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General Dynamics posts mixed Q2 results as defense business grows

EditorRachael Rajan
Published 2024-07-24, 07:32 a/m
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RESTON, Va. - General Dynamics (NYSE: NYSE:GD) today announced its financial results for the second quarter of 2024, revealing an 18% increase in revenue to $12 billion compared to the same quarter last year.

The company's operating earnings rose 20.2% to $1.2 billion, and diluted earnings per share (EPS) increased by 20.7% to $3.26. However, the EPS was slightly below the analyst consensus of $3.28. The operating margin expanded by 20 basis points to 9.7%, with notable performance in the Technologies and Combat Systems segments.

Phebe N. Novakovic, chairman and chief executive officer, commented on the results, "This was a strong quarter overall, as reflected by solid growth in all key measures from a year ago. Our businesses continue to focus on disciplined execution of their programs, cost and schedule."

Novakovic also highlighted the Aerospace segment's success, particularly the increased pace of G700 deliveries and growth in defense businesses due to heightened demand in the current threat environment.

The Aerospace segment's orders totaled $2.7 billion for the quarter, with a backlog of $20 billion, marking a 2.8% increase from the previous year. The company's consolidated book-to-bill ratio stood at 0.8-to-1, with a total estimated contract value of $129.8 billion.

General Dynamics' cash flow remained robust, with net cash provided by operating activities at $814 million, or 90% of net earnings. The company maintained a solid capital deployment strategy, paying $389 million in dividends, investing $201 million in capital expenditures, and using $34 million to repurchase shares.

Looking ahead, General Dynamics continues to leverage its diverse portfolio of products and services across business aviation, ship construction and repair, land combat vehicles, weapons systems, munitions, and technology products and services. With over 100,000 employees worldwide, the company generated $42.3 billion in revenue in 2023 and remains a formidable player in the global aerospace and defense industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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