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July 23, 2025 • 3 min read
General Dynamics, a titan in the global aerospace and defense sector, just released its second-quarter financial results. Today, we're diving into its 10-Q filing to see how the company is performing, where its money is coming from, and what its results might signal for the broader market. Let's break down the numbers.
For the second quarter ending June 29, 2025, General Dynamics (GD) reported impressive top-line growth. Total revenue climbed 8.9% year-over-year to $13.04 billion, up from $11.98 billion in the same period last year. This growth trickled down to the bottom line, with net earnings increasing to $1,014 million from $905 million. On a per-share basis, diluted earnings rose to $3.74, a healthy jump from $3.26 a year ago.
To get a clearer picture of how revenue flows through the company's costs to become profit, the following chart visualizes the company's income statement for the quarter.
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A look at GD's individual business segments reveals that two divisions were the primary engines of this quarter's growth: Aerospace and Marine Systems.
Aerospace Soars: The Aerospace group, home to the iconic Gulfstream business jets, had an outstanding first half. Six-month revenue surged 21.2% to $6.09 billion, driven by a significant increase in aircraft deliveries (74 units in H1 2025 vs. 61 in H1 2024). More importantly, operating earnings for the segment shot up by a remarkable 45.5%, indicating strong demand and profitability in the high-end business aviation market.
Marine Systems Steams Ahead: This segment, responsible for building nuclear-powered submarines and surface ships for the U.S. Navy, is GD's largest by revenue. It reported a 22.2% increase in Q2 revenue to $4.22 billion. The company attributes this growth to higher volumes in its submarine construction programs, a critical component of U.S. naval strategy.
The other two segments, Combat Systems (military vehicles and munitions) and Technologies (IT services and C5ISR solutions), posted more modest, stable results, underscoring the diverse and resilient nature of GD's portfolio.
Beyond the income statement, GD's cash generation tells a powerful story. For the first six months of 2025, the company generated $1.45 billion in cash from operations, a massive improvement from just $536 million in the first half of 2024.
This led to a surge in free cash flow—the cash left over after paying for capital expenditures. For the first half of the year, free cash flow was $1.11 billion, a dramatic turnaround from only $176 million a year prior. This financial strength allows GD to handsomely reward shareholders, having spent $785 million on dividends and $600 million on stock buybacks so far this year.
Looking ahead, General Dynamics appears well-positioned. The company ended the quarter with a colossal total backlog of $103.7 billion, providing a clear line of sight into future revenues. While the defense business is always subject to government budgets and geopolitical shifts, and the business jet market is tied to economic conditions, this strong backlog and robust cash flow paint a picture of a company executing effectively on its long-term strategy.
Last updated: July 23, 2025