 5.8 %
Corpo… -53 -52 -1 -1.9 %
Total $ 1,527 $ 1,331 $ 196 14.7 %
Opera…
margi…
Aeros… 14.5 % 13.3 %
Marine 7.9 % 7.1 %
Syste…
Combat 13.8 % 14.9 %
Syste…
Techn… 9.4 % 9.8 %
Total 10.5 % 10.3 %
– more –
EXHIBIT D
REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)
DOLLARS IN MILLIONS
Nine Septe…
Months October 28,
Ended 4, 2026 2025 Varian… %
──────────────────────────────────────────────────────────────────────────────
Reven…
Aeros… $ 10,340 $ 9,322 $ 1,018 10.9 %
Marine 13,963 11,905 2,058 17.3 %
Syste…
Combat 6,959 6,711 248 3.7 %
Syste…
Techn… 10,879 10,233 646 6.3 %
Total $ 42,141 $ 38,171 $ 3,970 10.4 %
Opera…
earni…
Aeros… $ 1,516 $ 1,265 $ 251 19.8 %
Marine 1,049 832 217 26.1 %
Syste…
Combat 958 950 8 0.8 %
Syste…
Techn… 1,024 987 37 3.7 %
Corpo… -140 -130 -10 -7.7 %
Total $ 4,407 $ 3,904 $ 503 12.9 %
Opera…
margi…
Aeros… 14.7 % 13.6 %
Marine 7.5 % 7.0 %
Syste…
Combat 13.8 % 14.2 %
Syste…
Techn… 9.4 % 9.6 %
Total 10.5 % 10.2 %
– more –
EXHIBIT E
CONSOLIDATED BALANCE SHEET
DOLLARS IN MILLIONS
(Unaudited) October 4, 2026 December 31, 2025
──────────────────────────────────────────────────────────────────────────────
ASSETS
Current assets:
Cash and equivalents $ 4,388 $ 2,333
Accounts receivable 2,529 2,406
Unbilled receivables 8,906 8,380
Inventories 9,124 9,232
Other current assets 1,926 1,897
Total current assets 26,873 24,248
Noncurrent assets:
Property, plant and 7,853 7,525
equipment, net
Intangible assets, 1,231 1,375
net
Goodwill 20,849 21,009
Other assets 3,399 3,092
Total noncurrent 33,332 33,001
assets
Total assets $ 60,205 $ 57,249
LIABILITIES AND
SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt and
current portion of $ 756 $ 1,006
long-term debt
Accounts payable 3,166 2,678
Customer advances 11,083 9,824
and deposits
Other current 3,821 3,288
liabilities
Total current 18,826 16,796
liabilities
Noncurrent
liabilities:
Long-term debt 6,260 7,007
Other liabilities 7,827 7,824
Total noncurrent 14,087 14,831
liabilities
Shareholders’
equity:
Common stock 482 482
Surplus 4,646 4,403
Retained earnings 46,299 44,080
Treasury stock -23,403 -22,860
Accumulated other -732 -483
comprehensive loss
Total shareholders’ 27,292 25,622
equity
Total liabilities
and shareholders’ $ 60,205 $ 57,249
equity
– more –
EXHIBIT F
CONSOLIDATED STATEMENT OF CASH FLOWS - (UNAUDITED)
DOLLARS IN MILLIONS
September 28,
Nine Months Ended October 4, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Cash flows from
operating
activities—con…
operations:
Net earnings $ 3,514 $ 3,067
Adjustments to
reconcile net
earnings to
net cash from
operating
activities:
Depreciation of
property, plant 525 490
and
equipment
Amortization of
intangible and
finance 173 182
lease
