General Dynamics Revenue Up 5.2% in Q1 2023; Phebe Novakovic Cites Strong Demand for Munitions

General Dynamics (NYSE: GD) reported $9.9 billion in revenue during the first quarter of 2023, up 5.2 percent from the prior-year period, and ended the quarter with a total backlog of $89.8 billion, of which $77.1 billion was funded.

The Reston, Virginia-based defense contractor said Wednesday the companywide backlog represented a 3 percent increase from last year’s figure of $87.2 billion.

Notable defense contracts the company booked during the quarter include awards of more than $1.1 billion to build and support Abrams tanks, Stryker combat vehicles and other armored vehicles for the U.S. Army and allies and a potential $1.3 billion contract with the Army to expand 155mm artillery projectile parts production.

The company also posted Q1 net earnings of $730 million, diluted earnings per share of $2.64 and net cash of $1.5 billion from operating activities.

During General Dynamics’ earnings call, Chairman and CEO Phebe Novakovic said the company is ahead of the contract schedule on the Columbia-class nuclear submarine program.

“We are 16 years into the 20-year lead ship schedule. I think within that context, it’s indicative of the actions we have taken heretofore and those that we will continue to take to keep this program on schedule,” Novakovic, a 2023 Wash100 awardee, said in response to an analyst’s question.

She noted that the contractor is seeing a robust demand for munitions and is working with the Department of Defense and the Army to ramp up production and throughput.

“And we’ve done that in a couple of ways, upgrading existing facilities increasing the number of shifts and building new facilities with more modern equipment,” added Novakovic.

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