- Revenue $14.6 billion, up 12.9% versus prior year
- Diluted EPS $4.49, up 15.7% versus prior year
- $1.7 billion cash from operating activities, 139% of net earnings
- 6.8-to-1 book-to-bill, $220 billion backlog
RESTON, Va., Oct. 30, 2026 /PRNewswire/ -- General Dynamics (NYSE: GD) today reported third-quarter 2026 operating earnings of $1.5 billion, and $4.49 per diluted share (EPS), on revenue of $14.6 billion. Compared with the year-ago quarter, revenue increased 12.9%, operating earnings increased 14.7%, and diluted EPS increased 15.7%. Operating margin of 10.5% was a 20-basis-point expansion from the year-ago quarter.
"Our business had exceptional third quarter results, with revenue growth across all four segments, robust bookings and solid operational performance," said Phebe Novakovic, chairman and chief executive officer. "With the consistent growth in our backlog and our significant investment in our businesses over the last decade, we are poised to drive continued performance in the years to come."
Cash and Capital Deployment
Cash provided by operating activities in the quarter totaled $1.7 billion, or 139% of net earnings. During the quarter, the company paid $429 million in dividends, invested $481 million in capital expenditures, and reduced total debt by $500 million. The company ended the quarter with $7 billion in total debt and $4.4 billion in cash and equivalents on hand.
Orders and Backlog
Orders received in the quarter totaled $93.8 billion in the defense segments, driven by large orders in the Marine Systems segment for Virginia- and Columbia-class submarines, and $5 billion in the Aerospace segment, for a total of $98.8 billion. Book-to-bill ratio, defined as orders divided by revenue, was 8.5-to-1 for the quarter for the defense segments, 1.4-to-1 for the Aerospace segment, and 6.8-to-1 on a company-wide basis.
Backlog at the end of the quarter was $220.3 billion. Estimated potential contract value, representing management's estimate of additional value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $50.4 billion. Total estimated contract value, the sum of backlog plus estimated potential contract value, was $270.7 billion.
About General Dynamics
Headquartered in Reston, Virginia, General Dynamics is a global aerospace and defense company that offers a broad portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapon systems and munitions; and technology products and services. General Dynamics employs more than 120,000 people worldwide and generated $52.6 billion in revenue in 2025. More information is available at www.gd.com.
WEBCAST INFORMATION: General Dynamics' financial results conference call will be held on Friday, October 30, 2026, at 9:00 a.m. EDT. A link to the live webcast will be available at www.gd.com and will be available for replay following the call. Corresponding presentation slides will be available for download prior to the call.
This press release may contain forward-looking statements (FLS), including statements about the company's future operational and financial performance, which are based on management's expectations, estimates, projections and assumptions. Words such as "expects," "anticipates," "plans," "believes," "forecasts," "scheduled," "outlook," "estimates," "should" and variations of these words and similar expressions are intended to identify FLS. In making FLS, we rely on assumptions and analyses based on our experience and perception of historical trends; current conditions and expected future developments; and other factors, estimates and judgments we consider reasonable and appropriate based on information available to us at the time. FLS are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. FLS are not guarantees of future performance and involve factors, risks and uncertainties that are difficult to predict. Actual future results and trends may differ materially from what is forecast in the FLS. All FLS speak only as of the date they were made. We do not undertake any obligation to update or publicly release revisions to FLS to reflect events, circumstances or changes in expectations after the date of this press release. Additional information regarding these factors is contained in the company's filings with the SEC, and these factors may be revised or supplemented in future SEC filings. In addition, this press release may contain some financial measures not prepared in accordance with U.S. generally accepted accounting principles (GAAP). While we believe these non-GAAP metrics provide useful information for investors, there are limitations associated with their use, and our calculations of these metrics may not be comparable to similarly titled measures of other companies. Non-GAAP metrics should not be considered in isolation from, or as a substitute for, GAAP measures. Reconciliations to comparable GAAP measures and other information relating to our non-GAAP measures are included in other filings with the SEC, which are available at investorrelations.gd.com.
