29-01-2025
General Dynamics Reports Fourth-Quarter and Full-Year 2024 Financial Results
Fourth-quarter net earnings of $1.1 billion, diluted EPS of $4.15, on $13.3 billion in revenue
Full-year net earnings of $3.8 billion, diluted EPS of $13.63, on $47.7 billion in revenue
$2.2 billion net cash provided by operating activities in the quarter, 188% of net earnings
Ended the year with $90.6 billion in backlog
RESTON, Va., Jan. 29, 2025 /PRNewswire/ -- General Dynamics (NYSE: GD) today reported quarterly net earnings of $1.1 billion, up 14.2% from the year-ago quarter, on revenue of $13.3 billion, up 14.3% over the year-ago quarter. Diluted earnings per share (EPS) was $4.15, up 14% from the year-ago quarter.
For the full year, net earnings were $3.8 billion, up 14.1% from 2023, on revenue of $47.7 billion, up 12.9% from 2023. Diluted EPS for the full year was $13.63, up 13.4% from 2023.
'We had a solid fourth quarter, capping off a year that saw steady growth in revenue and earnings across all four segments,' said Phebe N. Novakovic, chairman and chief executive officer. 'Order activity continued to be very strong, with 1-to-1 book-to-bill for the year, even as revenue grew by 13%, positioning us well for continued growth.'
Gulfstream delivered 47 aircraft in the quarter, of which 42 were large-cabin aircraft. The company delivered a total of 136 aircraft during the year, of which 118 were large-cabin aircraft.
Cash
Net cash provided by operating activities in the quarter totaled $2.2 billion, or 188% of net earnings. For the year, net cash provided by operating activities totaled $4.1 billion, or 109% of net earnings.
During the year, the company invested $916 million in capital expenditures, made tax payments of $560 million, repaid fixed-rate notes of $500 million, and returned $3 billion to shareholders through dividends and share repurchases, ending 2024 with $1.7 billion in cash and equivalents on hand.
Backlog
Orders remained strong across the company with a consolidated book-to-bill ratio, defined as orders divided by revenue, of 0.9-to-1 for the quarter and 1-to-1 for the year. The company ended the year with backlog of $90.6 billion and estimated potential contract value, representing management's estimate of additional value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, of $53.4 billion. Total estimated contract value, the sum of all backlog components, was $144 billion at year end, up 9.1% from a year earlier.
In the Aerospace segment, orders in the quarter totaled $3.8 billion. Backlog at the end of the year was $19.7 billion. Aerospace book-to-bill was 1-to-1 for the quarter and the year.
In the three defense segments, significant awards in the quarter include a U.S. Air Force contract with maximum potential value of $5.6 billion to modernize, integrate and operate the Department of Defense's Mission Partner Environments (MPEs); a U.S. Space Force contract with maximum potential value of $2.2 billion to provide sustainment services for the Mobile User Objective System (MUOS) satellite communications system; $1.9 billion from the U.S. Navy for multiple contracts to provide services, materials and parts for Virginia-class submarines; $370 million from the U.S. Army for the production of 155mm artillery projectile metal parts; contracts for various munitions and ordnance with maximum potential value of $820 million; and several key contracts for classified customers with maximum potential value of $1.4 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, weapons systems and munitions; and technology products and services. General Dynamics employs more than 110,000 people worldwide and generated $47.7 billion in revenue in 2024. More information is available at
WEBCAST INFORMATION: General Dynamics will webcast its fourth-quarter and full-year 2024 financial results conference call today at 9 a.m. EST. The webcast will be a listen-only audio event available at An on-demand replay of the webcast will be available by telephone two hours after the end of the call through February 5 at 800-770-2030 (international +1 647-362-9199), conference ID 4299949. Charts furnished to investors and securities analysts in connection with the announcement of financial results are available at General Dynamics intends to supplement those charts on its website after its earnings call today to include information about 2025 guidance presented during the call.
