General Dynamics Corp

General Dynamics closed out fiscal 2025 with a strong fourth quarter, beating analyst expectations on both the top and bottom lines as surging demand across its defense portfolio drove results. The defense and aerospace giant reported Q4 revenue of $14.38 billion, up 7.8% year over year and ahead of the $13.78 billion consensus estimate by 4.37%, while diluted EPS of $4.17 edged past the $4.11 consensus by 1.46%. The standout driver was Marine Systems, where a 21.7% revenue jump to $4.82 billion and dramatically improved operating margins reflected accelerating naval shipbuilding activity. The quarter's momentum was underscored by $22.40 billion in new orders, a 1.6x book-to-bill ratio that pushed total backlog to $118.05 billion at year end, a 24% increase in total estimated contract value to $178.94 billion. With analysts noting the stock trades at a meaningful discount to aerospace and defense peers on a price-to-earnings basis, CEO Phebe Novakovic signaled continued confidence by committing to even higher capital investment in 2026 beyond the $1.16 billion deployed this year.