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Strong Marine Systems Performance Drives GD's Q4 Earnings and Revenues

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Key Takeaways

  • GD posted Q4 EPS of $4.17, beating estimates and rising year over year.
  • GD saw Q4 revenues climb 7.8% to $14.38B, driven by growth in three of its four business segments.
  • GD's Marine Systems revenues surged 21.7% with operating earnings jumping 72.5% from the prior-year quarter.

General Dynamics Corporation (GD - Free Report) reported fourth-quarter 2025 earnings per share (EPS) of $4.17, which beat the Zacks Consensus Estimate of $4.11 by 1.5%. The bottom line also increased 0.5% from $4.15 recorded in the year-ago quarter.

The year-over-year bottom-line appreciation can be attributed to revenue growth as well as an improvement in operating earnings.

For 2025, the company reported EPS of $15.45, up 13.4% from the year-ago reported figure of $13.63. The full-year bottom line also surpassed the Zacks Consensus Estimate of $15.39.

Total Revenues of GD

Revenues of $14.38 billion beat the Zacks Consensus Estimate of $13.80 billion by 4.2%. The top line also improved 7.8% from the prior-year figure of $13.34 billion.

In the fourth quarter, the Marine Systems segment remained GD’s largest revenue contributor, accounting for 33.5% of total sales.

For 2025, the company reported revenues worth $52.55 billion, up 10.1% from the year-ago reported figure of $47.72 billion. The full-year top line also beat the consensus estimate of $51.96 billion.

GD’s Segmental Performance

Aerospace: The segment reported revenues of $3.79 billion, up 1.2% year over year. Operating earnings of $481 million declined 17.8% year over year.

Marine Systems: This segment’s revenues surged 21.7% from the year-ago quarter’s level to $4.82 billion. Operating earnings of $345 million improved 72.5% year over year.

Combat Systems: The segmental top line of $2.54 billion improved 5.8% from the year-ago quarter’s level. Operating earnings improved 7% year over year to $381 million.

Technologies: Revenues from this segment declined 0.1% year over year to $3.24 billion. Operating earnings totaled $290 million, which declined 9.1% year over year.

Operational Highlights of GD

Operating earnings totaled $1.45 billion, up 2% from the year-ago quarter’s $1.42 billion.

Operating costs and expenses increased 8.5% year over year to $12.93 billion.

Interest expenses decreased 17.1% year over year to $63 million.

GD’s Backlog

General Dynamics recorded a total backlog of $178.94 billion. This includes a backlog of $118.05 billion and estimated potential contract value, representing management’s estimate of additional value in unfunded indefinite delivery, indefinite quantity contracts and unexercised options of $60.89 billion.

Financial Condition of GD

As of Dec. 31, 2025, cash and cash equivalents totaled $2.33 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 2025, cash generated by operating activities totaled $5.12 billion compared with $4.11 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

The Boeing Company (BA - Free Report) incurred an adjusted loss of $1.91 per share in the fourth quarter of 2025, wider than the Zacks Consensus Estimate of a loss of 40 cents. However, the bottom line improved from the year-ago quarter’s reported loss of $5.90 per share.

Revenues amounted to $23.95 billion, which outpaced the consensus estimate of $21.73 billion by 8%. The top line also surged 57.1% from the year-ago quarter’s reported figure of $15.24 billion.

RTX Corporation’s (RTX - Free Report) fourth-quarter 2025 adjusted EPS of $1.55 beat the Zacks Consensus Estimate of $1.46 by 5.9%. The bottom line also improved 0.6% from the year-ago quarter’s level of $1.54.

RTX’s fourth-quarter sales totaled $24.24 billion, which surpassed the Zacks Consensus Estimate of $22.74 billion by 6.6%. The top line also surged a solid 12.1% from $21.62 billion recorded for the fourth quarter of 2024.

Northrop Grumman Corporation (NOC - Free Report) reported fourth-quarter 2025 adjusted earnings of $7.23 per share, which topped the Zacks Consensus Estimate of $7 by 3.3%. The bottom line also increased 13.1% from $6.39 registered in the prior-year quarter.

NOC’s total sales of $11.71 billion in the fourth quarter beat the consensus estimate of $11.62 billion by 0.8%. The top line also rose 9.6% from $10.69 billion reported in the year-ago quarter.

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