This press release contains 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 contains 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
Three Months Ended December 31
Variance
2024
2023
$
%
Revenue
$ 13,338
$ 11,668
$ 1,670
14.3 %
Operating costs and expenses
(11,915)
(10,380)
(1,535)
Operating earnings
1,423
1,288
135
10.5 %
Other, net
21
17
4
Interest, net
(76)
(78)
2
Earnings before income tax
1,368
1,227
141
11.5 %
Provision for income tax, net
(220)
(222)
2
Net earnings
$ 1,148
$ 1,005
$ 143
14.2 %
Earnings per share—basic
$ 4.20
$ 3.68
$ 0.52
14.1 %
Basic weighted average shares outstanding
273.4
272.8
Earnings per share—diluted
$ 4.15
$ 3.64
$ 0.51
14.0 %
Diluted weighted average shares outstanding
276.9
275.9
EXHIBIT B
CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED)
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
Year Ended December 31
Variance
2024
2023
$
%
Revenue
$ 47,716
$ 42,272
$ 5,444
12.9 %
Operating costs and expenses
(42,920)
(38,027)
(4,893)
Operating earnings
4,796
4,245
551
13.0 %
Other, net
68
82
(14)
Interest, net
(324)
(343)
19
Earnings before income tax
4,540
3,984
556
14.0 %
Provision for income tax, net
(758)
(669)
(89)
Net earnings
$ 3,782
$ 3,315
$ 467
14.1 %
Earnings per share—basic
$ 13.81
$ 12.14
$ 1.67
13.8 %
Basic weighted average shares outstanding
273.9
273.1
Earnings per share—diluted
$ 13.63
$ 12.02
$ 1.61
13.4 %
Diluted weighted average shares outstanding
277.5
275.7
EXHIBIT C
REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)
DOLLARS IN MILLIONS
Three Months Ended December 31
Variance
2024
2023
$
%
Revenue:
Aerospace
$ 3,743
$ 2,744
$ 999
36.4 %
Marine Systems
3,960
3,408
552
16.2 %
Combat Systems
2,395
2,364
31
1.3 %
Technologies
3,240
3,152
88
2.8 %
Total
$ 13,338
$ 11,668
$ 1,670
14.3 %
Operating earnings:
Aerospace
$ 585
$ 449
$ 136
30.3 %
Marine Systems
200
217
(17)
(7.8) %
Combat Systems
356
351
5
1.4 %
Technologies
319
305
14
4.6 %
Corporate
(37)
(34)
(3)
(8.8) %
Total
$ 1,423
$ 1,288
$ 135
10.5 %
Operating margin:
Aerospace
15.6 %
16.4 %
Marine Systems
5.1 %
6.4 %
Combat Systems
14.9 %
14.8 %
Technologies
9.8 %
9.7 %
Total
10.7 %
11.0 %
EXHIBIT D
REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)
DOLLARS IN MILLIONS
Year Ended December 31
Variance
2024
2023
$
%
Revenue:
Aerospace
$ 11,249
$ 8,621
$ 2,628
30.5 %
Marine Systems
14,343
12,461
1,882
15.1 %
Combat Systems
8,997
8,268
729
8.8 %
Technologies
13,127
12,922
205
1.6 %
Total
$ 47,716
$ 42,272
$ 5,444
12.9 %
Operating earnings:
Aerospace
$ 1,464
$ 1,182
$ 282
23.9 %
Marine Systems
935
874
61
7.0 %
Combat Systems
1,276
1,147
129
11.2 %
Technologies
1,260
1,202
58
4.8 %
Corporate
(139)
(160)
21
13.1 %
Total
$ 4,796
$ 4,245
$ 551
13.0 %
Operating margin:
Aerospace
13.0 %
13.7 %
Marine Systems
6.5 %
7.0 %
Combat Systems
14.2 %
13.9 %
Technologies
9.6 %
9.3 %
Total
10.1 %
10.0 %
EXHIBIT E
CONSOLIDATED BALANCE SHEET
DOLLARS IN MILLIONS
(Unaudited)
December 31, 2024
December 31, 2023
ASSETS
Current assets:
Cash and equivalents
$ 1,697
$ 1,913
Accounts receivable
2,977
3,004
Unbilled receivables
8,248
7,997
Inventories
9,724
8,578
Other current assets
1,740
2,123
Total current assets
24,386
23,615
Noncurrent assets:
Property, plant and equipment, net
6,467
6,198
Intangible assets, net
1,520
1,656
Goodwill
20,556
20,586
Other assets
2,951
2,755
Total noncurrent assets
31,494
31,195
Total assets
$ 55,880
$ 54,810
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt
$ 1,502
$ 507
Accounts payable
3,344
3,095
Customer advances and deposits
9,491
9,564
Other current liabilities
3,487
3,266
Total current liabilities
17,824
16,432
Noncurrent liabilities:
Long-term debt
7,260
8,754
Other liabilities
8,733
8,325
Total noncurrent liabilities
15,993
17,079
Shareholders' equity:
Common stock
482
482
Surplus
4,062
3,760
Retained earnings
41,487
39,270
Treasury stock
(22,450)
(21,054)
Accumulated other comprehensive loss
(1,518)
(1,159)
Total shareholders' equity
22,063
21,299
Total liabilities and shareholders' equity
$ 55,880
$ 54,810
EXHIBIT F
CONSOLIDATED STATEMENT OF CASH FLOWS - (UNAUDITED)
DOLLARS IN MILLIONS
Year Ended December 31
2024
2023
Cash flows from operating activities—continuing operations:
Net earnings
$ 3,782
$ 3,315
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation of property, plant and equipment
644
608
Amortization of intangible and finance lease right-of-use assets
242
255
Equity-based compensation expense
183
181
Deferred income tax benefit