EXHIBIT A
CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED)
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
Three Months Ended Variance
October 4, 2026 September 28, 2025
$ %
Revenue $14,566 $12,907 $1,659 12.9 %
Operating costs and expenses (13,039) (11,576) (1,463)
Operating earnings 1,527 1,331 196 14.7 %
Other, net 4 15 (11)
Interest, net (45) (74) 29
Earnings before income tax 1,486 1,272 214 16.8 %
Provision for income tax, net (257) (213) (44)
Net earnings $1,229 $1,059 $170 16.1 %
Earnings per share-basic $4.55 $3.93 $0.62 15.8 %
Basic weighted average shares outstanding 270.2 269.2
Earnings per share-diluted $4.49 $3.88 $0.61 15.7 %
Diluted weighted average shares outstanding 273.8 272.6
EXHIBIT B
CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED)
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
Nine Months Ended Variance
October 4, 2026 September 28, 2025
$ %
Revenue $42,141 $38,171 $3,970 10.4 %
Operating costs and expenses (37,734) (34,267) (3,467)
Operating earnings 4,407 3,904 503 12.9 %
Other, net 18 51 (33)
Interest, net (163) (251) 88
Earnings before income tax 4,262 3,704 558 15.1 %
Provision for income tax, net (748) (637) (111)
Net earnings $3,514 $3,067 $447 14.6 %
Earnings per share-basic $13.01 $11.41 $1.60 14.0 %
Basic weighted average shares outstanding 270.2 268.8
Earnings per share-diluted $12.83 $11.29 $1.54 13.6 %
Diluted weighted average shares outstanding 273.8 271.8
EXHIBIT C
REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)
DOLLARS IN MILLIONS
Three Months Ended Variance
October 4, 2026 September 28,
2025
$ %
Revenue:
---
Aerospace $3,536 $3,234 $302 9.3 %
Marine Systems 4,960 4,096 864 21.1 %
Combat Systems 2,386 2,252 134 6.0 %
Technologies 3,684 3,325 359 10.8 %
Total $14,566 $12,907 $1,659 12.9 %
Operating earnings:
---
Aerospace $513 $430 $83 19.3 %
Marine Systems 391 291 100 34.4 %
Combat Systems 330 335 (5) (1.5) %
Technologies 346 327 19 5.8 %
Corporate (53) (52) (1) (1.9) %
Total $1,527 $1,331 $196 14.7 %
Operating margin:
---
Aerospace 14.5 % 13.3 %
Marine Systems 7.9 % 7.1 %
Combat Systems 13.8 % 14.9 %
Technologies 9.4 % 9.8 %
Total 10.5 % 10.3 %
EXHIBIT D
REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)
DOLLARS IN MILLIONS
Nine Months Ended Variance
October 4, 2026 September 28,
2025
$ %
Revenue:
---
Aerospace $10,340 $9,322 $1,018 10.9 %
Marine Systems 13,963 11,905 2,058 17.3 %
Combat Systems 6,959 6,711 248 3.7 %
Technologies 10,879 10,233 646 6.3 %
Total $42,141 $38,171 $3,970 10.4 %
Operating earnings:
---
Aerospace $1,516 $1,265 $251 19.8 %
Marine Systems 1,049 832 217 26.1 %
Combat Systems 958 950 8 0.8 %
Technologies 1,024 987 37 3.7 %
Corporate (140) (130) (10) (7.7) %
Total $4,407 $3,904 $503 12.9 %
Operating margin:
---
Aerospace 14.7 % 13.6 %
Marine Systems 7.5 % 7.0 %
Combat Systems 13.8 % 14.2 %
Technologies 9.4 % 9.6 %
Total 10.5 % 10.2 %
EXHIBIT E
CONSOLIDATED BALANCE SHEET
DOLLARS IN MILLIONS
(Unaudited)
October 4, 2026 December 31, 2025
ASSETS
Current assets:
Cash and equivalents $4,388 $2,333
Accounts receivable 2,529 2,406
Unbilled receivables 8,906 8,380
Inventories 9,124 9,232
Other current assets 1,926 1,897
Total current assets 26,873 24,248
Noncurrent assets:
Property, plant and equipment, net 7,853 7,525
Intangible assets, net 1,231 1,375
Goodwill 20,849 21,009
Other assets 3,399 3,092
Total noncurrent assets 33,332 33,001
Total assets $60,205 $57,249
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt $756 $1,006
Accounts payable 3,166 2,678
Customer advances and deposits 11,083 9,824
Other current liabilities 3,821 3,288
Total current liabilities 18,826 16,796
Noncurrent liabilities:
Long-term debt 6,260 7,007
Other liabilities 7,827 7,824
Total noncurrent liabilities 14,087 14,831
Shareholders' equity:
Common stock 482 482
Surplus 4,646 4,403
Retained earnings 46,299 44,080
Treasury stock (23,403) (22,860)
Accumulated other comprehensive loss (732) (483)
Total shareholders' equity 27,292 25,622
Total liabilities and shareholders' equity $60,205 $57,249
EXHIBIT F
CONSOLIDATED STATEMENT OF CASH FLOWS - (UNAUDITED)
DOLLARS IN MILLIONS
Nine Months Ended
October 4, 2026 September 28, 2025
Cash flows from operating activities-continuing operations:
Net earnings $3,514 $3,067
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation of property, plant and equipment 525 490
Amortization of intangible and finance lease right-of-use assets 173 182
Equity-based compensation expense 169 146
Deferred income tax provision 335 151
