General Dynamics' Q3 Earnings Surpass Estimates, Revenues Improve Y/Y

General Dynamics Corporation GD reported third-quarter 2025 earnings per share (EPS) of $3.88, which beat the Zacks Consensus Estimate of $3.73 by 4%. The bottom line also increased 15.8% from $3.35 recorded in the year-ago quarter.

Total Revenues of GD

Revenues of $12.91 billion beat the Zacks Consensus Estimate of $12.61 billion by 2.3%. The top line also improved 10.6% from the prior-year figure of $11.67 billion.

GD’s Segmental Performance

Aerospace: The segment reported revenues of $3.23 billion, up 30.3% year over year. Operating earnings of $430 million improved 41% year over year.

Marine Systems: This segment’s revenues surged 13.8% from the year-ago quarter’s level to $4.1 billion. Operating earnings of $291 million improved 12.8% year over year.

Combat Systems: The segmental top line of $2.25 billion improved 1.8% from the year-ago quarter’s level. Operating earnings improved 3.1% year over year to $335 million.

Technologies: Revenues from this segment declined 1.6% year over year to $3.33 billion. Operating earnings totaled $327 million, which improved 0.3% year over year.

Operational Highlights of GD

Operating earnings totaled $1.33 billion, up 12.7% from the year-ago quarter’s $1.18 billion.

Operating costs and expenses increased 10.4% year over year to $11.58 billion.

Interest expenses decreased 9.7% year over year to $74 million.

GD’s Backlog

General Dynamics recorded a total backlog of $167.7 billion. This includes a backlog of $109.9 billion and estimated potential contract value, representing management’s estimate of additional value in unfunded indefinite delivery, indefinite quantity contracts and unexercised options, of $57.8 billion.

Financial Condition of GD

As of Sept. 28, 2025, cash and cash equivalents totaled $2.52 billion compared with $1.70 billion as of Dec. 31, 2024.

The long-term debt as of the same date was $7.01 billion compared with the 2024-end debt level of $7.26 billion.

During the first nine months of 2025, cash generated by operating activities totaled $3.56 billion compared with $1.95 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

Textron Inc. TXT reported third-quarter 2025 adjusted earnings of $1.55 per share, which beat the Zacks Consensus Estimate of $1.47 by 5.4%. The bottom line also rose 10.7% from $1.40 in the year-ago quarter. 

The company reported total revenues of $3.6 billion, which missed the Zacks Consensus Estimate of $3.71 billion by 2.8%. Moreover, revenues increased 4.9% from the year-ago quarter’s level of $3.43 billion.

RTX Corporation’s RTX third-quarter 2025 adjusted earnings per share (EPS) of $1.70 beat the Zacks Consensus Estimate of $1.42 by 19.7%. The bottom line also improved 17.2% from the year-ago quarter’s level of $1.45. 

RTX’s third-quarter sales totaled $22.48 billion, which surpassed the Zacks Consensus Estimate of $21.48 billion by 4.6%. The top line also surged a solid 11.9% from $20.09 billion recorded for the third quarter of 2024.

Northrop Grumman Corporation NOC reported third-quarter 2025 adjusted earnings of $7.67 per share, which beat the Zacks Consensus Estimate of $6.49 by 18.2%. The bottom line also increased 9.6% from $7 registered in the prior-year quarter.

NOC’s total sales of $10.42 billion in the third quarter missed the Zacks Consensus Estimate of $10.72 billion by 2.8%. However, the top line rose 4.3% from $10 billion reported in the year-ago quarter.

 

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

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