(86)
(177)
(Increase) decrease in assets, net of effects of business acquisitions:
Accounts receivable
16
38
Unbilled receivables
(261)
913
Inventories
(1,195)
(2,219)
Increase (decrease) in liabilities, net of effects of business acquisitions:
Accounts payable
247
(303)
Customer advances and deposits
343
2,415
Income taxes payable
266
(209)
Other, net
(69)
(107)
Net cash provided by operating activities
4,112
4,710
Cash flows from investing activities:
Capital expenditures
(916)
(904)
Other, net
(37)
(37)
Net cash used by investing activities
(953)
(941)
Cash flows from financing activities:
Dividends paid
(1,529)
(1,428)
Purchases of common stock
(1,501)
(434)
Repayment of fixed-rate notes
(500)
(1,250)
Other, net
161
18
Net cash used by financing activities
(3,369)
(3,094)
Net cash used by discontinued operations
(6)
(4)
Net (decrease) increase in cash and equivalents
(216)
671
Cash and equivalents at beginning of year
1,913
1,242
Cash and equivalents at end of year
$ 1,697
$ 1,913
EXHIBIT G
ADDITIONAL FINANCIAL INFORMATION - (UNAUDITED)
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
Other Financial Information:
December 31, 2023
Debt-to-equity (a)
39.7 %
43.5 %
Book value per share (b)
$ 81.61
$ 77.85
Shares outstanding
270,340,502
273,599,948
Fourth Quarter
Twelve Months
2024
2023
2024
2023
Income tax payments, net
$ 435
$ 607
$ 560
$ 1,100
Company-sponsored research and
development (c)
$ 144
$ 115
$ 565
$ 510
Return on sales (d)
8.6 %
8.6 %
7.9 %
7.8 %
Return on equity (e)
17.2 %
16.8 %
Non-GAAP Financial Measures:
Fourth Quarter
Twelve Months
2024
2023
2024
2023
Free cash flow:
Net cash provided by operating activities
$ 2,160
$ 1,196
$ 4,112
$ 4,710
Capital expenditures
(355)
(304)
(916)
(904)
Free cash flow (f)
$ 1,805
$ 892
$ 3,196
$ 3,806
Return on invested capital:
Net earnings
$ 3,782
$ 3,315
After-tax interest expense
310
315
After-tax amortization expense
191
201
Net operating profit after taxes
4,283
3,831
Average invested capital
32,451
31,258
Return on invested capital (g)
13.2 %
12.3 %
December 31, 2024
December 31, 2023
Net debt:
Total debt
$ 8,762
$ 9,261
Less cash and equivalents
1,697
1,913
Net debt (h)
$ 7,065
$ 7,348
Notes describing the calculation of the other financial information and a reconciliation of non-GAAP financial measures are on the following page.
EXHIBIT G (Cont.)
ADDITIONAL FINANCIAL INFORMATION - (UNAUDITED)
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
(a)
Debt-to-equity ratio is calculated as total debt divided by total equity as of year end.
(b)
Book value per share is calculated as total equity divided by total outstanding shares as of year end.
(c)
Includes independent research and development and Aerospace product-development costs.
(d)
Return on sales is calculated as net earnings divided by revenue.
(e)
Return on equity is calculated by dividing net earnings by our average total equity during the year. Average total equity is calculated using
the total equity balance at the end of the preceding year and the total equity balances at the end of each of the four quarters of the year
presented.
(f)
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, repurchasing our common stock and paying dividends. We use free cash flow to assess the quality of our earnings and as a
key performance measure in evaluating management.
(g)
We believe return on invested capital (ROIC) is a useful measure for investors because it reflects our ability to generate returns from the
capital we have deployed in our operations. We use ROIC to evaluate investment decisions and as a performance measure in evaluating
management. We define ROIC as net operating profit after taxes divided by average invested capital. Net operating profit after taxes is
defined as net earnings plus after-tax interest and amortization expense, calculated using the statutory federal income tax rate. Average
invested capital is defined as the sum of the average debt and average shareholders' equity excluding accumulated other comprehensive
loss. Average debt and average shareholders' equity excluding accumulated other comprehensive loss are calculated using the respective
balances at the end of the preceding year and the respective balances at the end of each of the four quarters of the year presented. ROIC
excludes goodwill impairments and non-economic accounting changes as they are not reflective of company performance.
(h)
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.