right-of-use
assets
Equity-based
compensation 169 146
expense
Deferred income 335 151
tax provision
(Increase)
decrease in
assets, net of
effects of
business
acquisitions:
Accounts -123 -314
receivable
Unbilled -480 -415
receivables
Inventories 108 -131
Increase
(decrease) in
liabilities,
net
of effects of
business
acquisitions:
Accounts 488 119
payable
Customer
advances and 1,232 45
deposits
Other, net -196 219
Net cash
provided by 5,745 3,559
operating
activities
Cash flows from
investing
activities:
Capital -918 -552
expenditures
Other, net 18 130
Net cash used
by investing -900 -422
activities
Cash flows from
financing
activities:
Dividends paid -1,263 -1,188
Repayment of
fixed-rate -1,000 -1,500
notes
Purchases of -604 -600
common stock
Proceeds from
fixed-rate — 747
notes
Other, net 87 235
Net cash used
by financing -2,780 -2,306
activities
Net cash used
by discontinued -10 -8
operations
Net increase in
cash and 2,055 823
equivalents
Cash and
equivalents at 2,333 1,697
beginning of
period
Cash and
equivalents at $ 4,388 $ 2,520
end of period
– more –
EXHIBIT G
ADDITIONAL FINANCIAL INFORMATION - (UNAUDITED)
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
N…
F…
M…
F… Thi… Nine
c… Qua… Mon…
f… 2026 20… 2026 20…
──────────────────────────────────────────────────────────────────────────────
N…
c…
p… $ 1,… $ 2,1… $ 5,… $ 3,5…
by
o…
a…
C… -4… -212 -9… -552
e…
F…
c… $ 1,… $ 1,8… $ 4,… $ 3,0…
f…
(…
Oct… De…
4, 31,
2026 20…
N…
d…
T… $ 7,… $ 8,0…
d…
L…
c… 4,… 2,3…
a…
e…
N… $ 2,… $ 5,6…
d…
S…
A…
D…
Thi… Nine
Qua… Mon…
2026 20… 2026 20…
G…
A…
D…
(…
L… 35 33 101 95
a…
M… 5 6 18 18
a…
T… 40 39 119 113
A…
B…
O… $ 4,… $ 4,0… $ 14… $ 10,…
(…
R… 3,… 3,2… 10… 9,3…
B… 1.4x 1.… 1.4x 1.…
R…
(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.
– more –
EXHIBIT H
BACKLOG - (UNAUDITED)
DOLLARS IN MILLIONS
Est… Tot…
Th… Pot… Est…
Qu… Tot… Con… Con…
20… Fun… Unf… Bac… Val… Val…
──────────────────────────────────────────────────────────────────────────────
Ae… $ 24,… $ 925 $ 25,3… $ 1,374 $ 26,7…
Ma… 47,… 99,… 146,… 7,644 154,…
Sy…
Co… 26,… 1,7… 28,6… 9,588 38,2…
Sy…
Te… 13,… 6,3… 19,4… 31,7… 51,1…
To… $ 111… $ 108… $ 220,… $ 50,3… $ 270,…
Se…
Qu…
20…
Ae… $ 22,… $ 985 $ 23,9… $ 1,170 $ 25,1…
Ma… 42,… 22,… 65,1… 7,442 72,6…
Sy…
Co… 27,… 1,8… 29,3… 10,8… 40,1…
Sy…
Te… 11,… 6,7… 17,9… 30,9… 48,9…
To… $ 104… $ 32,… $ 136,… $ 50,4… $ 186,…
Th…
Qu…
20…
Ae… $ 19,… $ 1,1… $ 20,6… $ 1,147 $ 21,7…
Ma… 38,… 14,… 53,6… 14,8… 68,4…
Sy…
Co… 17,… 1,4… 18,7… 9,553 28,2…
Sy…
Te… 10,… 6,6… 16,9… 32,3… 49,2…
To… $ 85,… $ 24,… $ 109,… $ 57,8… $ 167,…
* 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.
– more –
EXHIBIT H-1
BACKLOG - (UNAUDITED)
DOLLARS IN MILLIONS
Funded Backlog Unfunded Backlog
# # #