General Dynamics saw its fiscal 2025 second-quarter revenue increase 8.9 percent to $13 billion and reported $3.74 in Q2 diluted earnings per share, up 14.7 percent from the prior-year period.
In an earnings release published Wednesday, the Reston, Virginia-based defense and aerospace contractor said its Q2 operating earnings rose 12.9 percent to $1.3 billion and net cash from operating activities during the quarter was $1.6 billion, or 158 percent of net earnings.
The company ended the second quarter with a record backlog of $103.7 billion, up 14 percent from the same period the previous year, and a total estimated contract value of $161.2 billion.
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GD CEO Phebe Novakovic on Supply Chain Issues, Submarine Industrial Base
At Wednesday’s earnings call, General Dynamics Chairman and CEO Phebe Novakovic told analysts that the company continues to experience delays and quality problems in the marine systems supply chain.
“This obviously disrupts workflow, but we are developing good workarounds. We have more work to do here, but we are making progress,” Novakovic said during the call.
She noted that the company is working closely with the U.S. Navy and the current administration to continue to address supply chain issues, further enhance Electric Boat throughput and performance, and “improve the cadence of ship delivery to the Navy.”
The General Dynamics chief executive stated that the company has seen some improvements and stabilization in some key areas of the submarine industrial base.
“The Navy and the Congress have been allocating funding for the industrial base to undergird their performance, and some of that is beginning to improve, but we’ve got a ways to go there,” Novakovic said during the call.
“With respect to the fiscal year 26 funding levels, we are still working out with our Navy customer what the exact funding levels are by program. There’s a fair amount of complexity as we unpack the ’26 budget and the reconciliation bill, but our programs are fully supported,” she added.
Q2 Financial Performance of GD Marine Systems & 3 Other Business Segments
General Dynamics’ marine systems business saw its Q2 revenue climb 22.2 percent to $4.2 billion and reported $291 million in operating earnings, up 18.8 percent from the same period last year.
The aerospace business segment recorded $3.1 billion in revenue during the second quarter, up 4.1 percent from the prior-year period, and posted $403 million in operating earnings, reflecting a 26.3 percent growth from the year-ago quarter.
The company’s combat systems business ended the quarter with $2.3 billion in revenue and $324 million in operating earnings, up 3.5 percent from the year-ago quarter.
The technologies business segment’s Q2 revenue rose 5.5 percent to $3.5 billion, while its operating earnings jumped 3.8 percent to $332 million.