(Increase) decrease in assets, net of effects of business acquisitions:
Accounts receivable (123) (314)
Unbilled receivables (480) (415)
Inventories 108 (131)
Increase (decrease) in liabilities, net of effects of business acquisitions:
Accounts payable 488 119
Customer advances and deposits 1,232 45
Other, net (196) 219
Net cash provided by operating activities 5,745 3,559
Cash flows from investing activities:
Capital expenditures (918) (552)
Other, net 18 130
Net cash used by investing activities (900) (422)
Cash flows from financing activities:
Dividends paid (1,263) (1,188)
Repayment of fixed-rate notes (1,000) (1,500)
Purchases of common stock (604) (600)
Proceeds from fixed-rate notes - 747
Other, net 87 235
Net cash used by financing activities (2,780) (2,306)
Net cash used by discontinued operations (10) (8)
Net increase in cash and equivalents 2,055 823
Cash and equivalents at beginning of period 2,333 1,697
Cash and equivalents at end of period $4,388 $2,520
EXHIBIT G
ADDITIONAL FINANCIAL INFORMATION - (UNAUDITED)
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
Non-GAAP Financial Measures:
---
Third Quarter Nine Months
2026 2025 2026 2025
Free cash flow:
Net cash provided by operating activities $1,710 $2,109 $5,745 $3,559
Capital expenditures (481) (212) (918) (552)
Free cash flow (a) $1,229 $1,897 $4,827 $3,007
October 4, 2026 December 31, 2025
Net debt:
Total debt $7,016 $8,013
Less cash and equivalents 4,388 2,333
Net debt (b) $2,628 $5,680
Supplemental Aerospace Data:
---
Third Quarter Nine Months
2026 2025 2026 2025
Gulfstream Aircraft Deliveries (units):
Large-cabin aircraft 35 33 101 95
Mid-cabin aircraft 5 6 18 18
Total 40 39 119 113
Aerospace Book-to-Bill:
Orders (c) $4,970 $4,053 $14,091 $10,417
Revenue 3,536 3,234 10,340 9,322
Book-to-Bill Ratio 1.4x
1.3x 1.4x
1.1x
(a) We define free cash flow as net cash from operating activities less capital expenditures. We believe free
cash flow is a useful measure
for investors because it portrays our ability to generate cash from our businesses for purposes such as
repaying debt, funding business
acquisitions, paying dividends and repurchasing our common stock to cover dilution. We use free cash flow to
assess the quality of our
earnings and as a key performance measure in evaluating management.
(b) We define net debt as short- and long-term debt (total debt) less cash and equivalents. We believe net
debt is a useful measure for
investors because it reflects the borrowings that support our operations and capital deployment strategy. We
use net debt as an
important indicator of liquidity and financial position.
(c) Excludes customer defaults, liquidated damages, cancellations, foreign exchange fluctuations and other
backlog adjustments.
EXHIBIT H
BACKLOG - (UNAUDITED)
DOLLARS IN MILLIONS
Funded Unfunded Total Estimated Total
Backlog Potential Estimated
Contract Value* Contract Value
Third Quarter 2026:
---
Aerospace $24,460 $925 $25,385 $1,374 $26,759
Marine Systems 47,289 99,576 146,865 7,644 154,509
Combat Systems 26,983 1,701 28,684 9,588 38,272
Technologies 13,064 6,341 19,405 31,724 51,129
Total $111,796 $108,543 $220,339 $50,330 $270,669
Second Quarter 2026:
---
Aerospace $22,992 $985 $23,977 $1,170 $25,147
Marine Systems 42,356 22,826 65,182 7,442 72,624
Combat Systems 27,507 1,843 29,350 10,847 40,197
Technologies 11,256 6,733 17,989 30,945 48,934
Total $104,111 $32,387 $136,498 $50,404 $186,902
Third Quarter 2025:
---
Aerospace $19,476 $1,131 $20,607 $1,147 $21,754
Marine Systems 38,757 14,854 53,611 14,839 68,450
Combat Systems 17,232 1,470 18,702 9,553 28,255
Technologies 10,269 6,668 16,937 32,341 49,278
Total $85,734 $24,123 $109,857 $57,880 $167,737
* The estimated potential contract value includes work awarded on unfunded indefinite delivery, indefinite
quantity (IDIQ) contracts and
unexercised options associated with existing firm contracts, including options and other agreements with
existing customers to purchase
new aircraft and aircraft services. We recognize options in backlog when the customer exercises the option
and establishes a firm order.
For IDIQ contracts, we evaluate the amount of funding we expect to receive and include this amount in our
estimated potential contract
value. The actual amount of funding received in the future may be higher or lower than our estimate of
potential contract value.
EXHIBIT H-1
BACKLOG - (UNAUDITED)
DOLLARS IN MILLIONS
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SOURCE General Dynamics
Jeff A. Davis, Tel: 703 876 3483, press@generaldynamics.com