General Dynamics' Q2 Earnings & Revenues Beat Estimates, Improve Y/Y

General Dynamics Corporation GD reported second-quarter 2025 earnings per share (EPS) of $3.74, which beat the Zacks Consensus Estimate of $3.59 by 4.2%. The bottom line also increased 14.7% from $3.26 recorded in the year-ago quarter. 

The year-over-year bottom-line appreciation can be attributed to revenue growth as well as an improvement in operating earnings.

Total Revenues of GD

Revenues of $13.04 billion beat the Zacks Consensus Estimate of $12.35 billion by 5.6%. The top line also improved 8.9% from the prior-year figure.

The year-over-year improvement can be attributed to increased revenues from all of GD’s business segments, except Combat Systems.

General Dynamics Corporation Price, Consensus and EPS Surprise

General Dynamics Corporation price-consensus-eps-surprise-chart | General Dynamics Corporation Quote

GD’s Segmental Performance

Aerospace: The segment reported revenues of $3.06 billion, up 4.1% year over year. Operating earnings of $403 million improved 26.3% year over year.

Marine Systems: This segment’s revenues surged 22.2% from the year-ago quarter’s level to $4.22 billion. Operating earnings of $291 million improved 18.8% year over year.

Technologies: Revenues from this segment improved 5.5% year over year to $3.48 billion. Operating earnings totaled $332 million, which improved 3.8% year over year.

Combat Systems: The segmental top line of $2.28 billion slipped 0.2% from the year-ago quarter’s level. Operating earnings improved 3.54% year over year to $324 million.

Operational Highlights of GD

Operating earnings totaled $1.31 billion, up 12.9% from the year-ago quarter’s $1.04 billion.

Operating costs and expenses increased 8.5% year over year to $11.74 billion.

Interest expenses increased 4.8% year over year to $88 million.

GD’s Backlog

General Dynamics recorded a total backlog of $103.68 billion, much higher than the first-quarter 2025 level of $88.66 billion. The funded backlog at the end of the quarter was $83.88 billion.

Our model projected a backlog of $88.28 billion for the second quarter.

Financial Condition of GD

As of June 29, 2025, cash and cash equivalents totaled $1.52 billion compared with $1.70 billion as of Dec. 31, 2024.

The long-term debt as of the same date was $7.51 billion, higher than the 2024-end debt level of $7.26 billion.

During the first six months of 2025, cash generated by operating activities totaled $1.45 billion compared with $0.54 billion in the year-ago period.

GD’s Zacks Rank

General Dynamics currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

Lockheed Martin Corporation LMT reported second-quarter 2025 adjusted earnings of $7.29 per share, which beat the Zacks Consensus Estimate of $6.49 by 12.3%. The bottom line increased 2.5% from the year-ago quarter's reported figure of $7.11.  

Net sales were $18.16 billion, which missed the Zacks Consensus Estimate of $18.56 billion by 2.2%. The top line, however, inched up 0.2% from $18.12 billion in the year-ago quarter.

Northrop Grumman Corporation NOC reported second-quarter 2025 adjusted earnings of $7.11 per share, which beat the Zacks Consensus Estimate of $6.71 by 6%.

NOC’s total sales of $10.35 billion beat the Zacks Consensus Estimate of $10.06 billion by 2.9%. The top line also rose 1.3% from $10.22 billion reported in the year-ago quarter. 

RTX Corporation’s RTX second-quarter 2025 adjusted earnings per share (EPS) of $1.56 beat the Zacks Consensus Estimate of $1.45 by 7.6%. The bottom line also improved 10.6% from the year-ago quarter’s level of $1.41, driven by growth in adjusted operating profit. 

RTX’s second-quarter sales totaled $21.58 billion, which surpassed the Zacks Consensus Estimate of $20.53 billion by 5.1%. The top line also surged a solid 9.4% from $19.72 billion recorded for the second quarter of 2024.
 

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This article originally published on Zacks Investment Research (zacks.com).

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