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General Dynamics' Q3 Earnings Surpass Estimates, Revenues Improve Y/Y
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Key Takeaways
General Dynamics' Q3 EPS of $3.88 beat estimates by 4% and rose 15.8% year over year.
Revenues grew 10.6% to $12.91B, driven by Aerospace and Marine Systems strength.
Backlog reached $167.7B, supported by solid contract wins and higher potential contract value.
General Dynamics Corporation (GD - Free Report) 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.
General Dynamics Corporation Price, Consensus and EPS Surprise
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.
Textron Inc. (TXT - Free Report) 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 - Free Report) 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 - Free Report) 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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General Dynamics' Q3 Earnings Surpass Estimates, Revenues Improve Y/Y
Key Takeaways
General Dynamics Corporation (GD - Free Report) 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.
General Dynamics Corporation Price, Consensus and EPS Surprise
General Dynamics Corporation price-consensus-eps-surprise-chart | General Dynamics Corporation Quote
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 - Free Report) 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 - Free Report) 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 - Free Report) 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.