EXHIBIT H
BACKLOG - (UNAUDITED)
DOLLARS IN MILLIONS
Funded
Unfunded
Total
Backlog
Estimated
Potential
Contract Value*
Total
Estimated
Contract Value
Fourth Quarter 2024:
Aerospace
$ 18,895
$ 798
$ 19,693
$ 1,132
$ 20,825
Marine Systems
30,530
9,288
39,818
9,560
49,378
Combat Systems
16,142
838
16,980
8,647
25,627
Technologies
9,577
4,529
14,106
34,029
48,135
Total
$ 75,144
$ 15,453
$ 90,597
$ 53,368
$ 143,965
Third Quarter 2024:
Aerospace
$ 18,859
$ 937
$ 19,796
$ 254
$ 20,050
Marine Systems
29,008
11,463
40,471
9,578
50,049
Combat Systems
17,289
682
17,971
8,016
25,987
Technologies
9,794
4,602
14,396
27,093
41,489
Total
$ 74,950
$ 17,684
$ 92,634
$ 44,941
$ 137,575
Fourth Quarter 2023:
Aerospace
$ 19,557
$ 897
$ 20,454
$ 451
$ 20,905
Marine Systems
30,141
15,755
45,896
3,647
49,543
Combat Systems
13,816
721
14,537
6,236
20,773
Technologies
8,961
3,779
12,740
28,011
40,751
Total
$ 72,475
$ 21,152
$ 93,627
$ 38,345
$ 131,972
* 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
EXHIBIT H-2
BACKLOG BY SEGMENT - (UNAUDITED)
DOLLARS IN MILLIONS
EXHIBIT I
FOURTH QUARTER 2024 SIGNIFICANT ORDERS - (UNAUDITED)
DOLLARS IN MILLIONS
We received the following significant contract awards during the fourth quarter of 2024:
Marine Systems:
$880 from the U.S. Navy for long-lead materials for Block V Virginia-class submarines.
$375 from the Navy for lead yard services, development studies and design efforts for Virginia-class submarines.
$350 from the Navy for long-lead materials for Block VI Virginia-class submarines.
$245 from the Navy for procurement and delivery of initial Virginia-class spare parts to support maintenance availabilities.
$230 from the Navy to provide engineering, technical, design and planning yard support services for operational strategic and attack submarines.
$80 from the Navy for maintenance and modernization work on the USS Hartford, a Los Angeles-class submarine.
Combat Systems:
$505 for various munitions and ordnance. These contracts have a maximum potential value of $820.
$370 from the U.S. Army for the production of 155mm artillery projectile metal parts.
$65 to provide configuration changes for Canadian light armored vehicles (LAV).
$50 to produce launch pod containers for the Guided Multiple Launch Rocket System (GMLRS) for the Army.
Technologies:
$50 from the U.S. Air Force to modernize, integrate and operate the Department of Defense's Mission Partner Environments (MPEs), enabling the military and its partners to securely communicate and share real-time information at multiple levels of classification. The contract has a maximum potential value of $5.6 billion.
A contract from the U.S. Space Force to provide sustainment services for the Mobile User Objective System (MUOS) satellite communications system. The contract has a maximum potential value of $2.2 billion.
$305 for several key contracts for classified customers. These contracts including options have a maximum potential value of $1.4 billion.
$140 from the Navy to manufacture and test various components for MK54 torpedoes and for general engineering services. The contract including options has a maximum potential value of $810.
$280 for two awards from the New York State Department of Health to operate and modernize the state's health insurance exchange and to support and enhance the state's Medicaid Management Information System. These contracts including options have a maximum potential value of $480.
$115 from the Department of Veteran Affairs (VA) under the Veterans Intake, Conversion and Communications Services (VICCS) program to digitally convert historical veteran records and automate data extraction of existing records. The contract including options has a maximum potential value of $345.
A contract from the VA to provide information technology (IT) support services to more than 600,000 VA personnel at all VA locations nationwide. The contract including options has a maximum potential value of $230.
$155 from the National Geospatial-Intelligence Agency (NGA) to provide hybrid cloud services and IT design, engineering, and operations and sustainment services.
EXHIBIT J
AEROSPACE SUPPLEMENTAL DATA - (UNAUDITED)
DOLLARS IN MILLIONS
Fourth Quarter
Twelve Months
2024
2023
2024
2023
Gulfstream Aircraft Deliveries (units):
Large-cabin aircraft
42
32
118
89
Mid-cabin aircraft
5
7
18
22
Total
47
39
136
111
Aerospace Book-to-Bill:
Orders*
$ 3,814
$ 3,164
$ 11,278
$ 10,283
Revenue
3,743
2,744
11,249
8,621
Book-to-Bill Ratio
1.0x
1.2x
1.0x
1.2x
* Does not include customer defaults, liquidated damages, cancellations, foreign exchange fluctuations and other backlog
adjustments.
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