General Dynamics Corp
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.75%.
Did GD Beat Earnings? Q2 2025 Results
General Dynamics delivered a standout second quarter, beating Wall Street on both top and bottom lines as the defense and aerospace giant posted diluted EPS of $3.74, an 8.79% beat against the $3.44 consensus estimate, while revenue climbed 8.9% year-over-year to $13.04 billion, topping the $12.18 billion estimate by 7.05%. The quarter's most compelling driver was an extraordinary surge in order activity, with a consolidated book-to-bill ratio of 2.2x and total orders reaching $28.30 billion, pushing backlog to a record $103.68 billion and providing substantial revenue visibility heading into the second half. Marine Systems led segment growth, with revenue surging 22.2% to $4.22 billion on the strength of submarine and surface ship programs, while the Aerospace segment delivered meaningful margin expansion of 230 basis points to 13.2%, supported by strong Gulfstream demand and improved delivery execution. Cash generation was equally impressive, with $1.60 billion in operating cash flow representing 158% of net earnings. CEO Phebe Novakovic expressed confidence that healthy backlog levels and robust cash flow position the company well for continued growth through year-end.
- Marine Systems revenue surged 22.2% YoY, the strongest growth among all segments
- Aerospace operating margin expanded 230 basis points to 13.2% from 10.9% in the year-ago quarter
- Consolidated book-to-bill ratio of 2.2x with defense segments at 2.4x
- Total orders of $28.3 billion in the quarter
- Operating cash flow of $1.6 billion representing 158% of net earnings
- Gulfstream delivered 38 aircraft in Q2 2025 vs. 37 in Q2 2024
- Aerospace orders of $4.0 billion vs. $2.7 billion in the year-ago quarter
“During the first half of the year, each of our four segments achieved growth in revenue and earnings, with margins on a companywide basis expanding 50 basis points over the same period last year. Our strong cash flow and healthy backlog position us well to have a good second half.”
General Dynamics CEO, on the earnings call
Forward Guidance & Outlook
CEO Phebe Novakovic expressed confidence that strong cash flow and a healthy backlog of $103.7 billion position the company well for a good second half of 2025. All four segments achieved growth in revenue and earnings during the first half, with companywide margins expanding 50 basis points year-over-year.
GD YoY Financials
GD Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.