AI Takeaway
General Dynamics (GD) delivered strong FY2025 results with revenue growing 10.1% to $52.6B, net income rising 11.3% to $4.2B, and operating cash flow surging 24.5% to $5.1B, reflecting broad-based strength across its defense and aerospace businesses.
Revenue
$52.55B
++10.13% YoY
EPS (Basic)
$15.65
++13.32% YoY
Operating Income
$5.36B
++11.68% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue increased 10.1% year-over-year from $47.7B to $52.6B in FY2025, reflecting robust demand for defense systems and continued recovery and growth in the Gulfstream business jet segment. This broad-based growth underscores the company's diversified revenue base.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Operating income grew 11.7% to $5.36B, with operating margin expanding modestly from 10.05% to 10.19%, demonstrating disciplined cost management even as the company scaled revenues significantly. This marginal improvement signals operational efficiency gains.
Source: Source: 10-K Income Statement & Key Ratios (XBRL Financial Data)
Operating cash flow surged 24.5% to $5.12B, while investing cash outflows increased to $1.28B, resulting in robust free cash flow generation that supports dividends ($1.59B paid) and share repurchases ($637M). The strong cash conversion reflects healthy contract execution.
Source: Source: 10-K Cash Flow Statement (XBRL Financial Data)
2 more insights available
Upgrade to unlockGeneral Dynamics derives a substantial portion of its revenue from U.S. government defense contracts, making it highly sensitive to federal budget decisions, continuing resolutions, and potential sequestration. Any reduction in defense appropriations or delays in contract awards could materially impact revenue and backlog. This concentration risk is a persistent structural challenge for the company.
Source: Source: 10-K Risk Factors (inferred from business model and financial data)
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $4.17 versus the $4.22 analyst consensus — a -1.1% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $52.55B | $47.72B | +10.13% |
Operating Income | $5.36B | $4.8B | +11.68% |
Net Income | $4.21B | $3.78B | +11.32% |
EPS (Basic) | $15.65 | $13.81 | +13.32% |
EPS (Diluted) | $15.45 | $13.63 | +13.35% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $57.25B | $55.88B | +2.45% |
Current Assets | $24.25B | $24.39B | -0.57% |
Current Liabilities | $16.8B | $17.82B | -5.77% |
Stockholders' Equity | $25.62B | $22.06B | +16.13% |
Cash & Equivalents | $2.33B | $1.7B | +37.48% |
Long-Term Debt | $8.07B | $8.83B | -8.52% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $5.12B | $4.11B | +24.51% |
Investing Cash Flow | $-1.28B | $-953M | -34.73% |
Financing Cash Flow | $-3.19B | $-3.37B | +5.31% |
Dividends Paid | $1.59B | $1.53B | +4.19% |
Share Buybacks | $637M | $1.5B | -57.56% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 10.2% | 10.1% | +0.14% |
Net Margin | 8.0% | — | — |
ROE | 16.4% | — | — |
ROA | 7.4% | — | — |
Current Ratio | $1.444 | — | — |
Other companies in Aerospace & Defense
General Dynamics delivered strong FY2025 results with revenue of $52.6B (+10.1% YoY) and net income of $4.2B (+11.3% YoY). Diluted EPS reached $15.45, up 13.4% from $13.63 in the prior year, reflecting both earnings growth and the benefit of share repurchases.
GD's 10.1% revenue growth to $52.6B in FY2025 was driven by broad-based demand across its defense systems, marine systems, and Gulfstream aerospace segments. The company benefited from a strong U.S. defense spending environment and continued recovery in business jet demand.
GD's financial health is strong: the current ratio stands at 1.44x, long-term debt declined 8.5% to $8.07B, and stockholders' equity grew 16.1% to $25.6B. Operating cash flow surged 24.5% to $5.12B, providing robust liquidity and financial flexibility.
Yes, GD paid $1.59B in dividends in FY2025, a 4.2% increase from $1.53B in the prior year, reflecting the company's commitment to returning capital to shareholders. However, share buybacks declined sharply by 57.6% to $637M, suggesting a shift toward balance sheet strengthening.
Key risks include heavy concentration in U.S. government defense contracts (subject to budget uncertainty), potential cost overruns on fixed-price defense programs, and execution risk in the Gulfstream aircraft delivery ramp. Geopolitical and export control risks also present ongoing challenges for the company's international business.